clarification, page-4

Unfortunately, companies do not put all the clauses and conditions in their releases. I too was caught however, KOR are entitled to do as they have done. It is time to move on from the 'clarified' situation and deal with the facts. Acceptance is one of the steps in moving on. Some still have not accepted the facts or are not willing to seek advice from professionals. Government bodies will always have neutral standard answers and eventually will reply in-line with the facts.

KOR are now entering a new phase of selling saleable assets and developing gold assets that are of a low capex and opex nature. You would be hard pressed to find a cheaper gold operation in this regard. I have no doubt that they will deliver.

The steps to look out for in terms of completion are:

1. Funding for Lug - looks like overseas funding is now available. They may choose to hire/lease equipment rather than buy so that may halve the capex requirement from $9m to $4.5m. So if the current proposal is suitable then they will be able to complete phase 1 of the mining this year.

2. Positive scoping study for Melrose completed. This will be icing on the cake with a second gold operation to either sell or develop. Again this looks like only needing a few million to get to the mining stage.

3. Sale of Winchester asset. Short form already signed.

4. JV on copper exploration.

Each step when completed will probably imo add about 20% to the share price and then it will be onwards and upwards once production is commenced on the Lug gold project which I fully expect to be later this calendar year. Hope this clarifies matters from another shareholder's point of view?

It is always good to state a position and then reflect afterwards how close one's thinking is to reality.