quarterly news, page-4

So much for our prospective NSPOAs exercisable at 15c. This HY report has really killed it and the designated purposes for which it was intended to be raising funds.

If an option holder submits an exercise form but contributes no realisable funds then the conversion has not taken place. The ASX announcement was made on 25 Nov 2011 reads, "The exercise of these 12,092,691 listed 15¢ share options has raised $1.81m for the Company." The shareholders were misled. Was management misled? The matter of $1.8M for a small company such as NuSep at a critical stage of its expansion is of extreme importance.

Clearly there is a lot more behind this. One can now also readily infer a scenario why a recently elected director suddenly resigned on 20 Feb 2012.

Juke