Monark, where are you spruking this horsesh#t from? 8B shares?...

Monark, where are you spruking this horsesh#t from? 8B shares?

Definition of Convertible Promissory Note

A convertible promissory note is a debt instrument that converts to equity in the company that issues it when certain conditions outlined in the promissory note are met. The conversion from debt to equity may be voluntary or mandatory depending upon the agreement between the issuer of the note and the investor.

im assuming the company is going on the assumption that they will find and produce oil/gas in the VERY short term to cover all debt and pay off loans, these loans are just a cover for current short term - 5-12 months.

$5m Financing Facility Secured

The Company is pleased to announce that it has secured a A$5,000,000 working capital loan facility
following the execution of a term sheet with General Nice Resources (HK) Ltd (“GNR”). Completion of the
facility and the initial A$3,000,000 drawdown is subject to satisfaction of certain conditions including the
execution of formal loan documentation, which is now being finalised. This funding will be used by the
Company to complete the acquisition of the two Texas oil and gas assets, fund pending development of
the Russell-Bevly #2 well on the NCR Project, completion of the Atzam #5 well testing program and
general working capital.

The key terms for the A$5,000,000 working capital facility are:

• Initial drawdown A$3,000,000 on completion via Convertible Promissory Notes
• Face value of initial CP Notes $3,333,333
• Further quarterly drawdowns available for full $5,000,000 (MAX $20M per year)
• 18 month term
• Senior security over all other finance facilities
• Interest 12% per annum
• Early redemption by the Company will incur a 5% premium equal to the Principal Amount being
redeemed
• Facility fee A$100,000 plus 200m 3 Year options exercisable at A$0.003 (options still give the company equity when converted)

The consideration for the acquisition of both assets includes A$500,000 in cash, 200m ordinary fully paid
shares in Citation (100m at completion and 100m within eight weeks of completion), forgiveness of a
A$189,000 receivable owed to Citation by Range and the assumption of Range’s remaining finance carried
obligations on the Atzam and Tortugas Oil Projects in Guatemala which is approximately US$800,000
when fully drawn which Citation will recoup under the finance carry obligation shared by Citation and
Range which is repaid as a priority from project cashflows pursuant to the existing funding agreement.
Range shall not be permitted to sell any of the first tranche of Citation Shares issued pursuant to the Sale
Agreement before 7 February 2015. Range also has the right to appoint one Director to the Board of
Citation, provided that Range holds a minimum of 100 million Citation shares.