Combined Cash on Hand and Debtors at 31 March 2011 exceeded...

Combined Cash on Hand and Debtors at 31 March 2011 exceeded US$22m.
? Continued improvement in grade and recoveries over each month this quarter with improvements projected to continue throughout 2011.
Our production plan which supported the LOM demonstrates that recovery shall continue to improve in 2011 and potentially reach 70 ? 73% by the end of 2011. As production reached higher grade zones in the March 2011 quarter, recovery reached an average of 63% (up from 60% in the last quarter). It is also important to note that recovery improved each month in the past quarter and in the month of April 2011 has well exceed the March 2011 average.
Management are also confident that grade will continue to improve throughout 2011.
The LOM study also indicates that cash costs at the Munali operation will continue to fall over the next 18 months with cash costs in the range of US$5.00 ? US4.30/lb. likely to be achieved in the short term.
Capital requirements at Munali are very low due to the excellent condition and maintenance of plant.