1. Geo- Report CategoryBlockStrikeWidthDepthTonsGrade Cu % Grade Co % Host Rock Grade Cu % Crispin Chisanga Measured15001507514m1.820.120.24 Robert Kamanga Probable15002006017m0.930.120.26 Crispin Chisanga Inferred24001507511.25m1.820.120.24 KALABA RESERVES

2.  3.2 The Cost Benefit Analysis  The measured reserve is 16,000,000 at grades of 0.25% Cu and 0.12% Co  Therefore, the metals contained are;  Cu – 37,200 tons of Cu Contained at a recovery of 93%  Co - 15,360 tons of Co Contained at a recovery 80%  At an average LME price of $8,000/t the copper is valued at $297,600,000  At an average LMB price of $30,000/t the cobalt is valued at $460,800,000  For an annual production rate of 12,000 tons of copper cathode, it would cost 12,000t x $2,100 = $25,200,000  For an annual production rate of 12,000 tons of cathode, one would realize 12,000t x $8,000 = $96,000,000/annum ECONOMICS

3.  The purchase consideration of the reserve is $10,000,000  The total Capex considering copper alone plus purchase consideration is $25,200,000 + $10,000,000 = $35,200,000  The Operational Cost (Opex) is $838/t x 12,000t/a = $10,056,000 as per price prescribed by Pincock, Allen and Holt for an SX/EW plant  Therefore, the NET REALIZABLE VALUE of the reserve with respect to copper alone over a period of one year is ($96,000,000 – $35,200,000) - $10, 056, 000 = $45,256,000,000  The realizable sales value per month is $96,000,000 ÷ 12 months = $8,000,000  It then follows that, the investor shall realize their investment within a period of; $45,256,000 ÷ $8,000,000 = 5.6 months with due consideration to copper alone ECONOMICS

4.  All the Geological data reports significant credits of Nickel of notable commercial value as will be seen below  The capital investment associated with developing a Nickel circuit is $10million as both Nickel and Cobalt are soluble in dilute sulphuric acid and solvent extractants and other ion exchange processes have been developed for both elements such as the ones employed by several mining companies in Australia and Canada  This document will consider a cut off grade of 0.06% Nickel, which is lower than what the current investigations have revealed. (In certain recent XRF analysis of pit samples further south of block 1, nickel assays are as high as 4% to 7%)  There are 7,680 tons of nickel metal contained at 80% recovery with a gross realizable value of $192 million  The processing cost of nickel cathode is $2.11/lb x 2204.62 = $4,651.75 x 7,680 = $35,725,426  Therefore, the NET REALIZABLE VALUE of the measured nickel reserves is $192,000,000 – ($35,725,426 + 10,000,000) = $192,000,000 - $45,725,426 = $146,274,574 ECONOMICS

5.  Bearing in mind the above valuations were based on block 1 alone; At this point we wish to include the inferred reserves under block 2  It then follows that the total Gross Realizable value including the inferred resource is; Block 2 indicates 11,250,000 tons of ore (maintaining the cut off grades of 0.25% Cu and 0.12% Co) For Copper - (11,250,000 x 0.25%) x 93% recovery = 26,156 tons of Cu metal For Cobalt – (11,250,000 x 0.12%) x 80% recovery = 10,800 tons of Co metal The Gross realizable value for copper is 26,156 x $8,000 = $209,248,000 The Gross realizable value for cobalt is 10,800 x $30,000 = $324,000,000 Hence, the Gross Realizable Value for Block 2 is $209,248,000 + $324,000,000 = $533,248,000 ECONOMICS

6. THEREFORE, the Gross Realizable Value (GRV) of the Measured and Inferred Kalaba Resource is; – Block 1 measured (GRV) + Block 2 inferred (GRV) – $950,400,000 + $533,248,000 = $1,483,648,000 3.3 FAIR VALUE As per British Venture Capital Association Guidelines on Illiquid Early Investment Valuation, 3 major risks are discounted from the Net Realizable Value bringing the Fair Value of the measured resource to; Measured Resource Net Realizable Value – (15% Country Risk +10% Learning Risk +12% Infrastructure Inadequacy Risk) = Fair Value $ 743,642,798 – ($111,546,420 + $74,364,280 + $89,237,136) = $ 743,642,798– $275,147,835 = $468,494,963 ECONOMICS

