Ann: Company Update , page-6

I would rather see the glass half full than half empty. Sure the cashflow currently will not make us all rich but it does have important implications.

It proves that it is commercially viable to extract cmm from gazonor. One of the big problems that small cmm/cbm producers have is being able to access debt markets. Gazonor is unique in this area as it has proven history. Tony has been carefull in deciding how to develop Gazonor which is frustrating in the short term however imo it should reduce the risk of delays/ goverment roadblocks when the decision is finally made.

Poyndexter is absolutley right about finding a partner as the best option forward. ATM if EPG were raise 10 million Euro via share placement/ rights it would mean at least doubling the shares on register or another way at looking at it sell half of all assets. By getting a partner willing to fund 10 million euro for 50% of Lorraine it would leave us shareholders still owning all of gazonor ect and half of Lorraine.

It is sad that the bright future we all saw early this year has dulled but this is not because of the underlying assets being less than they appeared simply it is a case of being caught in the financial whirlpool caused by reckless decisions of american banks

cheers Icharus