INTERVIEW WITH ANDREW MITTON, EXECETIVE DIRECTOR OF WESTERN KINGFISH LIMITED (WKL)

“Optimal Growth Rates Continue”

http://www.brr.com.au/event/48700

FRIDAY, JULY 25, 2008, 6:30 PM.

BRR Today Boardroom Radio is having a chat to Herb Mitton, the Executive Director of Western Kingfish. Herb, always great to have you back on

10 Boardroom Radio.

WKL Hello again, Joel.

BRR Now, Herb, you have got a shareholder update to the market today. A few things in there to touch on to keep our listeners and your investors up to

15 speed with the operation at Jurien Bay. You have mentioned the System Farm which is moving along nicely there. You have had some tremendously rough weather out there. I think we are chatting off fairly saying it was the worst that it has had up there since about 1970. The good news is that the farm has come through in flying colours. You must be happy with that.

20 WKL Very happy with that, Joel. I am glad you (inaudible) (0:00:32). I probably would not have been inquired so commonly. Yes, you are quite right in what you say. The local people here are telling me that this is perhaps the most severe weather conditions experienced through Jurien since Cyclone Alby in April 1979. Obviously, we have used what we believe was the right

25 technology for the area and spent an awful lot of time proving those theories up before we invested. However, we are dealing with nature and nature throws some wonderful twists and turns into the equation and Friday was quite frightening. It was huge seas, it was tremendous squalls and torrential rain. When we got out to look at the farm the day after, we sort of went out

30 there doing some fairly deep breaths. We got out there and huge sighs of relief. Every mooring had held. The farm had ridden the squalls beautifully. A subsequent dive on the stock displayed no loss and everything was calm and normal and it was a great (inaudible) (0:01:44). I guess this is an upside to it. I can guarantee that we have certainly bettered our moorings after that event.

35

BRR Looking at the fish specifically, you have had some very great food conversion ratios. They have been growing astronomically. Has that continued? Because I think it would have been the coldest water period up there at the moment.

40 WKL That is right. We are very much in our winter cycle at the moment. In fact, we are looking ahead now at a matter of weeks before the water starts to warm and increase rapidly based on previous data. The fantastic thing for us, we have talked about this before, is that we believe that we have some competitive advantage given our location because of the 5 to 6 degrees of

45 warmer temperatures that we have through the winter months compared to competitors. We have proven this to be the case now going through this year. The water temperature is down around the 17-degree mark at the moment, 17 to 18 depending on the influx of the day. We have sustained very steady growth rate through that. There has been no market drop-off. We talked about SDA last time we spoke through conversion ratios. As we posted today on the release to the ASX, we are still sitting at 1.1:1 which is pretty exceptional for the time of year we are in and certainly has us looking more than a little excited towards what the warmer weather would bring over the spring and

5 summer months.

BRR Now I do not want to tread on Mr. Alan Savage’s turf too much, but in terms of the lobster operation, how are things progressing there?

WKL They are great, great. The Moreton Bay Bug dock that we have here, the

10 broodstock that we have collected earlier this year, is looking extremely promising in terms of getting our first breeding cycle started at advance. We have had some molts and bits and pieces which are showing us some behavior that we are about to start to get some more out of them. We are just about to head off up the coast, we are away interstate shortly, but when we

15 get back from that trip in August, we are about to head off up the coast and start to secure the broodstock for the tropical lobster that we are about to put in. Of course, a little closer to home, we also, at the moment, we have a couple of our people, one of our lobster technicians, and he is off-site, working rapidly, getting all of the collector material above all, and again, we

20 are just about to start to get that psyched and get that conditioned, ready for us to start in August again to collect the pueruli for the Western Rock Lobster. So all forms are up on that front, and yes, we are very happy with the progress we are making along those lines.

25 BRR Now Herb, finally, on the corporate side of things, you have mentioned in your announcement that you will be engaging in a modest capital raising. I know you will be out road-showing next week. Once you get around owning at the details of the funding and go through the raising, what sort of things are you looking to apply the funds to?

30 WKL Predominantly, we want to increase our capital base where we have applied a lot of the funds previously raised. We have some fairly state-of-the-art equipment here and we need to follow that through in terms of both harvesting equipment and environmental monitoring equipment, and also, we need the funds to be able to feed these fish we have to sea and the ever-

35 increasing amount needed coming behind them. We have some more money to spend in the areas of both the rock lobster and the kingfish side of the operation, and some improvements and upgrades we want to do to the hatchery as well in terms of water supply and ensuring things are okay as well. Things are good there now, but we believe that given what we are

40 looking to do with the broodstock, we would like to just have a couple of fallbacks there. So it is predominantly for, yes, building capital assets within the business.

BRR Herb, thanks a lot for those comments. All the best with the road-showing

45 next week. We will certainly get in touch with you in the not too distant future and update shareholders again. Thanks for your time.

WKL Thank you very much for that, Joel. All the best to you.

BRR Now remember, if you have any questions about this broadcast or anything else relating to Western Kingfish’s operations, please feel free to send through an e-mail. The address is brr@brr.com.au, or alternatively, you can use the Contact Us button on the BRR home page. I am Joel De Stoop.

5 Thanks for listening.

INTERVIEW CONCLUDED

Contact brr@brr.com.au for more information

DISCLAIMER: Transcripts made available by Boardroomradio.com is a free service whereby the transcripts are created by one or more third party contractors without any involvement or oversight by Boardroomradio.com or the respective company, firm, partnership or individual that is being transcribed. Boardroomradio.com and its contractors, client companies, firms, partnerships and guest speakers (paid or otherwise) do not invite reliance upon, nor accept responsibility for, the information they provide. Boardroomradio.com makes every effort to provide a high quality service. However, neither Boardroomradio.com, its transcript providers, nor the providers of any other written or oral data made available on the Boardoomradio.com site (and its partner sites) give any guarantees, undertakings or warranties concerning the accuracy, completeness or up-to-date nature of the information provided. Users should confirm information from another source if it is of sufficient importance for them to do so. Boardroomradio.com, its directors and employees do not accept any liability for the results of any actions taken or not taken on the basis of information in this site, or for any negligent misstatements, errors or omissions.