Please read:"ASIC Determination and Investigations On 17 August...

Please read:

"ASIC Determination and Investigations On 17 August 2010, the Company received notice of a determination by ASIC which restricts the Company, until 16 August 2011, from raising capital by using a ?transaction specific? prospectus under section 713 of Corporations Act and, in all circumstances where a prospectus is required, it must issue a full form prospectus (ASIC Determination).

The ASIC Determination places restrictions on the Company?s ability to raise additional funds as well as increasing the cost of so doing. The Company may not be able to raise funds on commercially acceptable
terms which could impact on the Company?s ability to operate as a going concern.

VERY IMPORTANT:

***** The Company has received a notice from ASIC since 28 April 2009 (Notice) issued under section 30 (Notice to produce books about affairs of body corporate) of the Australian Securities and Investments Commission Act 2001 in relation to alleged or suspected contraventions
of sections 180-184 (general duties of officers and employees of a company), 671B (information about substantial holders), 674 (continuous disclosure ? listed disclosing entity), 1041A-1041G (market misconduct
and other prohibited conduct relating to financial products and services), 1043A (prohibited conduct by a person in possession of inside information), 1307 (falsification of books) and 1309 (false information) of
the Corporations Act and sections 409 (fraud), 418 (false statement relating to companies), 419 (fraud by company directors etc. as to accounts), 420 (false statements by officials of companies), 421 (false statements by officials of companies with intent to affect price of
shares) and 424 (fraudulent falsification of records) of the Criminal Code (WA) concerning the management and affairs of the Company in the period from 1 January 2007 to the date of the Notice.****

The ASIC letter with which the Notice was enclosed stated that the Notice should not be construed as an indication by ASIC that a contravention of the law has occurred, nor should it be a reflection upon any person or entity.
The Board is not aware of any adverse findings as a result of investigations by ASIC. Furthermore, the composition of the Board of the Company has changed in its entirety since the date of the Notice. The Directors are unable to predict the risk of ASIC adopting an adverse finding as a result of their investigation or whether ASIC will find that a contravention of the law has occurred."