Appendix 4C Quarterly report for entities admitted on the basis of commitments + See chapter 19 for defined terms. Appendix 4C Page 6 30/9/2001 Quarterly Activities Report Wasabi has increased its exposure to a broad range of resources and energy related projects which now include exploration for uranium in the Northern Territory and coal in Canada, renewable and energy efficient technology, and bio diesel production. Wasabi has good exposure to future projects and opportunities in a wide range of areas through its major shareholders Xtract Energy plc and Cambrian Mining plc which have a combined market capitalisation of $360 million. Uranium Assets Wasabi 100% Wasabi has acquired three exploration leases, prospective for uranium, in the Northern Territory. Aeromagnetic and radiometric surveys have been flown to identify targets on the Woolner Dome and Mt Bundy properties. Surveys of the Alice Springs tenement are due to commence as soon as weather conditions permit. Joint Venture Wasabi, through its subsidiary Rum Jungle Uranium Pty Ltd, has entered into a joint venture with Crescent Gold Ltd over tenements at Rum Jungle and near Tennant Creek in the Northern Territory. The tenements are considered highly prospective for Uranium. Rum Jungle Uranium has the right to earn up to a 75% interest in the properties by expending $1.1 million by mid 2009. Lillyburt Coal Approvals are being sought for an initial drill programme to assist in determining the quality and quantity of the Lillyburt project. Bio diesel Investment Wasabi has entered into a joint venture with Cambrian Mining and Swann Capital Group whereby Wasabi has a 50% stake in a newly formed company, “Evolution Energy”. Cambrian and Swann each have a 25% stake in the company. The purpose of the company is to evaluate several opportunities in the ethanol and bio diesel industry. Evaluation of opportunities is continuing. Evolution Energy has advanced $325 000 to K E Engineering with the objective of having direct access to the engineering know how of an operating Australian bio diesel plant. The plant is located at Laverton, Victoria. Bio diesel is anticipated to be produced late in the 4th quarter of 2006. Wasabi, for its contribution to the investment in K E Engineering, is to be paid a royalty on the first 20,000,000 litres of production. The total royalty payable is $896,000.
Appendix 4C Quarterly report for entities admitted on the basis of commitments + See chapter 19 for defined terms. 30/9/2001 Appendix 4C Page 7 Renewable Energy Technology Exergy Inc Wasabi continued its support of the 46%-owned Exergy on the basis that it believes the technology provides sustainable efficiencies in what is considered to be a significant growth market. Licencees include Siemens (Europe), AMP Resources (USA), Geodynamics Ltd (Australia), X Orka (Iceland) and Ebara Corporation (Japan). Of these licensees, both Ebara and X Orka have operating plants and have been providing power to industry and village residents respectively. Licensees have made representations to Exergy that they have begun construction on a range of projects. Both Exergy and Wasabi continue to monitor progress carefully and are confident of securing royalty streams in addition to royalties already being received from Siemens in Europe. Wasabi had been negotiating the sale of its interest in Exergy to a third party. The sale negotiations have been terminated with this party but Wasabi will continue to evaluate opportunities to realise a return on its investment in Exergy. Kalex Licence Wasabi has entered into a licensing agreement with the US based Kalex LLC (KALEX) that will significantly enhance Wasabi’s capability to develop zero and low greenhouse gas emission power generation projects. This opportunity is particularly exciting for the Company given the opportunities that are rapidly emerging with global recognition of climate change problems and the need to reduce greenhouse gases. Under the terms of the agreement Wasabi Energy has acquired a global licence to develop power projects utilizing KALEX system technology. The acquisition of the KALEX licence complements Wasabi’s existing technology investments and provides Wasabi Energy with access to a raft of other project development opportunities especially in the area of power production from waste heat.
Appendix 4C Quarterly report for entities admitted on the basis of commitments + See chapter 19 for defined terms. Appendix 4C Page 8 30/9/2001 Corporate Wasabi has entered into agreements that will further strengthen the company’s energy asset base. The agreements involve the purchase of a 50% interest in a joint venture with Danieli Corus, a world leader in steelmaking technology, and an 18.6% shareholding in Aviva Corporation Ltd, a prospective coal miner and power generator in the Central-West region of WA. The acquisitions will be subject to shareholder approval and will involve the issue of 175 million new Wasabi shares and 25 million options exercisable at 3c per share on or before 30 June, 2008. The Danieli Corus joint venture is a well-advanced research project into a method of producing char utilising an environmentally benign pyrolysis process. The process may have application in the steelmaking industry, in the pre-treatment of coal for coal liquefaction, in upgrading low grade coal to metallurgical quality and for extracting oil from oil shales. Aviva (ASX code: AVA) holds extensive coal deposits near Geraldton, WA, and has embarked on pre-feasibility studies with a power company partner on the development of an electric power station in the rapidly-developing Central West iron ore province. Exercise of Listed Options At 30 June 2006, the Company had 142,376,038 listed options on issue. The options were exercisable at 2 cents each with an expiry date of 31 December 2006. The Company had an excellent take up with 129,292,001 options being exercised to raise approximately $2.58 million. Of the 13,084,037 options that remained unexercised, 10 million options had been underwritten to raise a further $200,000.
WAS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
