kcn winning, page-5

Given the nature of the asset, the due diligence process should be fairly straightforward. It is basically a single asset company.

All the information should be publically available. If they are providing other information to interested parties that is important, AND will be in breach of ASX Listing Rules as the market will not be fully informed.

KCN has obviously done its own Due Diligence on the acquisition. If AND is serious about extracting the maximum value for shareholders then any information being provided to others should also be provided to KCN.

A couple of key points:

- KCN now have more than 10%, a sufficient stake to stop another takeover from compulsory acquisition

- Given AND only has the 1 asset, it won't be able to sell it (and possibly not JV it) if it is a substantial part of the asset without approval from shareholders

- Any person interested in a JV is going to want a substantial share otherwise it is not worth their while, resulting in shareholders having to approve the deal

- You would expect that KCN would have at least an additional 10m shares in the bag (with Gavin Thomas' stake of 2m shares and 8m options).

- You will see more shares accepting the offer progressively

- Quarterly reports due out before Monday start of trade will shed some more light

- It is likely that AND has made limited progress since the last quarterly report.

Are the independent directors of AND really interested in shareholders best interest or themselves? They have clearly not communicated to shareholders the risks associated with AND shares. I would go as far as saying the Target Statement was misleading on a number of aspects.

Regards
Marvin Mindreader