email to ken

FYI, following is an email that I just sent to Ken.

Good morning Ken,

Thank you for your time over the recent past. I can relate to the busy schedule that you must have and appreciate that you take the time to answer concerns from fellow shareholders.

I have given some thought to our recent phone conversion regarding the proposed placement of 70 million shares and have had lengthy discussions with many fellow shareholders regarding this matter. It seems that the recent announcement has actually created some confusion and I and many other shareholders will require complete transparency on this issue well prior to voting on resolution 4.

Please keep in mind that in this context, transparency does not mean disclosure as per ASX listing rules as I am sure KEY has met this obligation. In this context, transparency means detailed, quality information offered to shareholders for the purpose of voting on resolution 4.

Issues of specific concern are:

It is mentioned that the placement "will be for additional working capital" yet it is also mentioned that the Directors have no plans to execute the placement at the time of writing the announcement. So the obvious question that arises from this is, how would the board know that they will need funds specifically for working capital within the timeframe of 3 months from the meeting yet not have any plans to execute such a placement?

The second major point that is being discussed amongst many shareholders is the fairness of a placement to institutions and sophisticated investors whilst heavily diluting long term shareholders who have held and risked their funds over the past few years. Surely an SPP will be more appropriate and less dilutive to current holders who wish to take up their rights?

I have attached two statements recently published by shareholders on internet forums. I could have posted many, many more but I feel these are indicative of the spirit of conversation that is surrounding the issue of transparency and the placement versus SPP issue.

Please take my email as an opportunity to be informed of the growing negative feedback that is occurring in the marketplace as a result of this resolution. As you know the internet can be a toxic environment and negative sentiment can grow quickly. My belief is that without adequate clarification and a more fair offering of an SPP than this sentiment will snowball and result in a negative vote of resolution 4.

Please feel free to contact me either via email or by landline on XXXXX if you wish to discuss this information in more detail. FYI, I intend to post this email publicly (without my specific details) in order to offer fellow shareholders some hope that clarification will be forthcoming within the near future and to hopefully ease the tide of dissent.

Thank you for your time!

Best Regards
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