Ann: Leonora Gold Project Update, page-44

OK , first mistake , cease exploration - we know there it plenty of good grade gold there . Concentrate on building the plant & getting gold out of the ground & sold . Probably the worst thing that can happen at this stage is they have a cap raising up to $15000 each shareholder . In this instance shareholders unload to get the shares cheaper at the reduced rate after the 5 day WAP discounted rate . The last cap raising was good terms ie was it 1 for 5 . This is not a disaster at this stage - as they are only short plant funding costs. If you sell you crystallise a 50 percent loss . I will hold & see the terms of a new cap raising . Even Blackham BLK got them selves out of the mire. At this time the tide is going out & frustrated shareholders are selling - the tide will likely come in again. Probably the key to this is weather Sprott demands their money back- & then if they will fund any more of it . Really KIN needs a JV - obviously it is all too much for them as this is the second ruction. I will wait & see what eventuates rather than crystalize a 50 per cent loss & I won't be buying any more as I said previously the risk profile is high on this outfit