what about shareholders?, page-2

In my view the board's restructuring plans in this announcement are well thought out and have been clearly expressed. With just about every factor going against the small miner these days their recognition of those factors and addressing same seems to me to be what long term shareholders would expect.

The fact that they are trying to fund development without the usual Rights or Entitlement share issues should be regarded as a plus. The Mineral Hill mine is an underground operation, which these days with op costs so high and regulations so heavy that is somewhat a disadvantage. Admittedly they got the mine at a very good price and this was the only reason why these Ex CBH guys who started KBL was able to float it.

They have gained a lot of know how operating the MH plant and they believe they can cover costs with the reduced operations and the recently discovered high grade Red Terror ore. Also the lower dollar will up the recovery price.

The overall cost cutting measure which they have explained in detail are extensive. How often do you see Directors drop their remuneration that much without even having a 249D spill motion dumped on them. I believe they are on the right track in ultimately selling down assets in order to get Sorby Hills in to operation.

The comment by PLOUGH that they are selling the family silver in MH is not really the case. I believe the family silver is really Sorby Hills. This is a Silver/Lead resource of over 10Km strike length accessible via open cut. Read previous announcements.

Just about any resources story we read these days gives the impression the author is too busy playing with his worry beads rather than presenting a balanced story on the future of our minerals industry. I do not believe for a minute that the Chinese resources appetite will implode. I traveled China for some years buying mining related engineering product. I think we ain’t seen nothing yet. The 0.009 drop in KBL shares on release of this latest Announcement even on a terrible day like Friday 24th should have instead been a 0.10 rise at least. That is just another example of why the worry beads need throwing in the bin.

Hottin. With respect please read the Announcement again. They mention considering selling a "minority" interest in Sorby Hills.