Ann: Investor Presentation - September 2018, page-76

It is an extremely great shame that longterm holders are being tild to sell up and move on for "being frustrated" or "whinging".. because tge curve is NOT being creamed at all.. instead NO drilling on icewine tenements until 2020!!

3years and sp movement is ??
Longtermshareholder returns so far ??

The issue is the extra remuneration package that gives the individual the 6.4million shares or CASH equivalent within a yr if the sp is only above 6.3cents or so for 60day period..
A similar 6.4mill shares or CASH equivalent will be given if the sp is only above the 6.3cent level after the second year..
A similar 6.4mill shares or CASH equivalent will be given if the sp is only above the 6.3cent level after the third year...

So the incentive is to ONLY do well enough to get the sp to above 6.3cents and keep it there for three years..
Based on the underlying assets, this is NOT good enuff..
This is NOT an incentive for continuous sp growth..

The remaining minor elements of incentive program have low probability of occuring..
140mmbo reserves.. (based on current projects.. only possibly from hrz mulitple wells successfully flowing.. unless such an event or events occur over conventional projects).. looking at the drill timelines.. very slim chance for this target successfully being met..

Likewise with the 400mmbo resources target..
Need discovery wells tied in to 3d seismic..
It is possible upon success with the drill across at least 3 of the 4 prospects...

Why are the major sp-related incentives covering an sp level that doesnt go up at all after first yr??
And the reserves and resources related incentives which due to obvious timing of required work, only a minor part of the program..

The details of the program and reasons behind it are murky..
The performance shares can be paid out in CASH equivalent... potential uncapped liability to the company as the level of payments is not known..

How does this program tie in to Shareholders Returns.. it doesnt really.. when one looks at the detail and realistic timelines..

To be told as a longterm shareholder who has been invested over past 3yrs that i should sell up.. is ABSURD...
I sincerely hope that those which have been mesmerised by the champers and caviar get an opportunity to get their senses back ))

Because in 5 or 6yrs time they might be asking themselves.. why is this sp ONLY 7 or 8cents.. after so long with such fabulous assets... because you didnt demand better from the management of 88e...