announcement - capital raising, page-11

Snow Kat,

One thing is now clear. And that is, that, as I called it, Patterson were the ones behind this Material Capital Raising.

Now if we are to think about a little deeper here, even before the SPP they were envisaging to raise about $9 to $10million dollars. And that is why, in my opinion, that they lef their options open just im case the SPP was oversubscribed. There was never any thing said in the SPP circular that I've noticed, that the amount of shares under the SPP was to be limited to that amount of shares being issued after the SPP closing date. The option was left open, and JH did exercised that option.

Now, while the SPP was oversubscribed, it was clear that it wasn't sufficient to reach the amount that JH aimed for, hence why he agreed to Patterson receiving this amount of shares.

What is important though, is the fact that JH didn't let Pattersons Security have their own way in getting more shares than minimum amount that wouldn't hurt/dilute us as much.

I AM HAPPY WITH THAT. Especially when it made sure that we would have sufficient funds to carry on for a while longer, and give us room to move/breath, while planning for the next move !!