Company Overview of D H Flinders Limited

Bone Medical Ltd. announced that it has engaged D H Flinders Pty Ltd. as corporate financial advisor to assist it in formulating an effective financial strategy including determining capital requirements and assisting in securing such capital. The engagement is intended to take advantage of the recent willingness expressed by La Jolla Cove Investors to support the company's goal of raising new investment to replace the Funding Agreement with La Jolla. La Jolla has indicated that this would take the form of a waiver of any early termination fees and flexibility on repayment of the outstanding debt owed to it under the Agreement if new investment is secured this calendar year. The company will continue to have access to the La Jolla Funding Agreement whilst a new capital structure is being established, said Mr. Young. To ensure that the necessary arrangements are maintained, he indicated that the parties would shortly open the third of four USD 1.5 million notes under the Agreement, although the intent is to raise new investor capital and terminate the Agreement as soon as practically possible.