Ann: Way Linggo Project Update , page-7

I dont think that ca cap raise is neccessary for the following reasons:

(a) KRM had $10.7 mil cash & Bullion at Sept 30th
(b) Statement said that Way Linggo production for Dec Qtr would be similat to
that of Sept Qtr ( 4238 ozs for $7.6 mil rev.)
(c) I recall another statement of a $5 mil director loan

That amounts to over $23 mil funds available by Dec 31st.

Last quarter had abnormally high exploration & Evaluation ( $4,418 mil )
and development ( $2.092 mil ) most of which would have been on Talang Santo.
Telang Santo will be closed for most of this quarter so expl/eval. & development
costs should be at a minimum.

And as a last resort there's always the option of extending the silver forward
sales for another year for about $6.5 mil. ( Current forward silver sale ends in March which was for $13 mil / 2 yrs)

Once Talang Santo hits its straps complemented by Way Linggo we should see
serious production at very low costs. Also keep in mind that both gold and silver have gone up this quarter.

With kind regards
Moorookamick