Mineral Resource

The Ranobe Resource

The Ranobe deposit is located approximately 40km north of the port of Toliara in south western Madagascar. The mineralised zone at Ranobe is around 16km long, 1 to 2km wide and comprises three mineralised sand units; the upper sand, intermediate sand and lower sand units.

A heavy minerals (HM) Resource has been calculated, in accordance with the JORC Code, for the Upper Sand unit.

Ranobe Resource

Category	Million Tonnes	Average % Total Heavy Minerals (THM)	% Slimes
Measured Indicated Inferred	222	7.66	4.42
	393	6.07	4.66
	92	5.91	5.36
	707	6.54	4.70

(From Competent Person report June 2010)

The average heavy mineral assemblage composition in the Ranobe Resource is; ilmenite (64.7%), rutile (1.9%), zircon (5.5%) and leucoxene (5.1%).

The global potential of the resource in the Ranobe area may be significantly more than this, as wide spaced drilling indicates that mineralisation in the Upper Sand Unit extends to the north (possibly by 1km), west (beyond intersections in the most westerly holes) and south (by possibly 5km), as well as within the Intermediate Clay Sand Unit and the Lower Sand Unit.

Ranobe Resource – Starter Pit Mining Licence

A mining lease application has been submitted over an area which contains a 158mt higher grade Resource within the Upper Sand Unit including the area where the ‘starter pit’ of 145mt at 8.1% THM will be developed.

Category	Million Tonnes	Average % Total Heavy Minerals (THM)	% Slimes
Measured Indicated	135	8.25	4.11
	23	8.67	4.83
	158	8.31	4.22

(From Competent Person report October 2010)

Ranobe Resource – Additional Licence

A second mining lease application is in progress, to the south of the first and contains a 140mt Resource within the Upper Sand Unit.

Category	Million Tonnes	Average % Total Heavy Minerals THM)	% Slimes
Measured Indicated Inferred	22	8.24	4.11
	95	7.00	4.83
	23	6.51	4.22
	140	7.12	4.67

(From Competent Person report October 2010)