purpose of the placement, page-2

The reason, IMO, raises some serious questions about the company.

1. It would appear that the current sale of concentrate is not providing any positive cash flow from operations.

2. If concentrate sales are providing cash flow from operations, then it looks like they are not providing any cash for capex.

3. If the above is correct, (and it is an assumption), then the cash cost of production must still be high and not yet coming down.

If my memory serves me correctly, KZL did a cap raising for working capital needs ......

Maybe I am being a little negative here, but alarm bells are ringing.

HT1