Ann: Quarterly Activities Report and Appendix 4C, page-40

Management continue to execute the strategy that has been outlined in past announcements and presentations. We have a strong team of proven clean energy professionals in place - they have the runs on the board and are acutely aware of what is required to make this proven tech commercially viable. Today's announcement indicates that they are continuing to line the ducks in China by bringing on a senior Sino project manager - smart move. Cash flow and the imminent cap raising are currently a non issue. The path is clear for a strong ramp up of business activity and positive news flow over the second half of the year. While the 40c calls by end of April may have been a little premature, KPO is certainly poised for strong appreciation from these levels.

Full confidence in management and the ability to deliver on their plan.