Ann: AGM Presentation - 1.2Moz Gold Resources and growing, page-28

Novo used the NRs to drive down SPs of companies that KL is looking to takeout. Novo's been quite effective at doing it. Our Market Cap is down to $44 million with KL owning $6 million of that (14%). KL can increase its stake to 19.9% at 20 cents a share for an additional $2.8 million. KL can then make a play for us at 35 cents a share which would be an additional $66 million to KL which IMO would be successful.

We don't have enough cash ($8 million) to get to where we can start generating revenue. So major investors are looking down the road to more PPs which dilutes their shares value. These major investors will be glad to eliminate risk by taking KL shares and/or cash at a premium over today's SP especially considering the SP was 2 cents less than a year ago. KL will give management golden parachutes to go along with the deal.

Now, if KL doesn't make a play, then that implies that KL is still unsure about grade of the assays at Purdy's Reward and is taking a wait and see attitude. However, based on KL's actions over the last 2 months, it looks like KL believes the theory that this is a major discovery and will use shares to buy up companies that they want. That's why they listed on the ASX.