HIGHLIGHTS
 The company generates a $2.255m profit for the...

HIGHLIGHTS


 The company generates a $2.255m profit for the year, equivalent to 0.9c per share earnings.


 Production of 3,191 tonnes of blister copper at NOVA MINING (Congo) for the year.


 Sales revenues of $21.4m from blister copper produced at NOVA MINING (Congo).


 NOVA MINING (Congo) Smelter performance improves, despite lower feedstock grades.


 NOVA MINING (Congo) Smelter expansion project advanced using cash-flow reserves.


 NOVA MINING (Congo) acquires the option to JV on 4 mineral resource properties.


 Improved mini-concentrator designs tested to comply with NOVA criteria.


 IDC Loan facility on track to finance US$4.5m project expansion.


 Strategic supply of metallurgical coke secured.

Future Prospects and Goals

The Company’s goals for the forthcoming year are to achieve the following:

· Install 1 mini-concentrator at Nova smelter by November 2006;

· Enlist new directors to strengthen present board by December 2006;

· Increase copper production to 500 tonnes per month by December 2006;

· Increase smelter capacity to 1,000 tonnes of copper per month by December 2006.

· Secure 4 additional JV mineral resource mining operations by December 2006;

· Install 5 mini-concentrators at host mine sites by June 2007;

· Increase copper production to 1,000 tonnes per month by June 2007;

· Establish JV contract with HCC for increased metallurgical coke supply;

· Pursue regional complimentary projects and opportunities;


Nova Mining Sprl
NWA is the sole owner of Nova Mining Sprl (“Nova”), a copper resource and smelting facility located in
Lubumbashi, the capital city of Katanga Province in the Democratic Republic of Congo (“DRC”). The
Nova copper project was established on a 25,000 m² industrial site in Lubumbashi during 2003/2004
with two blast furnaces and associated plant, extensive warehouse and administrative facilities to
operate the smelter.

During the financial year ended 30 June 2006, Nova emerged as the largest independent copper
smelter in Katanga province, producing 3,191 tons of 95% grade copper metal for the year. Consistent
improvements to the smelter performance compensated for the diminishing copper ore grades that
resulted from international demand for unprocessed copper ore. The high LME copper prices that
evolved were a bonus to Nova revenues, but created an unrealistic demand for unprocessed ore that
deprived Nova from benefiting from increased margins at the smelter.

The development strategy of the Nova project has focussed on (a) the acquisition of JV mineral
resource properties to supply smelter operations, (b) the introduction of ore concentrators to enhance
quality of furnace feedstock, (c) the increase of furnace smelting capacity. The financial year ended
with Nova directors signing options to JV on 4 mineral resource properties, ordering the first ore
concentrator due for delivery in October and construction of 2 new furnaces. In addition, Nova
purchased more trucks and mining equipment to strengthen the operation by diminishing it’s reliance
on contractors. These activities were all funded from cash-flow reserves prior to establishment of the
IDC loan for project expansion, now estimated for draw-down in the last quarter of 2006. Funding for
this project expansion programme was conditionally approved by the South African Industrial
Development Corporation (“IDC”) (www.idc.co.za) in 2005, where final technical amendments to the
concentrator designs were requested by Nova in early 2006. The expansion programme is now
packaged to include 6 mini-concentrators and 4 furnaces, of which 2 furnaces and the first miniconcentrator
are ‘in construction’.

Since financial year end, Nova commissioned Furnace #3 in August, boosting output capacity to 450
tonnes per month of blister copper. The performance of Nova’s blast furnaces is directly related to
feedstock grade, where the monthly average has dropped from 33% in September 2005 to 23% in
September 2006. This grade slump resulted in production de-rating of each furnace from 200 to 150
tonnes of blister copper per month. Commissioning of Nova’s first concentrator in November 2006 will
correct feedstock quality back above 30% and will enhance the company’s ability to access greater
quantities of lower grade material at more realistic prices. The furnace production capacities will
increase correspondingly without any further investment by the company, while smelting costs per
tonne will decrease.

Based on the Company’s experience gained from the Nova (Congo) Project, the management are
reviewing several proposals to replicate the Nova model in Zambia, Angola and Tanzania. The
Company is discussing options to include new board members with a diversity of expertise that will
compliment the expansion ambitions of the company into other metals and other countries. There is
strong loan funding support being offered to the Company to support further expansion, but the
financial strategy is likely to result in the Company listing into other markets such as the TSX and
AIMS, where a balance of equity can be maintained with strong investor support.