Ann: Annual Report and Notice of Annual General Meeting, page-2

Can somebody explain this to me or is this coincidental that our
Executive Chairman is also the the founding director of the company who gives us a $5m Bridging fund in exchange for a lot of money and options.................is this legal?????

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Dr Paul D’Sylva Executive Chairman (appointed 13 February 2014)
Qualifications PhD in Public Finance and Econometrics
Experience Dr. D’Sylva is a founding director of Empire Equity Limited, where he has led
and arranged a number of funding transactions since 2008 for a diverse range of
resource and energy companies in equity, debt and structured financings on a
proprietary basis as well as from a network of institutional funding pa

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Bridge Finance and Recapitalisation
In February 2014 the Group executed a binding term sheet with UK corporate advisory firm Empire Equity Limited (“Empire Equity”) to provide $5 million bridge funding and undertake a broader recapitalisation and restructure of the Group and its
financial arrangements.
The Group received the $5 million bridge funding from Empire Equity and made key payments to current creditors and
negotiated a 3 month standstill period to recapitalize the Group. The standstill period was subsequently extended to 15
October 2014.
Empire Equity and/or its nominees (the “Investors”) have invested in 7.5 million unsecured convertible promissory notes
(“Notes”) with a face value of A$1.00 at a discounted issue price of A$0.6667 per Note and with a maturity date of 4 months
redeemable upon successful completion of the Groups recapitalization. The Investors will receive a 6% fee on the
Investment Amount as well as 70 million options, subject to shareholder approval, for providing the $5 million.