Ann: Quarterly Activities Report, page-89

It's easy to understand the high level of frustration with management. Very little has been achieved in the last 2 years. The future of the company is now almost totally dependant on KML listing.

That's where the next round of cash comes from. Otherwise, how do we raise funds without diluting the crap out of existing holders? How can we afford new projects without either giving away far too many cheap shares or pay cash when we have only enough to undertake limited exploration?

We have become hostage to the KML float now. So each investor has to ask themselves whether it will succeed. I have taken the view that the company will get KML other the line, and have bought around 2 million more shares in the last week.

Buying MCT is a huge gamble ahead of the listing as the sp will get smashed if this fails. Even though we get back AB and the other zinc projects, the damage to the standing of MCT and management will be significant. This plan is really only in place because they couldn't get anyone interested in funding AB as per plan A.

And what happens to the seed capital which has been raised? Do MCT give up part ownership of AB if the KML listing fails or do we have to pay the $3m back?

Much uncertainty here, which is being reflected in the sp as some holders act to preserve funds. I can understand their actions as I did the same with WPG earlier this year as I didn't like where they were heading. Selling out cost me a $40k loss, but now WPG is in administration, so taking a hard decision has probanly saved me around $60k that I would've lost also.

Each person makes the best decision they can at the time, so there is no universal right or wrong.

Good luck to everyone here whether you are a buyer, a seller or, maybe just sitting tight as a holder and hoping management can pull this off.

Matt said there would be an announcement soon when I spoke to him the other day. I have no idea when 'soon' will be. AVL holders have been waiting weeks for an 'imminent' announcement from management there. We all want news, unfortunately it often doesn't seem to come when we expect it to. And a lack of expected news often has a corrosive effect on the sp.

I look at the current sp and ask myself if the company will be worth more than the current $9m m/c if the KML float fails.

I think yes, but .015 might yet seem dear if things go pear shaped. If everthing goes well then the m/c should be closer to at least $30m imo.