Ann: Appendix 3B-IRI.AX, page-3

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"Performance shares are sometimes issued to a vendor selling an asset to a listed entity as a form of contingent deferred consideration, often where the value of the asset being sold is unclear or may vary materially, depending on whether the relevant performance milestone is achieved. For example, a listed entity buying a mining tenement that has been the subject of a preliminary drilling program with promising results but that requires an in- fill drilling program and other work to confirm the size and quality of the resource, may wish to protect itself in case the tenement does not live up to its initial promise. To do this, it may agree to include as part of the consideration for the purchase an issue of performance shares to the vendor with a performance milestone attached that an indicated or measured resource of a given size and quality is confirmed. From the perspective of the entity and its investors, this will help to avoid overpaying for the tenement if it does not live up to its initial promise. From the perspective of the vendor, this will help to ensure that it is appropriately compensated if the tenement does live up to its initial promise. "