EAA -which way to go:Appeal Vs Re-applying

Got a letter from a case worker who refused to reconsider my EEA 4 application.

In short when i applied the EEA 4 back in late May 2015,and refusal a week ago,i didn't enclose my sponsor docs ,as they where in HO for EEA 3 application.she got the EEA3 2 days after i sent my application.

the case worker said,my case will not be reconsidered ,as i have not exercised my right to appeal the decision.if i want i can re apply with new application ,with evidence and fees to paid.
By the way i lodge an appeal a week ago.

I DON'T UNDERSTAND this!

Then proceed with the appeal.