1

Negotiations are currently under way with the formation of a Joint Venture with a Zimbabwean company who have access to large deposits of high quality Chrome. Random Assay tests indicate Chrome content around the 49% mark. Geological tests are currently under way to ascertain reserves.

Substantial capital injection for the erection of a Mobile Processing Plant is well advanced as it is the JV Partners intention to produce Ferrochrome for export rather than sell Lumpy.

Due to the severe lack of logistical capabilities currently being experienced in Zimbabwe, it is not a feasible option to export lumpy. Furthermore, as it is our company philosophy to assist the local population in any area into which we operate, we believe, as do our JV Partners, that establishing such a plant would have an immeasurable financial advantage to the local economy. We aim to partner local communities in developing their economic status so that both they and ourselves benefit from the venture.

We anticipate being able to supply Ferro Chrome sometime during the mid part of 2011