Ann: Annual General Meeting Presentation, page-4

Thank you Andy for your post & Hi all.
It would be good to see the POG move above $1200 US($1400 AUD) and stay there for a while.

Jim Rickards (Currency Wars) was on ABC last week saying that the Western World
is in Depression since the GFC according to John Maynard Keynes definition of Depression
(under its potential rate of growth) He also said that the US would likely do a QE4
by 2016 and that according to Keynes' definition there can be low economic and employment
growth and be still in a Depression.(ala USA)

KRM is likely to be over cautious since resuming mining in July because another accident would
really knock the company around. They have employed a mine safety engineer and the services
of Bill Phillips (director, founder and UG narrow vein specialist) to ensure safety.

For safety reasons also, it has also forgone the mining out of the Way Lingo pillars.

So, in summary, it is preferable to ramp-up safely than quickly. This. however, does not
excuse the new CEO from predicting full ramp-up by mid October and then not delivering.

We are currently at 315 ton/day throughput & 10 g/t.
We have potential of:-

-lifting throughput to 385 ton/day soon
-lifting grade to 15 g/t with 1 to 3 Splay vein feed supplement*
-lifting plant throughput to 500 ton/day with a $2 mil spend.

All of this should be possible without having to wait on the opening of Talang Samin
and should be already penciled-in to the production and business plans.

In the interim, with the AISC at $650 us/oz when production stabilises, the POG
heading towards $1400 AUD/oz we should see over $12 mil in the till
- enough to retire the $10 mil debt + a cash buffer.
Cheers
Moorookamick

If throughput is 385 ton/day with 75% @ 10 g/t and 25% @ 29 g/t, then
the overall grade will be 15 g/t approx. mm