confusion over who or what is trading, page-11

Intel,

“Muss IMHO the only path now is to ensure that ASOF dont get MST for next to nothing.I would imagine MST will be a great success in the near term following liqiudation.”

You are of course aware that we cannot do anything about the future of MST, and who gets the I.P. No-one is going to buy MST given the state of the balance sheet. As sad as it is unfortunately, once the I.P. is sold MST will be liquidated, MST will cease to exist as will our shares, so there will be no on-going success for MST. If there is any upside this goes to the eventual buyer of the I.P. and there will be nothing in it for us, or ASOF. As I said before if anyone does buy the I.P. I wish them success however, it will take a lot of money and time to achieve this. As a Shareholder of MST my opportunity to share in any on-going success or otherwise is gone and I have accepted this. As I said, based on the level of recovery, MST has proven to be a poor investment.

As regards ASOF taking MST the obvious question is why would they now? Given as I have said that in 20 years and after $120m+ MST could do nothing to commercialise the IP, why would ASOF want to spend more time and money on something that to date has no track record, or evidence that it will be a success? I would suggest that the only thing that ASOF would want to do is recover any of the money that they have spent to date.

“Why it ended this way I dont know ?,and I have a hunch most of the major shareholders would have a similar opinion ?”

The answer to this is simple, part has been addressed above, the Company has ended up this way solely due to it’s inability to commercialise it’s I.P. In reality I suspect that most of the Shareholders, major or otherwise, understand this.

“And thats what counts as any future deal ie ASIC has to be approved by the shareholders.”

I understand that there has been great concern regarding ASIC and the ratification of the share issue. However, we are never going to find out the result of this as the other requirement of the DOCA that of ASX allowing re-listing, which most here seem to have neglected, was the more important. I had on many occasions indicated that I had my doubts that ASX would allow the re-listing due to the previous losses and the small amount of working capital being injected etc. ASOF, would only be interested in taking a majority shareholding in a listed public company, and given that MST it is no longer listed and will probably never will be again, they have more than likely made the decision that they are better of remaining secured creditors. Again this is another reason why ASOF are not going to want to take MST for next to nothing or otherwise.

I guess the only thing that we are waiting on is when will the Creditors and the Administrators call for full time and liquidate MST. Maybe the Creditor is waiting for the end of the reporting period so they don’t have to bring a loss into this year’s accounts.