concerns , page-12

Kelp2

Don't claim to have all the answers but for what it's worth, here goes what I think.

Wally2 - I haven't focussed on the U-side of MKY, but what I found interesting is that they drilled those tenements for U, and then applied for an EPC butting up to the U - why? Was it that when they were drilling for "yellow" they found "black" stuff?? That's the only explanation I have. Why waste time applying for a Coal EPC otherwise?
If this is what happened,and they found a "payload", as a director would you say "guys we are here to dig for yellow, that's what our U s/holders want so forget about the black stuff? Or, would you say, lets forget the yellow stuff - can't mine it anyway - let's put our focus on this payload of black???

They haven't made any mention of the EPC, it's only an application (but then so are some of our bauxite tenements), so why?? It's obviously strategic and therefore no need to disclose at the moment.

So Wally may be a dud for U but??? Did they drill the other U tenements EPM16296, 16292 16691 that all lie below Wally2 which join up to the coal EPC? (I haven't looked into) if not, why not? If Wally is a dud for U, why not drill the others to see if they are duds also?? Or is it that they already know what is down there, but they can't at this moment tell??

Delminco Bauxite - tenements are remote and have a degree of difficulty attaching to them - but nothing is impossible if a good resource is found! We do, however, have the MKY-owned tenements, which IMO are the icing on the MKY cake.

I also think AEC is looking at ventures for their clean coal projects. They will be wanting to get their foot in the door for the proposed aluminium smelter, and other power hungry mining infrasture up in NQ. AEC will become a major s/h of MKY only thru the sale of Delminco to MKY. I don't think AB is off-loading non-viable tenements, I think AEC wants a share of MKY. Directors of AEC are well connected and respected (cv's include positions Victorian Govt, CSRIO, Pechiney, Comalco, Inco/Jinco Nonferrous Metals, and self-made squillionaire before the age of 32 in coal, etc). Could you imagine what would happen to them if there was any dodgey deals being done - there wouldn't be a Board for them to sit on other than in a cell. Would be much simplier for them to palm off the tenements to some unrelated entity for a couple of million dollars. There is a bigger picture being played out, but for the moment we don't know what cards they are holding - like a poker game.

AB's Performance Shares - good question. Was the criteria met? I haven't been following U drill story, but probably not.