gathering momentum, page-9

Hi Takethat

I take it (no pun intended) you've read page 4 paragraph 3 of the annual report?

You must remember that any deal signed would involve a sign on fee be it for licensing or production. The MD stated in the BRR interview that scaling up is not an issue. This is unlike a mining operation whereby production set up could take years. To set up a Coldry plant could be done within a few months.

ESI has a 15 million equity line of credit. The 2.5 mill capital raising was for the next 2 years of further R&D and operational costs. They may or may not need the 15 mill, hence its "Standby" status.

If they sign an agreement/s for supply to local power stations the 15 mill would be used for a scaled up plant. Alternatively ESI could build a plant on behalf of a power station and receive royalties instead. As you can see management have shown prudence and prepared for any variation on future contracts.

Likewise, should they sign with an overseas partner/investor/miner/power station the same would apply.

The Co. would not want to dilute shareholders so it’s reasonable to assume the following could take place to maximise the share price before any draw down on the equity line of credit.

Bankable Valuation
Government backing
Agreements/contracts
Granting of Coal license/tenements or JV's with coal miner
Not necessarily in that order.

Regards
RBA