Hi My apologies in the delay in getting back to you, but have...

Hi

My apologies in the delay in getting back to you, but have been busy at our Pilot Plant out at Clontarf which is on verge of preparing proppants.

In reference to your first question, given the current backdrop in Capital markets we felt it prudent to have additional funds in the bank that have been earmarked as equity contributions for specific projects. The first of these being an equity contribution of $2 million in Pune in India. We believed at the time that if we had capital on offer to fund opportunities that will be undertaken within 12 months , we should accept the funding.

The other funds we have at our disposal have similarly been earmarked, but at this time. we are not in a position to disclose where, until the pilot plants proppants have been fully tested including conductivity and permeability testing.

We are acutely aware that at the time that we receive positive test results, we will not just utilise equity but debt funding within the business. To give you an idea though, to establish from scratch a start up Proppant plant of 50,000 tonnes a year , has an investment of in excess of $50 million, and in a couple of the scenarios discussed, potential licensees would like us to have a small equity involvement within these plants. Small being $2-$3 million. We are also in discussion with parties on similar opportunities to Pune and they will require some equity involvement from us. In fact if all opportunities are secured we will in fact need more equity in the foreseeable future not less.

We are also aware of the large number of shares on issue, but we believe all of the investments will deliver us a very accretive eps .

With the large number of shares on issue it is likely at some stage we will undertake a consolidation. As you are no doubt aware consolidations are best done when earnings growth can be seen on the back of positive announcements, or share prices will suffer greatly, therefore this is unlikely in the immediate future.

With regards your second question please find attached the Stimlab testing of our laboratory proppants for both conductivity and permeability.

If you have any further questions please feel free to call me on

Kind Regards

Sean Corbin