Tulu Kapi Nyota Min Ltd '09 Technical

- Key Features - Exploration - Introduction - Mineralisation - Project Description, General Infrastructure and - Distribution of Mineralistation Accessibility - Deposit Type - Topography, Climate and Vegetation - Sampling Method and Approach - Legal Aspects and Tenure - Sample Preparation, Analysis and Security - Environmental Requirements - Mineralogical Studies and Mineral Processing - Country History - Data Verification and QA/QC - Country Profile and Economy - Adjacent Properties and Competitor Companies - Mining Sector of the Economy - Modelling and Mineral Resource Estimation IN THIS DOCUMENT - Historical Exploration and Operations in the Tulu - Conclusions Investors Report on the Kapi Area - References Tulu Kapi Gold Project, Ethiopia

- Regional Geological Setting th - Local Geology as at 30 September 2009

KEY FEATURES

Compliance: Venmyn utilises a comprehensive checklist incorporating all internationally required compliance requirements, in particular the Canadian National Instrument 43-101 and SAMREC/SAMVAL Codes for public reporting of mineral assets. The information quoted in this Prospectivity Review has been scrutinised in terms of this checklist and prepared for investors according to the principles of open and transparent disclosure embodied in the underlying codes for mineral resources reporting. Qualified Persons: Mr.Andy Clay, M.Sc. (Geol), M.Sc. (Min. Eng.), Dip.Bus.M., Pr.Sci.Nat., MSAIMM, FAusIMM, FGSSA,AAPG, M.Inst.D. Mr. Neil Mc Kenna, M.Sc. (Geol), Pr.Sci.Nat., MSAIMM, MGSSA, MIASSA, M.Inst.D. Mr. Richard Tayelor, B.Sc. Hons (Geol). MGSSA. Effective Date: 30th September 2009. Prepared For: Nyota Minerals Limeted (Nyota), previously Dwyka Resources Limited (Dwyka). Purpose: Review of the prospectivity and technical merits of the Tulu Kapi Gold Project in Ethiopia. Sources of Information: Public domain information as listed in the reference list, Nyota, Dwyka and Minerva Resources PLC internal reports and, presentations and Hellman & Schofield (Pty) Ltd. Personal Inspection: Mr. Andy Clay and Mr Neil Mc Kenna visited the Tulu Kapi Gold Project in July 2009. All operating areas and infrastructure were inspected. Deposit Types: Sulphide and gold mineralisation in albitised syenite.

LOCALITY OF GPMC ADVANCED EXPLORATION ACTIVITIES 770 000 780 000 790 000 800 000 Muklemi ETHIOPIA 1 030 000

Dobe Kobi Kobera

To Assosa

To Addis Ababa 1 020 000 Soyoma

Ingango REGIONAL LOCALITY Gulliso Dina Keley Saudi Arabia Chago Gudeya-Guji 1 010 000 Guji Ayra ERITREA Tulu Kapi Khartoum Red Sea Homa Asmara

Sanaa SUDAN YEMEN Genji

Mek'ele 1 000 000 GONDER TIGRAY Gonder 12° Welo DJIBOUTI Gulf of Aden Djibouti GOJAM Dese

Debre Mark'os Yubdo Yubdo TULU-KAPI SHEWA 990 000 Hamus G. WELEGA Harer Addis Ababa SOMALIA Nek'emte

Gore SCALE: Arsi 0 5km ILUBABOR te Jima u HARERGE p is

in D d Goba n a KEFA Yirga 'Alem d e LEGEND: fin e d BALE LEGEND: t Arba Minch' o

ryn GAMO GOFA a d n u Location of GPMC advanced exploration activities Main RoadBo Tulu Kapi & Ankori Exploration Licence Area River SIDAMO Yubdo Exploration Licence Area 4° Lake Provincial Boundary Turkana Billa-Gulliso Exploration Licence Area UGANDA National Capital SCALE: Town 0 200m KENYA Provincial Capital Indian Ocean Road 36° 44° Mogadishu

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INTRODUCTION

Venmyn was requested to provide an independent opinion on the prospectivity of the Tulu Kapi Gold Project (Tulu Kapi) and surrounding gold exploration occurrences for which Tulu Kapi is the most significant mineral asset of Minerva Resources Plc (Minerva) which was acquired by Nyota Minerals Limited (Nyota) in July 2009.

PROJECT DESCRIPTION, GENERAL INFRASTRUCTURE AND ACCESSIBILITY

LOCATION, AREA AND OTHER PROPERTIES The route fromAddisAbaba (12-hours away by road) includes an asphalt road, Tulu Kapi is located in western Ethiopia, in Oromia Regional State, Ghimbi an all-weather gravel road and a dirt/gravel trail. A 4x4 vehicle is required on zone and in the Ganji Wereda. Together with the Ankore area, the project area the dirt/gravel trail to get to site. An airstrip is located 20km from the project measures ~15km2 and is located between 9°4'10"N and 9°6'51"N and site. 35°32'32"E and 35°34'45"E. The project is located 28km east of the town of Ayra-Gulliso and 510km from Addis Ababa, Ethiopia's capital. The journey MATERIAL AGREEMENTS from Addis Ababa to Tulu Kapi takes approximately 12 hours on mostly good Minerva management confirmed with Venmyn that no material agreements roads until the last 20km which is dirt road. have been entered into with contractors or land owners at this stage. Compensation payments are routinely made to subsistence farmers whose POPULATION crops are disturbed by prospecting activities. Exploration licenses that have A small population of subsistence farmers are resident within the project area. been inspected by Venmyn for the various project areas have been presented. The nearest towns are Keley, Gulliso and Ganji. The greater area has a population density of 25 persons/km2 , according to World Trade Press. CORPORATE STRUCTURE Minerva holds a number of exploration licences in the Tulu Kapi area through EXISTING INFRASTRUCTURE its subsidiary Golden Prospect Mining Company Limited (GPMC). In July The infrastructure in the immediate surroundings is adequate for prospecting, 2009, Dwyka (now Nyota) aquired Minerva making it a wholly owned but may have to be upgraded in later phases of the project's life. At present, subsidiary of Nyota. The acquisition has given Dwyka control of a number of water is pumped from a local river or trucked in from a nearby supply, and additional prospective gold and platinum exploration assets in Ethiopia, electricity is generated at the project site by a diesel generator. Comfortable including Tulu Kapi. accommodation, basic offices, sheds and stores are located on site. Cellular phone telecommunication is available on site. TOPOGRAPHY, CLIMATE AND VEGETATION

