20090203 Reply From Cowan About Returned Debenturs

Dr Mario Koppers From: Sent: To: Cc: Subject:

Verona Cowan [[email protected]] 03 February 2009 11:23 AM [email protected] Patrick Stapleton Debentures

Importance:

High

Good Day Dr Koppers We acknowledge receipt of your documentation as mentioned in your letter dated 2 Stapleton, which has been handed to the writer for her attention and reply.

nd

February 2009 addressed to Mr

We apologise for what may have appeared as ‘silence’ on our part, however we state that this is not the case. As you can well imagine, given the position we are currently in, we have been inundated with correspondences in much the same vein as yours (if we lucky) and worse. Nevertheless the courtesy of an acknowledgement was necessary, and for this we again apologise. We reiterate that we are certainly and most definitely not Bankrupt, however we are experiencing liquidity problems, as is most industries at the moment. We are working relentlessly to right the problem and bring things back on an even keel – but these things do take time. We have nevertheless referred the matter to the Board, who are meeting in March to discuss yours (and others) requests for early release. We will in the meantime apply to the relevant authorities for the early release of same. We are unsure of the process and the timelines associated therewith once it is with the authorities, however we will endeavour to speed things up as much as possible. We reiterate Mr Stapleton’s advices that the situation has already been in the media as well as we have had to send a report to the authorities. We have alerted all the roleplayers and stakeholders as to our current situation as we are an honourable company and are definitely not ‘hiding’ or ‘shirking’ our responsibilities - and we openly and transparently stated our case and what timelines we envisage rectification. In closing, firstly let me thank you for the manner in which you opted to manage this problem and secondly, we will be sending you (per express mail) a DVD of our flagship project, the DMC Damara – which has already ignited significant interest and we have some sales to boast as well as orders lined up. We ask that you partner with us for a while longer, while we continue to trade ourselves out of our position and give us a chance to re-enact the relationship with you and restore your confidence in us and our product. Yours sincerely (and apologetically)

Verona Cowan Company Secretary & Legal Manager Edwafin Group Mobile: +27 (084) 497 7858 Tel: +27 (031) 765 4570 [Ext. 239] Fax: +27 (031) 765 4842 Email : [email protected] Web: www.edwafin.com – CHECK OUT OUR NEW WEBSITE FOR OUR LATEST NEWS

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