Thanks Toph, I just post it here, easy to read.01 September...

Thanks Toph, I just post it here, easy to read.

01 September 2009
Financing
Kalahari has conditionally raised £20m (before expenses) by way of a placing of 11,764,706 new ordinary shares at 170p/share; representing 5.6% of the enlarged share capital of the company.

The funds raised will be used to satisfy the Company's commitments with regard to the proposed A$91m equity raising announced by Extract Resources on 26 August 2009.

The Company is also in advanced discussion to raise an additional £10m before expenses through the issue of convertible bonds, details of which will be published shortly.

Ambrian is engaged by the Company in regard to the placing.

Zone 3 Drill Results
Extract Resources, in which Kalahari Minerals owns 39.98%, has reported new drill results from an area 1.2km south of the existing Zone 2 resource. The company has reported chemical assays from the first hole in this new area, called Zone 3, which show large intersections of economic mineralisation, including 72m @ 676ppm. In addition the company has reported infill holes from Zone 1 (highlight of 90m @ 796ppm) and Zone 2 (highlight of 75m @ 1,445ppm).

Extract is also now drilling a new prospect, 10km south of Rossing South, called Salem. Handheld spectrometer readings have identified numerous zones of uranium anomalism, but no chemical assays have been released on the 10 holes completed to date.

This announcement contains a double-wammy for Extract, and by extension Kalahari: The Zone 3 results are outstanding and it looks like new prospect Salem has come up trumps too.

This is the first hole released from Zone 3 and we expect more like it. Although only one hole has been assayed chemically, the company map (accompanying the press release) shows five more holes with good grades and widths from hand held spectrometry. Reviewing the geology, we are in no doubt that Zone 3 will prove into a third zone of economically viable mineralisation, although it is hard to get a grasp on the size at this early stage. In our view, Extract’s wider licence area hosts more than the premiere deposit in Namibia (Rossing South Zones 1 & 2), it is potentially an entire district that may represent the world’s largest uranium deposit with known economic mineralisation extending for at least 7.5km.

At Salem the company map shows eight of the ten holes drilled have good grade and width from handheld spectrometry and we await the chemical analyses with great interest. The size of the deposit here is likely to be smaller than Rossing South as the resource is hosted by dykes (narrow ‘sheets’) rather than the larger granitic body that hosts Rossing South.

We have previously noted our confidence in the resource exceeding 300Mlbs in the next six months, and reaching 400-500Mlb if Zone 3 comes in as hoped. With these new drill results confirming our speculative view of Zone 3, and Salem likely to add to this, we are now confident that the resource will ultimately reach 500Mlbs, and may even exceed that. For comparative purposes, 500Mlbs U3O8 equates to 29Moz of gold equivalent (at US$850/oz and US$50/lb).

Current (JORC)---- Ultimate (Ambrian Estimate)

Zone 1 (Mlbs) 145 ------------200
Zone 2 (Mlbs) 122 ------------200
Zone 3 (Mlbs) 0 -------------100
Salem (Mlbs) 0 ---------------25
Ida Dome (Mlbs) 25 -----------35
Total (Mlbs) 292 -------------560