Ann: Revenue Generation Recommences-KBL.AX, page-69

My understanding of the $71M figure for liabilities is that it is mainly for the streaming commitments to Quintana. As Mineral Hill produces Quintana first get their USD$23M investment repaid and they are entitled to a smaller share of production once the principal is recovered. There is no interest as such on the Quintana investment; they take a share of Mineral Hill production as is normal for metal streaming financing. This is a future liability that occurs as production occurs and is allowed for in the accounts. It is not debt that can be called in.

What I will call normal liabilities which are included in the $71 are creditors and the notes due next February.

Creditors are expected to be within normal terms by December and the noteholders are likely to rollover for another year. I would expect to receive an offer to extend my notes on acceptable terms in the next few months. My KBL shares are currently worth more than my KBLGA notes, so I have a foot in both camps.

The notes total less than $12M AUD.