london - investor update

News just out on London RNS:
'4 December 2008


Investor Update


The board and management are undertaking a review of the Munali Nickel Mine following
recent falls in the nickel price and delays to the
mine ramp up.

Of primary importance are the issues of lower than forecast mine production and the impact
of operating margins due to lower than
expected nickel prices.

The reduced output combined with lower nickel prices resulted in shortages of working
capital. Additional working capital finance has
been raised through the combination of hedging close out, debt restructuring and recent equity
placement. It is forecast these funds will
allow the mine adequate working capital to ramp up to full production, based on the current
mine plan and nickel prices forecast.

Management is currently working to increase ore tonnages and grade as quickly as possible.
A major review of costs and reduction in
non-essential expenditure is also in progress.

Other than the issues outlined above we are not aware of any fundamental problems
identified with the mine resource or operating plant.
The issues affecting the mine performance to date relate solely to management of the mining.
These issues have been addressed and mine
performance is improving significantly, though remains behind schedule.

A more detailed update will be provided as soon as these reviews are complete.'