Ann: Update on Enterprise North and Nangwarry Projects, page-10

Lakes directors are in extremely difficult situation. The company is sitting on a huge goldmine that is desperately needed by all and sundry in the state except that the government and its politically appointed cronies will not support for ideological reasons whilst disregarding commonsense. The company has very little operating cash left maybe a couple of months at best so how do the directors keep the dream alive and keep operating whilst repaying the ATO and meeting what are probably very onerous environmental requirements if they are ever permitted to drill? Most likely the board has a contingency plan and part of the plan would be to make announcements like this in order to try and keep the shareholders dream alive but at the end of the day a very large injection of cash will be required very shortly. Where will this come from if there have not been any unrestricted drilling approvals granted is anybody’s guess and it’s going to be a very brave investor who injects further capital into this company unless there is something in the background that we do not know about. Me I’m down $40k at the moment and it’s going to take something very special for me to go any further if shareholders are called on again.