Ann: Trading Halt, page-21

A few comments if I may: as I view it there were at least two ways of approaching today's deal - (a) earn in by paying for drilling etc., or (b) buy shares in the owner by issuing our shares, but NOT both where we carry all the costs. No. The directors know their business and I appreciate that, but only to a degree.

SI6 directorate have chosen to buy( most of) the owner, hence the spectre of large numbers of vendor shares being issued (albeit reduced by taking account of any rise in the SP - good idea), leading to dilution, but worse still the need for a consolidation down the track.

The directors have come up with a good set of prospects per se, but very Green, with SI6 to pay all the costs , as well as the share issues, hence cash raising issues will follow quite quickly. On this note I see a figure of as high as 8 M cash held mentioned....I thought this may be a little high?

The comment that there were no related parties ....is that indeed so, as I thought one of the directors to be a related party.
One good thing was the directors' comment that the Zim prospects compliment the existing ones....that is good, definitely. The brownfield element with the existing properties is very important, and much money has already been spent there.

The share price action today tells the story. ASX wise it was not a good day on market, yet resources/material stocks generally have done quite well. We (SI6) have not. Probably to justify to many long suffering holders the prospect of issuing so many new shares, and still paying full toll of costs over what promises to be another long termer, something more brownfields may have been expected, and consequently better received. The fact the area is reasonably close by in Zim and well placed infrastructure/power wise is a plus and the directors have chosen well in that regard, one might say.

Again, pitching options at 3 cents is not exciting....in any aspect of life if you aim low, the perception is you may get a low result.

The market is quite often a wise animal, and it has given our deal a big thumbs down - hopefully only today, possibly an overreaction as it is not a bad deal per se, so that the SP may /could recover quite quickly, perhaps: but 29 buyers for 8.4 m. shares v. 53 sellers for 19.6 m. is not encouraging. Perhaps once some of those sellers are gone the SP picture will improve. For those of the SH over seventy and who have been holding forever (it seems), any seemingly unwise use of time is a luxury some can no longer afford.

Tomorrow is a new day, and have a nice one.