Ann: Minbos signs IDC Facility Agreement, page-2

The Fundo Soberano of Angola requested its investment in Minbos to be limited to less than 10% of the fully paid ordinary shares of the Company and the balance of the $US10M be invested directly into Minbos wholly owned Mauritian subsidiary, Phobos Limited. Phobos holds the Company’s 85% shareholding in the Angolan entities of the Cabinda Phosphate Project (responsible for the mining and fertilizer production).

The US$15 million term loan proposal is awaiting credit committee approval which is proceeding favourably. Finalising loan documentation and normal legal and regulatory processes are expected to take a number of months. Approval will be subject to securing guarantees provided by the Fundo de Garantia de Crédito. This process is also well advanced.