Ann: COZ Agreement for Legune Station, page-15

Algen,

OK, I understand your enthusiasm and don't disagree with it. COZ came to my attention on the resignation of the then CEO, Andrew Grant, as well as the backdoor listing of the aqua-farming venture through WARL and that was about 12 moths ago when the price was sub 5 cents. I suggested to a number of friends and family to take a position, some did and some told me I had rocks in my head because of history with COZ. Some of them got in sub 5 cents so the current price and strategy looking tempting to capitalise on and cash out.

My view of their long term viability still stands, but my view of the right strategy, governance and funding differs, slightly. I am a fan of Australian companies doing what COZ and some others are doing and I will back them every time but sometimes their decisions put themselves at risk and that is disheartening.

That aside my greatest concern with COZ is twofold:
1. Revenue source to narrow on a high risk product (prawn farming), and
2. the scale of what they are trying to achieve at this stage is a large mouthful without major financial backing, even if only in principle.

As for Legune Station, it is big, its low lying, it is isolated from major infrastructure, it is prone to flooding and it isn't that close to the Ord River so not sure it will get any WA government benefits for agriculture development as part of the Ord River programme. COZ might get support as a WA company but that's different. They have a right of access for 3 years and the option to acquire but that option is not exclusive, price estimate is $60m before any project works would be initiated, that's twice the current market cap of COZ.

My view on their Project Sea Dragon differs and includes taking smaller steps more incremental steps with mainly Exmouth and Qld and also including MBD into their portfolio for a number of reasons.

Do I deny they are doing the right thing? Not really, just a different approach which pushes the question about retained interest due to using a different approach or review the basis for the initial investment and see if there is benefit in staying or not. If I thought I could be useful to COZ to help them get the project off the ground I would ring and offer them my services as I do like what they are trying to do. Its just from the investment perspective based on passed performance and scale of what they have just taken on, on behalf of the some of the company equity holders....