discussion with management

Lots of confusion floating around due to recent Press Release and lots of misinformed commentary. Most people think that hundreds of samples were taken from the trenches which is untrue. About nine samples were taken from the trenches and these were from locations where the scintillometer gave high readings. My understanding of this is that Wally costean 2, 1.00 meter sample of 2.23 pounds/ton matches the area where the scintillometer reading gave 525 cps. Wally costean 3, 1.00 meter sample of 2.57 pounds/ ton with a meter reading of 1,200 cps and Wally costean 5, 1 meter of .39 lbs pounds / ton and cps of 340. One additional assay sample went missing.

MKY has been actively pegging all areas where they find loveringite in the general area.

There is an acknowlegement that the PR issue needs to be more carefully addressed but part of it has to do with the fact that they are running MKY on a "shoestring".

My interpretation of all of this is that they are dealing with "new geology" of finding loveringite that contains uranium in economic grades and the search is technically challenging but results so far are very positive.

My interpretation of the trenching results based on the above data is that Wally 2 has elevated readings over 8-12 meters of trench WITH an additional spot sample carrying 13.88 pounds per ton. Wally 3 has about 5 meters and Wally 5 has about 15 meters. That is an average of 10.7 meters Wally 4 must be the "missing" assay sample and it has about 7 meters of elevated cps with a peak of 500 cps so also probably runs around the same level as the other samples.

So the average width of the mineralized zone runs around 10 meters with an open strike of 85 meters and assuming a (very speculative) depth of 50 meters that equates to a tonnage of about 106,250 tonnes. Taking the average of the four samples noted above gives us 4.77 pounds per ton. That equates to a theoretical (very speculative) value of A$489.40 per ton valuation of u ore.

I have assumed that there must be a considerable "depth" to the system because of the nature of loveringite coming from volcanic activity (may be many hundreds of meters???). IF the system has depth then we can add about 100,000 tons of ore for each 50 meters of "plunge" over each 85 meters of strike. So a plunge of 500 meters would equate to 1,062,500 tons of ore.

Most of the sellers are probably comparing the small width of this system with a typical depositional u deposit that may be several hundred meters wide but very shallow. The loveringite system may substitute depth for width??

My commentary here is very speculative AND i must acknowledge that this program is still in its very early days. The positive elements have been overlooked completely. Although the sample size here is very very small, the fact that all of the samples carry potentially economic values is very encouraging AND we have not yet identified the exact source points of the very high value samples. Good luck to all longs.