Ann: Non Renounceable Rights Issue, page-3

Strategically this is the worst move any company could make pre end of a drill program and the resulting assay results.

We have been told that Phase 2 B is fully funded. We have been told that Australian Heritage has provided unsecured and interest free funding for the end of an extended drilling phase into November December. Where has this funding gone? No mention made in the new report.

With drilling apparently having proceeded for almost a month, advice of new significant geology but no assays to talk of, the KRC Board now decides its a great time to raise extra funds at 1 cent per share.

This move reeks of desperation in the either known or unknown outcome of the "very pleased to advise" Phase 2 B drill program.

The worst case scenario behind the announced fundraiser is that drill and or assay results are coming through which indicate poor drill outcomes which will make fund raising near on impossible after they are announced or the Board is so confident of drill results that it is gifting shareholders cheap shares so that they make a killing when results come through.

If confidence is the key then why not wait for the results to drive the share price and enable fundraising to minimise share dilution?

So at this time one can only assume that news to come is potentially all bad so fundraising has to occur before it is made public. Timing is everything and the KRC Board in my view has provided bad news on the progress of its Phase 2B drilling to shareholders after Phase 2A results basically said nothing.

KRC can't rely on layer cake theories, epithermal veins or the tooth fairy any more. Very positive assay results are its only future. Only a couple more weeks without very good news before I quit this show bag of a stock.