The exploration site is hilly with incised valleys. The maximum altitude varies CORPORATE STRUCTURE between 1,600m and 1,765m above sea level. LOCAL TOPOGRAPHY

100%

Ethiopian Gold Ltd 100%

100% Ethiopian Resources Ltd

Golden Prospect Mining 100% Company Ltd

Golden Prospect Mining Company Ltd

?a small scale mining licence for 10 years, renewable for 5 years. 100% Resources Securities Ltd Golden Prospect Mining 100% Company Ltd LICENCES York Platinum GPMC applied for an exploration licence for Tulu Kapi in January 2005 and the Tulu Kapi, Yubdo licence was granted in May 2005 (Licence Number: 127-128/97). This is valid Billa Guliso for three years with two successive one year extensions (as stipulated in the legislation). The original exploration licence was valid until May 2008 and was Yubdo Platinum and Gold 51-73% 100% Golden Prospect Mining extended to May 2010. Development Plc Company Ltd

Yubdo Platinum Mine Lake Sonfon

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LEGAL ASPECTS AND TENURE

LEGISLATIVE FRAMEWORK ?provides for a 2% to 5% royalty at production site; The Mining Proclamation and Mining Tax Proclamation of 1993 makes ?a 35% income tax on taxable income. Taxable income is computed by provision for the granting of the following:- subtracting from gross income for any accounting year all allowable ?a prospecting licence for one year, permitting only surface exploration; revenue expenditure, a four years straight line depreciation, ?an exploration licence for an initial period of three years, renewable twice reinvestment deduction and permitted loses; and for one year each; ?guarantees the opening and operation of a foreign currency account in ?a large scale (>75,000tpa) mining licence for 20 years, renewable for 10 banks in Ethiopia, retention of portion of foreign currency earning and years unlimitedly; and remittances of profits, dividends, principal and interest on a foreign ?a small scale mining licence for 10 years, renewable for 5 years. loan etc. out of Ethiopia.

LICENCES CLAIMS, SERVITUDES, PERMITS AND LICENCES GPMC applied for an exploration licence for Tulu Kapi in January 2005 and the The Ethiopian Constitution (1994) states that the right to ownership of all land licence was granted in May 2005 (Licence Number: 127-128/97). This is valid and natural resources is vested in the State, which can ensure the right of for three years with two successive one year extensions (as stipulated in the private investors to the use of the land. legislation). The original exploration licence was valid until May 2008 and was extended to May 2010. Ethiopia is attempting a land tenure reform process in many areas, since there has been a long history of forced displacements and an SCHEDULE OF EXPLORATION AND MINING TENEMENTS HELD BY GMC acknowledgement that lack of access to, and control LICENCE GRANTED EXTENSION AREA OWNERSHIP over, land by the poor may be among the reasons for Tulu Kapi and Ankore 05-Apr st 2 100% GPMC May 2008 1 extension 20km rural poverty and food insecurity. The project area is Yubdo 04-Jun June 2008 2nd extension 300km2 100% GPMC inhabited by subsistence farmers, and these may Yubdo Extension 06-Dec 3rd Year Exploration 274km2 100% GPMC conceivably have land tenure rights, since Tulu-Dimtu Extension 06-Nov 3rd Year Exploration 70km2 100% GPMC intergenerational transfer of land was confirmed, and Yubdo Mining Licence 51% earning to Jul-99 Mining 27km2 A1, A2, A3, A4 72% the registration and certification of land holdings was provided for, in Federal Proclamation 456/2005. ROYALTIES, FEES AND TAXES The new Mining Proclamation and Mining Tax Proclamation of June 1993 by There may be the possibility that the resettlement of the subsistence farmers the Ethiopian Ministry of Mines and Energy (EMME) fully recognizes the high may be required in later project stages. The Ethiopian Environmental risk nature of mining investment and is now firmly allied to private investment. ProtectionAgency recommends:- The preamble to the new mining law states that the significant role of private ?minimising resettlement as much as possible; investment in capital formation, technology acquisition and marketing of ?carrying out detailed plans for compensation and resettlement; and minerals is recognised. This is markedly different from the previous ?developing a long-term support programme for the resettled. government policy of complete monopoly of the mining sector. A 'Socio-Economic Assessment Report' has been completed on the Tulu Kapi, The proclamation guarantees and provides for:- Guji and Yubdo Exploration drilling areas by Mid-Day International Consulting ?the licence owners right to sell all the minerals locally or abroad; Engineers in March of 2008. This document has been examined by Venmyn ?exemptions from custom duties and taxes on equipment, machinery, and highlights affected parties and their opinions and concerns in the license vehicles and spare parts; area. ?provides security of tenure;

