quarterly update errors and omissions, page-3

I don't know either ... but I have sent them the following email:

Dear Sarah,

I found your email address on this announcement, so I thought I would write to you to explain my concerns regarding this announcement. You may wish to forward this to someone in NFL to answer, but I believe that you have a responsiblity to ensure announcements with your name on them are accurate.

In the announcement I read that "The last six months have seen the price of Palm Oil - the primary feedstock - jump from $400 per tonne to around $880 per tonne, resulting in a serious downturn in market sentiment".

This statement is incorrect. The price of Palm Oil was last $400 18 months ago, not 6 months ago.

At the time of the release of the prospectus at the end of 2006, the stated price for palm oil was $495 per tonne.

I believe the true cost of Palm Oil about six months ago was about $600 per tonne.


And why is this so important?

Well if you look back to the prospectus you will see that every +10% increase in the price of Palm Oil would reduce the profit NFL make in the 2007/2008 financial year by about $A30million. It looked like the Palm Oil cost had doubled in six months.


And what has happened today?

Many sellers have panicked and sold all their shares. Over 2 million shares were SOLD today, the share price has fallen from 26 cents to 22 cents after the relase of this announcement. The market price for NFL has fallen by $7 million today for the 175 million shares on the market, or $13 million if you include the shares still held in ESCROW

I believe much of this is due to the errors contained in the announcement.


Any other comments regarding the announcement are 'minor', such as the Construction of the Singapore Plant is On Schedule, when it won't be completed by Q4 2008, and in the original prospectus you had listed dates between September 2007 and December 2007 for completion of the plants. According to the prospectus, a 3 month delay in completing the construction of the plants would reduce the profit by $40 million yet we have not had any explanation about why this has occured, and only have a vague date for completion. According to the prospectus Singapore was due to make 124 million litres of Biodiesel by December 2007.