Ann: Bonus Options Issue, page-43

Omar, there are lots of folk like I who have a mountain of options and would now seriously consider converting them for the bonus of 33%, providing they believed in the KRC story, which I do. Before this announcement, come 30th June and the heads were still below .10cents many option holders including I would not have exercised them and written off the cost of their punt on the options.

I will now borrow the $250k necessary to convert the options because come Christmas I expect the share price to be a minimum of .30cents based upon the avalanche of news we will get between now and then.

Furthermore, Tony is a very clever operator financially but not a miner. I feel he will find a big player to sell the operation too or JV it out. This news will also arrive prior to Christmas, I think. I would not discount BHP or Rio getting involved providing all the ducks lineup.

Don’t be downbeat if the Mt Remarkable results are not all bonanza grade like in the past, as we are creating a larger deposit if we can average 3grms per tonne on a few million ounces at today’s gold price that will be more than satisfactory. The big dollars will be in the V in my humble opinion.

Best wishes to all holders.

Stumpy