Ann: Update on Epanko Graphite Project and Pilot Plant Strategy, page-23

• Kibaran positioned to place Epanko in front of Minerals Commission as soon as it is operating

Speaking on the matter, Deputy Minister Nyongo said that the Government through the Ministry of Mines will not hesitate to amend anything in the Act or Regulations that will be shown to be a hindrance in the mining business in the country.

Project finance discussions are well advanced, with prospective lenders awaiting certainty to be provided from the Mineral Commission on various aspects of the legislation affecting lending arrangements. These banks and the Australian Government are assisting Kibaran to secure Mining Commission endorsement.

Kibaran is well positioned to comply with the new mining Regulations, having completed an Equator Principles compliant bankable feasibility study that satisfies the stringent International Finance Corporation Performance Standards and World Bank Group Environmental, Health and Safety Guidelines. The project development plans are consistent with the standards required by the new mining Regulations.

Our prospective lenders are just “awaiting certainty”... which I interpret as - they are satisfied with the legislation but are simply waiting on confirmation that their interpretation of certain aspects of the legislation is correct.

I think it’s fair to say that Tanzania is open for business and KNL is at or near the front of the queue. Tanzania wants to see new projects started and no one is better prepared than we are.