Maniema Gold and Tin Project

Erongo Energy has acquired a 70% interest in a group of nine tenements which cover 1,800km² of prospective ground in the Maniema Province, east central Democratic Republic of Congo. The tenements are in one of the world’s principal Precambrian orogenic-metallogenic provinces, which hosts Banro Corporation’s deposits within the “Twangiza – Namoya belt” immediately to the east of the Maniema Project, and the world-class gold deposits in the Kilo-Moto belt to the north (held by Randgold Resources and AngloGold Ashanti).

Regional geological setting: Located in world's principal orogenic-metallogenic province in DRC; Hosts Banro deposits to east and all Kilo-Moto deposits to the north.

Previous exploration work at the Maniema project, which included stream sediment, rock chip and soil sampling and trenching, identified seven significant target areas. The most advanced target is on PR 4804 where trenching results include 80m @ 3.72g/t Au, 52m @ 4.61g/t Au and 24m @ 3.34g/t Au.

An initial program of 2500 metres of drilling commenced on PR 4804 in August 2011 to test the mineralised potential of the structure at depth and cover 700m of the zone of mineralisation from surface down to 100-150m below surface. Drill holes will test the down dip extension of highly significant results reported from trenching in May 2011.

The first results from this five-hole drilling program include 16.65m at 2.02 g/t Au from 33.5m, including 5.5m at 4.97 g/t Au, and 18m at 2.03 g/t Au from 68m, including 4m at 6.38 g/t Au from 72m. Second round results included 25m at 2.17 g/t Au from 74m, including 7m at 4.89 g/t Au, 51m at 0.76 g/t Au from 64m including 18m at 1.11 g/t Au, and 20m at 1.63 g/t Au including 11m at 2.45 g/t Au. The results confirmed potential for a significant low-grade deposit at open pittable depths. Exploration focus now shifts to Mitunda (on PR4801) and Mbutu (on PR4804) prospects at Maniema, where soil anomalies over 6km and 2km respectively have been defined.

Previous sampling on PR 4801 identified two significant gold-in-soil anomalies. The northern anomaly on PR 4801 (refer to figure above) extends over more than 4km and runs parallel to a broad quartz vein which was trenched and pitted over 1km during Belgian colonial times. Mineralisation is focused along two NNW to NW trending ridges.

Trenching at Prospect 4804

PR4084 - Section Across Line 9584020

The Company is completing infill soil sampling and trenching at Mitunda and Mbutu, with drilling of targets planned for later first quarter 2012. In addition to Prospects 4804 and 4801, Erongo also plans to complete further exploration on other significant target areas previously identified on the Maniema Gold Project, including:

• Kalulu (on PR4810) – A tin anomaly originating from underlying granites and pegmatites, and covering an aerial extent of more than 5km by 2km, has been identified. Erongo plans to explore this prospect during 2012.

• PR4806 – A significant gold-in-soil anomaly has been defined over 5km.

We believe the project has the potential for discovery of one or more highly significant deposits.

PR4810 Tin in Soil Anomaly - 5km x 2km tin anomaly; associated with underlying granites and pegmatites.

PR 4801 Soil Anomalies - Two gold in soil anomalies; >5km (N) and >2km (S); both associated with NW structure