shoto59, page-7

Hi Gaz,

I would interested in understanding what you see as solidly good fundamentals.

I was not seeing this for the following reasons.

- It is unclear to me that any of the Directors have experience in the resource industry and by appearance, certainly little in Australian terms.

- Only 2 of the 5 Directors appear to have shares and a maybe implying little real stake in the Company. One holds 19.9% and the other holds 2%.

- By their reports very little has been done in relation to developing the project in the past 12 months. DYOR

- In that time the share price has gone from 4c to 0.7c, and I make that a 98% drop in value.

- There does not seem to be a plan that has any clarity for the 78% of shareholders like me.

I am the first to accept that getting a resource project up in Australia is a risky and difficult process and always takes more time than we ever think. I have been in resources since 1980 so I have no illusions. However, the only way to get things through the process is driving them along actively and ambitiously with much multi-tasking; including pushing the regulators to get things through the system.

For Graphite there is a real and growing market and I would like my project to catch the wave, not die by the wayside.

Cheers