Oman Drilling JV

From the South West Pinnacle Exploration Ltd Annual Report 2018-19.

Vikas Jain (Chairman) - Chairman's Message
" Besides, I am happy to share that your company is entering into mining and exploration activities in Oman through a
Joint Venture Alara Resources LLC, Oman where SWPEL holds 35% shareholding. You will be please to know that
our JV in Oman has participated as a bidder in long term mining contract, we are looking forward for a favorable
response in this regard."

Piyush Jain (Managing Director) - Managing Director's Message
"In addition, we expect to start our Drilling operations through our JV in Oman in the 3 quarter of FY2019-20. In
this regard, you will be pleased to know that 2 No. of Drilling Rigs are in transit from India. We expect a good flow of
orders in coming years to keep the rigs going."

The Jains sound pretty upbeat about the Alara Resources LLC JV (Alara’s 35%, Southwest Pinnacle Exploration Limited 35%, Al Tasnim Infrastructure Services 30%).

Moving on to the latest news from the Alara Quarterly Activities Report (September Quarter 2019).

Alara Resources LLC (ARL)
Two KORES-1200 drill rigs and associated drilling accessories, pictured below, were delivered to ARL in Oman. AHRL placed a US$618,750 work order with ARL for work at the Al Hadeetha Project. As stated above, the AHRL and ARL Boards have also agreed the terms for the award of a $100m+ mining contract over ten years to ARL. ARL drill crew members are undergoing the visa application process for entry into Oman. Work is expected to commence once the immigration formalities are complete. ARL has also received approaches from Saudi Arabia, which has a shortage of drilling companies. ARL is in the process of qualifying as a supplier with a prominent Saudi mining company. With a new mining law now in effect in Oman, PAM has ambitious plans to award 110 new multicommodity exploration and mining licenses in Oman. The procurement of these drill rigs by ARL and the provision of professional drilling services in the country is aligned with the Government’s economic development plans.

This drilling JV could end up being a nice money spinner if it's handled correctly, especially if they get Saudi Arabia happening as well.