Disclosure Statement - April 2009 

Company Overview
Projects Resources Limited (“PRL”) is a sharebroking company founded in 1985, which transacts primary and secondary market purchases and sales, and offers investment advisory facilities for its clients. It is owned by the Lee Family Trust, by Chris Lee, Giovanna Lee, and members of their family.
It is independent of any product provider, having no legal, moral or financial obligation to recommend any particular financial product, or brand. It offers neutral, research-based advice. PRL and its staff do not distribute or advise on risk insurance, mortgage broking, reverse mortgages or direct property investments but are competent to advise or comment on all registered investment products. Staff do not belong to any selling group or body of advisors and will not, unless required by new laws.

Income
Primary Market: Income is earned through being paid brokerage on all primary market transactions. PRL asks all clients to make out cheques for primary issue investments to the issuer. Primary market issuers pay brokerage to PRL, usually at rates between 0.25% and 2.0%; PRL rebates any amount exceeding 2% to clients. When a client invests money in a primary issue, the client is given an investment statement, (a prospectus is also available) which clearly highlights that brokerage is payable to PRL by the issuer, never by the client. If the investment were later renewed, brokerage would usually be paid again.

A typical brokerage payment would work like this:
A client invests $10,000 for one year in South Canterbury Finance, whose brokerage rates are spelled out in its prospectus, paying brokers 0.5% for one year terms. The $10,000 one year client deposit will thus earn PRL $50. If the amount invested were $20,000 the brokerage would be $100.

Secondary Market: For secondary market transactions PRL mails a contract letter to clients, itemising brokerage charges, usually between 0.75% and 1.35% for NZ transactions, 1.0% - 1.5% for Australian transactions, and 2.25% for other international markets. All secondary transactions are conducted through C J Lee Trust Account with ANZ Bank. This account processes client money only; it has no overdraft facility and does not receive interest; it would be unaffected should PRL ever suffer financial difficulties.

PRLdoes not charge for advice, information, its twice weekly newsletters, or for its quarterly printed client only newsletters.

Employees of PRL and their responsibilities
Transactions at PRL are handled by either: Chris Lee (M.D.), Mike Warrington, Edward Lee, Brian Howman, Linda Deacon, Lynette Rouse, Diana Holmes, or Giovanna Lee. Advice is available from Chris, Mike or Edward, who are licensed sharebrokers. Brian Howman will provide information and accept instructions. Chris, Mike and Edward keep up to date through regular contact with securities issuers, analysts, financial market participants, media and their clients. Staff are paid wages and may be considered for a discretionary bonus.

Advisers
Chris Lee: Chris Lee is Managing Director. He founded the company after a 14 year career in investment banking and financial markets. In 1985 he left his position as General Manager of General Bills Limited and Assistant General Manager of General Finance Ltd, to form PRL. He conducts research for PRL and offers advice to clients, on Australasian share and fixed interest investments.
Chris Lee has personal, family and business investments, and is a long-standing chairman of Parkwood Trust, a charitable trust that owns Parkwood, a large and well-known retirement village in Waikanae. He is trustee of a number of trusts and estates. A full list of companies in which he has investments is available on legitimate request.
Michael Warrington: Joined PRL in 2008 after a career including 18 years at First New Zealand Capital, and four years in senior positions at Westpac and ANZ involving credit assessment and distribution. He has passed securities papers required for NZX advisers (2002) and has a Diploma of Financial Services issued by the Australian Financial Markets Association (2005). He is qualified to advise on the same investments as Chris Lee. Michael has personal, family trust and business investments. A full list of companies in which he has investments is available on legitimate request.
Edward Lee: Joined PRL in 2006 and assists clients with advice and transactions. Edward is undertaking university studies in finance; his advice is also based on input from Chris and Mike.

Legal Disclosure and Dispute Resolution
PRL has no professional indemnity insurance. It undertakes to maintain shareholder contributions at not less than $1 million, to ensure it can compensate clients for any losses they may incur as result of negligence, staff fraud, or clerical error. In the event of any dispute, clients should approach Chris Lee to arrange a resolution of such a dispute.

PRL has never failed to meet any financial obligation. Neither, Chris Lee or any member of staff has criminal convictions, none have ever been charged with fraud, and none have been banned from providing advice or acting as company directors. 

Chris Lee
Managing Director
Projects Resources Ltd