Ann: Way Linggo Project Update , page-7

I have spoken at length to the company regarding the company's short, medium and long term prospects and I have come to the conclusion that the company's
prospects are fundamentally sound. Recent hitches, IMO, are temporary and
will be sorted out over the next 6 months.

Like some of the management and directors, I have considerable skin in the game and I may be accused of being biased just the same as you have no skin
in the game and could be accused of being the opposite.

I was pleased that Mr Morris bought a considerable parcel of shares on market
a few weeks ago. I think this is more convincing than talk.

If you remember that the market looks forward, then it's simply a matter of judgement ie: what is KRM worth when both Talang Santo and Way Linggo are back on track. In my opinion that will mean somewhere between 45K ozs equivalent and 65K ozs gold equivalent P/A.

Narrow vein gold mining is alot different to open pit and argueably requires alot
more skill. This has been so with MML in its earlier days and IMO very relevant
to KRM's prospects. It is fine being a doubting Thomas and surmise that there
is bad news down the track.

I, on the other hand, have faith in Mr Phillips and his experienced narrow vein miners that they are some of the best in the business with skin in the game to
to boot.

The Indonesian issue has been there from the word go and it is not of concern because they will have to buy-in at market price which is no different to the Chinese or anyone else. The important issue is the fundamnetals of the company:

-high grade
-low production costs
-further mines prospects
-and good prospects for the POG.

There's a vast difference in the costs of a company crushing, grinding and processing 300 tons/day and an open pit miner handling ten times that throughput with one tenth the grade.

In gold mining " Grade is everything"

Cheers
Moorookamick