...would you be amenable to pursuing "settlement alternatives" if you were Venezuela? I don't think so. After all...they are so close to their goal of bankrupting KRY. No meaningful negotiations will occur with Venezuela unless\until Fung unveils a financing plan that will avoid bankruptcy and see KRY thru years of arbitration litigation.

KRY "seeks" this and "pursues" that. Just more empty words. It's been two months since the cancellation of the MOC. Was an April arbitration filing and the need to finance same a surprise?

The Company's immediate plans are as follows:

--  Seek settlement alternatives with Venezuela while pursuing the
    arbitration claim;
--  Proceed with an orderly withdrawal from Las Cristinas;
--  Sell the remaining mining equipment;
--  Negotiate with the Noteholders to restructure the terms of the $100
    million Notes that are due in December 2011; and
--  Pursue alternate financing.

Liquidity and Capital Resources

--  Cash and cash equivalents at December 31, 2010 was $16.1 million.