Ann: Talang Santo Resource Upgrade , page-11

Hi Fishinnick,

KRM has had abnormal costs in the 2012 fin year due to the
expl & development work done at Telang Santo. This second
mine should be commig into production soon and should
IMO lift production by 38% or so.

In addition to this there has been a 4c divident paid ( $11.5 mil)
and $15 mil income tax.

Also keep in mind that KRM has a 15% Indonesian partner and that
the Credfit Suisse silver hedge at $28/oz has almost another year to go.

KRM is a small operation and the virtual doubling of costs due to Telang Santo
is a one-off which will pay dividend in 2013.The US$254/oz cost/oz
only relates to Way Linggo mining cost after silver credits.

The comforting thing is that despite this year's high development costs
and maiden dividend, the cash in bank has lifted to $30.1 mil and that
all future development will be from cashflow which means no cap raises.
Cheers
Moorookamick

Please refer to the KRM 2012 balance sheet for details & do your own research and/or seek professional advice before investing. MM