#1FEASIBILITY REPORT - GEOLOGICAL MAPPING, DRILLING AND RESOURCES ESTIMATION EPL NO. 5653, KARAS REGION, SOUTHERN NAMIBIA Mulife Cement PRESENTED BY: MULIFE SIYAMBANGO OOIVA ANGUUO CEGEOR CC LICENCE OWNER: CENTRE FOR GEOSCIENCES RESEARCH CC#2Mulife Cement Namibia's local indigenous cement production CEGEOR CC#3Outline 1. Location, Trade links and Logistics 2. Exploration Methods 3. Topographic Mapping and Satellite Imagery 4. Aeromagnetic Magnetics 5. Drilling Programme 6. Local Geology 7. Limestone and Shales Resources and Reserves 8. Limestone and Shale Quality - Laboratory Results 9. Conclusions and Recommendations CEGEOR CC#4What Namibia's current situation Namibia's current cement consumption is 600 000 tons per year. Namibia's first cement factory, Ohorongo Cement, can produce one million tons per year Cheetah Cement produces around half a million tons per year High infrastructure projects such as dams. Housing and habours has been the main driver of cement demand. CEGEOR CC#5Activity Drilling Expenses incurred to date Environmental compliance Business Consultancy Licence matainace and operations Geophysical Surveys Geology TOTAL CEGEOR CC cost (Rands) 9,000,000 2,500,000 500,000 6,500,000 10,500,000 5,000,000 34,000,000#6Location DIAGRAM - Exclusive Prospecting Licence - 5653 Issued in favour of: Centre for Geosciences Research CC 16380E 16440E 16520E 17001 1/60″E 17140E 17°220E 17°300 E 17380°E 17'460 E 17°540°E 18'20'E 18100E LL LL 26'440'S 26°460°S 26°48′0'S 20'500'S 26'520'S 12 131 5 6 26'540'S 26'560'S 26-580'S -27°00's -27*205 26'440'S- 26 460 S- 264803- 26'500'S- 26'520'S- 26'540'S- 26'560'S- 26'580'S- 27°00'S- 27-205- 27°40'S- 27'60'S- 27'80'S- 27100 S- 27 120S- 27 1405- 271605- 27 180'S- 27'200'S- 27 220 S- 27'240'S- 27260S- 27 280 S 27 300 S- 27'320'S- 27 340 S 27'360'S-0 27 380 S- 11 8 10 16 360°E 16440E 16°520E 1700E 1760″E 17 140E 17*220 E 17°30′0″E 17°38′0″E 17'400'E 7406 Latitude and Longitude lines refer to the Bessel 1841 Spheroid CEGEOR CC 27°40'S -27'60's -27'80'S -27 100'S -27 120'S -27140'S -27'160'S 27'180'S -27-200S -27220'S -27'240'S -27'260°S -27-280'S -27'300'S -27'320'S -27 340'S -27'360'S -27°38′0'S 18'20'E 18 100E AREA: 89644.4731 Hectare MAP(S): LOCALITY: "Regions(s): Karas *Magisterial District(s): Bethanie *Registration Division(s): S#7CEGEOR CC Location KRO02 KRCOS KRCOS#8Trade Links o/From Europe and America Angola Democratic Republic of the Congo Zambia Hara TRANS- CUNENE Malawi Oshkango Ondang Namibia TRANS Zimbabve Botswana Walvis Bay Windhoek Mozambique Gaborone Johannesburg From South America Lideritz TRANS-GRANJE Project Location South Africa Farm Kaalberg 93 manshoop Aus TRANS-ORANJE Upington From Taume Grootfontain Owrongs Okahanda Gobab Windhoek Kata Mullo Botswana Gobabis Windhoek RANS-KALAHARI Walvis Bay Gaborone Keetmanshoop Aus South Afri CEGEOR CC Project Location on Farm Kaalberg 93 TRANS#9Local Infrastructure Support Gravel Road Linked to the Main B5 Tarred Road Main Powerline Across Farm Kaalberg 93 Groundwater Available CEGEOR CC#10Exploration Methods Used Topographic mapping and satellite imagery; ✓ High resolution geophysical data (aerial magnetics) acquisition and interpretation; ✓ Field geological mapping; ✓ Drilling; ✓ Field Sampling; Laboratory assessment for initial limestone and shale for grade control; and ✓ Assessment of the geological resources and ultimate initial ore reserve for possible test mining to be undertaken as part of the bankable feasibility. CEGEOR CC#11Topographic and Satellite Imagery From Pos: 719961.19, 7016115.57 1000 m 900 m 800 m To Pos: 