Dilution, page-11

1. KMM is controlled by Mr James del Piano.
2. Coniston (a private company) is also controlled by Mr James del Piano.
3. Together as a group, KMM, Coniston and James del Piano control 31.44% of the issued capital of Sabre Resources. Ref page 69 of the 2013 Annual Report

Further reference; General Meeting Announcement and Explanatory Statement 28th June 2012 released on 7/6/2012 page 11; “Coniston is a private company controlled by Mr James del Piano” “KMM, an associate of Coniston, is also controlled by Mr James del Piano”

Coniston would seem to be conflicted in an EGM vote concerning the external Management Agreement between SBR and KMM. When it comes to a vote of Resolution 4 it would seem that Coniston et al can vote however there may be some uncertainty as KMM is the beneficiary of working capital that comes into the company so in a sense may be conflicted, especially if they are seeking an extra 10% capacity.