Ann: Half Year Accounts, page-29

Gary,

It is hard to reply when your responses get booted. However, I'd guess by that you have done the usual which is either ridiculing others or simply promoting commodities that the company cannot develop in the short term. Either way not answering the question as a top 20 simply gives everyone else the jitters, as things are not good yet you say the opposite. We have speculated on the direction, but simply being prospective only lasts so long. I bet on it and lost.

I am really disappointed, but here goes, again repeating myself.

So much was done on Winchester in pre-feasibility circa 2000, and showed maybe it could fly. Enviro impact statement completed (a big one down), metallurgy and plant process proven with a test ore parcel, plant design completed pending final approvals, first pass mine design and economic parameters looked good, even a mine proposal draft all stacked up. Worth continuing to spend to develop it further. But the gas pipeline delay and other costs prevented the companies drilling the resource out to get an ore reserve, and to a bankable feasibility stage (BFS), and thus they shelved it. The ore reserve was the final hurdle, if it passed the project would fly.

I know a lot about this and this and the Sundance projects. I could not see it going forward when KOR had no intention to drill to any extent 15 years ago. This is the logical next step.

Yet the $1.8m cap raise a couple of years back gave me hope. At that time it was simple, get a good geo team (contract), assess and drill to upgrade the resource; if it stacks up ie no surprises and grades hold up, then get the mine engineers to run the pit design and economics; thus an ore reserve is created. It has legal certainty in JORC and ASX, and if economic, it will attract investors as KOR has stated. No problem there.

I along with others over the years have highlighted the inconsistencies such as stating they had a BFS in investors presentation (circa 2010) when really still at pre-feasibility stage, and how there is no ore reserve, a necessity, and this debate was 10 years later. More recent quoted mine parameters are still same as the original pre-feas, a plus or minus 30%.

Then they announce reopening Sundance. IMO there's no ore left, its mined out, and there's nothing worth chasing on drilling done below the pit or in the low grade stockpile which was drilled and trenched to sample it. There is a mine closure or annual tenure report from that time stating this.

IMO the focus is lost and no real progress has occurred for these reasons. ASX are onto it, how does this attract investors?

Now, IMO, the only option is to focus on the core asset with everything they have, and it must be drilled. No ore reserve = no certainty = no funds. Do deals on everything else or sell these other potential assets off, they are a waste of time and bleeding the company dry. KOR needs every cent to drill Winchester and to improve the resource and quickly. Show it gets better with every step undertaken, people will take notice.

Gary, you have more poke than us, but you need to speak with a mining consultant, ask these questions and they may not even bill you, take them to lunch. Maybe you can raise this with the directors, get some consultant's in, get focus. No more rants mate. Its crunch time, and the most likely alternative is it folds and the biggest creditors get the lot, no debt, they raise some funds, drill it, and bingo. Maybe.