fml half yearly report and accounts, page-10

gents interesting detail from the CRE accounts

As at 31 December 2011 the consolidated entity had net current asset deficiency of $16,948,000
(excluding restricted cash of $10,778,000 associated with environmental bonds) which includes
$370,000 in cash and cash equivalents, inventories of $8,416,000, trade payables of $16,910,000 and
borrowings of $9,410,000 owing to the Parent Entity. The payment of trade payables, borrowings and
forecast operational and capital expenditure arising from the mining operations at the Laverton Gold
Project are expected to be met from operational cash flows, existing cash resources and obtaining
additional short term financing if needed from the Parent Entity under the existing Finance Facility.

The ability of the consolidated entity to continue as a going concern is dependent on:

(i) The continued financial support of Parent Entity, Focus Minerals Limited under the existing
finance facility. The existing finance facility of a total limit of $13 million has at the balance date
been drawn down to $9 million.
(ii) The continued support of major trade creditors to defer payment of amounts outstanding to
coincide with revenue receipts from the next Campaign.
(iii) Other factors, some of which are not in the control of the directors including future gold prices
and gold recovery remaining at levels forecast by the Consolidated Entity.


Should the consolidated entity be unable to continue as a going concern, it may be required to realise
its assets and extinguish its liabilities other than in the normal course of business and at amounts
different from those stated in the financial report.

DYOR+DYODD If it all falls over it belongs to the creditors with security over CRE's assets-----AKA FML 100%
since DEC an extra $2m has been redrawn from FML taking it to $11m of a max $13m and the application for delisting was lodged with the ASX on the 12th january still awaiting their decision.
I wouldn't want to hold any CRE shares personally when or if the sh.....t hits the fan.Won't disadvantage FML other than for it to gain 100% control of CRE's assets for a little corporate inconvenience,after trying its best with incomplete control and unable to put cash in beyond the existing facility as it doesn't have CRE consolidated to shore it up.