Ann: Appendix 3B & S708A notice, page-19

Hi Lefevre, “capping” is defined as the following:

1. The practice of selling large amounts of acommodity or security close to the options expiry date in order to prevent arise in market price; or2. Anattempt to keep a stock's price low or move its price lower by putting sellingpressure on it.

Capping can serve many purposes. For example, the share price of SE1 was arguably capped in the lead up tothe recent CR to ensure a favorable price – 11 cents. If the share price had been higher, then the raise price would have been higher and therefore not as advantageous for the buyer. I am not sayingconclusively the share price is being capped at 13 cents – I am just strugglingto reconcile why anyone would offload so many shares at this price when clearly there is very strongdemand which is evidenced by the volume. It does not make sense IMO. Capping is also commonly employed prior to a take over bid; keeping theprice low ensures the bid price appears favorable. Hope this helps with your understanding of capping, seriously