Ann: Suspension from Official Quotation, page-16

ELK (aust) - - - - - > (100% ELK USA Inc) - - - - (operating assets)


THEY ARE NOT SELLING ASSETS .......

they "may" be selling equity in ELK Usa Inc .......

note that the adjusted terms of the preff equity allow for a %, of Elk Usa Inc (which increases throu time - once the debt refi is announced, and before the preffs are redeemed) .......

so - lets assume 15m gets them 50% of ELK USA.....and then refi is announced......and then lets say (in 9 months time), that Grieve is up and running, and they can borrow 50-60m against that asset .....and then redeem the preffs ......

net net - those nice people would end up with 70-85% of Elk USA .........

lets hope that im incorrect ....................

rgds

V_H