MoU extended, page-32

Over the last month or so the graphite market has moved as a pack and got seriously overheated. Investors got spooked and confused at the multitude of juniors coming out of the woodwork and the retrace was inevitable. What we will see going forward is a divergence in the performance of graphite juniors as investors start to understand the graphite market and which ones are more likely to get through the door first. KNL's flake size puts them at the front of the pack and once the JV gets signed off it will cement their place as the investors choice whilst others will fall away. Once the JORC is announced (next week?) followed quickly by the revised scoping study more institutions and larger investors will look at this stock as it will fit into a lower risk profile.

Hold tight boys this is the last shake of the tree.