Ann: Quarterly Activities Report, page-229

Admire your enthusiasm and persistance I hope it all pays off. All the evidence appears to point to positive developments - but then again CKA's history contains a littany of positive indications. Sometimes you need to look at why 'deals' have not been done to date and the longer the sage goes on the lower CKA negotiating leverage. It was clearly stated by the company back in 2013 that its preferred funding mechanism is direct investment andoff-take funding direct into the BBM project with this funding being providedby a strategic industry partner and the company has not wavered from this - Build own operate was never an option and with it went a large part of its negotiating leverage. Hence, why it was keen to sell to Cakra for 16c per share ($75m) in 2015 after it had received the final approvals for BBM making it a 'dig ready' project. I believe that price was too cheap then and I also believe the assets are worth more than the VALIM report estimate at US$127 ($180m). It has all become very messy - lots of promises and agreements but no progress. Everyone who has done DD on CKA has not completed the 'deal', why? Is it because there are looming problems with the assets (permits) or is it because they all see what a weak position CKA is in and that there is no hurry - maybe a combination of both. Platinum Receivers have final approval on funding/development proposals, Aahana acquired a cheap takeover blocking stake and will control financing and development outcomes, it has no export licence, CKA has no money and no longer has full control over its destiny. Squeeze, squeeze, squeeze. Remember, after the EIS approval in August 2013, CKA was on-track to commence construction in Q4, 2013 with first production Q1, 2014 and since then we have had: Blumont, Platinum, Blackspace, Shanghai listing, merger with an aussie listed company, Beacon, Renjian, Magna, Domain, Aahana, KNR, BMA, Sojitz.