under promise - over deliver, page-3

Philip

I've been doing some thinking re the finance and have a couple of qs for you given you're in the industry.

1. The banks were originally mandated last year and credit approval was originally due in nov. Can you provide some insight into what is the process? Is it: mandate then terms sheet then formal credit approval?

What does mandate mean? Would have they agreed on anything at this point?

Terms sheet what is this? Terms of the loan i assume incl amount and rate.

Formal credit what is the process? Haven't they already done the due diligence by this point?

2. They say term sheet was agreed 21 dec. Do you think the delay was because the terms were amended from what was already discussed / agreed back in oct when the initial Ann was made and they finally came to agreement on 21 dec. brr said terms sheet agreed that banks agreed to present to their credit dept.

I'm guessing there was some re negotiation going on late last year hence the delay.

3. Do you think there is much risk in formal approval at this point given due diligence has been done and terms agreed? Is it formality and legal docs drawn up etc or is there still risk of decline?

Appreciate your feedback Philip.

Cheers