Greetings.

I have received several email messages asking me for some comments on KRY and RML.

I had removed myself from the board a couple of weeks back because of the Roy Carson nonsense. I see not much has changed in this regard! Anyway my observations for those asking me for comments are as follows:

The Ontario Judge when setting aside the various actions by GRZ and RML has set in motion, following the decision made against RML, I believe, a positive outcome for GRZ in seeking damages from RML/Endeavour. These damages will no doubt include all or a large portion of GRZ's legal/professional/accounting bills associated with their legal defense of the hostile bid and a sum to compensate them for their troubles. Although it would be difficult to estimate the amounts I would believe them to run into the millions of dollars. At this stage it would not be unreasonable to assume that RML will attempt to seek some 'out of court' settlement with GRZ instead of taking the 'court route'. To this end a combination of a payment to GRZ in conjunction with RML's expenses associated with the 2nd failed attempt to takeover GRZ are not positives to RML's bottom line. Unless RML's cashflow has improved significantly with increased Venezuelan gold production or Peter Hambro/Endeavour will anti-up more cash for RML, then RML's future looks bleak!

RML's history of growth through acquisition opens-up the possibility of a bid for KRY. A bid, I believe, will only be made if KRY management would be willing to reach some agreement in principal to merge the two entities in the hopes of obtaining the permit! The sticking point is still the KRY bondholders however this could be overcome by Endeavour investing their recently raised $ 100 mill. into RML and RML pays off the KRY bondholders when KRY/RML merge. A KRY/RML merger would be looked-upon kindly by Hugo and the chances of obtaining the permit, possibly when Hugo reshuffles his cabinet are encouraging!

I am not advocating a KRY/RML merger however it is a possibility one needs to reflect upon. My own motivation is to see this through to arbitration should that happen however I still think Hugo may still want to avoid tying-up LC with legal issues by getting a deal in advance through RML. Interesting developments of late for sure.

Best of luck to all.

Cheers

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