Ann: Quarterly Activities Report and Appendix 5B , page-3

re: Ann: Quarterly Activities Report and Appe... I am extremely happy with that - this quarter will be huge - including Mining to re commence and accelerate, more sales to Sinosteel in China, Uranium assets look like being sold off to interested parties and debt financing to come through aswell.

Here are some of my favourite snippets :

Production from the Emmanuel Project will be the primary source of manganese product to be delivered into the offtake agreement with Sinosteel. First deliveries to Sinosteel under the offtake agreement are forecast to be made in the current quarter.

the Emmanuel Project. Based on this work the Company and its consultants have identified manganese mineralisation that occurs in several veins, each 1.5m to 5m in thickness, with a north easterly strike and dipping at approx. 40 degrees to the southeast. Manganese mineralisation has been determined to extend over an initial strike length of 1,489m and width of 680m that is both open at depth and to the north east.

Mining activities are anticipated to commence in May 2012 following the purchase of the additional mining equipment and fleet and optimisation work completed during the Quarter.

The processing plant will consist of a primary and secondary crusher circuit, scrubber, triple deck screen, optical sorter circuit, spirals and tertiary crusher and is forecast to be constructed in a 3-4 month period and replace the existing small scale and temporary plant being used on site.

Investment License
During the Quarter the Company’s principal subsidiary in Zambia, Impondo Zambia Limited was granted its Investment License (Certificate of Registration) by the Zambian Development Agency.
Under the terms of the Investment License, the Company’s Zambian subsidiary will benefit from highly attractive fiscal and non-fiscal incentives, including: a corporate tax of 0% for an initial period of 5 years from the first year profits are made. For year 6 to 8 corporate tax will be paid on 50% of profits and in year 9 to 10 on 75% of the profits; dividends shall be exempted from tax for 5 years from the year of first declaration; capital expenditure on improvement or for the upgrading of infrastructure shall qualify for improvement allowance of 100% of the expenditure; suspended Customs Duty to zero for 5 years on machinery and equipment; zero percent import duty rate on raw materials, capital goods, machinery including trucks and specialised motor vehicles for five years; and deferment of VAT on machinery and equipment including trucks and specialised motor vehicles. In addition, the Investment License provides various investment guarantees and protections from expropriation or nationalisation, as well as free facilitation for application of immigration permits, second licenses, land acquisition and utilities.

Debt Financing Discussions
During the Quarter the Company continued in its discussions with its financiers for a structured debt facility to further fund its exploration and development activities at its Zambian Manganese Projects. The Company anticipates finalisation of its debt financing arrangements in the current quarter.

URANIUM PROJECTS
The Company continued during the Quarter to complete its strategic review of its portfolio of New Mexico uranium projects. The Company has been approached by several parties in respect to its uranium projects and anticipates completing its strategic review in the current quarter.