Ann: Quarterly Business Update, page-2

The China team is currently tendering on several large projects in southern China. All will require the full range of products and services. More information on their scope will be announced in due course.

Above-average temperatures triggered a significant increase in blue-green algae in many countries over the European summer. These conditions resulted in a substantial rise in enquiries from government agencies and lake owners. European staff are responding to enquiries and proactively marketing Phoslock to affected water bodies. A large number of new proposals have been submitted, resulting in several major projects currently under consideration. Most involve the treatment of large recreational water bodies, although three proposals to treat potable water supply reservoirs are also being assessed. In total, these projects could involve the application of some 2,000 tonnes of Phoslock.

SePRO and PET are currently undertaking a joint marketing program in Florida in mid-October to capitalise on the well-publicised efforts being made in that state to combat the growing threat of blue-green algae in the State’s waterways. A number of pilot projects are also expected to be completed in Florida before the end of the year.

During September, the Company exhibited at the International Water Association’s Bi-Annual Conference and Exhibition in Tokyo. This is one of the world’s leading events for the water industry, having attracted over 5,000 international specialists. Interest in Phoslock was high and we are currently in the process of following up on over 50 leads.