Ntaka Hill Nickel Sulphide Project

The Ntaka Hill Nickel Sulphide Project, located in southeastern Tanzania is has the potential to emerge as one of the world’s best undeveloped nickel sulphide projects.

The Project, currently under development, is planned to be brought into production in 2015 with the first product shipment expected in early 2016.

A number of mineralised zones have been defined at Ntaka Hill, which sits at the northern end of a 7 km long zone of ultramafic rocks prospective for both massive and disseminated types of nickel sulphide mineralisation.

In March 2012 the following mineral resources were estimated: a measured and indicated Mineral Resource of 12.78 Mt grading 1.21% Ni and 0.25% Cu, and an inferred Mineral Resource of 45 Mt grading 0.3% Ni and 0.07% Cu (using a cut-
off grade of 0.2% Ni).

The Ntaka Hill Nickel Sulphide Project has demonstrated the potential to produce a very clean, high-grade, premium quality nickel concentrate that is expected to attract premium prices by utilising simple conventional froth flotation.

Local infrastructure in southeast Tanzania is good. The port of Mtwara is only 250 km away and more than half of the road is sealed. In addition, there is a readily available source of electricity from the currently producing Mtwara
power station which is based on the nearby Mnazi Bay gas field.

This mineral resource estimate complies with National Instrument 43-101.

The resource was estimated by Roscoe Postle Associates Inc. and is based on data obtained from 284 diamond drill holes totalling 50,716 metres completed to explore for and delineate the various zones at a nominal 25 to 100 metre drill section spacing.