Ann: Market Update on KBL Debt, page-30

In the circumstances it is imperative that the directors have as many proxies as possible, so please fax supporting resolutions 2 and 3. If you miss the deadline, I can hand carry proxies from Melbourne to the AGM if I get them before 5pm Tuesday. You can ring me on 0425-705-888.

KDR would love to get KBL's plant which originally cost $40M+ to process ore from their adjacent tenements, and this could happen; Basically control of KBL's assets moving to a company in which Capri may get millions of shares. The KBL shareholders who financed the plant refurbishment and mine development could loose control. KDR would love Wall and Star to fail to be re-elected.