Infrastructure

• Nkout is 330km from the deep-water port (Capesize or Chinamax for iron ore terminal) near Kribi, currently under construction by the Cameroon Government
• Strategically well-situated in an emerging iron ore district, including: Mbalam (Sundance), Belinga (BHP Billiton), Avima (Core)
• Government of Cameroon focused on opportunity to ensure infrastructure is scaled up front for likely projects
• Nkout with the advantage of being closest to port of all advance projects and 100% within Cameroon. Situated only 30km from the proposed rail corridor
• Grid power likely to be available for the project, as stated by the Government. Huge hydroelectric potential, with the Government aiming to triple grid capacity to 3,000MW by 2020
• PEA, scheduled for March 2012, to give greater detail on economics and infrastructure of project

Nkout at the heart of rapidly emerging iron ore district

Metallurgy

• Processing of magnetite appears simple and low-cost. Magnetite comprises the majority of the current resource at Nkout
• Magnetite is liberated at relative coarse grind size. Concentrate of over 65% Fe content achieved at p80 of 150 microns
• High iron recovery of 80-90% achieved across a range of particle sizes from 150 to 45 microns
• Combination of moderate work index (12-13 kWhr/t) with coarse grind is expected to result in low comminution energy requirement
• Magnetite concentrate contains low levels of deleterious elements, particularly phosphorous and alumina
• Coarse magnetite concentrate should be readily filtered, yielding a relatively dry product for shipping, thereby saving on transportation costs
• Low-cost processing, potential DSO (high-grade saprolite) ore totalling 18.5mt at 60.3% iron, with further potential to be defined
• Potential for saprolite to deliver sinter fines product has been identified
• Further bench-scale and pilot-scale test work to be undertaken as part of Pre-Feasibility Study during 2012

Metallurgical Work Completed on Samples of Nkout BIF

Phosphorous and sulphur levels are very low. P205 approx. 0.01% for all grind sizes and sulphur content is negligible

Simple plant proposed for magnetite processing

Geology

• Nkout deposit located in the northern limits of the Congo Craton, on Archaean rocks, within the Ntem complex
• Ntem complex rock types comprise schist, amphibolite, quartzite, granites, gneiss, greenstone and itabirite-like rocks
• Nkout is a magnetite banded iron formation (BIF), with a high-grade oxidised cap. This is underlain by biotite gneiss
• The BIF is made up of distinguishable layers of granular quartz alternating with magnetite, haematite and limonite

Magnetic intensity map of the Djoum exploration permit

Background

• The Nkout Iron prospect is located in the Company's Djoum licence in southern Cameroon
• The project was identified from interpretation of airborne magnetic and remote sensing data in 2006, whilst investigating gold occurrences in the 150km long, Sangemalina-Djoum Archaean greenstone belt
• Djoum, the closest town to the Nkout prospect, is located 280 km southeast of the Nsimalen International Airport in Yaoundé. The route from Yaoundé incorporates 170 km of macadam road and 110 km of laterite road
• The Nkout project area is located approximately 7.5 km due south of the Djoum to Mbalam road

Resource Estimate

Table 1: Nkout Centre, Mineral Resource Estimate

Zone	Resource Category	Tonnes (Mt)	Fe %	SiO2 %	Al2O3 %	P %
110 (oxidized, >55% Fe)	Measured	-	-	-	-	-
	Indicated	-	-	-	-	-
	Meas + Ind	-	-	-	-	-
	Inferred	18.5	60.30	6.89	3.09	0.117
120 (oxidized, 50 to 55% Fe)	Measured	-	-	-	-	-
	Indicated	-	-	-	-	-
	Meas + Ind	-	-	-	-	-
	Inferred	7.9	51.52	15.64	5.14	0.084
130 (oxidized, 30 to 50% Fe)	Measured	-	-	-	-	-
	Indicated	-	-	-	-	-
	Meas + Ind	-	-	-	-	-
	Inferred	216.9	36.09	36.49	6.13	0.064
210 (Magnetite BIF)	Measured	-	-	-	-	-
	Indicated	944.4	32.73	45.59	2.26	0.047
	Meas + Ind	944.4	32.73	45.59	2.26	0.047
	Inferred	810.9	29.58	48.65	3.31	0.048
TOTAL	Measured	-	-	-	-	-
	Indicated	944.4	32.73	45.59	2.26	0.047
	Meas + Ind	944.4	32.73	45.59	2.26	0.047
	Inferred	1,054	31.62	45.17	3.90	0.053
TOTAL		1,999	32.15	45.37	3.12	0.050

Notes:

(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability

(2) The effective date of the Mineral Resource Statement is 11 November 2011

(3) The Mineral Resource Estimate for the Nkout deposit was constrained within lithological and grade based solids and within a Lerchs-Grossman optimised pit shell defined by the following assumptions; metal price of USD1.40/dmtu; slope angles of 35º and 44º in the oxide and fresh material; a mining recovery of 97.5%; a mining dilution of 2.5%; a base case mining cost of USD1.40/t and an incremental mine operating costs of USD0.05/t/10 m below the 80 m reference RL and USD0.05/t/10 m above the 80 m reference RL; process operating costs of USD4.39/t crushed DSO, USD2.3/t crushed oxide and USD4.49/t crushed BIF ore; and G&A costs of USD 2.31/t crushed ore.

Database Validation

The QA/QC program for Company's Nkout project consists of alternating the insertion of a blank, standard and duplicate sample on a regular basis within the sample train. The Company uses standards with varying grades which are also alternated. All samples have been assayed at the accredited OMAC laboratory in Ireland. SRK found that the results of the above described QA/QC program indicate that the Company's Nkout assay databases were appropriate for Mineral Resource Estimation.

Data Verification

Howard Baker as qualified person completed the verification of data on which the Nkout Resource Estimate was based. This verification included an assessment of QA/QC data, sample preparation and assay methodologies, density data, data inputs and survey data used in the estimate. Data was validated by using field checks, statistical methods and evaluating the Company's protocols.