cashed up and drilling soon, page-2

Part owner of the Tanzanian interests, Aminex Plc, announced it's interim results last night. Hand over of the rig has delayed and is not expected until mid October. They had this to say about the drilling program that KEY are funding:

"The commencement of drilling in Tanzania has been delayed for several months because of mechanical problems with the rig experienced by the current operator. These problems have required some major and complex upgrading in situ. Remedial work has been beyond Aminex's control and, with no alternative rigs
operating in the region, we have had no choice but to wait. We now anticipate delivery of the rig to our consortium shortly.

Tanzania - Nyuni/East Songo-Songo PSA

Delays in delivery of the Caroil-6 due to mechanical problems have set back our drilling project at Nyuni by over three months but we currently anticipate the
rig will be ready for hand over to us in mid-October. All other materials and services are in place for spudding Kiliwani-1 as soon as the rig has been mobilised to our site, on the small island of Kiliwani about one kilometre south of Songo-Songo island. The second well is due to be drilled at a location known as Kiliwani North but we are keeping our options open as we have yet to test the capabilities of the Caroil-6 rig in its upgraded state.

Partners in this licence are now Ndovu Resources Ltd. (wholly-owned Aminex subsidiary) 39%, RAK Gas Commission 25%, Key Petroleum Ltd. 20%, East Africa
Exploration Ltd. 10% and Bounty Oil & Gas Ltd. 6%. RAK Gas and Key Petroleum farmed into the licence during the period and East Africa Exploration has
acquired its interest through funding seismic acquisition. Farm-out talks with Orca Exploration (formerly East Coast Energy) announced some time back have not been concluded. Aminex operates this PSA.

With new partners in Tanzania and a recently strengthened operations team, Aminex is well placed
to launch an active and extensive frontier drilling programme, starting with the Kiliwani-1 well in Tanzania which will be spudded early in the fourth quarter of
this year."