Roadsow presentations - Questions to be asked

Geography prevents me from attending the forthcoming presentations. Here is the issues I would like management to clarify.

Whilst ANQ has much to celebrate andmanagement provides a steady flow of information, the most important bit – whether the CETO 5 performance in electricity generation and water desalination has come up to expectation – has not been provided.

The “CETO 6 Concept Design Complete” announcement on page 2 refers to transmission losses. This again raises the question whether CETO 5 performed to expectations. Water desalination is a major selling point for CETO. Does one have to read the move away from using hydraulic energy for desalination as an indicator of unsatisfactory performance in CETO 5?

We celebrated the “Perth Project Grid Connected” in February 2015 and the project has been running for over 14,000 hours – yet the quarterly report shows no revenue for electricity delivered. This and reading the information on pages 2/3 of the quarterly report makes me wonder whether CETO 5 was simply a step to CETO 6 or whether CETO 5 is indeed a solution for small populations centres along the cost.

Now that the board has decided on a further CR, I think they owe the shareholders clear and comprehensive information on whether CETO 5 performs against expectations and what these were. The only indications I have found are “announcement 6.Dec. 2011 – It concludes that the first grid-connected CETO demonstration project should be between 1 and 5MW peak capacity with and optimum of approximately 2MW peal” and“1-2MW – announcement 13. Nov. 2012 - will be 1-2MW in capacity ”. The second announcement is already a climb down – but what is the actual output?

I am certainly holding, but to invest more of my funds, I need to know whether I am investing into something that is still at the “dream” level or something that has strong commercial potential.
Thanks to those attending the presentations and asking the right questions.