Ann: Appendix 3B and Section 708A Notice , page-2

These agreements with companies like SpringField are actually bad for the share price as it creates a price cap and is dilutionary. Shares just issued were at -130% of VMAP which appears to be 8.7c. The action of the last few trading sessions indicate that Springfield have been off loading at 10.5c and have off loaded only 1/3rd to half the shares purchased. The reason I speculate this is because there has been two large (for Ferrowest) sells at offer which is very unusual. If I was to guess I would say that the bid at 10c is Springfield ensuring sales at 10.5c. Once they sell their remaining 300-400K shares the larger bid at 10c will disappear. I'd hate Ferrowest to allow this to occur every month at -130% VWAP.