scoping study results, page-3

Highlights

* The Takatokwane resource has the potential to support a large scale open pit mining operation for 20+ years

* Washed coal quality potentially suitable for export markets

* Raw coal quality suitable for domestic power generation, coal to liquids (CTL) and by-product processes

* Each scenario modelled proved cash flow positive Summary

Management is extremely pleased with the results of the Scoping Study Report which confirms that the Takatokwane Project hosts a thermal coal resource able to sustain a large scale, long life mining operation.

Most importantly, each of the scenarios modelled in the report proved to be cash flow positive.

Scoping Study Results