Hey guys - below is a q & a with JB organised by the...

Hey guys - below is a q & a with JB organised by the worldstocks.co.uk forum. Somne very interesting answers - I asked the question about KABOA and found his reply interesting. There is hope yet. see below

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Apologies for the delay

1. Are they targeting minerals in Puntland?

Not at all. Have more than enough in Zambia – a good well established mining environment. Certainly there is a need to deliver on the manganese in Zambia before we go elsewhere.



2. What's happened to the 2nd sample shipped to China?

Awaiting the final sample results from the steel mill

3. What are the timescales for the commencement of the off-take agreement and the first income from it?

Forecasting first delivery to Sinosteel before the end of the financial year – so pre-June 30



4. How is the company planning to add shareholder value over the next 6-12 months?

Delivering on key milestones is critical. Establishing a company that has JORC compliant resources that can be successfully mined and transported such that a high grade and high manganese product is consistently delivered into the market. Meeting deadlines and securing third party validation to our business model and strategy is vital. As a junior and highly speculative stock we have to do as much as we can to demonstrate the value in the company and where we can get credible financiers or off-take parties to support that. The off-take with Sinosteel is a good first step.



5. With the hopeful exercise of the June 13 3c options and debt finance etc , could we become self - funding within 18 months, so that we don't end up with well over a billion shares on issue ?

Absolutely that is what we are clearly aiming for



6. What conditions does kab require to increase stake from 51 to 75 percent

I believe we have already satisfied the minimum expenditure requirements and it is now a case of exercising those options – the terms of which will be announced shortly



7. The handling of the KABOA options and thew new issue of KABO options was very poorly thought out IMO by previous management, and was just another stupid thing they had done to us long long term holders. What can JB offer us substantial KABOA holders who have had our investment in these options stolen from underneath us by our own companies mismanagement?

The majority of the KABO options were issued under the uranium strategy which unfortunately for shareholders has been seen to be flawed. Clearly though if we can get those options exercised then it would provide us with significant capital to fund the growth of the company. It is a hard ask to get the price up to a point where these options could be exercised, but nonetheless it is well worth the effort. Cannot extend the option but can look at some structure as we come to the end of June.



8. Please clarify the total cost of the recent placement in terms of shares issued for the underwriter and indeed any monetary payments.

Standard financing costs of 7% were paid



9. What are some of the terms you are building into the terms of the 5 million debt finance? Are convertible notes being considered?

Looking at offtake related structures predominantly, effectively up-front payments on product to be delivered into over a 3 to 5 year period, but also looking at debt instruments with detached options at a 25% to 40% premium



10. Are we still on track to complete the JORC by the end of June?

We are certainly pushing for this. Drill results will certainly be announced and then it is a case of the independent consultants to finalise



11. I believe we have around 70 people on the ground, what are they actually doing at present ? eg. are they drilling and blasting, bagging or stockpilling ete and at what rate

Building housing and offices at Peco, site preparation, field work – trenching, administration with license renewals and reviews etc