well on track , page-2

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Highlights from the M&A Report

Throughout the June quarter, mining continued on the cutback program in the central pit to prepare for Stage II processing and to provide waste material for the raising of the embankments at the Stage II tailings storage facility.

This has involved a higher strip ratio than the life-of mine strip ratio of 1.2. Whilst it will enable ready access to ore for Stage II processing, it has resulted in significantly higher mining costs for the June quarter of 2011, relative to mining of material specifically for HMS processing.

Testing and commissioning of all modules is progressing well and it is expected to be completed in the third quarter of 2011. Construction is essentially complete and the Company remains firmly focused on the ramp-up of the Plant to design capacity. Consistency of supply of power from the grid will continue to be addressed both internally and with Soci�t� Nationale d�Electricit�, the state owned electricity provider.

The good safety performance has continued and as at June 30, 2011 a total of over 3.3 million man-hours had been
worked, with two lost-time injuries recorded.

During the June quarter 3,376 tonnes of copper cathode was produced and 2,975 tonnes were sold. In accordance with
IFRS it is appropriate to recognize the revenue and costs directly associated with sale of the copper cathode as property, plant and equipment within the balance sheet during the testing and commissioning phase. Owing to the need to run machinery, test equipment and ensure proper operation of the equipment it was not possible to operate the Plant at intended levels, during this period.

The revenue and the costs associated with sale of copper cathode was a net positive contribution of $17.7 million. The Company anticipates that the Plant will be operating as intended in the third quarter of 2011 following which the revenue, costs and depreciation of the Plant will be recognized in the income statement.

Kinsevere Sulfides Project

As reported in the Company�s latest AIF, results from previous drilling at Kinsevere have identified a Measured and Indicated Resource of 11.86 million tonnes with a total copper grade of 2.7% for approximately 317,000 tonnes of
contained copper and a similar-sized Inferred Resource.
During June, the Company commenced drilling, the objective of which is to define a sulfide mineral resource that is
compliant with Canadian National Instrument 43-101 to allow for an evaluation of development options in Q1 2012. As at
June 30, 2011, over 400 metres had been drilled, with core being logged and stored for assaying at an on-site laboratory operated by an international laboratory services company and overseen by African Mining Consultants.

Kinsevere Regional Project

The Company continues to target the area within a 50km to 80km radius of the Company�s Kinsevere project to identify
tenement acquisition opportunities. The Company has entered into two option agreements covering four tenements and
orientation termite mound sampling and geochemistry programs have been completed, with assay results expected
during August.

In addition, an orientation termite mound sampling program was completed over part of Anvil�s Kinsevere tenements
during April, the results of which identified a copper anomaly, with associated path-finder elements occurring immediately to the east of the Kinsevere Hill deposit. Following investigation of this anomaly, it has been determined that further drill testing is appropriate to locate the source of the anomaly at depth.

Also, preparation for drilling at the Company�s Likasi tenement, located approximately 80km north-west of Kinsevere, commenced in June and following the completion of clearing works to enable access, drilling to test geochemical anomalies started in July.

The Company has entered into a confidentiality agreement in connection with a tenement located approximately 30km
west of Likasi and is in ongoing discussions in relation to other exploration opportunities located in relatively close
proximity to the Kinsevere tenements.

Mutoshi Project

The Group expects to begin a 33,000 metre in-fill drilling program at Mutoshi in September 2011, the objective of which
is to define sufficient near-surface oxide copper and cobalt mineralization to enable evaluation of development options.

Hole positions have been determined and a comprehensive review of previous exploration work is currently being
undertaken.

In connection with an agreement between the Company and Alexander Mining plc (�Alexander�) for Alexander to build
and operate a pilot plant to treat up to 150,000 tonnes of cobalt ore at Anvil�s Mutoshi deposit located in the Kolwezi
region, a cobalt trial pit has been established and reverse circulation drilling at the Mutoshi cobalt trial pit was completed in June 2011. Drill chip logging has been completed on all holes and analysis and data entry are ongoing, with samples being transported to Kinsevere from where they will be dispatched for assay to South Africa. Follow-up diamond drilling is to commence in August and this data will be used to provide metallurgical test work samples to support the processing of at least 150,000 tonnes at 0.5% Cobalt.

There are no hedging requirements under the Loan Facility and Group copper production is currently unhedged.

Social Development

The Group�s social development activities continue to target the area surrounding the Kinsevere project with a focus on food security. A farmers� assistance program covering 500 hectares designed to support grain farming through the provision of seed, fertilizer and training and a vegetable growing project covering 6 hectares that involves the provision of seed and farming education, both continue to produce pleasing results. The Company is also investigating the establishment of a large-scale commercial farming operation using land located in close proximity to Kinsevere.

During the quarter, the Company, using International SOS Southern Africa Ltd. (�ISOS�), completed a community health
baseline survey across 14 villages. Follow-up meetings have been held with ISOS and the survey information is
expected to inform the Company�s health related social development activities and guide further interaction and
engagement with the surrounding communities.

In addition to the community health baseline survey, during the June quarter, the Company continued to carry out
consultation with the surrounding communities to assist with the development of the overall regional social development strategy.