The Board has constituted an Audit Committee pursuant to ASX Listing Rule 12.7 with effect from September 2006. The Audit Committee is comprised of Messrs Cowlan, Bass and Galt, with Mr Cowlan also acting as its Chair.

The operation of the Audit Committee is governed by a Charter which specifies that its key responsibilities include:

• assessing significant risks faced by the Company and the effectiveness of procedures implemented by management to mitigate such risks;
• monitoring compliance with regulatory requirements, including the Corporations Act 2001, ASX Listing Rules and other statutory obligations;
• evaluating the adequacy of the accounting system and associated internal controls;
• reviewing the annual and half-year financial reports; and
• considering the effectiveness and independence of the external auditors.

The CEO and the CFO are required to declare in writing to the Board that the financial records of the Company for each financial year have been properly maintained, the Company's financial reports for each financial year comply with accounting standards and present a true and fair view of the Company's financial condition and operational results. This statement is required annually.