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Erongo Granites and Spitzkoppe Uranium Projects

The Company’s mineral interests in Namibia comprise a 90% interest in the Erongo Granites and Spitzkoppe projects. The Erongo Granites project consists of two tenements (EPLs 3453 and 3454) covering approximately 312 sq kms located to the south and north of the Erongo Complex in mid central Namibia. The Spitzkoppe project consists of two tenements (EPLs 3477 and 3523) covering approximately 380 sq kms located approximately 25 kms to the west of the Erongo Granites Project. Activities in relation to these projects have been limited due to delays experienced in licence renewals.

In January 2011 the Company entered into an agreement to dispose of its interests in the Erongo Granites and Spitzkoppe Projects in Namibia for US$625,000. Completion of the sale agreement is subject to various conditions.