Statement of Compliance with Principles of Good Corporate Governance

In March 2003 the ASX Corporate Governance Council published the "Principles of Good Corporate Governance and Best Practice Recommendations" for the guidance of ASX listed companies. It requires listed companies to disclose in their annual reports the extent to which they have followed the recommendations of the ten basic principles to identify any which have not been adopted and to disclose the reasons for such departure. Accordingly the Company has tabulated below departures from the recommendations and the reasons for such departures.

2.1

The Board supports the principle of having a majority of independent Directors. However, it is mindful that in the early stages of the Company's development other competing priorities which may impact on the Board's structure could be of greater importance, in terms of increasing Shareholder value, than the independence of Directors.

2.4

The role of the nomination committee is assumed by the full Board. The size and scope of the Company's activities does not justify the establishment of such a committee.

4.1

The role of the Audit Committee is assumed by the full Board. The size and scope of the Company's activities does not justify establishment of such a committee. Instead the entire Board regularly and closely monitors the Company's financial performance and ensures that accurate and timely reporting systems are established.

7.1

Business risk is continually assessed by the Board and management including addressing the key items listed in this Corporate Governance Statement. The Company has formulated a Risk Management Framework.

8.1

The role of the remuneration committee is assumed by the full Board. The size and scope of the Company's activities does not justify the establishment of such a committee. No Director participates in any deliberation regarding his own remuneration or related issues.