LOM's history, page-3

July 2008

"The Company’s consultants believe that the Lulo concession encompasses the core of a
vast kimberlite cluster which extends into all of the neighbouring concessions. Furthermore,
the kimberlite pipes at Lulo will be more conducive to rapid and accurate evaluation than
those pipes further east on the sand-covered plateau. This is because the degree of erosion
of a kimberlite pipe is critical in the diamond distribution within that pipe. Diamond grades
within the upper, lesser eroded levels of the pipes (such as those on the plateau), are often
highly diluted by sterile sand contamination within the ancient crater or mouth of the pipe.
The Lulo pipes within the Caungo River lowlands have had this troublesome upper portion of
the pipe eroded, leaving a section of the pipes in which the diamond distribution is more
regular and hence more predictable."