Ann: Quarterly Business Update, page-5

Hi all

for what is worth my take on report and going farward

wasn,t expecting much in sales last quarter, the first wetlands project was booked last fy and the second book this current quarter so wasn't expecting any value for the last quarter. But it would have been nice to see a figure of what sales happened last quarter there must off been some booked somewhere in the world or some for the canal project. That's my whinge now for the good stuff

the signing of the mou for supply of materials is very promising, certainly sounds as if more wetlands are on the cards.

tokyo 50 leads is very impressive

the tonage for both North America and Europe very impressive if they come off

for my figures going farward

at the start off the fy there was surpose to be $10m work in hand for china, I see this as about $7m wetlands and about $2m left on the canal ( last year we done about $11.5m which should of been $7m wetlands, there was two same contracts $1.5 and about $3m on the canal so there should of been about $2m on the canal going into this fy. The company had said $1.5 to 2.5m this fy before) so I see this as about $11m already this year with the extra $1.5m , the canal could have between $3 to 4m for work at this stage this fy..

the company was aiming for 7m for the rest of the world, brasil ticking along nicely but although hydro has $2m in contracts we need to keep in mind this isn't all ours so I would only give $1m value to this, if the company can win half the tenders out of europe and North America ie 2000 tons this should easily count for the extra $6m , I think goldap was 300 tons for $1.3m so based on this 2000 tons could be around $8mm worth

so if my figures are roughly right $11.5m currently in china , if they do the $7m rest of world then that leaves about $10m to come to hit in between of the guidance. To get a idea of this $10 I think the company already has this lined up , if you look a the recent investors presentation you will see they mention $30 of work in china in the first two years, this is about $10m more that what contract we know. This $30m isn't a new figure can't remember which report but around middle of last year the $30m figure was mentioned, basically bhzq come with this work to start with. So more contracts to come.

Another piont I will mention is the part bhzq has $5billion in contracts. I believe when we first started with them they had $4 billion so I think they have increased their order book $1b this is very promising long term , the more work they get the more coming our way, still very early days in this partnership, basic we have only completed one wetlands project, and still working on the other and the canal but as they become more confident in the parternship and the work being done more we will benefit, if we start to get 5% of their order book ($250m) the newing valuation 90c will easily be surpassed, we might get to Redrams $2

thanks

mickem