oiramoric

Venezuela has denied the final environmental permit. They said they would consider a revised plan from KRY, dually presented, accepted and then still no response. Written requests for clarification refused.

KRY is working at keeping their only two options open: the arbitration route or the permit. I would suggest you avoid reading into RM's comments because he can't and will not communicate anything of substance unless via a press release.

It is my opinion that KRY will not embark upon the arbitration process because it won't come to that. Likewise a permit will not be issued either. The solution sadly will be a reverse merger by RML into KRY, thereby avoiding the KRY bondholder(s) issue and giving RML the TSX listing. This won't happen till RML closes their Can.Cap underwriting in March. I would suggest some movement after that juncture around the time that the Venezuelan community projects are completed.

Once RML reverses into KRY, look then towards Venezuela granting the permit, bondholder(s) are then silenced, RML has some cash on hand and gets the KRY equipment and permit. At that stage I would think some consolidation in the number of shares outstanding for the combined company would be in order!

What does KRY get - a lifeline avoiding arbitration.

How many shares or % ownership of the combined entity do KRY shareholders get is tough to answer. Likewise it's hard to know what the new co. structure (something Endeavour refers to) will be worth post permit.

To think now that arbitration is going to happen seems further and further away. Perhaps that's why KRY refers to it as as option?

Anyway, just my opnion.

Cheers

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