cgnpc and rio, page-13

"Kalahari directors have come across as desperate sellers"

Yes, but the directors have only offered to sell to CGNPC their own personal shares acquired from performance issues which amounts to just 2.2% of all KAH shares. CGNPC also claims to have another 3.9% of KAH in the bag. We can take from that that so far no major holders have accepted their offer.

We can expect both RIO and Itochu will remain shareholders of KAH which takes 25% of KAH shares off the table. They could also form a pac and go for 51% of KAH themselves.

So, if the other major holders to don't agree to sell at 243.55p CGNPC will have to lift their offer anyway. Expect them to be on the phones to CGNPC and other uranium companies.

We know CGNPC will not walk away. So if we hold, in the worse case we will get $8.65 for our EXT shares. But if another bidder enters, or the major holders wont sell their KAH shares at 243.55p, we will get more.

Consequently, we have nothing to loose by holding and everything to gain. We can expect EXT and KAH holders to realise this soon and clam up. This should put both the KAH and EXT share prices above the offer price shortly.