KRM Fundamentals, page-3

Hi all,

Re: throughput:

The announcement dated 10-03-14 says that the plant capacity can be lifted from
140K ton/year(384 ton/day) to 200K ton/year (548 ton/day) with a spend of $2 million.

Other announcements said that the Telang Santo mine hoist has a capacity of 500
ton/day.

The 3x UD haulage trucks have the capacity to haul in excess of 550 ton/day from
Talang Santo to the processing plant at Way Linggo.

So in summary, with a spend of $2 mil. the mine, transport and the processing plant should have a capacity in excess of 500 ton/day which is at the upper range of the above spreadsheet.

Re Grade:

We have been advised in previous anns that Talang Santo is potentially higher grade than
Way Linggo. On average way Linggo had been 14 g/t including silver.
Recent anns. indicate that face sampling (miners are already down there) of the splay vein range from 48.40 g/t to 200.47 g/t (bonanza grades) and further anns on the 10/04/14 said that grades of:
-1.1m @ 53.5 g/t
-1.3m @ 20.2 g/t
-0.6m @ 124.99 g/t
were encountered and that:

"good indication of the types of gold grades likely to be encountered when production
mining gets underway."
(ann 10-04).

The only question is how soon can this high grade ore be accessed?

Since the company has had 21 months to plan re-opening the mine, then I expect that
it will hit the ground running once the final permit is granted. It is due before the end of the month.

All of this is IMO only and investors should do their own research before making an investment decision.

Cheers
moorookamick