Ann: Company Presentation, page-37

In this part of the World I generally sub-divide the geo-political risk factors into two groups:

• Political risks, which takes the form of how stable the government is, whether it's a civilian or military administration, the level or corruption etc.
• Security risks, which in this case is how stable are the borders to the incursion of radical Islamic groups infiltrating from the north.

I think Ivory Coast is in a better situtation than Mali and Burkina Faso to the north, which are trying to contain the general southward spread of radical Islam out of North Africa, but probably less stable than Ghana next door. The country is still pretty jittery following the recent elections, which let's be honest haven't exactly been bloodless. But it could also have been much worse.

Corruption is always an issue in these countries, but it's hard to guage it's direct impact on foreign mining companies and even more difficult for small explorers like MKG. The problem with endemic corruption is that it can disenfranchise large parts of the population, and with roughly 34% of the country Christian and 43% of the country Muslim there's always a risk that a spark from some radical group like ISIS could set of a powder keg. But the security forces seem to be doing an ok job so far keeping the northern border relatively secure.

For me the potential of MKG is currently exceeding the in-country risks, but it's always wise to stay on top of events as things can chage quickly, and it's good not to get emotionally attached to a decsiion.