today was all about timing, page-68

Hi Vintage,

For being a non-shareholder at current, I really respect your attitude and honesty towards KNL, especially when many potential KNL shareholders attempt to down-ramp the company to drive the SP price by using HC as a medium. Who knows if this really has an effect or not, but I definitely have respect for traders such as yourself :)

With relations to a potential CR, any ASX listed company board of directors would want their company's SP to reach its maximum potential before they would even contemplate a CR. Why? Because an increased SP will minimise the dilutionary effect on the market cap as the number of shares to be issued will be at an obvious minimum, whilst in return maximise the company's Directors own share holdings.

Obviously the above situation can only work when a company has the coverage and exposure to build their own demand within the market, but when we talk about junior exploration companies , the opportunity to maximise on a CR is a complete different story, such companies don’t have the exposure and interest to pull off a CR at a higher SP, so they will obviously have to provide a significant discounted CR which will have a maximum dilutionary effect on the market cap, which in return will drop the value of the Directors own share holdings.

So now we need to consider KNL’s position and their demand in the market. So what does the market know about KNL? The market now knows that KNL has found a substantial amount of commercial high grade Graphite, they know the logistical infrastructure in place is excellent, they know Graphite is easily moved into production, and they know Graphite has very high demand at premium prices!

I have also heard that there has been very strong interest from US based companies in both KNL and SYR with relations to potential forward contracts, and I believe there has been extensive interest from private and institutional investors to fast track KNL into production. Although, I feel that once both these companies moves into production, they will most likely been taken over by a larger organisation at a premium price tag!

So based on the above assumptions and considerations, does anyone really think that KNL will want a CR at a lower SP? or believe KNL will have no interest in a CR at a higher SP?