Ann: Lindi Jumbo Definitive Feasibility Study, page-2

Well chaps, don't want to count the chickens too soon but it looks like we're going to mine.

I love the outsourced model, allows Alan to run the business and focus on exploration.

Highlights:

• Mining plan utilises exceptional high grade (>17% TGC) plant feed in first three years and +16% TGC over Life of Mine (LOM).
• DFS to accuracy of 10%-15% confirms exceptionally robust economics and returns even at potential softening price regimes for premium material.
• On mine cash cost of US$292/t in concentrate delivered at mine gate. Cost for concentrate to FOB Port of Mtwara included in off-site costs.
• Upfront Capex of US$38.7m the lowest capital intensity amongst peer group. Ongoing sustaining and deferred capital of US$5.6m.
• Weighted average product basket price of US$1,687/t intentionally modelled conservative against peers. • Pre-tax NPV10 of US$323m with Pre-tax IRR of 97% highly robust.
• Project Pre-tax NPV10 of US$133m and Pre-tax IRR of 50% at current 10 year low prices.
• Project almost completely de-risked with built in capacity optimisation and expansion opportunities in the resource and the process plant.
• Operating model of “Fully Outsourced – Build, Own, Operate” (BOO) well underway with full scope under current negotiations.
• Front End Engineering Design (FEED) currently being discussed with different Work Breakdown Scope (WBS) scope Preferred Partners for various areas of design.