DIAMOND PROSPECTING RIGHT IN OFFSHORE CONCESSION

In order to prospect for diamonds, Samara intends to execute a comprehensive and systematic exploration programme to develop the concession areas. Both invasive and non-invasive methods will be used. This programme will be executed in three phases and will commence with non-invasive methods and thereafter progress to invasive exploration methods. The Prospecting Work Programme (PWP) outlines a programme consisting of three phases which are only executed once results of the previous phase substantiate activation
and detail planning of the next phase.

Phase 1 (Non-invasive Methods): This phase will use non-invasive methods that will consist of desktop literature studies, geophysical surveys within the Concession Areas, geophysical data processing and interpretation, compilation of a GIS database, geological modelling and delineation of potential diamond trap-sites which will form the knowledge base to plan and design the exploration sample programme. This phase
will be executed in eight stages.

Phase 2 (Invasive Exploration Sampling): An invasive exploration sample programme will be undertaken. This programme will consist of reconnaissance exploration sample drilling within the Concession Areas. The results of the reconnaissance drilling programme will firstly identify which of the potential trap-sites carry a positive grade and secondly which of the positive trap-sites have an overall grade and footprint size to justify either further infill geophysical survey lines and/or infill detail drilling to increase confidence towards an estimate diamond resource. The planning and design of the in-fill geophysical survey and in-fill drill exploration programmes will lead to Phase three. This phase will be executed in four stages.

Phase 3 (Non-invasive Geophysical Surveys, Invasive Infill Drilling and Bulk Sampling): This phase will consist of non-invasive detail infill geophysical surveys and invasive detail infill drilling within priority trap-site features. Results of the first detail infill exploration work will determine the level of confidence reached to either justify resource estimation and preliminary mine plan design or do a second programme of detail infill drilling to then reach a confidence level for resource estimation and preliminary mine plan design. Preliminary mine plan will be followed by a trench bulk sampling programme to simulate mining, finalise the mine plan and gather geotechnical and production data for the feasibility study. This phase will determine the feasibility and decision on proceeding with the mining project in concession 4C and 5C and will be executed in eleven stages.