Ann: Quarterly Cashflow Report, page-18

Memorandum of Understanding (MoU) with Richland extended to finalise terms for a binding agreement to consolidate Merelani graphite assets.

Under the terms of the MoU with Richland, the two group’s have agreed to work towards legally binding agreements to consolidate their respective graphite assets in the Merelani region. The strategic objective of the negotiations is to combine graphite mineral rights and assets to recommence graphite production at Merelani. TanzaniteOne Mining (the Tanzanian based subsidiary of Richland) already has in place infrastructure, including tailing storage facility, power, water, administration facilities, site camp and services. The MoU provides an opportunity to significantly advance Kibaran’s second graphite project in Tanzania. Richland is listed on the AIM stock exchange in London, and specialises in the mining and production of the Tanzanite gemstone from its Merelani mine. Significant due diligence has been completed which included engineers from MDM Engineering, who designed and built the 15,000 tpa Merelani graphite plant in 1995 visit to make a site assessment.