Report of the Securities Commission on Aspects of the Affairs of Max Resources Limited

Glossary of Terms Used In Our Report

the Act	Securities Act 1978
AFA	Amendments et Fertilisants D'Amorique SA, French company developing fertiliser plant in France
AusGM	Australasian Gold Mines NL, Australian gold mining company
the Amendment Act	Securities Amendment Act 1988
ASIC	the Australian Securities and Investments Commission
Briggs	Peter Briggs, director of Max and of WRS Pacific
Cassim	Salim Cassim, Malaysian businessman, substantial security holder in Pica Corporation
the Commission	the Securities Commission
the Company	Max Resources Limited (In Statutory Management)
CR2I	Conception Realisations Industrielles et Immobilieres, French company constructing fertiliser plant for AFA
Czechowski	Edmund Czechowski, director of Max
the French Venture	an organic fertiliser processing venture in France in which Max was involved.
Horwath Report	Independent review of the affairs of Max by Horwath, Chartered Accountants, of Perth, commissioned by McShane and Johnson
Intrepid	Intrepid Mining NL, Australian incorporated mining company listed on the ASX, renamed to "Cobra Resources NL" on 23 March 1998.
Jeff Verheggen	Josephus Jeffery Verheggen, former director of Max
Johnson	Thomas William Johnson, former director of Max
KPMG	KPMG Corporate Pty Limited, Perth, chartered accounting firm retained to prepare appraisal report on the French Venture
Langoulant	Michael James Langoulant, former executive director of Max
Lunt	Trevor Lunt, former employee of Max and of WRS Pacific
McLernon Group	Australian private investigation firm, commissioned by McShane and Johnson in March 1998 to investigate Max's affairs
McShane	Robert Ivan Owen McShane, former director of Max
Max	Max Resources Limited (in Statutory Management), New Zealand incorporated listed company
Myles Nominees	Myles Nominees Pte Limited, a wholly owned subsidiary of Pica Corporation
NZSE	New Zealand Stock Exchange
Panel	Market Surveillance Panel of the NZSE
Pica Corporation	Pica (M) Corporation Berhad, a company listed on the Kuala Lumpur Stock Exchange
Skidmore	Robert Skidmore, employee of Max
Statutory managers	John Anthony Waller and Colin Thomas McCloy, partners of PricewaterhouseCoopers, chartered accountants, appointed on 31 August 1998 as statutory managers to Max by Order in Council under section 38 of the Corporations (Investigation and Management) Act 1989
Verheggen Snr	Josephus Theodorus Herbertus Verheggen, former director of Max, father of Jeff Verheggen
WRS	Waste Recovery Systems, the business of processing organic fertiliser
WRS Europe	WRS Europe Limited, French registered company, formerly owned by Verheggen family, agreed to subscribe for 87% of AFA after share issue by AFA in August 1996, sold in November 1996 to Max
WRS Pacific	WRS Pacific Pty Limited, company formerly owned by Briggs, Lunt, and Skidmore which held 87% interest in AFA until AFA agreed to increase its capital in August 1996 by issue of shares to WRS Europe
Wyllie	Bill Wyllie, shareholder in TPIC Limited, a shareholder in Max