Ann: Dempsey Project Sale Update - Transaction Terminated, page-12

The problem for XST is that even if an oil bear market persists and good value acquisitions appear they have no money to buy anything .

To raise any meaningful amount of money present holders will be massively diluted .

There will need to be a fair enticement to get present or new investors to put more money into the business .

PCL selling their interest to REL does not bode well for things going quickly at Alvares .

REL is in much the same condition as XST , even more so .At least we are still able to trade .

They need to get some money from the legal action or things do not look good .

gltah