resolution 9 removal, page-12

Tarecq

I suggest you re-read the wording of resolution 9 in the text of the letter that was sent to the coy requesting the meeting.

There is no mention of "replacement" of existing options - it could easily be interpreted as meaning a further issue will take place in addition to the existing options - which would apparently contravene ASX rules.

By the way I was wrong a few days ago about Savni being likely to increase their holding by converting some of their options before the meeting - they have done so by buying more shares which is a cheaper alternative at the moment. Their average buy price was around 12 cents as against 20 cents to convert an option into a share.

However it seems to me that they are in breach of ASX requirements. They increased their holding of 9.37 million shares as announced last April to over 10 million as reported in the Annual report last September, but they did not make any announcement of their substantial holding change until today. And with todays announcement it is clear they have increased their holding still further. It seems your suggestion about them buying on market was correct - even though they were not reporting it.

Today's announcement is by way of housekeeping I think - there would probably have been questions asked if they were to vote their holding and it did not correspond to what had been publicly disclosed.

Now all we have to do is wait and see whether they vote in support of Bhushan or against them.