quarterly report ending december 31 2006, page-6

mvded

LAF have gone recourse for borrowings on their production loans.

Initially they may need to use some of the funding no doubt about it, could take a couple of solid weeks to hit optimum production levels at least.

LAF have also allocated options to the lender, to which the lenders have agreed, offsetting or should I say enabling the transactions of further funding to transpire should they or when they are required.

The financiers are in a decent position with plenty of upside for them to want to participate. I think they got 4,000,000 options (that figure might be wrong but too tired to look) as a sweetener in the deal.

Warnie