Email from Peter Wall

There are three clear reasons for the shareholder meeting:
1.   Approve the issue of options to APP and Patersons in accordance with their mandates for raising funds under the re-compliance raising (i.e. the $3 million we raised in December/January).  This was disclosed in our prospectus and we only need shareholder approval now because of the historical breach of the Listing Rules that has taken away our 15% placement capacity.
2.   Approve the issue of performance rights to key personal/management.  This is just so we have the ability to issue equity compensation to key consultants/employees to attract and retain them.
3.   Approve a placement (only if required).  We do not need these funds at present but want to maintain the flexibility to raise funds should a really good opportunity present itself.  Either way, I would not want to raise funds at less than $0.05 so we have some work to do before an equity raising would ever be contemplated.

Pete

	Column 1	Column 2	Column 3	Column 4	Column 5
0	Regards Peter Wall Partner Level 4, The Read Buildings, 16 Milligan Street, Perth  WA  6000  Australia
1	Tel: +61 8 9321 4000	Fax: +61 8 9321 4333	Mob: 0403 065 957	Email: [email protected]	www.steinpag.com.au
2	Skype: peterwall1976 Note: This email is confidential and legally privileged. If you are not the intended addressee please delete this message. Steinepreis Paganin take no responsibility for any changes made to this message or any attachment to it by any person or for the effect of those changes on the meaning of the message or the attachment.