Local News, page-307

I do not see how we would have control of Akara if the locals have 51% of the ownership. We would be stuck as the minority shareholder and they could decide whatever they pleased. In fact they would simply replace the senior management at Akara and get them to pay all the net proceeds from the mine to the Thai owners.

If any deal is done by our Board then we have to retain control of Ankara with 51% voting rights. There would also need to be a range of govt guarantees to ensure Akara can achieve optimum production over an extended period, say another 15-20 years plus access to additional tenements for expansion/maintenance of production, plus compo to get the mine operational.

Perhaps the most important thing for KCN to obtain is a bond from the Thai govt for $USD1billion at a major US bank that could be exercised by KCN at any time over the term of the agreed life of mine (15-20) if the Thais fail to meet their obligations.

Personally. after what has happened over the last 10 years, its silly to put any trust in the Thais and I would prefer a simple payout for the value of the mine (based on current gold price) or even just the amount handed down by the Arbitration panel, and then sale of the assets.

Even if the mine is re-opened by KCN, its share price will be depressed due to country risk concerns.

The only reason why the Thai's are negotiating is that they know they will get a kick in the butt when the judgement is handed down.

loki