AUSTRALIAN KAOLIN LIMITED(AKL)

company deregistered

the liquidator has made a declaration that there will be no return to shareholders - shareholders can choose to make a capital loss in the year the declaration was issued (2004-2005) - shareholders can click on the declaration if they need it to substantiate their claim (see note of 15/12/04 below)

a loss declaration has been issued and the capital loss can therefore be claimed in the financial year the declaration is issued

we have been seeking an update from the Receivers Taylor Wooding (Michael Ryan) since 9 September 2004

Receivers are still endeavouring to sell the rights to the royalty stream and confirm there will be no return to unsecured creditors or to shareholders - it will be some time before control of the company reverts to the administrators

Receivers advise they are attempting to sell the remaining assets the subject of the secured creditor's security

seeking an update from the Receiver Michael Ryan

receivers report there is no real change from the position outlined in the note of 23/04/2003 below

seeking update from receiver

receivers report they are monitoring the progress of Minerals Corp & Queensland Kaolin - only remaining assets are the right to royalties from mine sales and a 10% equity interest in Queensland Kaolin (marketing of this interest will be worthwhile only when the project has a proven commercial track record) - they also consider possibly letting the royalty arrangement run its course in order to utilise the company's tax losses - the receiver's duties will only be complete when the royalty and equity interest have been dealt with - the company will then proceed into liquidation unless the Deed Administrator receives a reconstruction proposal

a number of assets still to be disposed of - receiver not prepared to put a timeframe on completion

administrator advises intention was for company to be liquidated but no decision yet made

administrator advises that company fate in hands of secured creditor

Minerals Corp announces successful initial production

Minerals Corp advise value ascribed to Skardon River $93.5m (after spending $20m)

delisted due to failure to pay annual listing fee

administrator advises that shares of minimal or no value

market advised that assets sold ($6.5 million for Skardon River)

market advised of possible restructure but that shares of little or no value

pierpont writes in AFR see www.pierpont.com.au/eco_Archives/default.cfm?behaviour=view_article&id=3025

deed of company arrangement entered into

directors advise of possible claims against Dresdner and Taylor Woodings

call for expressions of interest in Skardon River assets

A Woodings and M Ryan of Taylor Woodings appointed receivers and managers

AH Douglas-Brown of Bentleys appointed administrator

shares suspended

name changed from Australian Kaolin NL