Ann: Trading Halt, page-30

Col69,
In response to your reply about the amount of capital held by the company.
As of the Quarterly report for the end of March, A$2,052 held.
Expenses for the quarter were $809,000

By my estimate that would leave approximately A$1.2million at the end of June IF there were no expenses in excess of the previous quarter. That is still a reasonable amount to have under normal circumstances, however we do not know what additional expenses may be incurred by the company in dealing with the current Section249D.

I believe that the directors will not want to face a general meeting without sufficient capital to meet expenses for the quarter ending September.

Referring to the Section249D notice of 11th May; the Special General meeting will have to be called by 1 June and held before the end of July. I am confident that the directors would not be arranging more finance unless they considered it necessary for the ongoing good of the company and its shareholders.

I have been a shareholder in KFE for around 7 years and have confidence in the Chairman to ensure that everything is done in the best interest of shareholders.

My current sentiment is now HOLD instead of Buy due to the uncertainty of the current situation.