Ann: Way Linggo Project Update , page-12

Disclosure: I don't hold just at the moment, as I have pulled out temporarily, but will be right back in a soon as approval is received for Talang Santo.

So right now we have very little production. The Way Linggo mine has depleted much of the high grade ore (levels 1-3) and we are now into the lower grade stuff on level 4. The new development on the south side of the river should be producing through level development - the drilling intercepts there are ok but not spectacular. The silver vein mentioned in the update (under the original mine on the north side of the river) is promising though. Clearly this is a temporary lull in production provided that the swiss cheese of the upper levels can be stabilised, and provided no mishaps occur when mining eventually progresses underneath the riverbed.

The real problem for KRM is Talang Santo. This is a much bigger deposit with better average grades and really will make this company. The worry is that Indonesian bureaucracies can take forever to finalise anything, especially if someone has said something inappropriate at dinner. I hope we haven't upset someone, because they could sit on these permits for another year. It is this unknowable length of delay to get our best prospect back into production that will continue to drag the SP lower. It is for that reason that I am out and will stay out until Talang Santo gets the green light. Who knows how cheap my reentry will be.

Apologies if someone is offended by a non-holder saying "we" as I am very keen on this company even though I have made a short-term tactical decision to get out for the moment. Excellent returns from these prices once Talang Santo gets going.