Ann: Underwritten Share Purchase Plan & Development Funding, page-313

96Blitz, it's not onwards and upwards until we get the project financing in place. If this capital raise is required for the rest of the project financing to fall into place, then what happens if it fails to raise the required amount? Either no project financing or more likely much more expensive project financing, possibly with more dilution. It's naive to say that "finance is inevitable" because the question is at what cost! The $3M SPP underwriting and the $3M top up facility make it quite likely that the capital raise will succeed, which I am hopeful will secure project financing on reasonable terms without any further dilution. Remove the underwriting or the top up facility and there is a much greater risk that this capital raise will fall short, which is the worst outcome. Something that you and others don't seem to grasp (and sound more than slightly confused about) is that they also leave the door open for SH to provide the full $6M under the SPP, which would be the best outcome. The fundamentals are known, agreed and not in question - this is about securing and optimizing the project financing.

My hope is that SH strongly support the SPP because every dollar they subscribe reduces the amount available for Pattersons.