7. ECONOMICS – Risk & Sensitivity Analysis Note: -In this sensitivity analysis Cu, Co, Ni and Au are projected as the only metals realizable from the ore and at head grades of 0.25% AsCu, 0.12% AsCo, 0.06% AsNi respectively, and the Gold at 0.026oz per ton of ore - It then follows that when tested at varying falling LME/LMB and precious metal prices, the Net Realizable Value and or Gross Realizable Value of the project BREAKS EVEN only when the average metal prices used in this document fall by >75% (i.e. $2000/t of Cu LME, $7,500/t of Co LMB, $6,250/t of Nickel and $325/oz of Gold) LME/LMB Price Fluctuations (%)

8.  4.1 Mining, Processing and Tests  Several test runs and analysis have been carried out on the Kalaba ore  In 2005 whilst trenching for Geological investigations, close to 20,000 tons of ore grading 3% AsCu to 9.5% AsCu and 0.5% AsCo to 0.9% AsCo was excavated using a CAT 320 Excavator, CAT 988F Front End Loader and a Bell B40 Articulated Dump Truck  Out of the 20,000 tons, 12,000 tons was supplied and delivered to Vedanta Resources (Konkola Copper Mines Plc) for processing in their 45,000 tons/day SX/EW Plant at Nchanga and the balance of 8,000 tons is still stock piled at Kalaba  At that time Konkola Copper Mines was paying Zamsort/Kalaba Mine 44% of LME and the LME price was about US$4,000  Although the Off taker wanted so much of this ore, as the leach efficiency was so high that the recovery was >96%, Zamsort discontinued the supply due to non payment for the cobalt credits  Konkola Copper Mines offered to pay for cobalt credits using their floatation circuit and independent test runs were done by QVA Processing of South Africa and Alfred H. Knight Zambia (Please see the attached Video Clip and Process Flow Sheet developed by QVA Processing)  SRK of South Africa took samples to Mintek who carried out gravity concentration test works using shaking tables and the recoveries were not very impressive but they managed to upgrade the gold content from 0.8g/t to 6g/t 4.0 MINING & METALLURGICAL

9.  Leach ability tests were done by consulting metallurgists, Mr. Malani Ngambi and Moses Kakusa. They digested 500kg of Kalaba ore grading 3% AsCu, 0.4% AsCo using dilute sulphuric acid and filtering the solids from the pregnant liquor solution (PLS) and selectively precipitating using soda ash and quick lime respectively. The concentration of copper in the PLS was averaging 29 to 35gpl (grams per litre) and the concentrate obtained from the precipitation assayed 30% Cu and 4.5% Co  Test runs were further done using Micro-sorting machines at Mintek and the recovery was 50%  In 2010, a truck load of 3% Cu and 0.3% Co of Kalaba ore was sent to Dynamic Machinery in Klerksdorp, South Africa, manufacturers of Dense Media Separators (DMS – Concentrator) who carried out test runs on the material achieving a concentrate of 35% Cu and 5% Co at a recovery of 65%  Further, Bateman South Africa has through a consulting company called Pro-Alliance developed a Dense Media Separator and SX/EW Plants suitable to treat the Kalaba ore and respective quotations have been made for purchase and commissioning of either of the plants  Our internal investigations show that the Gold remains in the tailings and will undergo concentration using falcon concentrators and subsequent cyanide leaching to produce gold bullion at a far much lower capex than the copper, cobalt and nickel circuits MINING & METALLURGICAL

10. The values used in ascertaining the Net Realizable values are at worst case scenario. And as can be observed, the copper grades used are those of the host rock rather than the ore body which is reported much higher in the Crispin Chisanga and Robert Kamanga Geological Reports It is further assumed that bulk mining will be exercised, without any selective mining and grade control The idea is to show profitability even at the worst case scenario and at lower metal prices The commercial value of the Kalaba ore cannot be over emphasized as can be evidently seen from the annexure of assay reports and delivery notes to Konkola Copper Mines (Vedanta Resources) at grades much higher than used in this analysis This then justifies that the KALABA COPPER COBALT RESOURCE is a worthwhile multi- million dollar project!! 6.0CONCLUSION