Ann: Revenue Generation Recommences-KBL.AX, page-49

Hi Bobsa,

I am using printed information as put out by the company as follows below.

Also...has anyone seen a quarterly cashflow report for March or June 2016? i can't find it on the ASX announcements page. I am interested to see the actual cost of production vs the what the company says it should be. The reason i am interested is because in the short term KBL must deliver almost 25% of all gold production to Quintanta for $290 per ounce...

Here is the excerpt from the March quarter and it is quite clear that the bond holders must be repaid by February 2017 unless there is a takeover offer that has resulted in the directors recommending the bid or the offeror has acquired at least 50% of the company...tick tock..

MANAGING DIRECTOR’S OVERVIEW – March 2016 Quarterly Report, Page 2 paragraph 5

‘The Company is currently working closely with the Convertible Note Trustee to best deal with the expiry of the $11.2M (issue value) in notes (ASX code KBLGA) in February 2017. Under the terms of the notes, they need to be repaid by this date, or alternatively, conversion is deemed to occur if a takeover occurs prior to the February expiry date. What this means is that under the terms of the notes, the 28.9M notes will be deemed to convert into 28.9M shares if an off-market bid, a market bid, scheme of arrangement, or offer or invitation is made to all holders of Ordinary Shares is made and the offeror has at least 50% of the voting power or the Directors issue a statement recommending that the bid, scheme or offer’