g thomas....litmus test, page-2

You would assume that Gavin Thomas will accept the offer given the exercise date of the options. There is no way you would exercise long dated options if you were not going to accept the offer.

Gavin accepting is important for a number of reasons:

- Gavin probably knows the project best compared to any other person in the entire world. He would be best placed to judge whether another purchaser is likely. Whilst he is the CEO of KCN, you would not expect him to leave significant money on the table if he thought there was the possibility of a larger bid.

- If Gavid accepts, this also indicates that there is not likely to be a price increase, because he would wait for the increase before accepting if that was the case.

AND holders need to consider future dilutions which are likely to see them ending up with less than half of the minor (possibly significantly less) given the amount of capital that will be required to develop the mine. The banks will require significant capital plus significant hedging as it will be a relatively high risk operation for a single mine company.

You would expect that this will cost in excess of $150m to develop given the fairly remote nature of the mine and the size of the plant that would be required.

There is also a heap of money still needed just to get a reserve calc and a bankable feasibility study.

Premium for AND basically disappeared yesterday.

Regards
Marvin