taking numbers form various points,1 49% Capital Base, ECE...

taking numbers form various points,

1 49% Capital Base, ECE announcement, 15/11/11, footnote p2 113,510,000 equities

2 Shares on Issue Appendix 3B, 30/11/10 95,406,743

3 Options on Issue Appendix 3B, 30/11/10 7,950,000

4 Equity capable of being Issued (2 + 3) 103,356,743

5 Balance, (1-4) 10,153,257

The footnote (in the 15/11 Announcement) says:

"Based upon the number of securities on issue as at 31 December 2011 (sic) being 113,510,00, (sic) excluding the shares to be issued to ECE, being the sum of the currently issued securities in Globe, agreements currently in place to issue securities prior to 31 December 2011 (sic?) and securities likely to be issued up to and upon completion of the transaction. The latter may include shares to be issued prior to completion for working capital purposes and performance and consulting shares to be issued conditional upon completion of the transaction."

Working Capital purposes.

The Appendix 5B Quarterly Cashflow report stated operating cash outflow for the quarter ended Sept 31 was $777,000, and the cash balance was $1.5m, from which I would assume GBE could prudently attempt to run for two quarters (Dec and March), raising additional equity late Feb (before the cash runs out). The quarters prior to that were -2.6m and -1.5m, with the additional expanse being for "2(a) Exploration and evaluation"

Some of the posts above seem to suggest that it is unwise to ramp up expenditure, requiring additional working capital, when the equity price is 20% below that at which ECE will be subscribing in a month or so. I can see their point of view.

On the other hand, the 10.5m shares in the balance(4 above) at 25c-35c represent the ability to raise 2.5m to 3.5m in performance or consulting shares.

Interesting.

f111