terms of the agreement?, page-4

“The equity issue will be in two tranches. The first tranche of 110,000,000 shares for
$US1.925 million will be subscribed on 3 November 2009 upon receipt of those funds,” he
said.
“The second tranche of 890,000,000 shares and 100,000,000 Options for $US15.575 million
is subject to shareholder approval.”
Subject to certain adjustments in certain circumstances, each Option entitles AFHL to
subscribe for one share at an exercise price of A$0.06 per Option at any time within three
years after its issue. They are transferable, but will not be quoted on ASX.
Dr Finniear said that, in addition and subject to agreement of final terms, AFHL intends to
lend a further $US17.5 million to the Company. The terms of this loan are yet to be
finalised, and a further announcement in relation to it will be made in due course.
The loan will be subject to the issue of both tranches of equity, and will also require
noteholder approval.
AFHL has advised the balance of the equity subscription moneys and the loan moneys
(totalling $US33.075 million) will be deposited into a joint bank account and will not be
released to Metal Storm until the necessary shareholder and noteholder approvals are
obtained. The Company will convene these meetings as soon as practicable.