China Connection, page-3

Just considered the analyst report might actually form part of the directors 'moral obligation' to shareholders. As they could look back and say; "hey this stuff was out in the public domaine, but the market still didn't take any notice".

Anyhow, I got to come clean. I messed up one of my calcs in the previous post. If Kam Lung did take up all their options (171,818,615) (and no one else did) then their holding would increase to 28.16% of the company (not 42.95%!!) - oops sorry.

However, the point I was trying to make is that Kam Lung is contributing US$30M (A$40M1) to the JV with a JV Profit distribution: Kam Lung 70%: CNX 30%.

Current market cap of CNX is only A$23.8M. So IMO strategically, it wouldn't be out of the question for Kam Lung to throw another Approx. ~A$10m in the pot and increase their holdings to 28.16% of the company from the current 19.87%.

So in effect if they did increase their holdings the China JV Profit distribution would look more like: Kam Lung 78%: CNX minority holders 22%.

Oh and at 6cents the current mk cap of CNX would be A$89.2m and at 14cent it would be $208.3m (undiluted).

Strategically, IMO things are just starting to warm up, I'm expecting a bit of activity to happen in the CNX over the next 5-12 months. Perhaps 2016 shaping up to be the company making year - after a long string of set backs (and baring no nasty Summa news).