Ann: Quarterly Activities & Cash Flow Report, page-18

Share price prediction

I was the holder that stated that I believed last week would be the last time that we traded under $0.20. I underestimated the Tanz govt's ability to publish some whacky regulations that raised more questions than it gave answers. That 500k share dump (on Wednesday open I think it was) certainly didn't do much to reassure shareholders or prospective investors either.

I got it wrong. However, the silver lining to my incorrect prediction was that I had an opportunity to buy some more at $0.155 yesterday. My shareholding in KNL is now the largest that its ever been. And if we continue to trade at ~$0.16 then there's a good chance that I may not be done buying.

Pilot Plant

I think that the value of having Christoph Frey on our Board and now heading up the pilot plant is lost on the market and perhaps even some of our own shareholders. Our ability to produce spherical graphite products in-house to meet customer specifications will prove invaluable.

I also think that the pilot plant will be a key catalyst to unlocking some of the potential of our Börse Frankfurt listing. The Frankfurt Stock Exchange is the tenth largest in the world. If we can get some traction there the potential is enormous.