Trading Halt, page-5

Placement through Pattersons:

Highlights:

• Placement of 194 million shares to raise $3.5 million (before costs)
• Placement price of 1.8 cents per share plus one accompanying unlisted option at exercise price of 3.0 cents per option per three shares placed expiring 18 months from grant
• Placement price is a discount of 14% to Melbana’s last traded price and the 10 day VWAP of 2.1 cents per share
• Demand in excess of funds sought and introduced a number of new institutional investors to the Melbana register; scale back applied