Kings Minerals Annual Report. ( Released this week )

Chairman’s Letter

Dear Fellow Shareholders,

We have seen another year of solid progress with our key projects. At Kalman, we have reported a significant JORC compliant resource and discovered an extraordinarily high grade Copper/Gold zone, the true significance of which will only become fully apparent with further drilling. Also your Board is very excited about the Rhenium grades of the deposit. Rhenium is very much a 21st Century metal. Its primary uses are in catalysts, jet engines resulting in improved fuel consumption and lesser carbon derivative emissions. The current price of $12,250/kg is the result of a steady increase, almost doubling, over the last year. The latest Kalman resource contains 72,350kg of Rhenium. Whilst considerably more drilling is required at Kalman, next year’s focus will in part turn towards pre- feasibility activities.

Similarly we have seen a maturing and shifting of focus at San Anton. This very large resource has now past the primary drilling phase and the emphasis has shifted to metallurgy and conceptual plant design and optimisation.

The recent drastic events in the world’s financial markets have presented your Board with an additional set of challenges. Despite this, I am confident your company will continue to stride forward through the 2009 Financial Year.

Sincerely, Norman A Seckold Chairman