Ann: Consolidation/Split - LOM, page-65

Diamonds are such an important commodity to Angola, that any significant change in the gazetted terms of a kimberlite will require approval from the president, João Lourenço.

From the limited narration by LOM on the subject over the past few years, I think we can assume that our two partners have agreed that LOM should receive a majority stake.

This is not only important for Lulo kimberlite development going forward, but it also brings the MIC terms into line with Angola’s current policy.

The way I see it is that if LOM failed in its goal to acquire a majority stake, and we pulled out, the Angolans will have to attract a new partner.

That’s HIGHLY unlikely to occur, unless they offer a new partner a majority stake, and that majority stake could be more that what LOM’s after.

It’s very difficult to analyse the cause of the hold up, but if we call upon our experience dealing with the Angolans, then we can assume that the delay is solely due to red tape.

Furthermore, the Angolans approach to timelines is very much a laissez-faire attitude. The fact that the current gazetted contract will expire in several months time, will have minimal motivation for the Angolans to expedite the new MIC.

No offence, it’s in their culture, and it needs to be respected!