Mundonguara/Manica Project Highlights

• A Stage 1 JORC Inferred Mineral Resource on the 1km long Mine portion of the Mundonguara Project of 3.1Mt @ 1.4% copper, 0.11g/t gold and 2.1g/t silver using a 0.3% Cu lower cutoff grade extending to a maximum depth of 200m below existing development.
  
  
• Mineralisation remains open at depth and along strike.
  
  
• Significant potential outside resource area along strike in the Seymour
  
  
• Project area where on-going exploration is developing a +3km long corridor of copper/gold mineralisation.
  
  
• Less than US$90 per copper tonne discovery cost.
  
  
• IP survey covering 6km of strike commenced.
  
  
• Aggressive drilling campaigns to prove additional resources at depth and along strike have been designed and tender process commenced.
  
  
• Metallurgical scoping study commissioned.
  
  
• Close to critical infrastructure.

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Mundonguara Mine

The Mundonguara mine has been intermittently exploited for copper, gold and silver from the turn of the 20th century until its closure in 1989 due to complications arising from a protracted civil war. In the mine’s final phase, underground development extended to depths of +200m below surface over a strike length of approximately 1km.

The mine is within 2km of the international railway and 5km of the highway, linking the project with the port of Beira. The power lines from the Cahora Bassa hydroelectric power scheme pass within 40km of the mine.

The Company has completed 3596m of underground diamond drilling, 1748m of surface RC drilling and 1838m of underground channel sampling at the Mundonguara Mine. Exploration results culminated in the calculation of a Stage 1 inferred JORC Mineral Resource Estimate as outlined in the table below. For a detailed breakdown of this exploration, please refer to AIM releases of 20 June 2008 and 4 August 2008. To find out more about the geology and mineralisation at the mine, click here.

Mundonguara Mineral Resource Reported for a Range of Cu Cutoff Grades

Along Strike Extensions

The strike potential to the west and northeast of the mine is robust and has received little attention in the past. The Seymour Prospect lies approximately 1km along strike to the west of the mine and is intruded by a deeply weathered and altered felsic body hosting both disseminated and stockwork style copper and gold mineralisation. The dimensions of the intrusive body have not been constrained. The historic Seymour workings themselves appear to have been sunk on a massive sulphide vein immediately south of the intrusive. Additional mineralised intrusives have been identified 500m further to west again of the Seymour Prospect.

The Company’s on-going exploration programme has included surface trenching and RC drilling at the Seymour prospect. Over the intrusive, trenching returned intersections of up to 20m grading 3.7% copper and 0.82 g/t gold from MTR001. These grades were confirmed by the RC drilling which returned best intercepts of 17m grading 2.1% copper from 13m in MRC032 and 3m grading 9.59 g/t gold from 103m in MRC031. For further details on the Company’s exploration successes in the Seymour area, please refer to previous AIM releases (22 October 2007, 10 December 2007 and 18 March 2008).

The eastern continuation of the mine sequence has been fault off-set approximately 2.5km to the northeast. Recent MMI soil geochemical sampling in this area has identified copper anomalies of a similar tenor as those overlying the mine, indicating that mineralisation may well persist in this area.

Additional Exploration Targets: Nickel & Gold

The nickel potential to the south of the mine sequence also requires investigation. RC, channel and trench sampling within the olivine peridotites has returned broad intercepts of low grade mineralisation. It is unknown whether the reported nickel is associated with silicates (ie: olivine) or sulphide (limited petrographic work from ore zones within the Mine has identified pentlandite as a constituent of the sulphide suite). Gold in soil anomalies north of the mine sequence are interpreted to represent the fault offset continuations of the Dot’s Luck deposit, currently being developed as part of Pan African Resources Plc’s Manica PFS. Trenching and detailed mapping is required in this area to determine its potential.