Mbalam - Nabeba iron project: Positive progress, page-49

HIGH GRADE DSO MATERIAL UNDER MINIMAL COVER
The total hematite resource of 415Mt @ 62% Fe is sufficient to support a 35Mtpa
operation for at least 10 years. The grade is at the high end for new mines. The
Nabeba ore is of high quality with 63% Fe and low silica. Blending with the
Mbarga ore will produce a premium quality product with 62.5% Fe, <5.5% silica,
and <2.5% alumina.

There is minimal cover over the high grade hematite cap which will result in a low
strip ratio, <0.2:1 for Mbarga. The material is soft and will only require simple
crushing and screening, before railing and shipping.

UNDERLYING ITABIRITE SUITABLE FOR HEMATITE CONCENTRATE
The high grade hematite is overlying lower grade itabirite at both Mbarga and
Nabeba. Itabirite is the name given to a particular lower grade hematite enriched
BIF (Banded Iron Formation) found in the Itabira region of Brazil. It requires
processing through grinding and flotation, and concentrates and pellets are
produced commonly in Brazil. Further drilling will follow to give an itabirite
resource at Nabeba.
The intention is to beneficiate the itabirite into a high grade hematite concentrate
(66%) once the DSO material is exhausted. The material is capable of producing
direct reduction (DR grade) and blast furnace (BF grade) concentrates. DR grade
pellets could be produced at a pellet plant at a site near the port where there is
natural gas available.
The strip ratio of the itabirite resource is also very low at
0.51:1, but beneficiation requirements will result in higher costs at c.US$40/t