ENVIRONMENTAL REQUIREMENTS

The EPA recommends that an Environmental Impact Assessment (EIA) be carried out for a large scale gold mining operation, in which the annual run of mine ore exceeds 100,000m3 for a placer operation and 75,000 tons for primary deposit mining. To date no formal environmental requirements are contracted underan exploration licence agreement in Ethiopia, however, this will be required when applying for a mining right. COUNTRY HISTORY

The Ethiopian monarchy maintained its freedom from colonial rule with the exception of a short-lived Italian occupation from 1936-1941. In 1974, a military junta (the Derg) deposed Emperor Haile Selassie (who had ruled since 1930) and established a socialist state. Torn by bloody coups, uprisings, wide-scale drought, and massive refugee problems, the regime was finally toppled in 1991 by a coalition of rebel forces, the Ethiopian People's Revolutionary Democratic Front (EPRDF).

Aconstitution was adopted in 1994, and Ethiopia's first multiparty elections were held in 1995.Aborder war with Eritrea late in the 1990s ended with a peace treaty in December 2000. The Eritrea-Ethiopia Border Commission in April 2002 remotely demarcated the border by geographical coordinates, but final demarcation of the boundary on the ground is currently on hold because of Ethiopian objections to an international commission's finding requiring it to surrender territory considered sensitive to Ethiopia.

COUNTRY PROFILE AND ECONOMY

Ethiopia has an immature economy based on agriculture, which accounts for half of the Gross Domestic Product (GDP), 60% of exports, and 80% of total employment. The key GDP earning sector, agriculture, is under-utilised and is susceptible to frequent drought and poorly developed agricultural practices which contribute to deforestation, top soil loss and poor water management.

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In November 2001, Ethiopia qualified for debt relief from the Highly Indebted Poor Countries (HIPC) initiative, and in December 2005 the IMF cancelled Ethiopia's debt.According to the Ethiopian constitution, the state owns all land and provides long-term leases to the tenants.

MINING SECTOR OF THE ECONOMY

Ethiopia's mineral industry is not a significant contributor to GDP, with mining ?niobium; and quarrying contributing only ~0.4% to GDP. Ethiopia does play a significant ?gold; role in the world's production of tantalum, with the country's share of global ?platinum; tantalum production amounting to 5% in 2007. The petroleum and natural gas ?iron ore; industries are being developed and other key minerals produced in Ethiopia ?cement; include:- ?salt and gypsum; ?clay and shale; and ?soda ash. HISTORICAL EXPLORATION AND OPERATIONS IN THE TULU KAPI AREA

While there is no evidence of either historical or recent artisanal mining by the local population, the Tulu Kapi area has been mined (using very basic techniques) by various Italian firms during the 1930's. All subsequent activity has been limited to prospectivity assessments and early stage-exploration by various companies, most significantly by the current operator ,GPMC.

DATE ACTIVITY BY FINDINGS 1930's Gold mining took place largely by hydraulicking. Various Italian Firms. Estimated 1,155kg Gold 'Reserve' at a grade of 1939 Assumed mining and sampling. SAPIE. 0.9 - 2.23 g/m3. 1947 Study. Dahlstrom. 4.3 g/t from adit samples. 0.1 - 0.25 g/t contained in elluvial cover of 1966 Study. Jelenc. Ankore. 1969 Soil sampling study. Kochamasov. Arsenic anomalies reaching 2655 ppm. 1969 Geological mapping study. Kazim from Ethiopian Mineral Survey. Drillholes intersected gold and silver Various work including: geological mapping, soil 1969 -1972 United Nations Mineral Survey. mineralisation; stream sediment sampling sampling, geophysical survey and drilling. yielded 0.02 - 0.1 g/m3. United Nations Development 1970's Exploration activities and resource estimation. Programme (UNDP). Soil sampling campaign mapped with ranges of Various work including: detailed geological 200 - 3200 ppb; drilling intersected numerous mapping, geophysical and geochemical survey, Tan Range Exploration Corporation 1996 - 1998 hydrothermal altered syenite mineralisations; trenching, Mobile Metal Ion (MMI) sampling and (TREC). MMI samples delineated various anomalous drilling. zones. 2000 Geological mapping study. Alemu and Abebe. Preliminary Due Diligence, sampling, drilling etc Golden Prospect Mining Company 2000 - Cause for further work. sampling. Limited (GPMC) - Current Operator.

REGIONAL GEOLOGICAL SETTING

The region lies within the Arabian-Nubian Shield which consists of Archaean ?metadiorites; gneiss and is best described as a granite-greenstone terrain. Additional ?metagranites; and weakly metamorphosed volcano-sedimentary successions of late Proterozoic ?syenites. age occur within the terrain. The area has been extensively folded, faulted and intruded by Pan-African aged granites and lesser mafic to ultramafic intrusives LOCAL GEOLOGY and hosts a number of gold occurrences/deposits. A major north-northeast The project covers a 1.5km long mineralised trend that runs northwest along striking shear zone is a dominant feature in the region. the flanks and centre of a large hill that rises from an elevation of 1,640m at its base to 1,770m at its peak. GPMC mapped eleven lithological units in the The geology of the area, in which the Tulu Kapi exploration licence is situated, Yubdo exploration license which surrounds the Tuli Kapi and Ankore licence consists of rocks ranging from Precambrian to Tertiary in age. The areas which are illustrated in the following figure. Tulu Kapi, Ankore, Guji and Precambrian rocks consist of various gneisses, low-grade volcano- Yubdo all fall within the vicinity of a regional north-northwest striking shear sedimentary rocks with associated mafic to ultramafic intrusions as well as zone that has associations with various other deposits along its length. Indeed meta-intrusive rocks ranging from metagabros to granites. From oldest to soil sampling has highlighted that the Tulu Kapi deposit and surrounds are but youngest these are represented by the following identified units:- a single complex in a larger mineralisation trend. ?a basement granitic gneiss; ?various meta-sedimentary units; EXPLORATION ?the Birbir Group basement rock; A number of historical exploration efforts have been illustrated in the table ?quartzites; “Historical Exploration and Operations”. Most importantly are the soil ?ultramafics; geochemical work and drilling undertaken by the UNDP (United Nations ?mafics and intruded metagabbro intrusives; Development Programme) and the detailed geological mapping, geophysical

