Letter from the Chairman - Dr Chris Rawlings, page-3

My gut feeling is that the announcement on Monday has now brought things to ahead. It's been simmering away for too long. The politicians will now get the message that a ground swell / silent majority won't take it.

Shock sell off therefore just temporary.

I'm now thinking one of two things might happen (both potential wins);

1. The QLD Gov will exempt Carbon Energy’s unique CSIRO developed key seam technology from the Ban.

2. Our legal council will go after the QLD Gov for compensation of ~$150m (approx ten times our current valuation) .

Lot's of big numbers are being thrown about, re Valuation

'...the valuation attributed by accounting firm PwC of up to US$40 million to our Technology Licence Agreements for China...'

'...APP Securities values CNX at in excess of $225 million excluding the value attributed to our Queensland assets.'

'and Carbon Energy’s Surat Basin gas reserves have (in the past) been valued at a conservative $205 million.'

Source: http://www.heraldsun.com.au/busines...-the-right-notes/story-fni0d787-1227106447437

The China JV 100% backed by JinHong is being funded by a US$30 million investment, which will soon provide CNX with an ongoing income revenue source through professional services contract for the project at cost +15% . JinHong has a ~29% holding in CNX which it won't be walking away from any time soon.

All this for under 1cent a share OR $15.9M Market Cap!! Glad I topped up my holding by ~23% on Tuesday. IMO The future is looking bright.