The company reached agreement with SPG, subject to the satisfaction of certain conditions, to issue 583.3 million placement shares at an issue price of $0.012.

“The company wishes to reinforce with shareholders the strong recommendation to

support this placement when voting on this resolution in order to secure funds to ensure

the company can continue to trade, implement its business plans and also maintain the

support of financiers,” it said.

The other resolution for consideration at this EGM is approval of the issue of shares to Morning Crest Capital Management pursuant to the conversion of convertible notes first issued by the company on 30 December 2013.

The company has also been informed that Morning Crest Capital has entered into an agreement to acquire 50% of the convertible notes, and intends to convert those convertible notes into equity in the company.

“The company is not a party to that agreement and therefore not privy to its details other than what we have been informed,” it said.

“The company has also been informed that Morning Crest Capital and SPG are associates.

“The company’s current understanding with respect to the remaining 50% of the CNs is that they remain owned by their original investors, but prior to maturity they will be acquired by parties who subsequently intend to convert them. The company is not aware of the details of that acquisition including whether formal agreements are currently in place.

“At this stage the company has no information that would lead it to believe that any regulatory approvals will be required for the issue of shares pursuant to the conversion of the CNs.”