A Christmas Letter from the President

Dear Shareholders and Investors,

As we near the Winter Solstice in the Northern Hemisphere, darkness seems to surround us, what with fiscal cliffs, dismal market sentiments, gold tanking, Junior Explorers in dire straights, and everyone wondering when the worst downturn for Juniors in over 50 years will end. But as is often stated "it is always darkest before the dawn" we can be confident that the sun will rise tomorrow and the days will soon start to get warmer, and so is our belief the market will recover.

We at Kent Exploration, like most Junior Resource companies, and their long suffering shareholders, have suffered terribly this past year from the substantial drop in share prices that made it difficult to finance operations, so we finally took the step we wished to avoid, consolidation. This necessary step, that gives us 8.9 million shares issued and outstanding, should enable us to finance the Company on much better terms.

I wish to personally thank each and every shareholder who has stood with us and helped support us through these difficult times. Our approximately 10 million shareholding in Archean Star Resources Inc continues to increase in value following the Archean acquisition of the Monitor Copper Gold Project in Idaho, so much so that the shareholding in Archean is now valued higher than the market value of Kent itself.  

Looking forward into 2013, despite delays, we still expect our Flagstaff Barite Project to provide cash flow to the Company this coming year that will help insulate us from times like now, and we expect to continue to create additional shareholder value from our New Zealand gold projects, where we intend on completing the analysis of the graphite at Alexander, and commence a new round of exploration at the historic high grade Red Queen mine.

From all of us here at Kent Exploration, we will continue working to bring value to the Company and you, our shareholders, and we wish you all a Merry Christmas and a Happy and Prosperous New Year.

Graeme O'Neill, President and CEO