news concerning derby, page-16

Hi Cudeco,

I agree with you. We are best staying well out of this from a judicial perspective.

I think people are being led up the garden path by comparing other courts cases to ours currently in progress. If you refer to our court case with KLC, the actual decision relates to whether or not the Claimant will be granted an extension to appeal the determination by the NTT. There has to be considerable justification for that to occur, given that the appeal was submitted after the allocated period allowed. The facts of their case is weak at best.

For the record, OBL has an excellent win percentage when it comes to legal issues.

On to the funding issue. I do think that we are going to see some more dilution. It's a given, but let's look at a few things.

If the company does a CR from SH, I will know for sure that we are screwed. You tap your shareholders for two reasons; there is no one willing to invest, or you are doing them a favour to average down in anticipation of positive activity. OBL have already done their CR for shareholders, which is why I believe further CR will come from several areas.

Investors in the sideline wanting to get a little piece of OBL (drip feed capital- which is what the company is doing now), a cornerstone investor (probably from China) or revenue created from a Farm In - Back Reef, Cyrano etc Either way I don't believe SH will be hit up. don't forget the arrangement with OXX.

So, if we are able to remain solvent through external investment, I would say that is a very good sign because no one in their right mind would invest anything in something that was without potential.

My personal opinion is that a few of these ducks are being lined up with a bigger objective in mind. I'll leave it to the masses to speculate. This will happen within a short time frame of each other and you will see some significant movement. It definitely does depend on Derby, but I am very confident we have dotted our I and crossed out T's. Every day down is a day closer :)