730666.60, 6978136.83 5 km 10 km 15 km 20 km 25 km 30 km 35 km 40 km CEGEOR 39#12Topographic and Satellite Imagery From Pos: 728117.69, 7017772.36 900 m 850 m 800 m To Pos: 738695.66, 6975078.14 5 km 10 km 15 km 20 km 25 km 30 km 35 km 40 km 44 km CEGEOR CC#13Topographic and Satellite Imagery From Pos: 721681.70, 6996966.89 950 m 900 m 850 m To Pos: 740193.15, 7001586.79 2.5 km 5.0 km 7.5 km 10.0 km 12.5 km 15.0 km 19.1 km CEGEOR CC#14Topographic and Satellite Imagery From Pos: 724326.19, 6989288.31 900 m 850 m To Pos: 741658.77, 6994131.23 800 m 2.5 km 5.0 km 7.5 km 10.0 km 12.5 km 15.0 km 18.0 km CEGEOR CC#15Topographic and Satellite Imagery From Pos: 728946.09, 6978359.86 900 m 850 m 800 m To Pos: 744080.23, 6987918.27 2.5 km 5.0 km 7.5 km 10.0 km 12.5 km 15.0 km 18.1 km CEGEOR CC#1627'200'S 27'100'S NUWERUS WAGGASPOORT 17-100E 27°00'S 17 100 E RIETPUTS ROOIPUNT BLOUPUTS RENE 17 200 E FELDSCHUHORN WEST WALDSEE GOAL TOTE EPL3698 KAALBERG PARACHEIBIS HUNS HOPE MOEDHOU 17°20'0°E CEGEOR CC FELDSCHUHORN EAST FELDSCHUHHORN WEST CHURUTABIS NO NAME KAUCHAB 17°30'0 E FELDSCHUHHORN EAST VOGELSTRAUSSKLUFT ROU FONTEIN EDELSTEEN 27°00'S Aeromagnetic Magnetics INACHAB MIDDELDAM ARIAMAB SONNTAGSBRUNN CHORUTABS 17°30'0'E VERGELEE 27'20'0'S 27'10'0'S#17$30 17-100 SADZ 21205 17/200 Conorway WALDSEE HAAWATER FLDSCHUHORN EAST FELDSCHUHHORN WERT RIETPUTS DOGCAR TOTEM ROOIPUNT LOUPUTS UWERUS WAGGASPOORT CHAN EPL3698 KAALBERG PELOSCHUHORN EAST NO NAME KAUCHA VOGELSTRAUSSKLUFT HOU FONTEIN EDELSTEEN 5.30 Aeromagnetic Magnetics МАСНАЙ MIDDELDAM 9.004 J TARGETED AREA ARIAMAB SONGSBRIGH ZARACHE HUND HOPE CHURUTARIS MOEDHOU 17'100 17-200 CEGEOR CC 17300 VERGELEE#18Drilling Programme Implemented from the 10th October 2009 and completed on the 24th of October 2009; ✓ A total of 10 vertical holes 30 meters deep were drilled; ✓ Reverse Circulation (RC); ✓ Drilling contractor Eldorado Drilling cc; Drilling and sampling management company Profusion Investments were subcontracted to undertake the required field activities; ✓ Composites samples were collected at every 3 m. CEGEOR CC#19Drilled Borehole Coordinates Schwazerk (hddd.ddddd) UTM (m) HOLE X Y KRC01 KRC02 738449 733311 6984033 6991123 LAT S27.24595 LONG E017.40912 S27.18287 E017.35592 KRC03 738422 6994224 S27.15402 E017.40687 KRC04 733889 6987395 S27.18530 E017.42129 KRC05 739784 6990731 S27.26206 E017.36824 KRC06 734366 6982325 S27.26254 E017.43120 KRC07 740600 6982152 S27.30022 E017.41765 KRC08 739177 6978003 S27.29491 E017.40875 KRC09 739968 6977318 S27.21641 E017.36246 KRC10 738307 6978608 S27.30626 E017.42577 CEGEOR CC#20CIHE CHE Drilling Programme 22 7224 13 753094 734000 733604 ZOH 74504 243-006 753000 754004 757000 хи 703000 KRC03 +1 KRC KRC05 KRCO KR C06 KRCOS KR CO KRC07 KRCIO KRC09 EPL 5653 522004 -6201005 $34000 Legend A Drilled_holes Tracks drilling -regionalriver roads_geo arc S-33-25_2000.sid RGB Red Band 1 Green: Band 2 Blue: Band 3 3/2006 民 си 0 2,950 5,900 11,800 Meters 221006 пен 7304 733000 ден 733694 ZOH 745004 243-49-4 755000 75000 757004 X JOHN CEGEOR CC#21Drilling Programme Conclusions The drill hole defined the southern part of the limestone and shale deposits sufficient enough to support large scale cement / clinker project. If required further drilling could be done in the northern part of the EPL covering farm Totem 92; ✓ The ten boreholes drilled on farm Kaalberg 93 were widely spaced and will require infill and possibly deeper drilling in order to properly quantify the tonnage of limestone in the area as part of the full Bankable Feasibility Study (BFS) to be implemented; CEGEOR CC