in case u dont know

for newbies looking into KAS...chairmans letter explains what they are about.


CHAIRMAN’S LETTER
26 March 2007
Dear Investor

On behalf of the Directors of Kasbah Resources Limited (Kasbah or the Company), I am delighted to offer you the opportunity to become a Shareholder in Kasbah.

Kasbah is a minerals exploration company that has the exclusive rights to acquire 100% interests in the Achmmach and El Karit projects, located in the Middle Atlas mountains of Morocco, an area considered to be the country’s most significant tin and tungsten province.

In this historical tin province, the Company’s objective is simple but clear. We aim to undertake a feasibility study on the Achmmach and El Karit projects and move these projects to advanced exploration / development decision points within 12-18 months. As part of this exploration program, the Company intends to establish the extent of mineralisation present within the permits to define a larger JORC compliant resource. Kasbah’s skilled and experienced board, led by Managing Director Wayne Bramwell, brings Australian and international exploration and development expertise to the Company’s projects.

Morocco is a country with a history of political stability and a well developed mining industry and culture.

The development of Morocco’s economy is evidenced by the recent shift by the government to privatise selected government owned mining assets and the introduction of incentives and reform programs to boost minerals industry competitiveness and attract foreign mining investment. These regulatory changes, plus the existence of established, modern, mining and transport infrastructure make Morocco a country that is very attractive to mineral project developers.

The tin industry is undergoing significant structural changes. On the supply side, China and Indonesia remain the world’s largest tin producers, however almost 50% of total world tin production has been sourced largely from small scale mining and smelting operations. Recent government intervention in Bolivia and Indonesia to regulate or halt these small scale operations, plus China’s move from a net exporter to a net importer of tin, has significantly impacted the tin market with both concentrate and refined tin now in tight supply with global stock levels declining.

These supply pressures are exacerbated by the rapid increase in tin demand by the electronics, chemical and traditional packaging sectors. Increasing consumption of consumer electronics by growth economies, particularly China, continue to drive global tin consumption. Tin is becoming increasingly viewed as a “green” metal with the US, the EU and many other countries banning the use of lead based solders in favour of high tin solders, further increasing demand throughout the electronic and manufacturing industries.

Kasbah is seeking to issue 40,000,000 Shares at an issue price of $0.25 each to raise $10,000,000 to provide funds to achieve its objectives over the next 2 years.

This Offer presents investors with the opportunity to become part of a Moroccan focused exploration and potential development company that is well positioned to capitalise on the internationalisation of the Moroccan resource sector and the current transformation of the world tin industry. Before making any decision on this investment, I recommend that you read this Prospectus in its entirety and seek professional advice as appropriate.

On behalf of the Directors, I commend this investment opportunity to you and look forward to welcoming you as a shareholder.

Graeme Walker
Chairman