Ann: Response to Media Speculation - Exploration , page-5

re: Ann: Response to Media Speculation - Expl... The government gazette is here: http://www.kenyalaw.org/klr/index.php?id=933

If BSE have submitted the quarterly reports as they claim, the government can only be arguing the case on a technicality. The stupid thing is that BSE are the only company operating in the country who has demonstrated their ability to deliver on an exploration permit - why would anyone in their right mind cancel such a permit on "non performance"? It would appear the government is trying to redistribute as many licenses as possible to Kenyan companies regardless of the legal ramifications.

The saving grace is that the market already has zero confidence in the Kenyan government and has already assumed Base will eventually cede a 35% stake in kwale and has dismissed the value of any other exploration licenses there. That leaves alot of upside and not much downside beyond the short term panic of retail traders. Will be interesting to see how things change after the election.