Bankable Feasibility Study

Ncondezi Group’s work program for the next 24 months is intended to take the Ncondezi Project through to completion of a bankable feasibility study. This program has been developed primarily to provide sufficient new drilling in the South, North and West Blocks for a measured and indicated JORC classification and further evaluate the coking coal potential.

Focus will be placed on the South and West Blocks plus infill on the North, River, Eastern, Northeast and Central Blocks. SRK estimate the Central and River Blocks to have a combined Exploration Target of between 400 Mt and 1,600 Mt ¹ (having applicable geological losses) assuming similar qualities to those already defined in the JORC coal mineral resource statement. Both of these areas require further drilling to be considered as JORC resources.

¹ Initial estimates are based on limited drilling and are scheduled to be explored further. Reported in accordance with clause 18.1 of the JORC code:

1. the potential quantity and grade as reported in respect of the exploration targets are conceptual in nature
2. there has been insufficient exploration to define a mineral resource and
3. it is uncertain if further exploration (as planned by the Ncondezi Group) will result in the determination of a mineral resource.