im exercising, page-15

Good morning Dolphin.

I am not sure my opinion counts for anything. My last call was that Gus would starve the market of info until the options expired out of the money, as I believe the exercise of the OA's is too dilutive for the amount of capital it raises.

Then upon expiry, the steady flow of good news could see us trading much higher, and then raising additional funds at the higher level. Clearly I was wrong on that one.

I do know that Gus has up until very recently spent alot of time in the US on PEN business. I would guess that funding is sorted well and truely. I also feel very happy that the institution Gus has the closest relationship, being Pala, is happy to underwrite the OA's and take their holding upto the highest level they are permitted to. This gave me great comfort writing a decent sized cheque this week for the conversion.

I genuinely believe we will be looking back very shortly on this time when we could buy as much PEN as we wanted to under 5c as one of those opportunities we should have taken better advantage of.

I particularly love the line in the recent BRR interview where Gus mentions the new roll fronts and just how long they span.....the market loves upgrade surprises now doesnt it? Lets see how this pans out over coming months.

Exciting times.

After exercise of the options, PEN is now my largest position.

Kiril.

I hold