corro to company

below is a copy of the body of my email to the company on friday. looking through the materials to frame my questions made me reasonably happy about where the company is at in terms of potential. although i would like to hear in particular about the results of any due diligence on the Kubah Indah and TJ projects. I will post the essence of any substantive reply...


I have been considering the last quarterly report (Report), the 10 February Mamahak production announcement (Announcement) and the KRL website project overview (Overview) and had a few questions I hope I can trouble you with.

The Report (page 1) states KRL has entered into heads of agreement (subject to satisfactory due diligence) to secure the rights to earn 100% of the Kubah Indah, Tanur Jaya, and Jawana coal projects (and 45% of Tanur Jaya). Am I correct in thinking that KRL has now completed its due diligence and has elected to complete those transactions? If not, are you able to guesstimate when shareholders can expect to get announcements on this?

Note 16 to the financial statements in the Report states that KRL is in the process of renegotiating their commitments in relation to these (and other) projects. Are you able to expand on that?

There have been reports that KRL has sold the 30,000 tonne stockpile from the Mamahak project. Is this correct? Are you able to identify the buyer and terms of sale? Is there any suggestion the buyer will commit to any future off-take arrangements with KRL?

In the Announcement KRL:
identifies the potential to increase tonnage in the operating mining block from 30,000 tonnes to 270,000 600,000 tonnes. Are you able to give a timeline for completion of the requisite studies?
Refers to immediate exploration work having been undertaken across all (4) concessions with similar results. Are you able to clarify this statement? Does that exploration work simply corroborate the existing 10.22 million tonne resource or is KRL indicating additional discoveries?

In the Overview KRL, in relation to:

Mamahak, states:
i. 75% of the project surface area is unexplored. Am I correct in understanding exploration of those areas is now underway? Can KRL provide an exploration timetable to give shareholders a rough idea as to when a results announcement could be expected?
ii. KRL has an option for an additional 5 concessions in the Haloq formation (which in the Announcement it states these are being evaluated). Are you able to give a rough timeline as to when due diligence on that option is to be completed and for shareholders to expect an announcement as to whether or not KRL is proceeding to exercise the option and drilling results etc?

Tanur Jaya:
i. Is there an exploration timeline? Can shareholders expect an announcement as to the results of the drilling program in progress; particularly given the exploration target of an additional 60 80 million tonnes?
ii. I take it initial production targeted to commence March 2010, has this now been pushed back (for example, because of focus on Mamahak). Is initial production still targeted for this financial year?

GPK:
i. Is the drilling campaign underway to move the JORC resource to the measured category?
ii. Is this still being ramped up? There has been no news since completion of the initial shipment of 4,200 tonnes around 5 January 2010.

The MBK and BP projects, refers to planned exploration activities. Is there any timeline for this that can be divulged to shareholders?

The greenfields projects of Jawana and Borami, production is targeted for 2012/2013. I assume that the process of licensing and infrastructure would take more than a year. Does that mean that exploration is now underway or will shortly be underway? Again, is KRL able to provide any targeted timeline?