the big picture, page-7

Hi Legin7777

I think the deal is a great one for KRL shareholders and I am not a seller. I have an exit strategy and it is no where near this price.

I think that you have been very hard on management and I actually commend them for what they have achieved so far. You have to understand the process of what is required and what they have done. I was talking to some people from one of the best performers in Indonesia and they can not believe what KRL have achieved in the past 18 months. They were telling me that it took them 2 years just to get the exploitation licence and then another 2 years to get the permits to enable them to start constructing the mine.

Maybe KRL management was a bit over optimistic in their ability to get the mines operating. But people in the know in Indonesia have been amazed at the way KRL and their partners have got the boxes ticked up there. I think if it wasnt for the weather we would have seen coal sales and production a lot sooner as well. Hey I will admit that I was one of the people that thought the stock would hit $1 by xmas. And if all things had occurred then it should of however with the weather came a drain on cash and hence more capital raisings that were anticipated hence more dilution hence the longer time for getting the shareprice up. The convertable notes were always going to put a lid on the shareprice but i think that the entry of Bayan will speed up the removal of the noteholder overhang and a increase in production.

I still believe that there is a long way to run with this company hence the reason i am still holding all my shares and have increased my holding. I personally believe that management have done a good job with the difficult circumstances that they have been presented with.

In regards to regular updates the ASX is quite clear that they do not want companies announcing nothing statements. When the company has something to say they announce. To say that we are doing meetings with barge operators to discuss when they think the water levels are going to rise or meetings with the locals in regards to land compensation this is part of normal business and takes time but is not really something to announce.

Look at the big picture and see what they got. They have now joined with a big operator which is only going to speed things up once the deal is finalised. The deal will take time hence my statement that I do not expect it to be finalised until later in the year.