Audit Committee Charter:

The primary objective of an Audit Committee is to assist the Board in fulfilling the Board's responsibilities relating to accounting and reporting practices of the Company and its controlled entities.

The main functions of an Audit Committee are:

    -  to act as a committee of the Board of Directors in discharging the Board's responsibilities as they relate to financial reporting policies and practices, accounting policies and management and internal controls
    -  to provide through regular meetings a forum for communication between the Board, senior financial management and external auditors
    -  to enhance the credibility and objectivity of the Company's financial reports.

The responsibilities of an Audit Committee include monitoring compliance with requirements of the Corporations Act 2001, Stock Exchange Listing Rules, Australian Securities Commission, taxation legislation and other laws as they apply to the subject matter of the Audit Committee's functions (for example internal accounting, external auditing, financial reporting and taxation compliance).

In addition, the Board of Directors has charged the Committee with the responsibility of preparing a risk management framework through which to identify, evaluate and manage risks associated with the activities of the Company. The preparation of the framework is still in progress