Ann: HZN Refinancing Arrangements, page-2

Well that is fantastic news.

Financing costs halved.  Even the RBL facility interest rate was reduced from LIBOR + 2.9% to LIBOR + 2.75% making repayment much faster.

In addition, Industrial and Commercial Bank of China (CBC), the biggest Bank in the World, has come on board.

PNG assets no longer securing the new Senior Debt/RBL.

If/when PNG assets are developed, we are in a very, very good position.

We can use our PNG assets to secure project financing for PNG.

Can more easily sell down PNG interest as previously stated.

It is probably likely that ChangCheng, our new partner in PNG, already has a relationship with ICBC.

ICBC may have joined the lending group as they see possible further lending opportunities should PNG go ahead.