is this the week, page-13

I have spoken with Simon at length about the Geothermal projects and there is absolutely nothing to worry about IMO.

Kentor was originally looking at Geothermal projects in Central Asia before Simon Milroy came on board. The original idea was to sell cheap energy across the boarder and into China.

Nothing really came of this but they decided to take a review of other Geothermal targets in late 2007/early 2008 (to the best of my knowledge).

As a result of this study the Solomon islands came up. The power on a lot of islands in the pacific is generated by diesel and is therefore very expensive.

About 3 quarters ago the Geothermal Project popped up in a quarterly so this news should never have been unexpected. The quarterly also mentioned that we were just waiting on a licence that was pretty much a formality.

When I spoke to SM about this at the Gold Symposium he said the project is very simple and requires minimal drilling to prove up the project to JORC standard.

The idea is and always was to spin this out. Kentor Gold will not develop the project and therefore I expect minimal impact on our cash reserves.

I also believe that the 2013-14 timeline for the FS is purposely long as Kentor will be too busy with our other projects to put too much energy into it in the short to medium term.

Once the project stacks up at the FS stage I would expect the spin off to take place. This would therefore occur in 2014- early 2015 to allow for development to take place in late 2015-2016.