Graphics By: Information in this statement is to be used for marketing and illustrative purposes only. The diagrams and the information InterAction herein may not be edited or transmitted in any form or by any means without prior written permission. Corporate Reporting & Identity Specialists, Tulu Kapi_Nyota Min Ltd_'09_Technical Statement_Investors_V1 .cdr Annual Reports, Graphics PAGE 4 of 12 Investors Report on the Tulu Kapi Gold Project, Ethiopia as at 30th September 2009

REGIONAL GEOLOGY AND BASIC INFRASTRUCTURE Axum 35°30’ ETHIOPIA

f Lake Tana

TULU KAPI

Addis Ababa Daleti GULISO INANANGO

Lake Shala

Birb ir Riv er f AYARA f Tulu Kapif f f LEGEND: CENOZOIC f f f Recent - Pleistocene Alluvials Anchore Quarternary - Neogene 0 10 km SCALE: Rhyolitic & basaltic lavas f f Neogene (-Paleogene) f LEGEND: Limestones Basalts Rivers Regional Shear / Fault Granite MESOZOIC Roads Fault Pyroxenite Mesozoic Towns Lower Basalt Syenite Sandstones Project Area Gabbro Meta-Ultramafics PALEOZOIC Metagabbro Meta-Ultramafics Lower Jurassic - Upper Guliso Formation Granodiorite Carboniferous Schist Granitoid Sandstones, dolerites Neoproterozoic LEGEND: LOCAL GEOLOGY AND BASIC INFRASTRUCTURE Low grade metamorphic rocks High grade metamorphic rocks Rivers Roads Towns f and geochemical survey, trenching, Placer Working Area Mobile Metal Ion (MMI) sampling and Old Mine drilling completed by Tan Range Fault f Ankori Exploration Corporation (TREC) for Mica Schist & Phylites f which the results are available to GPMC. with Kyanite & Staurolite f The UNDP work from the 1970's Felsites & Siliceous GUJI iver demonstrated that anomalous gold Rocks ori R grades continue for 1.2km along the f Schist Ank shear structure. This was confirmed by Chlorite, Actinolite, an UNDP drillhole (UN10) which Talc Schist Tulu Kapif intersected 0.7m of mineralisation at a Chlorite-actinolite grade of 27.0g/t some 570m north of the Schist, Amphibolite current drilling area. All historical Biotite Porphyry Granite f f exploration data was acquired from the

(Massive, Coarse 9°03’51”N f Geological Survey of Ethiopia (GSE) Grained) f library and other sources. Syenite Fine Grained Biotitic The GPMC geologists consider that, in Granite the case of both UNDP and TREC, the Orthoclase Porphyry r ve respective exploration teams were Serpentinite, Dunite, Ri misled by the regional foliation of Peridotite, Talc exposed rocks and the orientation of Serpentinite Chlorite Fakocha mineralised quartz veins in the area, and Quartzites f

Quartz Vein 0 2.4 km SCALE:

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that both parties placed diamond drill holes perpendicular to the foliation and “discovery” hole. Initially, the drilling was oriented in the same direction parallel to mineralised zones hence failing to achieve good intersections as that done by TREC and the UNDP.Drill hole TKBH04, however was (occasionally catching the edge of veins when drilling down dip). This may oriented ~90° to this direction and intersected significant gold grades explain why these parties abandoned the project prematurely despite very and confirmed the true orientation of the mineralisation. Subsequent good soil geochemical anomalies. boreholes were oriented to intersect the mineralisation; ?Phase 2 drilling consisted of 7 holes which returned intersections of The historical soil sampling data has been useful to GPMC to the extent that it several zones of significant mineralisation from at least two of the has helped identify and confirm additional exploration targets. Confirmatory boreholes TKBH05 and TKBH07; testwork has been carried out on these historical data, but no mineral ?Phase 3 of the drilling programme consisted of 12 in-fill and scout resources defined. holes totalling ~3,000m. The placement objective was to extend the strike length and further delineate the structure; and GPMC has undertaken recent exploration activities, the most significant of ?Phase 4 drilling commenced in 2008 consisting of another 3,000m of which has been the four drilling campaigns at Tulu Kapi:- drillcore, the majority of which was dedicated to further Tulu Kapi ?Phase 1 consisted of 4 drillholes (TKHB01 – TKBH04) situated at the mineralisation delineation. The rest was split between the nearby gold southern end of the initial target zone. All drill holes intersected prospects of Guji and Gudeya Guji in the Yubdo Exploration licence. A significant gold mineralisation but TKBH04 is considered the total of 34 holes have been drilled to-date by GPMC.

