Ann: Becoming a substantial holder, page-14

Because raising from sophisticated investors involves a few phone calls and the cash is in the bank. A rights issue usually takes a few weeks to prepare, lots of lawyers fees and then usually a 4 week open period to allow time for shareholders to take up their rights. So that is usually a 6-8 week process and then you still don’t know if you will have all the funds you require unless you underwrite the rights issue and there goes another 4% in fees. Then you have the fact that overseas investors usually can’t participate in a rights issue due to the restriction on capital raising documents in foreign regimes. So are you starting to see why it is much quicker and cheaper to raise from sophisticated investors so companies have certainty over their ability to meet future expenditure. Generally CYL did a great job of raising capital each time at a premium to the SP at that time, which means retail investors always had the opportunity to buy on market at the same price. This is just a fact of life and no different to any company on any exchange around the world.