Ann: Leonora Gold Project Update, page-36

NM - Appreciate your candor. You have indeed been very positive on the stock and as I just posted on another thread, trust is hard to gain, but so easy to lose and KIN have undeniably just shown the market that they cannot be trusted in the near term. The case for finding an MD that can start to earn the trust back, is now arguably, just as important as the company bringing in the consultants to review the costs of the project.

Many posts here are very emotion driven right now, which I very much can understand. However, after surviving the BLK ordeal, which I think is a much more tragic and mistake filled endevour, we are currently only looking at one main issue, the cost to get the plant into production. A very important cost, no doubt, but... even if it just goes back to the earlier estimated cost of say $50m, that will not break the projects economics surely? Yes the IRR will be much reduced, but... The project is likely already 1/5 along even with a increased capex.

Do I wish I could have sold before the TH. Damn right, like everyone else, but... here we are with the stock down over 50%. The MC now less than $30m. They have debt of $6.6m AUD, with a further $3.1m to spend on the project. With $7.7m cash. Hardly a life and death situation. I have no doubt that the wolves are already surrounding KIN with low offers for underwriting the next planned raising.

The easy option is to sell, but... after some thought, I am going to hold. Because even with the planned raising, cost blow out and lost trust, KIN is now very cheap. It could indeed go cheaper, just look at BLK, it got so cheap that they had money thrown at them, that is after destroying any and all trust the company had by missing every target, not meeting grades, promising the world by the MD, yet failing at everything. Their share price hit lows of $0.04, yet just recently hit $0.105, or 150% plus.

Anyway, going in the bottom draw, which may well prove a mistake, but.. I have sold after major disappointments and see the share price fall further, then finally claw its way back and higher. DRM, ABU, BLK all examples of poor management, poor project delivery etc.

In the end, I am most angry because I trusted the board. I also made a cardinal mistake of recommending this stock to others.

Good luck to all holders. What a bloody frustrating Wed.