MINERALISATION

The Tulu Kapi mineralization is hosted in Proterozoic syenites. It appears to The degree of alteration through albitisation appears to be the key be strongly associated with zones of highly albitised, hydrolytic hydrothermal concentrator of mineralisation. The earliest alteration observed is veins and alteration centred on a local north-northeast shear. These albitised zones alteration of biotite-magnetite within the syenite. The alteration is evident by show complete replacement of all mafic minerals to sulphide. Narrow quartz syenite being affected in numerous zones of intense albitisation which appear veins and overprinting sulphide veins slice through the syenite as a late stage to convert all feldspars to albite and replace the mafic minerals with sulphides. event. Mineralisation does occur in these quartz veins, but it may be remobilisation of gold from the albitised sections. Gold occurs predominantly These zones range up to several metres wide and are prominent in the core in pyrite, or near the contact between pyrite and silicate gangue with free gold due to their white colour. The albitised zones contain quartz veins which range visible in hand sample and thin section. from approximately 1 to 20cm wide, making mineralisation easy to identify visually. The syenite intrusion in which the gold mineralisation is hosted includes coarse- and fine-grained phases as well, mainly crosscutting sills of metadolerite and some dykes.

COMPLETELY ALBITISED SYENITE WITH A SULPHIDE REPLACEMENT

2 cm

ZONE OF SYENITE ALBITISATION WITH CROSS CUTTING ALBITISED SYENITE CUT BY A VEIN WITH QUARTZ, CARBONATE QUARTZ VEINS AND PYRITE

2 cm

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EXPLORATION

BOREHOLE LOCATIONS AT THE CENTRAL PART OF TULU KAPI PLAN VIEW DETAIL AREA 780 500 780 600 780 700 780 200 780 400 780 600 780 800

Pl-320N

251.33 Pl-240N

Pl-160N 1 004 800

Pl-80N 200.00 TKBH-19 TKBH-31 Pl-00 TKBH-16 TKBH-06

Pl-80S | TKBH-33 1 004 500TKBH_20 1 004 600

1 004 600 TKBH-07 TKBH-05 Pl-160S TKBH-15 TKBH-20 TKBH-11 TKBH-01 TKBH-29 TKBH-13 | TKBH-04 Pl-240S TKBH_34 TKBH-09 TKBH-08 TKBH-34

TKBH-10 1 004 400 TKBH-17 TKBH-12 Pl-320S TKBH-28 TKBH-02 TKBH-21 TKBH-27 TKBH-14 TKBH-26 TKBH-18 TKBH-30 | TKBH-24 TKBH_17 TKBH-03 TKBH-22 TKBH-32 TKBH-25 TKBH-23 LEGEND:

1 004 200 Mineralisation\ Albitisation SCALE: 0 200m

SCALE: | 0 50m TKBH_21 1 004 300 1 004 400 LEGEND: 1 004 000 Borehole Location Old Workings Old Mine Area Roads SECTION: 00 Adit / Drive Plan view -200 -100 0 100 200 TKBH-04 TKBH-05 TKBH-08 TKBH-28 TKBH-20 SECTION - 80N TKBH-09 -200 -100 0 100 200 TKBH-33 TKBH-07 TKBH-13 TKBH-11

157.57 136.83 1600 1700

LEGEND: 157.70 251.33 SCALE: 200.60 0 50m 249.60

1600Mineralisation\ 1700 261.70 220.00 Albitisation 211.05 217.00

SCALE: SECTION - 80S -200 -100 0 100 200 0 50m TKBH-29 TKBH-34 TKBH-12 CORE TRAY OF EXPLORATION DRILLING TKBH-24 TKBH-27 TKBH-10

98.34

1600 1700 201.85 200.00

223.85 SCALE: 0 50m 249.50

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EXPLORATION - TULU KAPI SOUTH EXTENSION

BH27 BH29 f BH12 BH07 BH11 BH26 BH10 BH25 BH28 BH14 BH17 LEGEND: BH23 Borehole Location BH08 Old Mine Area BH21 f f Fault f SIGNIFICANT GOLD INTERSECTIONS PER BOREHOLE

Borehole Lengths Au Borehole Lengths Au Borehole Lengths Au Borehole Lengths Au Number (m) g/t Number (m) g/t Number (m) g/t Number (m) g/t 3.40 3.9 2.40 4.5 4.00 10.2 17.70 5.2 33 2.60 21.2 6.60 4.9 14 3.40 3.5 11.40 2.0 26 11.90 1.3 1.00 14.4 2.70 7.4 10 16.00 1.6 31 3.20 6.9 2.70 4.3 18.00 4.4 1.00 17.5 12 1.80 6.1 23 Drilled into Fault 11.80 4.6 1.70 4.5 4.30 20.0 2.50 3.0 16.00 1.6 15.70 2.5 29 21 3.40 3.7 15.30 7.3 1.00 17.5 11.00 2.0 11 8 28 Assays Pending 2.20 4.0 3.30 2.6 2.20 10.5 10.10 4.1 17 4.20 2.5 1.70 4.5 5.50 5.0 27 5.70 10.0 3.00 4.9

The early albitisation stage is cut by a second stage of quartz veining that GPMC suggests that there is ample evidence to advocate that mineralisation commonly also contains carbonate, pyrite and minor biotite, sericite and is bound by a northeast shear zone which is possibly disrupted by smaller epidote. Sericite alteration is present in the albitised syenite and especially in scale northwest conjugate structures. the metadolerites and is possibly associated with this stage. A pyrite-rich sulphide stage which occurs as cm-scale veins as well as in discontinuous cracks within the albitised syenite appears to be closely associated with high gold grades.

