kcn, page-3

Orlando,

Just to clarify your post, the share price has been affected by political upheaval before, however the actual mine operation has NEVER been directly affected by politics.

Indirectly, however, the mine operation is continually faced with political obstacles as they have to work within the Thai bureaucratical framework which unfortunately is affected by the political upheaval.

The point in case is that currently, the formal declaration of go ahead on the mine expension is contigent on an outcome of the sponsorship application to the Thai Board of Investment. This application, due to the size of the project, can only be approved by committee of whcih the Thai PM is the head. Given that he has been holed up in military barracks for the past month or so, these sort of day to day governing tasks have ground to a halt, so until the situation in Bangkok dies down a little I can't see much happening offically at least.

I suspect that KCN are progressing expansion related work as much as they possibly can without a formal decision i.e informally they have already given it the go ahead, but there will be a limit to this work.

I would not be surprised if KCN's situation was implicit in this reference to at Aust Chamber of Commerce's perspective on the current Thai political situation within an article on the Bangkok Post website (http://www.bangkokpost.com/news/politics/35989/fatal-clashes-drive-businesses-to-despair):

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Andrew Durieux, president of the Australian Chamber of Commerce, said foreign businesses believed that the protests would continue.

AustCham remains supportive of the rights to protest peacefully, and that it is the government that has the duty to protect the safety of bystanders, protesters and their own forces, as well as the business operations of investors.

"It is extremely regrettable, but almost inevitable, that the ongoing protests between the red shirts and government have now resulted in violence," Mr Durieux said, adding that some chamber members have already reported a negative impact as decision-making by authorities has slowed due to the conflicts.

>>

I guess we all have to just wait and look forward to resource upgrades and exploration results for a while...