Mineral Rights Agreement Next, page-10

The logical choice for a JV partner and/or a buyout of Mt. York is De Grey mining. De Grey entered into a $25 million 50/50 partnership with Novo Resouces to explore areas 25 kilometers ENE of the Hemi mine site. De Grey is hoping to hit another Hemi like structure but nothing big so far. De Grey might be interested in developing Mt. York for the right terms. The Mt. York main trend is 20 Kilometers from main road National 95. From there, it's approximately 30 kilometers up National 95 to the cutoff over to Hemi. De Grey has built a road of approximately 7 kilometers from Hemi to National 95. Total of approximately 60 kilometers to haul ore from Mt. York to Hemi where De Grey plans to build a processing plant. I imagine KAI has been in discussion with De Grey about Mt. York and the updated plans for drilling expansion at Mt. York and profitability study will keep De Grey interested.