An Independent Technical Report on the Material Assets of Katanga Mining Limited, Katanga Province, Democratic Republic of Congo (“DRC”) Katanga Mining Limited Katanga Mining Limited 15 Golding Road London England WW159JG United Kingdom 17 March 2009 Principal Author: Roger Dixon Partner Pr.Eng, BSc (Hons) Mining, FSAIMM Contributing Victor Simposya Partner (SRK) Pr.Sci.Nat, MSc (Mining), BSc (Geology), MSAIMM Authors: Ebrahim Takolia Principal Consultant (SRK) MBA, BEconSc, MSAIMM, MSI (UK) Wally Waldeck Partner (SRK) Pr.Eng, MBA, BSc Eng, FSAIMM, AMAMMSA Henrietta Salter Principal Scientist (SRK) Pr. Sci. Nat, MSc, EngD Anton von Wielligh Engineer (A&B Global) Pr.Eng, BEng (Hons) Alan Naismith Partner (SRK) PrSciNat, MSc, MBA, FSAIMM, FSAIRE Consultant (Bateman Petrus Cilliers Pr.Eng, BEng (Chem Eng), MBA Engineering) Rob McNeill Partner (SRK) Pr.Tech (Eng) MSAICE, MSAPMI, MIWM An Independent Technical Report on the Material Assets of Katanga Mining Limited, Katanga Province, DRC Katanga Mining Limited Katanga Mining Limited 15 Golding Road London England WW159JG United Kingdom SRK Project Number 389772 SRK Consulting 265 Oxford Road Illovo 2196 South Africa P O Box 55291 Northlands 2116 South Africa Tel: +27 11 441-1111 Fax: +27 11 880-8086 [email protected] 17 March 2009 Explanatory Note This document has been written in accordance with the requirements of the International System of Units (SI Units) as applied in South Africa. The SI is the only system of units that is universally recognized, so that it has a distinct advantage in establishing a dialogue globally. Even so, some readers will be unfamiliar with the conventions of SI Units. For example, in this document, the comma is used as the decimal marker and the space is used for the thousands separator (for numbers larger than 9999). In other words, 10 148,32 denotes ten thousand one hundred and forty-eight point three two. The word ‘ton’ denotes a metric ton (1000 kg), unless otherwise stated. More information is at the website of the Bureau International des Poids et Mesures, BIPM, at www.bipm.org. The website offers a comprehensive, 88 page guide to SI Units in pdf format. In some instances, non SI units are included. For instance, base-metal prices are commonly quoted in US dollars a pound (USD/lb). In most such instances, the inclusion of the metric equivalent is deemed unnecessary. SRK Consulting KML – Independent Technical Report (NI 43-101) Page 1 Compliance Cross-Reference Overall Responsibility by NI 43-101 Section Responsibility Section Item 1 – Title Page Roger Dixon Item 2 – Table of Contents Roger Dixon Item 3 – Summary Roger Dixon Item 4 – Introduction Roger Dixon Item 5 – Reliance on Other Experts Roger Dixon Item 6 – Property Description and Location Roger Dixon Item 7 – Accesibility, Climate, Local Resources, Infrastructure and Physiography Roger Dixon Item 8 – History Roger Dixon Item 9 – Geological Setting Roger Dixon Victor Simposya Item 10 – Deposit Types Roger Dixon Victor Simposya Item 11- Mineralization Roger Dixon Victor Simposya Item 12 – Exploration Roger Dixon Victor Simposya Item 13 – Drilling Roger Dixon Victor Simposya Item 14 – Sampling Method and Approach Roger Dixon Victor Simposya Item 15 – Sample Preparation, Anlyses and Security Roger Dixon Victor Simposya Item 16 – Data Verification Roger Dixon Victor Simposya Item 17 – Adjacent Properties Roger Dixon Victor Simposya Item 18 – Mineral Processing and Metallurgical Testing Roger Dixon Petrus Cilliers Item 19 – Mineral Resource Estimates Roger Dixon Victor Simposya Item 19 – KOV Mine Mineral Reserve Estimates Roger Dixon Wally Waldeck Item 19 – T17, Kamoto and Mashamba East Mine Mineral Reserve Estimates Roger Dixon Anton von Wielligh Item 20 – Other Relevant Data and Information Roger Dixon Victor Simposya Item 20.1 – KOV Oxide / Sulphide Content Roger Dixon Victor Simposya Item 20.2 – Dewatering Roger Dixon Henrietta Salter Item 20.4 – Geotechnical Assessment Roger Dixon Allan Naismith Item 20.5 – Tailings and Process Effluent Disposal Roger Dixon Rob McNeill Item 21 – Interpretation and Conclusions Roger Dixon Victor Simposya Item 22 – Recommendations Roger Dixon Victor Simposya Item 23 – References Roger Dixon Victor Simposya Item 24 – Date and Signature Page Roger Dixon Victor Simposya Item 25 – Additional Requirements for Technical Reports on Development Properties and Roger Dixon Victor Simposya Production Properties Item 25a3 – KOV Mine Mining Report Roger Dixon Wally Waldeck Item 25a1,2&4 – T17, Kamoto and Mashamba East Mine Mining Reports Roger Dixon Anton von Wielligh Item 25b – Recoverability Roger Dixon Petrus Cilliers Item 25e – Environmental Considerations Roger Dixon Henrietta Salter Item 25f,g,h,i&j – Mineral Economics Roger Dixon Ebrahim Takolia Illustrations Roger Dixon Victor Simposya SRK Consulting KML – Independent Technical Report (NI 43-101) Page 2 Table of Contents 3 Summary ......................................................................................................................................................................... 11 3.1 Property Description and Location............................................................................................................................... 11 3.2 Terms of Reference..................................................................................................................................................... 11 3.3 Ownership................................................................................................................................................................... 12 3.4 Geology and Mineralization ......................................................................................................................................... 12 3.4.1 Geology ............................................................................................................................................................ 12 3.4.2 Mineralization.................................................................................................................................................... 13 3.5 Status of the Material Assets....................................................................................................................................... 13 3.6 Mineral Resources and Reserves................................................................................................................................ 14 3.7 Interpretations and Conclusions .................................................................................................................................. 15 3.8 Recommendations ...................................................................................................................................................... 15 3.9 Economic Analysis ...................................................................................................................................................... 17 4 Introduction ......................................................................................................................................................................... 18 4.1 Description of Assets................................................................................................................................................... 18 4.2 Company Structure...................................................................................................................................................... 19 4.3 ITR – structure and compliance................................................................................................................................... 21 4.3.1 Structure........................................................................................................................................................... 21 4.3.2 Compliance....................................................................................................................................................... 21 4.4 Terms of Reference..................................................................................................................................................... 21 4.5 Scope of Information and Site Visits ............................................................................................................................ 21 5 Reliance on Other Experts................................................................................................................................................... 23 6 Property Description and Location ..................................................................................................................................... 24 6.1 The DRC ..................................................................................................................................................................... 24 6.2 Regulatory Environment .............................................................................................................................................. 25 6.2.1 DRC Law in respect of Mining Title ................................................................................................................... 25 6.2.2 Area and Location of the Property..................................................................................................................... 26 6.2.3 Description of Legal Tenure .............................................................................................................................. 26 6.2.4