Ann: Kairos Discovers Gold in Pilbara Conglomerates, page-108

Hi Vendor. Glad to hear from you. Unless something radically changes, I'm riding KAI through to its conclusion, which will probably be in a couple of year's time. I believe that the balance of probabilities is well and truly running in our favour at this point in time, and am hopeful of a positive outcome for all holders.

I believe Mr Sprott has invested very wisely. If this goes as I hope it will (I still do emphasise the "if" in this speculators' space), the gold in the Pilbara could fund an accelerated development of Roe Hills down south. Taking a conservative approach, even if we're only 50% of BRB, we're still looking at a conservative share price contribution of 20 to 30 cents per share further down the track as drilling progresses in this area. Some simple number crunching on grade and deposit size based on preliminary drill results certaily put this into the realms of possibility in my opinion.

Add to this the potential for lithium in the north eastern tenements and the possible injection of cash from CRs at a higher share price - this mix could certainly result in a fun ride. There's also that spot of cobalt and the old nickel tenemants - all good for the Li-Ion battery market. The additive effects of these make for an intersting stock, especially if there's cash in the mix. Mr Sprott has probably done similar analyses and has realised that he's not likely to lose his hard earned dosh on an investment in KAI. $5M is peanuts for him, but I don't think he became a billionaire by continually making poor investment decisions.

Re the discussion regarding assays. I believe it's too early to be doing figures like this. To assume a gold particle thickness of 1/5th is a biased assumption in my opinion. It would have been more prudent to state that if the all the particles were assumed to be spherical, a result of 50 g/t is possible, if they were all flat, the result is 10 g/t. If there's to be any talk at all regarding grades, in my opinion it would have been far better to talk in ranges at this very early stage - far too many variables - representative sampling, mix of particle shapes & aspect ratios, etc.

My interpretation of today's report is that potential targets have been identified by aerial survey and some simple confirmation has and is being carried out to establish if there is a probability of gold in the outcrops. Once confirmation is apparent, trenching will commence in the areas which have the highest probability of achieving a result. At this stage, I'd be prepared to say that in my opinion what has been reported today is significant and positive, and is pointing to a trend. Looking at the entire picture (geology, large investor interest = cash) it would seem probable that today's result will be repeated elsewhere along the 22 km strike. I'm looking forward to seeing the further reports over the next week or so ... and the assays - I'm happy to wait for the lab results.

I'm prepared to wait patiently in this space for quite a while yet. And good on you Vendor for keeping the KAI fires burning over the last months. Good luck to all holders - I believe we are on an onwards and upwards story here.

Cheers