Internal Risk Management System Compliance

Management is accountable to the Managing Director to ensure that operating efficiency, effectiveness of risk management procedures, internal compliance control systems, controls and policies are all being monitored. Management has designed and implemented a risk management and internal control system to manage the company's material business risks and reports to the board at each meeting on the effective management of those risks. The company has developed a series of operational risks which the company believes to be inherent in the industry in which the company operates. These include:

• Changed operating, market or regulatory environments
• Fluctuations in demand volumes
• Fluctuations in exchange rates
• Increasing costs of operations

These risk areas are provided here to assist investors better understand the nature of the significant risks faced by the company.

The Board requires the managing director and chief financial officer to provide every half year a statement confirming these procedures are being maintained.