update

Hi All, below is a quick summary of my conversation with SBR today. Any questions on accuracy can be referred to SBR.

Q. When is the Next Announcement?

Within the next few weeks. Issue is that there is not much content (drill results to release) to report upon.

Q. Update on the Drill Rigs?

Company owned DD Rig:

Gear Box fixed and operational. Ran some tests at “the flats” (Schlangental), unfortunately they are having issues with the hydraulics now. As such this Rig is not currently in production, and SBR are in dialogue with the Manufacturer. Some of the parts on the rig are still under warranty so they are expecting replacement parts from the Manufacturer.

The drill continues to be situated on the flats until it is repaired and fully tested before going up the Guchab Mountain to test the southern extensions of known mineralisation.


Contract DD Rig:

The Contract Rig has been out of operation for over a week. This drill was moved to test the southern (South / South-West to be more accurate) extensions of known mineralisation; to drill test a series of holes (in a straight line). The first hole was completed successfully, but did not target the most desired location. The second hole ended before hitting the targeted mineralisation.


In summary:

It was easy to pick up on SBR managers level of frustration. They are not happy with how the Company Owned Rig has performed of late. Because of the Wet Season and Rig Failures, SBR have only completed 1 Drill Hole successfully in 2014.

SBR Manager added that they will progress scoping and metallurgy testwork on Guchab in the background. They need a certain level of this to attain initial Jorc Category, and they are in dialogue with people about this.

He continued by saying that when SBR release the intial Jorc to the market for Guchab, it will be phase 1. The initial exploration target encompassed the entire Guchab Mining Prospect. The Jorc number will be an inferred one, and that it is envisaged that further drilling be required to improve the category of Jorc Code.

The ultimate aim is that SBR attain a mining lease on Guchab, but they will pursue a more reliable/confident category (from inferred status) of Jorc code for the reserve before doing so, and this will require more drilling.

Not the best of updates everyone I understand. But please understand that the guys at SBR are just as frustrated as the shareholders..

Sutto