Ann: Appendix 3B-KBL.AX, page-6

5.8% by my calculations. Not sure what the notice requirements are but you're probably right Stevei.

I attended the GM which authorised this and further placements as required to give KBL a future.

I spoke to Ivo, Jim and Bob and a few shareholders and had a few questions answered.

I voiced my concern at the share dilution and the rinsing of the convertible notes and voted against a few of the resolutions as a token gesture. We all agreed that the dilution was not what we wanted, but KBL needs the funds to keep overdue creditors happy.

At least this placement was done extremely close to market price without the possibility of rinsing at a profit. A step in the right direction.

The recent option rights issue enabled us shareholders to counter the recent dilution if we wanted to. The over-subsription showed that it was well received.