Recommended Reply to Shareholders Association

In reply to the CPSA's e-mail circulated around mid-day today I sent the message set out below. I recommenmd that shareholders consider a similar response.

My message:

Dear Robin,

I promised myself that I would say nothing because if I allowed myself to comment on today’s extraordinary announcement, I would likely end up getting sued for defamation. As however you have asked for input I suppose it is unreasonable for shareholders to hold back.

So I will offer some remarks.

In short, I am aghast but not at the offer; I am astounded and outraged at the unanimous recommendation of the board. I can think of no honourable explanation for our board rubberstamping what is clearly a corporate raid.

I anticipate that the alibi will be that the company does not have sufficient money to go forward with its business plan. That is rubbish. Equally to the point it is offensive rubbish.

It is offensive because our board has never shared with the members of the company even an indicative budget as to what sum of money we need to raise. The offence is magnified by the fact that it appears to be the assumption of the board that it would be pointless to attempt a capital raising as it could not rely on the members of the company to subscribe. That is an unjustified assumption!

Consequently, I will be voting against the scheme of arrangement (irrespective of what other shareholders or the Association may recommend) and I will be supporting, and participating in, any moves to dismiss the current board in its entirety (with no exceptions).