Ann: Completion of Rights Issue & Placement, page-5

Todays share price action demonstrates how good the drill core assays have to be.

People may not notice but as the rights issue date got closure the share price "prop up" volume on the buy side slipped from around 9 million to about 4 million of which more than half was to buy at less than 1 cent.

Today we have buyers lining up for 3 million shares but 2 million of those are less than 1 cent and 1.5 million are at rock bottom 0.001. The share price is rocky to say the least.

Company salesmanship encouraged a plus 80% take-up of the rights issue. A great result achieved on the newly announced epithermal gold deliverance but no assay result from a core.

The geologists have seen the epithermal veins on the site for the past umpteen years but never tweeked that they may be a source of richness. So quickly passed theories were dumped in favour of the new exciting gold theory. Its interesting that copper, which is now on the nose, is no longer talked about. KRC is now defacto KRGold or KRSilver or whatever is the flavour of the month.

The true test for KRwhatever is what's in the drill core. Over the last 4 years, after some encouraging rock chips, no mineral of note has eventuated in any drill core.

Apparently we will know the result of current and recent drilling "before Christmas". Lets wait and see if that timing can be achieved (way quicker than KRC has ever been able to deliver before) but more importantly lets wait and see if KRwhatever can actually report mineral in a/any of the drill core. History says NO but with new epithermal theories maybe something will turn up this time. I hope so otherwise as shareholders we will be done like a dinner. Fingers crossed - again.