Dear Shareholder

The Section 110 proposal is proceeding. The principal documentation has been completed and following discussions with the major shareholders in the Far East they have confirmed that they are onside and wish the process to proceed to a conclusion.

They are presently in the process of appointing lawyers to engage with the lawyers acting for London Asia Capital plc to ensure that the documentation can be properly reviewed and finalised so that it will then be in a position for all shareholders to consider.

I shall keep you updated on progress.

David Buchler
Chairman
London Asia Capital plc