Ann: Divestment of Kalgoorlie Assets, page-8

"Why would a EAR TKO of MKO be cleaner?"

The plant is relatively easy to value. Their exploration projects are not super fantastic though, therefore only nominal value. Oh and those FOR a merger own over 90% of the company.

Re plant value, as I said it will be independently valued.

" I don't see any urgency for MKO to rush into marriage with EAR"

The longer it takes, the less upside for MKO from combined company. If EAR start having great drilling results (and they will) its price will continue to go up. Not relevant for MKO TKO purposes (since will just get equivalent scrip), but if you intend to hold the shares in the combined company, then you are likely to miss out on a lot of upside already priced into EAR SP due to previous exploration results.

Again though, this is just a hypothetical based on my assumption that there will be a merger, and that it will be EAR acquiring MKO. Who knows what actually will happen...some other company with a heap of cash might just come along and take both companies by the scruff of the neck.

"I would prefer MKO to build their own reserves for the next year or so a"

Their reserves will unlikely be as good as what Julius (and Zaphod) will deliver (unless very lucky) and it will cost ALOT of money just to get to resource stage. Corboys is their best so far and its sub 1.5g/t...Julius will be 3-4g/t imo. Course a resource statement from EAR is needed for my view to be confirmed...wont be long in coming though.

"I would imagine EAR will take some time to come out with their proved up reserves in any event."

Nope. Could be producing before end of this CY, or early next CY if everything goes smoothly.

"The Julius mine I think is 60km away from BW - are the haulage roads etc. in place or do these need to be built?"

Logistics capex will be bugger all.

Cdchi1