Ann: Notice of General Meeting/Proxy Form, page-4

Most interesting to me was at the very end of the independent report. Very sorry for long term investors.
[Given that Life Biosciences will have up to a 59.6% interest in Prana after theProposed Subscription if it exercises all its Warrants, it is possible that LifeBiosciences might take over the whole Company in the future. If this happens witha favourable offer, for example an offer price that is at a premium to the shareprice or fair value per share then, the Shareholders could benefit from thetakeover.]

[Following the completion of the Proposed Subscription, the Non-AssociatedShareholders will have their current shareholdings significantly diluted from 100%to 67.0%, and further to 40.4% if Life Biosciences exercises all the Warrants.Therefore, the Non-Associated Shareholders may receive significantly lessdistribution of profits or proceeds from any future sale of Prana.]

[Given that Life Biosciences will have up to a 59.6% interest in Prana after theProposed Subscription if it exercises all its Warrants, it is possible that LifeBiosciences might take over the whole Company in the future. If this happens withan unfavorable offer, for example an offer price that is at a discount to the shareprice or fair value per share then, the Shareholders could suffer (on monetaryterms) from the takeover]

[Life Biosciences will become a majority shareholder and have up to a 59.6%interest in Prana after the Proposed Subscription if it exercises all of its Warrants.This significant shareholding held by Life Biosciences could reduce the tradingliquidity of Prana’s shares (and potentially exert downward pressure on the shareprice) and reduce the attractiveness of Prana as a takeover target by the otherinvestors which could be favorable to the Shareholders.]