Spoke to RM at 10 am today. Several points.........and he was open and helpful.

His understanding is that CCRC has all the approvals required from the Chinese Gov't to proceed. Mostly received pre-Binding Primary Agreement signing.

KRY and CCRC are satisfied that they are ready to proceed, and are awaiting the Permit to Impact Environmental Resources, and transfer of the MOC from VZ.

The replacement of Minister Ortega is helpful as she was very anti mining and development in our area. The new Minister appears to be more reasonable, but..."words are worthless until put into writing and deeds".

KRY did file a notice of grievance in 2008, a predecessor move to Arbitration, and have until April 2011 to act upon that. I asked if it then expires and he did not know the answer, or what would come next. But arbitration is still an open door at this time.

I finally asked if the 4th quarter target was still in play. He said he hopes so. They(KRY & CCRC) are ready to proceed, and it is up to Venezuela to issue the necessary permits. He acknowledged that time grows tighter because of multiple holidays, but they are ready and hopeful. The ball is in Venezuela's court. Period.

AD