better times ahead, page-2

I have had a second look at previous reports on Talang Santo and there is good
news re potential grades.

The Sept Qtr activities report says that Mawi vein sampling returned
1.4 meters @ 56.5 G/T AU & 156 G/T AG and 1.8 meters @ 24.2 G/T AU
& 65 G/T AU.

The Annual report page 9 says:
"Exposure of the Mawi vein during mine development has revealed significant clay bands within the quartz lodes that were not present ( potentially washed out) in the core extracted during the diamond drilling process."

"Face sampling results have also returned higher than expected grades than those originally indicated from diamond drilling intercepts."

Higher grades in Way Linngo from those of the drill samples were also attributable to this type of "wash out ".

This is good news for Talang Santo once it gets going. The processing plant has
a capacity of 200K tons p/a and 2 grams extra per ton means 12,800 ounces
p/a or $21 million extra to the annual bottom line.

The slowdown due to the unfortunate accident is behind us and we should be looking forward to the March & June quarterly results.

In gold mining grade is everything and both Way Linggo and Talang Santo
have some of the world's best grades and unlike some open pit operations,
millions of tons of overburden have not to be removed and then over 1.5
million tons to be crushed and ground to get the same results as KRM.

With best regards
Moorookamick