With the completion of some thirteen thousand metres of RC...

With the completion of some thirteen thousand metres of RC drilling along the Kihabe mineralised zone, two and a half
kilometres long, the Company engaged Ravensgate, a firm of independent consultants, to produce an initial resource
statement. In April this year, the Company announced an initial resource of 11 million tonnes of 2.55% zinc equivalent.
At today’s metal values, the contributions to this resource are in the order of 70% zinc, 25% lead and 5% silver and in
excess of 95% of the current, initial, resource is in the indicated category.

It should be noted that the Kihabe resource has been generated from only one of a number of geochemical anomalies
that occur both in Botswana and Namibia along this Proterozoic belt. Significant potential exists to develop further
resources on both sides of the border. This potential will be tested with ongoing drilling programmes. Of particular note
is an area ten kilometres south of Kihabe where the Company has discovered an in-situ gossan that has returned assay
values of 21.95%, zinc 7.63% lead and 6.6 oz/t of silver.

The Company’s Telfer project in Western Australia is currently under review by parties with the potential to forming a
joint venture.