Ann: Shareholder Review 2018, page-6

DanP,

the inc in cash was due to an inc in total borrowings .....

take note of the inc in payables .......

basically - its going to CR to "stay in buss" .......

but - the preff's mean there aint any c/flows out of gas asset.......

and it "appears" that said preff holders have the ability to "switch" assets from which c/flows are secured ..........

so - either the puppy gets listed on the US market, and the preff equity agrees to convert (at 20% discount to issue price), OR, sunny ELK raises >101m A$ and pays them out.........(or combination thereof) .......

the fact that these terms and conditiona were NOT disclosed (I cant find reference to them anywheres .....I even asked the company THREE TIMES........and got NIL ANSWER......).....

the problem I have - is how do you get an investor to put money in - when the c/flows go to the preff holders ........

imho - until this is "fixed" its extremely difficult to get funding .......

going to get "interesting" quite quickly (imho)

rgds
V_H