Ann: June Operational Update, page-8

As guessed last week they now do what the most income earning comps do - reporting quarterly.

Benchmark for cashflow positive is 100 GWH billing annually - that's been achieved now for the first time and should be stated as operational cashflow positive as the issued performance shares are reported as an expense, showing a paper loss that actually isn't there. From the 4C in about 2 weeks we can derive what the profits per GWh could be and can then make assumptions about revenue / profits and sp based on monthly progress.

So far the 7-8 GWh per months are the best rate of growing responsibly - the income is now bigger than the expenses with the profits getting bigger months by months. Should they expand into NSW as outline previously they will use profits and debt facility to finance that. IMO the need for a CR is definitely over and the chance of a t/o is very high at any time.

In 1 -2 weeks we get a clearer picture.