So I talked to John Eren, the IR guy at KGN. I was interested to know why KGN does not have any reserves in the P&P category. He says the new resource estimate in the PFS (due out soon) will have some reserves in the P&P category (about 2M OZ). This should greatly improve the valuation , if not the sp. Some other comments he made include:

- Highland Park will soon buy their warrants and this will bring in another $40M to add to the $340 at Asanko

-the grades are better at depth and this will significantly increase the resource estimate when they drill deeper

- they are anxious to buy up more property in the vicinity

- the small miners property and the Asmura property are highly prospective

- they think they have 10M OZ at Esaase

- he thinks this market will improve in 2013 as there is a lot of money on the sidelines and it has recently started to come back into the market

- this deal is good for both companies. PMI does not have to raise money at bad terms to get obotan producing.....once they get cash flow from obotan, they can step up exploration significantly

- analysts are valuing Asanko at $5-$8 per share upon completion of the deal

SN

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