Kamoto Copper Company AMENDED TECHNICAL REPORT FOR KAMOTO COPPER COMPANY KOLWEZI, KATANGA PROVINCE, DEMOCRATIC REPUBLIC OF THE CONGO PREPARED FOR KATANGA MINING LIMITED Compiled by: McIntosh RSV LLC Qualified Persons: Dr. Scott Jobin-Bevans, P. Geo.; CCIC Mr. Malcolm Paul Lotriet; Pr. Eng., FSAIMM; RSV Mr. Christian Heili, Pr. Eng., FSAIMM; Hatch Mr. Adriaan Meintjes; SRK Mr. Alan Naismith; SRK Date: June 23, 2006 Kamoto Copper Company AMENDED TECHNICAL REPORT KAMOTO REDEVELOPMENT PROJECT Contents 1.0 TITLE PAGE 2.0 CONTENTS 3.0 SUMMARY .............................................................................................................................10 3.1 Background....................................................................................................... 10 3.2 Property ............................................................................................................ 10 3.3 Geology ............................................................................................................ 11 3.4 Reserves and resources................................................................................... 11 3.5 Operations ........................................................................................................ 14 3.6 Financial summary............................................................................................ 16 3.7 Recommendations............................................................................................ 18 4.0 INTRODUCTION ....................................................................................................................19 4.1 Technical Report preparation............................................................................ 21 4.2 Purpose for which the Report was prepared..................................................... 24 4.3 Sources of information...................................................................................... 25 4.4 Scope of the personal inspection of the Property ............................................. 26 5.0 RELIANCE ON OTHER EXPERTS .......................................................................................28 6.0 PROPERTY DESCRIPTION AND LOCATION......................................................................29 6.1 The area of the Property................................................................................... 29 6.2 Location ............................................................................................................ 29 6.3 Type of mineral tenure...................................................................................... 29 6.4 The nature and extent of title ............................................................................ 31 6.5 Property boundaries ......................................................................................... 32 6.6 Royalties and rights .......................................................................................... 33 6.7 Environmental liabilities .................................................................................... 33 6.8 Permitting ......................................................................................................... 34 7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY............................................................................................................................34 7.1 Topography, elevation and vegetation.............................................................. 34 7.2 Means of access to the Property ...................................................................... 35 7.3 Proximity of the Property to a population centre ............................................... 35 7.4 Climate ............................................................................................................. 36 7.5 Local resources and infrastructure.................................................................... 37 8.0 HISTORY................................................................................................................................38 8.1 Prior ownership of the Property ........................................................................ 39 8.2 Exploration and development work undertaken by UMHK and Gécamines...... 40 8.3 Historical mineral resource and mineral reserve estimates .............................. 40 File reference - 701-001-01-0000-00-CM-0010 Page 2 of 204 Kamoto Copper Company AMENDED TECHNICAL REPORT KAMOTO REDEVELOPMENT PROJECT 8.4 Historical production from the Property............................................................. 42 9.0 GEOLOGICAL SETTING.......................................................................................................45 9.1 Regional ........................................................................................................... 45 9.2 Tectonic setting................................................................................................. 47 9.3 Basement to the Katangan Basin ..................................................................... 48 9.4 Katangan Basin ................................................................................................ 48 9.5 Depositional setting .......................................................................................... 50 9.6 Local (to sub-regional) geology......................................................................... 50 9.7 General stratigraphy ......................................................................................... 52 9.8 Property geology............................................................................................... 57 10.0 DEPOSIT TYPES ...................................................................................................................62 10.1 Mineral deposit type being investigated............................................................ 62 10.2 Geological model.............................................................................................. 62 11.0 MINERALIZATION.................................................................................................................66 11.1 Geological controls on mineralization ............................................................... 67 11.2 Source of the copper metal............................................................................... 67 11.3 Mineralization models ....................................................................................... 68 11.4 Supergene enrichment ..................................................................................... 69 12.0 EXPLORATION......................................................................................................................69 13.0 DRILLING...............................................................................................................................69 13.1 Kamoto Mine..................................................................................................... 70 13.2 DIMA................................................................................................................. 70 13.3 Musonoie – T17 West....................................................................................... 71 14.0 SAMPLING METHOD AND APPROACH..............................................................................71 15.0 SAMPLE PREPARATION, ANALYSES AND SECURITY....................................................71 15.1 Sample curatorship........................................................................................... 71 15.2 Sample preparation .......................................................................................... 72 15.3 Preparation for analysis .................................................................................... 72 15.4 Quality control................................................................................................... 73 15.5 Quality control measures .................................................................................. 73 15.6 Adequacy of sample preparation ...................................................................... 73 16.0 DATA VERIFICATION ...........................................................................................................73 16.1 Quality controls................................................................................................. 74 17.0 ADJACENT PROPERTIES....................................................................................................75 18.0 MINERAL PROCESSING AND METALLURGICAL TESTING.............................................76 19.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ........................................77 File reference - 701-001-01-0000-00-CM-0010 Page 3 of 204 Kamoto Copper Company AMENDED TECHNICAL REPORT KAMOTO REDEVELOPMENT PROJECT 19.1 Database .......................................................................................................... 77 19.2 Geological interpretation................................................................................... 79 19.3 Density determination ....................................................................................... 82 19.4 Univariate Statistics .......................................................................................... 84 19.5 Variography ...................................................................................................... 87 19.6 Block modelling................................................................................................