Ann: Appointment of Voluntary Administrators, page-14

With respect Keg, the changes in R&D tax laws have absolutely NOTHING to do with CCE’s current situation.

EMC is wholly and solely responsible for the current situation.

1. The proposed changes to R&D have not yet taken effect. CCE went under BEFORE these changes impacted in any way.

2. The changes to R&D tax laws would have however effected their business case.

3. In order to take advantage of the R&D tax breaks, CCE needed to spend money in order to claim. They have none, hence the situation they are faced with.

This situation has been bought about purely because of the immense cash drain due to the EMC business. This is a result of very, very poor due diligence, further heightened I suspect because the EMC business was dressed up as something it was not. This I’m sure will come to light soon.

Do not be fooled by CCE crying poor to R&D tax laws. It will falsely be used as an excuse also by the WA labour government to cover their a. The fact of the matter is also that no business case or due diligence was done by the WA labour government.

CCE have delivered nothing to shareholders, however certain
Directors have been living the high life with snouts firmly in the trough.

This charade would have gone on for years, perhaps decades. CCE have been given tens of millions of dollars and squandered it all. If private / institutional investment doesn’t support it, why should the taxpayers. Especially when this business has constantly mislead and not disclosed as they should in accordance with ASX rules!!!

CCE only have themselves to blame.