Update on KPCL Acquisition of Satimola Limited, page-10

No agenda at all! Simply, it is requested that KPC complies with the ASX listing rules and corrects the misleading disclosure to the ASX that there is an active agreement between Satimola and KPC regarding an extension of closing the transaction until 30 June 2015. This is Not the case, as correspondence from Satimola with the ASX confirms.

KPC Shareholders also need to take into account the numerous breaches of contractual obligations entered into with Satimola. In addition, these breaches as stated in our correspondence to ASX and the market may form the basis for legal action to recover significant damages, action which the Satimola Board reserves.

Satimola confirmed by our Chairman Gordon Toll is actively pursuing alternative outcomes to a transaction with KPC with other interested parties as we have lost confidence in KPC's ability to comply with contractual terms and obligations as well as closing any mutually agreed transaction with us, given the numerous breaches of contract and their apparent lack of funds.

It gives us no satisfaction to state the facts. We regret that KPC shareholders have been forced to face these uncertainties and that the situation forces us to look for a more satisfactory alternative.