DISTRIBUTION OF MINERALISATION

The drill results to-date suggests that the Tulu Kapi deposit is a mineralised system with numerous QUARTZ VEIN IN SYENITE mineralised zones for which preliminary cross sectional interpretation and correlation between boreholes has been undertaken to estimate an Inferred Mineral Resource.

Planned in-fill drilling is expected to confirm the nature of the continuity between the mineralised zones and to classify an Indicated Mineral Resource. The current interpretation favors a shallowly dipping, 'zonal' style of mineralisation.

Mineralisation with significant grade values has been established over a strike length of some 600m to a depth of 200m along with indications of further extension by historical drilling. The southern end of the main Tulu Kapi drill area contains a large shear zone with a strike of approximately 040° with a sub-vertical attitude. Significant displacement along QUARTZ VEIN WITH POSSIBLE LATE STAGE MINERALISATION CROSS CUTTING the shear has been observed, possibly forming a southern mineralisation boundary.

The regional geological map indicates the presence of northwest oriented fault zones and it is possible that these also play a role in controlling the distribution of mineralization.

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DEPOSIT TYPE

Syenite hosted gold deposits are unusual in the ore deposits of the world albeit SURFACE OUTCROP that there are a few examples (Kirkland Lake in Ontario), and a definitive deposit type for the Tulu Kapi deposit is at this stage undecided.

The mineralisation is strongly associated with the hydrothermally albitised syenites primarily and secondly with the quartz and sulphide veinlets through possible later remobilisation. What is also known is that the main shearing and faulting appears to post date the mineralisation.

Primary magmatic layering may be shown to be a broad control on the distribution of alteration and mineralisation within the Syenite.

Early potassic alteration in the form of microfracture controlled biotite- magnetite seen in mafic syenite may be a key control on gold precipitation. Desulphidation of hydrothermal bisulphide gold complexes is a common mode of gold deposition at many gold deposits. SAMPLING METHODOLOGY AND APPROACH

The geological data was acquired by taking geological traverses, trenching GPMC personal and/or geologists. All core is stored in dedicated core sheds and core sample logging activities. GPMC have gathered geological data from and under lock and key with a guard present at all times. seven profile lines on 80m by 40m grid in an area of 560m strike, 250m width and up to 250m depth. In total Logging is qualitative and based on descriptions of both rock forming and ore DISCOVERY BOREHOLE 34 boreholes have been drilled minerals. It describes the different lithologies intersected in boreholes and by GPMC in the Tulu Kapi area. should be sufficient to support a mineral resource statement. Most of the holes were drilled at 50 degrees and a few at 60 The geological and geochemical sample points have been captured using degrees, in order to intersect the hand held GPS units with accuracies of between 10m - 20m error. The interpreted southwest dipping borehole collar readings were taken by differential GPS and TotalStation units, mineralised zones at high angle. with accuracies of between 0.5m – 2.0m error. All drilling and sampling activities have been overseen by trained Venmyn conducted inspections on a number of boreholes and are satisfied that the drilling, logging and sampling has been carried out to a high standard and that the data has been appropriately captured. SAMPLE PREPARATION, ANALYSES AND SECURITY

The sampling has been governed by detailed geological logging of alteration Most of the core samples have been assayed at ALS-Chemex laboratory in zones and geology. It has been aimed at collecting representative samples SouthAfrica and only two boreholes' samples were assayed at SGS laboratory from mineralized zones and rock units. The minimum sampling length in in South Africa. Standard preparation procedures have been followed: whole mineralized zones is 0.4m, the normal sampling range is 1m and the maximum split core is dried and crushed to 6mm size and half kilogram split 6mm size length is 1.2m. The sampling length in barren sections is 2m. Split, half core material is pulverized. The assays on the pulversised sample were done by samples were collected from the sampling range in plastic bags. Unique standard FireAssay methods withAAS finish. printed sample numbers are given to each core sample and a duplicate sample number is posted in the core box. Sample size varies in weight between 4kg to 8kg.

MINERALOGICAL STUDIES AND MINERAL PROCESSING

No detailed mineral processing or intense metallurgical testing has yet been Specific gravity measurements have been taken from 10cm length quarter performed. Two preliminary mineralogical studies have been conducted on core samples at Water Works laboratory inAddisAbaba and SGS laboratory in certain mineralized sections. These preliminary studies have demonstrated South Africa. These samples were collected from both the mineralized zones that gold occurs predominantly in pyrite, or as free gold near the contact and barren rock units. Measurements were taken without sealing the voids and between pyrite and silicate gangue, and testwork has shown that it is fractures with resin/wax and also after sealing the samples. recoverable up to 96% by normal cynide leaching processes.

DATA VERIFICATION AND QA/QC

All historical data is kept mainly in hard copies at GSE library. Handwritten and primary data and Venmyn consequently consider the confidence with respect copied originals are stored in the Addis Ababa office, a set of originals is also to the historical data to be moderate, subject to a validation check. stored at the Tulu Kapi camp and a third set is being prepared for storage in the London office. No data verification or QA/QC has been conducted on the All GPMC data is captured into an electronic database. Only the surface geological and historical geochemical data has been integrated with the

