has to find 35 million euro in two years, page-9

Whilst it is possible that Transcor can redeem rather than convert their notes it is not a given that they will ask for redemption. On the balance it is more than likely that the notes will be converted.

In saying this I do understand that such a position would currently create a large paper loss it does however maintain a position as the largest shareholder in the company.

This is important because if Transcor chose the other option, redemption, it would guarantee it would never be at the table with EPG ever again. Could EPG raise the cash sure Gazonor will definetly be worth that in the next two years and once credit markets stabilise loans against these projects will once again be available.

Energy Development had been able to finance CMM projects at over 90% debt e.g. Tower Appin. Proven cashflow and reserves will in the end attract funds.

cheers Icharus