why the company should extend the options

We are very concerned about the Company's ASX/Media announcement that could and has been interoperated incorrectly, thus, it is a huge prejudice to Members of the Company that have the right to vote but may not send us the Proposed Resolution in light of the announcement.

I would like to take a moment to clarify this situation for everybody. The letter and proposed resolution that we sent out to Members of the Company was approved by a Lawyer and Members of the Company are within their rights to sign.

We have all supported the Company and have been patiently waiting for almost two years for the Company to resume drilling operations.

Immediately after the announcement was made on the 7 December 2009 that oil was found and the Company will be a future oil producer, huge volumes of shares and options were traded.

Within 8 days of the Company's announcement fully paid shares doubled and the optins tripled.

Within 10 days of the announcement almost 1.5 billion fully paid shares were traded and approximately half billion MHLO options were traded.

Then...... on 23 December 2009 Cooper Basin was flooded and to date drilling operations remain suspended to date.

The options are untradable and are due to expire on the 31 August 2011.

I understand and appreciate that it is not normal business practice to extend options because they are just that, options with a commencement date and an expiry date. However, there is an exception to every rule and I firmly believe that this is a unique situation that is not governed by man like a stock market collapse, business transaction that did not go ahead etc.

This is a Natural Disaster that has occurred on at least two occasions in the Cooper Basin and has caused an immediate cease in drilling operations in December 2009.

The access to the roads in the Cooper Basin have been restored and other Company's have commenced drilling.
We are in anticipation of the Company's commencement date of drilling operations.

Ciao
Nadia