Ann: Appendix 4E-KBL.AX, page-3

the things that stood out for me were



and
"The Company’s financial performance during the year was adversely affected by a severe weather event in mid June 2016, resulting in cracking below the haul access road in the Pearse Pit. Remedial work was carried out immediately and production recommenced in mid July. The Company is undertaking a programme of negotiations to mitigate the impacts on production and cashflow arising from this event. Those negotiations are underway at present. "

The weather event has obviously affected their ability to repay creditors at the previously agreed schedule.

The outcome of this negotiation will be critical.