Ann: June 2015 Quarterly Activities & Cashflow Report, page-7

Hi Andy

Re: "Personally I am going to give KRM around six months to lift their game and then I feel I will have little option other than to cut my losses."

You've been in it for a while now, as I have I, MM and others. The death in the mine and the subsequent discovery that the paperwork was not in order were real setbacks which caused an astonishing 2 years of delay. Since then there have been a couple of new issues. The soft conditions in the upper levels and the inflow of water were two others.

However, if they get it right, which must surely be soon, the fundamentals are still there. It is a low cost mine with good grades. The price of gold has fallen, but there is a plus side to that too. A reduction in supply will evetually lead to a price increase and the low cost producers should do well.

Six months is a bit tight. Personally I'd give it another year. After all, long term holders who have not averaged down, are on for a hiding if they sell now. Far better to put it in the bottom drawer.

But I do agree that in a small fairly tightly held company like this, the existing shareholders should be kept posted rather better than what current management are doing. Perhaps an approach to Mr Phillips, who is still increasing his holding and is a hands on sort of guy, might fall on more sympathetic ears.