from 1.27 to 0.77 50 point drop, page-13

Process, Whaddayamean no sight of listing Mungana
Read this. Ann at 12.30pm today, and again at 1pm

Kagara Ltd is pleased to announce that total applications for shares in the Initial Public offering of Mungana Goldmines Ltd have reached the minimum subscription level of A$53 million and that the retail component of the Offer has now closed.
It is pleasing to see such strong retail take‐up with over 1,400 shareholders subscribing for shares and that Mungana Goldmines is now fully funded to carry out the exploration and development programs outlined in the prospectus. These programs, comprised predominantly of drilling in the Mungana and Red Dome area, are targeting an expansion of the current measured, indicated and inferred resource of 1.85 million ounces of gold to a level that is capable of sustaining production of 150,000 ounces of gold and 60,000 tonnes of copper concentrate annually. We thank all shareholders who have participated in the IPO to date and in particular the Guangdong Foreign Trade Group and Prosperity Steel United Singapore who will become 16.0% and 8.3% shareholders respectively.

The institutional component of the IPO will open tomorrow and close on Monday 31 May, with listing on ASX envisaged on 9 June 2010.