quarterly

· Nimag’s earnings before tax increased by 222% from the third quarter to R3,703,000

(A$729 000). Unaudited profit before earnings and tax for the year is R11,884,000
(A$2,339,700).

· The Group generated A$1,300,000 cash from operations during the year.

· The insitu indicated coal resource of 18,482,274 tonnes has been determined for 5
seam at the Holfontein Coal Project. The project is predicted to yield 8 million tonnes
of saleable coal.

Discussion of Results

Nimag Group of Companies (GVM-74% with option to acquire balance by share issue)

As predicted, Nimag showed an excellent recovery from its weak third quarter. This was
fuelled by a combination of a weakening in the Rand against the US$, consumer acceptance
of higher nickel prices, improved domestic demand and the increasingly strong performance
of Nimag’s ancillary products and trading activities.
Though the third quarter of the calendar year is traditionally a slower period for Nimag due to
summer holidays in Europe, its performance should remain positive due to the improved
domestic demand and weaker Rand. The Rand is expected to remain at its current levels,
which significantly improves Nimag’s domestic competitiveness and its overall profitability.
Nimag also succeeded in lowering its stock holding during the quarter and the difficulties
reported during the third quarter have all been resolved.

In summary, despite a weak third quarter, Nimag has shown a significant recovery and has
succeeded in delivering a profit before interest and tax which is in line with management’s
expectations and predictions. Market conditions have also changed favourably and the
outlook for 2006 is very positive.
The company continues to seek growth opportunities both within the Nimag Group as well a
through acquisition and the success of its newly established trading arm and ancillary
products are evident of Nimag’s strive towards adding value through related business
opportunities.