Ann: Appendix 4C and commentary, page-2

Hoping the lads can strike up a raising this quarter @ at a large premium to current SP with the right investors... Dont weaken now, dont sell out cheap!... we could be on the cusp of greatness!

"The Company received a number of investment proposals during the quarter, noneof which it felt sufficiently represented value to its shareholders. With the holidayperiod in full swing, the Directors opted to support the Company in-lieu of a moreeconomical arrangement.The Company has since continued to evaluate investment and capital raisingproposals and will update the market if and when any of these opportunities arerealised.The Company finished the quarter under budget. The decrease in expenditure hasbeen a result of the Company tightly managing ongoing operating costs; however,clinical investment will increase as the Company continues to streamline theadvancement of their highly promising synthetic antibiotic"