Here are the highlights from the question and answer session that took place at the Annual General Meeting held on 5th December 2016.

Q. The last 18 months has seen a good relationship particularly with Mr Chen of Kaidi and the offering is supported by the major shareholder which is very encouraging. Is there a clear view of the future for discussion at the January meeting with our joint venture partners?

A. We haven't got a set and clear view of the future but if we get anything more than where we have got to today then that already will be a success. It will be achieved through good co-operation with Mr Chen and it is very useful to have Li Jiawei as one of our directors. Her responsibilities include dealing directly with Mr Chen himself.

Q. Could we have a bit more information on Zhongying, it's technology and power generation?

A. 2016 was the first time that we were able to look at some of the activities of the Kaidi group in which Zhongying has an interest. Now Zhongying and Kaidi are different and the Kaidi group itself is a very complex group structure. Kaidi is involved in bio-mass to power in which it has about 50 power plants in China and is also involved in bio-mass to fuel technology. We saw its demo plant in Wuhan and Kaidi is at the moment the only player that can produce commercial sized facilities of this type. It is building a large plant, the world's first, in Finland. This new large scale biomass to fuel plant, producing 200,000 tonnes per year, is being built in co-operation with the Finnish government and is due to come on stream in 2019. Another large scale biomass to fuel plant is being built by Kaidi in North East China. These are huge projects that we are talking about, the Finnish one is a one billion euro project. There is demand in Europe for this technology and one of the items for discussion between us and our Zhongying partners is how we in LAC in London can work more closely to promote this business in Europe for the benefit of all stakeholders.

Q. The Chairman should be congratulated for reversing the old position of Kaidi being reticent to engage with LAC. (This was seconded and approved by the meeting in general). What is the net effect on the balance sheet following the rights issue?

A. That can be partially answered because it isn't simply the question of the subscription monies being received but also the impact on the revaluation of our joint venture investment now that we can fully pay up our participation. The offering will raise just over £7 million, of which roughly £4 million will be defrayed under the settlement agreement, leaving approximately £3 million less some substantial legal costs. Now, the approximately £13.5 million value of our investment is currently based on Zhongying's abbreviated audited 2014 numbers provided to us, for the first time, in 2016 and so were for the best part of two years out of date. We are hoping that we can now have a much better and more certain valuation of our interest by the time of our next set of accounts.

Q. Will this net £3 million be soaked up by present costs?

A. No. We hope to have sufficient working capital to move forward without coming back to the shareholders for more funds.

Q. Are the directors shareholders?

A. No we are not. If there is an ability to work together then perhaps some part of the directors' rewards in the future might be taken in shares and not salary and that is a subject for discussion in 2017.

Q. Did the EBT buy shares in the offering?

A. Yes the EBT has applied for its basic entitlement but no excess shares. Post the offering and with all applications being met in full then the EBT should hold around 13% of the company's stock.

Q. How is the EBT's application being funded?

A. As we have explained before, by loan funding made available by the company.

Q. Who are the beneficiaries?

A. There are no beneficiaries presently under the trust but the EBT will no doubt in the future grant some shares.

Q. How did Richpoint and the EBT vote on the resolutions?

A. We will be post the results of the four resolutions later today but I can already say that the counts do not include votes from Richpoint on Resolution 4 and on any of the resolutions they do not include votes from the EBT.

Q. Where are Littlewood and NG in all this and are they connected with Richpoint?

A. Littlewood and Ng are not connected with Richpoint. Richpoint is 100% owned by Mr Huang and its sole director is Mrs Yang, his wife. They both live in Singapore and our managing director has met Mrs Yang there and she has been very supportive. They are a family of substance in Singapore and we have taken appropriate due diligence. Regarding Ng and Littlewood, the notes to our last accounts set out that we are in litigation with both Ng and Littlewood, and Toby Parker, in connection with LAC Singapore. In that connection we have had extensive discussions with Ng in Singapore, where he now lives, and with Littlewood in London and we believe he now lives in China. They have both been very supportive and helpful and we believe that we are close to reaching an agreement that hopefully will allow everyone to extract themselves. It is fair to add, whatever the past, we have had good cooperation from both of them in a sensible and reasonable manner to conclude matters satisfactorily.

Q. Who are the current directors of Zhongying and is Mr Ng a director?

A. All the directors are listed on page 39 of the Circular. Mr Ng is a director presently but this is something that we are now able to change because we will now be full members in the joint venture.

Q. Zhongying is not quoted on any markets so how can we establish value?

A. First we have to get a better understanding of Zhonying's balance sheet with the cooperation of Kaidi and our other joint venture partners. Even so, as directors we will still probably need some quite comprehensive external advice. Originally the investment in our accounts was shown at cost. Last year, we were able to reach a tentative valuation to which we applied a heavy discount as we had not yet completed a settlement which was always a blight on our shareholding. Now we will be able to consider in more detail the appropriate value for our investment in the joint venture which still remains of course in an unquoted vehicle. Fenton Higgins, of our accountants Higgins Fairbairn, has been of great help and assistance in valuing the asset and it should be easier for the 2016 accounts.

Q. Are there sufficient valuations to have off balance share dealings?

A. This is not an issue for the directors. The company registers all transfers and our shares are freely transferable. It is not for us to take a view. The general hope is that better information on Zhongying will mean better information on LAC.

Q. Are there any other material investments in LAC?

A. Apart from cash at bank and the Zhongying investment there is nothing material. We are still chasing some US$ 160,000 of unreceived dividends wrongfully being withheld by solicitors in Malaysia. We had to go to local courts to get these solicitors to release the title deeds for the underlying shares and we have now lodged a complaint with the local solicitors' regulation authority in Malaysia but it is a very slow process.