Proposed prospecting application for 6 boreholes on various farms near Kroonstad in the Free State Province

Invasive prospecting will take the form of diamond drilling and will occur in Years 3 and 4. This information will then be integrated into the geological model to further define the orebodies, which when combined with the assay information will be utilised to define a resource.

4.1 Drilling of 3 Diamond Boreholes to a Depth of 700m [Year 3: 12 months]
Based on the initial geological model established, a diamond drilling programme comprising of four boreholes will be undertaken.

5.1 Drilling of 3 Diamond Boreholes to a Depth of 700m [Year 4: 12 months]

Should the drilling programme prove to be successful in Year 3, an additional four holes will be considered. It is imperative to note that the drilling in Year 4 is dependent on positive outcomes from the drilling in Year 3. Drilling will be conducted in a competent and environmentally responsible manner including rehabilitation of the drill sites to their original state. Plastic lining will be placed underneath the rig motors to prevent oil seepage. It is noted that no drilling fluids other than water for dust suppression, will be utilised in the case of diamond drilling. Environmental rehabilitation measures will be included in the contract with the drilling company and environmental rehabilitation costs will be included in the drilling costs.

Province(s): Free State