Ann: Revised Terms on Corporate Transaction with ERM Power, page-74

Surandy I respect your ability and balance as a result of debates on another company. The reality is in what you have put up above.

The board has effective control - yes they got in because of the 249D and that was orchestrated by ERM , however they are to a degree an independent board. ERM did not vote out the old board they needed us - we voted them out. We have to take that responsibility - in fact I remember sausage sizzles etc hosted by HC. We could have nominated our own directors or we can vote them out at this AGM - I presume having been elected that some have to resign to be elected at this AGM. I dont see it as you do - we wanted this board so its ours.

I dont believe on the evidence we have today that I will ever recover the investment I made. So $100 million plus Market cap I see as far away. I also dont know how any board can be independent of a financier - Look at elders they didnt even seem to care about shareholders until they had got rid of the onerous bank syndicate. So if ERM is calling the shots I think its because they are the banker.

I dont blame you wanting the board to run the company for all shareholders - I agree. That is probably why I dont want ERM to do this deal. Nothing good can come from a feeling of being had , or that someone is gaining an advantage over others. Look at Nexus - Seven Group will have to wear the anger there. I dont want this deal because of the feelings of shareholders in EGO. If they stay as a JV partner and its a huge success then we can all share the benefit. If they gain an advantage by way of this deal - they will always carry the smell of a questionable business practice. If they do the deal and it fails we all have a bad taste and it wont benefit ERM at all.

That is why I think the deal should be voted down and the directors should seek a plan that the EGO shareholders want. If that is a CR and a small exploration process to keep tenements alive than budget for that - after the Alcoa contract first phase we then get cash flow to pay our share of future development. Is that my first prize - No I would like to raise the funds and get drilling but the dilution is unpalatable to most shareholders so lets wait.

What I dont agree is the bashing of ERM. We can vote it down - If I offer to buy a commercial property with 4 partners than you can agree to sell or vote to keep it. That doesn't make me a bad person - even if its a cheeky price offered. ( Note I have no idea how fair the price is until I see assumptions and KMPG report).