Graphics By: Information in this statement is to be used for marketing and illustrative purposes only. The diagrams and the information InterAction herein may not be edited or transmitted in any form or by any means without prior written permission. Corporate Reporting & Identity Specialists, Tulu Kapi_Nyota Min Ltd_'09_Technical Statement_Investors_V1 .cdr Annual Reports, Graphics PAGE 9 of 12 Investors Report on the Tulu Kapi Gold Project, Ethiopia as at 30th September 2009

current GPMC database. Dr. Kebede, of GPMC, is responsible for managing inserted behind expected high grade samples and duplicate samples are the logging process and verifying data and is responsible for checking the collected from expected mineralized samples. The laboratory also uses their transfer of handwritten logs to the electronic, Micromine database.All borehole own QA/QC samples. data including collar coordinates have been resurveyed and plotted in Micromine. The database is audited, generally every three months, by The database has most recently been validated by Mr. Craske (of Minerva) independent consultants. The last audit was done in December 2008, and as and Mr. Churchouse (of Nyota). All data has been transferred to sections, has of that date no material risk had been identified. With respect to QA/QC on been cross-checked against original borehole logs and all sections redrawn to core samples, GPMC make use of blanks, standards and duplicates. Within validate. On this basis, Venmyn consider the confidence with respect to the one batch of 20 samples, one internal blank, one standard, one crushed recent data to be high, but would recommend that an independent audit is duplicate and one pulp duplicate samples are included. Blanks are generally conducted before Mineral Resource Modelling is performed.

ADJACENT PROPERTIES AND COMPETITOR COMPANIES

A Chinese firm is currently undertaking exploration work near the Yubdo license area with funding of BIRR10.0m committed to the program. Venmyn is informed that no other operations are present on adjacent properties to the client's knowledge.

MODELLING AND MINERAL RESOURCE ESTIMATION

No previous resources have been estimated for the Tulu Kapi Project. Hellman & Schofield Pty. Limited (Hellman & Schofield) was commissioned to undertake an initial, independent estimate of the gold resources of the Tulu Kapi Gold Project.

Of particular significance is the observation that the albitised sections of the mafic rich syenite unit showed more than 95% overlap with significant assay results. This concurs with Venmyn's on-site observations.

Since the varying scales and geometric irregularity of albitic alteration preclude the development of meaningful enclosing envelopes (wireframes)of mineralisation given the current density of drilling, resource estimation was conducted using a multiple indicator kriging (MIK) methodology. This methodology estimates the locally recoverable BLOCK MODEL COLOURED BY REOVERABLE GRADE ABOVE A 0.5g/t GOLD CUT-OFF resources in the primary mineralisation. Ordinary kriging was used separately to estimate the small amount of resource in the saprolite above primary mineralisation due to the relative sparsity of data within the saprolite.

The MIK recoverable resource model for Tulu Kapi assumes that mining will be by open pit with detailed grade control using 5m x 5m x 2m sampling densities. A similar selectivity and required grades may be available using a visual selection LEGEND: based on the distinct albite alteration. Geology Gold g/t Whether this can be achieved without Saprolite 0.5 - 1 significant grade dilution and increase in Syenite 1 - 2 Diorite Shear Contact waste tonnage with grade based Basic Dyke 2 - 5 selectivity requires more detailed Diorite >/= 5 examination.

BLOCK MODEL SECTION 80S

TKBH-20 BLOCK MODEL SECTION 00 LOOKING NORTH TKBH-27 TKBH-34 TKBH-04 TKBH-01 TKBH-02 TKBH-12 TKBH-02 TKBH-10 Ground Surface TKBH-04 TKBH-05 TKBH-28 TKBH-09 TKBH-20 TKBH-08 Base of Ground Surface complete Oxidation

Base of complete Oxidation

Projected Shear Contact

Graphics By: Information in this statement is to be used for marketing and illustrative purposes only. The diagrams and the information InterAction herein may not be edited or transmitted in any form or by any means without prior written permission. Corporate Reporting & Identity Specialists, Tulu Kapi_Nyota Min Ltd_'09_Technical Statement_Investors_V1 .cdr Annual Reports, Graphics PAGE 10 of 12 Investors Report on the Tulu Kapi Gold Project, Ethiopia as at 30th September 2009

TYPICAL ALBITISED MINERALISATION The table below summarises the initial resource estimation conducted by Hellman & Schofield in September 2009. This resource has been estimated using fire assays from 34 diamond drill holes in an area of 500m x 400m to a depth of 200m.

The MIK recoverable resource model estimates approximately 13 million tonnes of ore grading Mafic Syanite 1.6g/t above a cut-off grade of 0.5g/t for a contained metal content of 0.7 million ounces. Hellman & Schofield consider that the total resources estimated at Tulu Kapi tabled here can be publicly reported as Inferred Resource estimates according to the JORC Code (2004).

TULU KAPI MINERAL RESOURCES AS AT 30TH SEPTEMBER 2009 PRIMARY SUPERGENE TOTAL CUT-OFF

Albitised Syanite RESOURCE GOLD GOLD GOLD GRADE VOLUME VOLUME CLASSIFICATION GRADE GRADE CONTENT (g/t) (Mt) (Mt) (g/t) (g/t) (Moz) 0.5 13.15 1.59 0.37 1.38 0.69 1Inferred 6.58 2.46 0.12 2.84 0.53 1.5 3.94 3.3 0.09 3.34 0.43 Mafic Syanite

CONCLUSIONS

Venmyn's review demonstrates that the Tulu Kapi Project represents a highly prospective gold project within Ethiopia. An initial, Inferred Mineral Resource of 13 million tonnes of ore grading 1.6g/t above a cut-off grade of 0.5g/t for a contained metal content of 0.7 million ounces has been estimated by Hellman & Schofield, which represents a relatively small area of the greater licence area.Anumber of other prospective targets may add to this mineral resource over time.

