NEW DISTRIBUTION CENTRE - CAIRNSA warehousing and 25kg bagging...

NEW DISTRIBUTION CENTRE - CAIRNS

A warehousing and 25kg bagging facility has been established at
Cairns. This facility is currently distributing kaolin products to
the domestic markets utilizing cheap back freighting opportunities.

RIVER BARGE ACQUISITION

SRK has purchased the first of a planned series ofriver barges. The
ability to use an in-house fleet provides SRK with; barges best
suited in design to efficiently ply the Skardon River; control over
logistics scheduling and, most importantly, with attractive economics
for connecting to international shipping. Using an in-house barge
facility significantly reduces our previously budgeted total shipping
costs to customers.

ALFA LAVAL CENTRIFUGE

We are pleased to report that this machine has been rectified by the
manufacturers in their Sydney factory with warranty cover and is
being shipped back to Skardon River. This machine is planned to
recommence production beginning of June.

C V Alexander
CHAIRMAN