The company is short of cash but at the same time none of the...

The company is short of cash but at the same time none of the PrIME stake funds can be put into NSP unless it is just for bridging purposes over some months. As soon as the Luye moneys become available they will have to go into plant build up. A A$4.6 M purse won’t go far. Selling further stakes of 10% will rate as of critical importance.

As far as real profit is concerned I can’t see much being generated by PrIME for about 2 years. But note that that time estimate was 3 years last year so we are doing okay at the moment.

Remember also that gel sales have been doing very well in the last six months which should become clear in the HY report.

There was another interesting comment made at the June meeting. NSP is presently working with another fractionator in an arrangement under which NSP will be able to distribute its products in the first two years and in turn will also get access to the other company's products. [This statement is perhaps more a paraphrase than a quote.] This again surprised me but it was said in passing while discussing another topic. The relevance here is possibly twofold. Firstly, that this may answer the question of Kosenar of a few weeks ago as to where the S$500 000 of revenue in PrIME’s budget comes from in 2012 (and S$3M in 2013) when the new plant is not yet even set up. At the time I had no explanation and during the meeting I was feverishly looking at the longer term figures in the tables (in the presentation). The second aspect is that this entity could also become a stake holder.

On the issue of litigation settlement with NxGen that Raging Boom just raised, I did push the question at the meeting for the nature of the settlement and some measure of scale of the figure. It was just stated, "That is confidential, but we are very pleased with the result." I persisted: "But what was the approximate figure?" A: (other director) "I’m not going to say it is bigger than this (waving his arm upward). We are very satisfied." I had thought that they may have said something more specific in an informal manner as distinct from ASX ann. From the response, a wild guess on my part would be perhaps 2/3 of the amount claimed, i.e. ~$400 000. (You can make a guess too!) But even that amount will help cash flow along nicely in the short term.

Juke