Executive Summary

Baobab Resources plc (Company No. 5590467) was incorporated by the Registrar of Companies for England and Wales on 12 October 2005 and in 2006 indirectly acquired the entire issued share capital of Capitol Resources, a Mozambican company which has assembled a portfolio of 16 Exploration Licences. Projects range from advanced resource definition drill targets through mature brownfields prospects to greenfields exploration.

The Company’s key assets are:.

• 47.7Mt maiden Inferred Resource declared at Chitongue Grande prospectl.
• 400MT - 700Mr Exploration Target in Massamba Group area.
• Positive scoping study results indicate significant project upside.
• Close to critical infrastructure and complementary resources including hydro-electric power, metallurgical coal and rail/port access.
• Strategic partnership with International Finance Corporation (15% direct project participation).

• Centered on the decommissioned Mundonguara Mine.
• Company work programmes during 2007-2008 culminated in the calculation of a Stage 1 JORC Inferred Resource of 1.34mt @2.3% Cu, 0.18g/t Au & 3.3g/t Ag (1% Cu cutoff) Mineralisation remains open at depth & along strike.
• 2.5km strike potential significantly upgraded.
• Discrete gold and nickel targets.
• Within 5km of international road and rail linking project with port.

Other prospects with the Company's 16 Exploration Licences host a variety of base and precious metal commodities.

The Directors believe that the port folio provides a solid foundation for sustained growth of the Company predicated upon a focused approach to development of the major projects.

Enduring political stability has been achieved in Mozambique, following multi-party elections in 1994. This has resulted in a dramatic improvement in the country's growth rate and has greatly enhanced its attraction for overseas investors. Following the revision of the country's Mining Act in 2002, Mozambique now offers mining companies security of tenure and a favourable exploration and mining enviironment, actively supported by the Government of Mozambique. A cadastral licensing system, which gives full transparency to all mining applications, was installed in 2004.

Mozambique actively welcomes foreign investment and has put in place the solid structures necessary to provide investor confidence.