NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE FINANCIAL YEAR ENDED 30 JUNE 2011 Consolidated 2011 2010 $ $ Note 7. Remuneration of External Auditors  Remuneration received or due and receivable by the external auditor of Karoon Gas Australia Ltd for: (a) PricewaterhouseCoopers Australia (i) Audit and other assurance services  Audit and review of financial statements  195,320 109,029 Non-audit services (due diligence services for Brazilian initial public offering)  135,600 - Total remuneration for audit and other assurance services  330,920 109,029 (ii) Other services Benchmarking services  10,000 - Total remuneration of PricewaterhouseCoopers Australia  340,920 109,029 (b) Related practices of PricewaterhouseCoopers Australia (i) Audit and other assurance services  Audit and review of financial statements  37,186 35,199 Non-audit services (due diligence services for Brazilian initial public offering)  449,657 - Total remuneration for audit and other assurance services of related practices  486,843 35,199 Total remuneration of external auditors  827,763 144,228 Note 8. Dividends  There were no ordinary dividends declared or paid during the financial year by the Group (2010: $Nil).  Dividend franking account Balance of franking account at end of financial year  - - Note 9. Earnings Per Share  Loss for financial year used to calculate basic and diluted loss per ordinary share:  (23,304,914) (14,893,839) (a) Basic loss per ordinary share  (0.1119) (0.0842) (b) Diluted loss per ordinary share*  (0.1119) (0.0842) * Diluted loss per ordinary share equates to basic loss per ordinary share because a loss per ordinary share is not considered dilutive for the purposes of calculating earnings per share pursuant to  AASB 133 ‘Earnings per Share’ . Weighted average number of ordinary shares on issue during the financial year used in calculating basic loss per ordinary share:  208,328,055 176,786,841 Weighted average number of potential ordinary shares:  1,188,898 2,991,254 Weighted average number of ordinary shares and potential ordinary shares used in calculating diluted loss per ordinary share (excluding anti-dilutive options outstanding):  209,516,898 179,778,095 Weighted average number of anti-dilutive options:  2,829,263 1,124,139 Potential ordinary shares Options over unissued ordinary shares of the Company outstanding at the end of the financial year are considered to be potential  ordinary shares and have been included in the determination of diluted loss per ordinary share to the extent to which they are  dilutive. The options have not been included in the determination of basic loss per ordinary share. 56 Karoon Gas Australia Ltd  Annual Report 2011