Ann: Update - Notification of buy-back - BRK, page-40

Starting at the first question

1) yes

2)probably not

3) it will ... a 10% buy back will increase EPS by 11%...a 50% buy back increases EPS by 100%... NTA will not increase by those percentages as cash falls by the BB spend.

4) To buy back as many shares as cheaply as possible... the SP may move higher as an indirect result of the BB, but not as a result of the company buying at an increase VWAP price to push the SP up. That is not permissible hence the VWAP rule. Possibly, if there was a proportional buy back to all holders at a nominated price it could be at 2c or whatever, but not with an on market buy back.

5) No.. it was to take advantage of the price value disconnect and buy an asset at a fraction of it's NPV , thereby benefitting all holders who remain shareholders with a a boost to fundamental metrics .

6) Not directly... refer to 5)

7) N/A

8) N/A

9) Only if on opportunity that presented required capital such that the buy back spend denied the company the opportunity to peruse it. At this point of time, current capital requirements for the Bradbury AOI and general leasing will be more than covered by cashflow to the extent the company will be significantly Free Cash generative for at least the next 6 months... and then there is monetisation which by definition should not be a draw on BRK capital.

If by the end of December BRK have bought 350 million shares at 1 c, then BRK should ask shareholder approval for a further buy back, this time for 20 % + to grab this once in a lifetime opportunity to unwind as much of the free option dilution as possible for as cheaply as possible . I and many other holders would be thanking the gods for this opportunity handed to us .

A company dilutes it's holders by 2 ways, equity dilution which is permanent, or asset dilution which is temporary and asset specific. By doubling the SOI, to have the same financial benefit in terms of metrics, a company has to find/ generate an asset that is twice as profitable to have the same EPS... for ever. Buy backs unwind that permanent dilution and decrease the supply of stock. That's how they benefit the share price.

Usually, buy backs are performed when company profits and cashflow are high, the share price is high, but at a discount to NTA... rarely do they occur when company profits and cashflow are high and the SP is closer the the low share price point than the high point. BRK are at that point and your 1c scenario would be the perfect storm for holders with the long term in mind , especially before monetisation.

We all know a monetisation event/ events are coming. Those selling at this point of time, especially when the company is backing it's value rhetoric with cash are, for whatever reason , handing back significant value to current BRK holders.... long may it continue.

Cheers

Dan