The general disposition of the Tulu Kapi mineralization on a favourable hill location, with some borehole and trench intersections of many meters with grades in excess of 5g/t, makes this an attractive proposition. In addition, no deleterious minerals like arsenopyrite appear to be present and gold occurs predominantly in pyrite, or as free gold near the contact between pyrite and silicate gangue, and testwork has shown that gold is recoverable up to 96% by normal cynide leaching processes. An in-fill drilling and surface trenching programme which RE-INTERPRETED GOLD VALUES IN GRID SOIL SAMPLES OF THE TULU KAPI AREA is planned for the upcoming 'dry' season is aimed at further improving the understanding and distribution of AU IN SOIL PPB: the mineralisation and providing the basis for an AREA 2 0 - 100 Indicated Mineral Resource to be estimated. The 100 - 400 potential to add to the mineral resources to the project is 400 - 700 emphasised by the numerous positive indications of 700 - 1,000 mineralisation beyond the immediate area of Tulu Kapi. 1,000 - 1,800 The accompanying figure and table summarise this >1,800 additional potential within the licence area. * Off Map POTENTIAL NEW TARGETS * AREA 5 Area Tulu Kapi - South Strike Extension MAIN TULU KAPI DRILL ZONE 1 Extension - Drill Ready UNDP - UNDP Borehole 2 Target - Quarts Veins - New Quartz vein swarm AREA 3 Tulu Kapi identified on strike of 1930's 3 East Gold Mine - 5.5km of strike length to target Tulu Kapi - Soil Anomaly never previously 4 West tested - 1,200m strike proven Guji - 9.6 g/t Au over 68.5m in trench intersection AREA 4 AREA 1 5 - 3,000m strike - Evidence of suitable geology Guji - No evidence of faulting Extension - A potentially significant Source: M. Churchouse (Dwyka, June 2009) extension to Tulu Kapi

Graphics By: Information in this statement is to be used for marketing and illustrative purposes only. The diagrams and the information InterAction herein may not be edited or transmitted in any form or by any means without prior written permission. Corporate Reporting & Identity Specialists, Tulu Kapi_Nyota Min Ltd_'09_Technical Statement_Investors_V1 .cdr Annual Reports, Graphics PAGE 11 of 12 Investors Report on the Tulu Kapi Gold Project, Ethiopia as at 30th September 2009

Additional, regional potential around the Tulu Kapi occurrence is evident in the thick, shallow dipping quartz veins at Guji and other properties readily available for detailed trench sampling and possibly bulk sampling. The geology of the area is only mapped at a regional level and the potential for the syenite body to be of a substantial size may be proven if the identified “pods” of syenite outcrop are shown to be regionally connected, perhaps as a batholiths.

In conclusion, this Technical Statement seeks to identify in compliant format the issues required to create a framework within which to identify and quantify future work requirements, the potential success and the alternatives available for Nyota to generate significant upside value potential.

REFERENCES

AUTHOR DATE TITLE SOURCE http://www.oxfam.org.uk/resources/learning/landrights/ Independent Review of Land Issues, Volume Adams, M., and Palmer, R. 2007 downloads/independent_review_land_issues_eastern_ III, 2006-2007, Eastern and Southern Africa and_southern_africa_2006_07.pdf Federal Democratic Republic of http://www.epa.gov.et/epa/departments/eia_services/fil Ethiopia, Environmental Protection 2000 Environmental Impact Assessment Guideline es/pdf/eia_guidline.pdf Authority Land Resource Survey for Yubdo Platinum Mid-Day International Consulting Test Pilot Area and Tulu Kapi and Guji Detail 2008 0671_0001.pdf Engineers Gold Exploration Drilling Areas in Western Welega Zone, Oromiya, Ethiopia 2006 Bila-Gulliso Exploration Licence Bila-Gulliso Exploration Licence.pdf Federal Democratic Republic of 2005 Tuli Kapi and Ankore Exploration Licence Tuli Kapi and Ankore Exploration Licence.pdf Ethiopia, Ministry of Mines and Energy 2004 Yubdo Locality Exploration Licence Yubdo Locality Exploration Licence.pdf 2006 2006 Tulu Kapi Summary Report 2006 Tulu Kapi Summary Report.pdf Golden Prospects Mining Company Limited 2007 2007 Tulu Kapi Summary Report 2007 Tulu Kapi Summary Report.pdf 2008 2008 Tulu Kapi Summary Report 2008 Tulu Kapi Summary Report.pdf Minerva Resources PLC Annual Report and 2007 2007 Annual Rpt MDs Rpt.pdf Minerva Resources PLC Accounts 2007 2009 Tulu Kapi Gold Project, Ethiopia January 2009 Tulu Kapi Update January 2009 with cover (3).pdf Notes on alteration and mineralization at the Guji, Gudeya Guji and Dina gold prospects, P Pollard Other_prospects.pdf western Ethiopia Dr. Peter J. Pollard 2008 Gold mineralization and associated alteration at the Tulu Kapi Prospect, Ethiopia: P Pollard Tulu_Kapi.pdf Recommendations for future work Wardell Armstrong International Cyanide Leach testing of Two samples of 2009 Tulu Kapi Report.pdf Limited Mineralisation from Tulu Kapi

Minerva Resources PLC 2009 Tulu Kapi Gold Project, Ethiopia January 2009 http://www.bestcountryreports.com/zoomify.asp?name World Trade Press 2009 Population Density Map of Ethiopia =Z_Ethiop_Pop Inferred Gold Resources, Tulu Kapi Project, Hellman & Schofield 2009 Inferred Gold Resources, Tulu Kapi Project, Ethiopia. Ethiopia.