Ann: Long Term Suspended Entities, page-7

Good information.

Perhaps Cornelius can make an announcement to all and publicly disclose exactly what the significant issues are and then let the shareholders decide.

DNK can wind up. The indemnities DNK provided to the Chinese must have a fixed upper $ limit and term, did Cornelius disclose this limit? Indemnities can be held in trust affording protection of the claimants in the event of a wind up. The trust term would then match the indemnity term, with unclaimed indemnity monies being distributed to shareholders by the trustee who is held responsible for distributions.

The key reason DNK sold its SOP project to the Chinese was because its asset was in Eritrea and with US sanctions imposed on many key individuals of its government leadership it makes it impossible to fund asset development and exploration. It could be the best asset in the world, (which is not, otherwise the Chinese who currently operate a gold mine in Eritrea would have developed it!!!!) and be worthless because of the jurisdiction risk. Thats why DNK sold a US$1.2Billion dollar asset for $US$100M (90% discount), after they spent about US$60M on developing it!!! The project destroyed value for shareholders (if you consider risk adjustments) and if you consider the alternative use of $60m over a 15-year period, compound interest of 10% (DNK projects discount rate- should have been more like 20-25%) over the 15 years. Noting the future value of $60M with a compound interest of 10% and 20% over 15 years is $250M and $930M respectively. The current US 20 Year T Bill offers 4.54% and the real return on investment of $60M DNK achieved is about 0.9% on funds invested in the project. Based on this return, it would appear these guys don't know how to create value and they want to do it all over again!!.

Cornelius caused the company suspension in the first instance by not having an alternative project identified before he sold the only asset....this is extremely incompetent.

Ask him to get some independent advice from a Tier 1 investment bank so he can provide the full and transparent details of the exit options and release this to the market and allow us to decide. He is too conflicted.