Investor Relations - Principle 4

Mr SL Wallis AO
Independent Non-Executive Director

Mr MB Yates
Independent Non-Executive Director (appointed as member on 15 December 2009)

The Audit Committee has a documented Charter, which is regularly reviewed and approved by the Board. All members are currently independent non-executive directors. The chairman of the Committee is not the Chairman of the Board. The Company has adopted the ASX Corporate Governance Council's Recommendation 4.2 during the year whereby the Audit Committee now comprises of three members following the appointment of Mr MB Yates. The Committee advises on the establishment and maintenance of a framework of internal financial control for the management of the Company.

The external auditors, the Chief Executive Officer and Chief Financial Officer / Company Secretary, are invited to attend Audit Committee meetings at the discretion of the Committee. The Committee met two times during the year and Committee members' attendance record is disclosed in the table of directors' meetings on page 19 of the 2010 Annual Report. The external auditor met with the Audit Committee and the Board during the year, without management being present.

The Chief Executive Officer and the Chief Financial Officer / Company Secretary declared in writing to the Board that the Company's financial reports for the year ended 30 June 2010 present a true and fair view, in all material respects, of the Company's financial condition and operational results and are in accordance with relevant accounting standards. This statement is required for the full year and half year reporting periods.

The main responsibilities of the Audit Committee are to:

assist the Board to discharge its fiduciary responsibilities with regard to the Company's accounting, control and reporting practices by monitoring the risk and internal control environment and management over corporate assets;

review internal controls and any changes thereto approved and submitted by the Company's Chief Financial Officer / Company Secretary;

provide assurance regarding the quality and reliability of financial information used by the Board;

oversee the activities of the internal audit function and external audit staff of the Company and to review the Company's risk management policies and internal control processes;

review and recommend to the Board the adoption of the Company's half year and annual financial statements;

liaise with and review the performance of the external auditor;

consider whether non-audit services provided by the external auditor are consistent with maintaining the external auditors' independence; and

perform, at least annually, a performance evaluation of the Committee members to ensure delivery on its Charter and continually enhance the Committee's contribution to the Board.

The Audit Committee reviews the performance of the external auditors on an annual basis and meets with them during the year to:

The Audit Committee's Charter is available on the Company's website. The Audit Committee also considers the selection and appointment of external auditors and the rotation of external audit engagement partners.

• Complies with ASX Corporate Governance Council's Recommendations 4.1,4.2,4.3,4.4