2.5m of yellow tail, page-16

a few bots and bobs... Do you have a preferred type of white wine for this dish - maybe something Australian?

I've just got an e-mail back from Josh Goldman about a few questions that I was interested in him giving me his views on. Parts of it I have posted below if you are interested.

The last four tanks of the expansion to 1,000tpa are now being commisioned.

Re funding for the move to 5000tpa his reply was:

"We have stated that we expect new US production to cost approximately $5,000/tonne of capacity. We are actively evaluating financing alternatives, but certnail expect to use increasing leverage as cash flow from existing operations increases and can support reasonable debt to equity ratios."

Q - If equity may be required then are up open to doing a SPP to existing shareholders?

A - We will certainly consider it as part of our ‘07 fundraising plan.

Q - With regards to your investment in Western Kingfish limited do you see this as an ongoing growth market for Australis? My own opinion is that the IP Austalis holds is of immense value and these sorts of partnership / licensing of IP will in the longterm potentially bring greater rewards that the build , own , operate model that we have begun with. Are you able to provide any information on how these deal came about or what sort of interest exists in the aquaculture market for Australis IP?

A - This particular deal was generated by our Chairman, Stewart Graham. We agree that there are a number of potentially attractive ways for the company to leverage its IP and management experience to source additional product in support of our branded sales activities at lower costs than through development of company-owned facilities.

Q - Do you see any other opportunities to buy existing US based aquaculture facilities and convert them or is it simpler to just continue to upscale the existing facility?

A- We have looked at this option and have not found a sufficiently large, high-quality facility to motivate a move to a new location.