Terence, you write : " There is no way to overwrite the original ". Obviously ( and unfortunately ) this is exactly what happened to Penny.
Please allow me to demonstrate :
-in iPhoto, choose a photo that is of no importance ( ideally, scan in a piece of paper )
-if you selected a photo, make sure it has no edited version ( File »»Reveal in Finder : make sure there is only an original file, and "modified file" is greyed out )
-drag-drop this pic in Preview
-using the annotating feature , draw a few big ellipses on the pic ( so they are visible easily even on the thumbnail
-click "Save"
-going back to iPhoto, click on that photo, then "File »» Reveal in Finder »» Original File, and lo and behold, the original file ( yes, scandalously, the one that sits in the MASTERS folder ) that original file is now decorated with a few big ellipses and there is no way to persuade them to move away !
The only path to getting back the "original" original was well indicated by Léonie.