Ann: Business Update, page-18

Thanks for the post! I have a few comments here.

Firstly all their eggs are not in the "China basket" it just so happens that China has seen some growth lately and as such is being talked about. They are also the most promising market in terms of capital to spend. So that comment is a little off the mark with respect. Phoslock has and I believe is continuing to seek expansion in Europe through our reliable partners there. In fact I wouldn't be surprised if we see some more announcements in the near future.

In terms of international relations I would tend to usually agree with you, however the fact we have a new Chinese partner in Beijing with CAPITAL and PEOPLE behind them I completely disagree that the government would target a Australian water company. Our connections in China have given us some form of assurance in any pending or future "trade" or "international relations" spats. Keep in mind the government needs products and companies like phoslock to maintain the social pressures currently being exerted in their country right now. The rise of the Chinese middle class has seen a rise in standards of basic essentials namely water. With a rise that doesn't look to slow down the government will continue to spend money on projects that help solve what is a truly major problem.

I think the announcement was positive and shows room for further development! I have no doubt management is working around the clock to achieve this! Looking forward to the AGM in the coming month, I hope to see some more great news around then!