kgl research & mine analysis

***Please note the spreadsheet is for the Burnakura High Grade Only, it does not include the heap leach ops***

Hi Everyone,

I have just spent the afternoon putting together a spreadsheet that I would like to share with everyone. It contains the information you will find in the Intersuisse Brokers Report however I have added additional features including:

1. An average inflation box so that mine costs can be inflated each year.

2. An area where new reserves found through exploration can be added. This will allow you to adjust the amount of ore processed each year or alternatively extend the life of the mine. (highlighted in yellow)

3. A discount cash flow analysis at the bottom so that the NPV is automatically calculated every time you change an input.

4. As it is now an excel document you can go and plug in your own figures with ease.

Additional Notes:

1. I have used an avg inflation rate of 3% to inflate mine costs accordingly.

2. I have also used different gold prices and USD/AUD exchange rates compared to intersussie (please DYOR and plug in your own figures).

3. Based on the figures I have used I get an NPV of $38.7m on the High Grade Operations only.

4. I plan on running similar calcs on all KGL's other mines over the next couple of days before arriving at an overall value for KGL.

5. I will also be calculating the value of KGL in other ways (i.e. in ground value of resources)

6. I have not included any exploration upside at this stage. (being conservative)

FINALLY: Please Do Your Own Figures and Research. I accept no liability for the format or forumlas, there could be errors so please check. (this is one of the reasons why I want your feedback).

https://spreadsheets.google.com/spreadsheet/ccc?key=0AqJQE0Mca0RHdFVVRTdvXzg5ZVZnYTVLN29YOTlOTHc&hl=en_US#gid=0

P.S. if anyone would like the original excel format please post your email address and I will send it to you.

P.S.S Yes I know a 12% discount rate is slightly high (being conservative again)