mogoa, page-4

re: 11c possible arbitrage Refer section 5.5 part (vii)...from their prospectus...

Section 5.5 - Terms and Conditions of Options

(a) Options Expiring 31 December 2004
Exercisable at A$0.20 (20 cents)
The terms and conditions of the options
expiring on 31 December 2004 are as follows:
namely, the Optionholder will be entitled to
subscribe for and be allotted an ordinary share
on the following basis and terms:

(i) The option shall expire at 5.00pm (AEST)
on 31 December 2004 (“Expiry Date”).

(ii) The option shall entitle the Optionholder
to subscribe for an ordinary share in the
capital of the Company. A share issued
on the exercise of the option will be a
fully paid ordinary share and will rank
equally in all respects with the then
existing issued ordinary fully paid shares
in the capital of the Company, from the
date of issue, and will be subject to the
provisions of the constitution of the
Company.

(iii) The option may be transferred at any
time, in accordance with the
Corporations Act 2001, the ASTC Rules
and the Listing Rules.

(iv) The option shall be exercisable at
20 cents (“Exercise Price”).

(v) The Option may be exercised at any time
prior to the Expiry Date by notice of
exercise in or to the effect of the form
provided to the Optionholder by the
Company at the time of grant of the
Option or otherwise, accompanied by
payment of the Exercise Price.

(vi) Other than as detailed herein an
Optionholder has no right to a change in
the Exercise Price or to any change to the
number of shares over which the option
can be exercised.

(vii) The option shall not entitle the holder to
participate in new issues of ordinary shares
offered to members of the Company
during the currency of the option.

(viii) For each option exercised, the
optionholder will be granted one further
option to subscribe for an ordinary share
in the capital of the Company, exercisable
at 30 cents, with an expiry date of 30
June 2008, and otherwise on the terms
and conditions set out herein, save that
this sub-clause shall not form part of
such terms and conditions. Any such
option shall be issued on the basis that
the Company shall make application for
such option to be quoted on any stock
exchange on which the Company's
ordinary shares are admitted to
quotation.

(ix) In the event of any reorganisation of the
capital of the Company, the option shall
be treated in the manner required by the
Listing Rules in force as at the date of any
such reorganisation, and as appropriate to
the type of reorganisation proposed.

(b) Options expiring 30 June 2008 exercisable
at A$0.30 (30 cents)

The terms and conditions of the Options
expiring on 30 June 2008 are the same as
those expiring on 31 December 2004, save
that:

(i) the Exercise Price is A$0.30 (30 cents);
and

(ii) the Expiry Date is 5.00pm (AEST) on 30
June 2008.

(iii) the provisions of sub-clause (viii) have
been omitted: i.e. there are no further
inherent option rights following exercise
of these options.

Cheers!