annual report, page-9

With regard to the performance shares AB, will only get if certain criteria is met - that criteria is shown on p28 item 11.1 +11.2 and relates to roughly doing a minimum of trenching/drilling/assaying and finding a minimum of 2,000ppm on more than 25% of those results.

In addition there is a contingent consideration if MKY finds 14315 and 13960 are commercially viable within 3 years from exploration (Nov 2006) we pay the original vendor (not AEC but Mellick & Scott) another $800k in cash and/or shares (we already paid them $200k)and they also get 2% royalty - that's on P32. If it's not commercially viable we loose the $200k and/or sell leases to someone else and assume AB doesn't get his shares.

Again, ryana, this is not the announcement we are waiting on - its only the statutory 2008 annual report. The above terms have been in place since MKY bought the U tenements in 2006. THE BAUXITE NEWS IS STILL TO COME

We will get a whole lot of new terms & conditions over the bauxite tenements - enough to do your head in!!!!