Ann: Appendix 3B - Issue of shares on exercise of options, page-7

Its all part of the share register of holdings as part of the IPO.

Its not a swindle at all. I will try and explain how I understand it.

When a Company does an IPO , some shares are sold to New Investors, but considering the Company is bringing its technology to the Table and its staff of Directors and its Patents. Then the Directors get issued shares and Options in the IPO.

Because they had the Company before they took it Public, they have Value in it prior to the listing of the shares. So to balance things up, the new Investors buy shares in the IPO, but because the Company is going from Private ownership and becoming Public, the Directors and previous owners of the company get shares given to them in exhange for the Company .

So previously they owned 100% of the Company, but after the IPO and new shareholders have shares, they now only own the ratio of the shares they were given as part of the IPO.

As part of their shares, some of those are Options, and its quite a win win, because when the directors buy the options at 25c, it keeps topping up the Company Bank account.

Its all normal stuff, and already known to the market. Its not a surprise, its expected.