TLMR hold interests in a selection of mineral resource prospecting permits in South Africa. This includes a majority interest in several coal, diamond, manganese and PGM prospecting permits.

DIAMOND PROSPECTS

SOUTH AFRICA

TLMR’s diamond projects are situated in three separate areas of the Country, namely in the North West, Free State and Limpopo Provinces.

Free State Province

Our interests in this province involve about thirty five diamond projects in the Kroonstad – Viljoenskroon area, covering some 23 properties under six separate prospecting rights. Some of these projects are in the midst of De Beers’ diamond properties and in the vicinity of the de Beers Voorspoed Mine as well as the Lace Mine owned by DiamondCorp.

The Voorspoed mine which opened in March 2008 is expected to yield 800,000 carats per annum when it reaches full production.

TLMR also hold a majority interest in two diamond prospecting projects in the Northern Cape, namely Oertelsfontein and Tweelingsfontein. Both of these properties have considerable alluvial and kimberlitic potential, the latter contiguous to the Rovic mine and the former within 4 kilometres.

TLMR initiated mineral mapping on several of these properties and following geophysical surveys, are now in the process of conducting a drilling programme.

North West Province

Both diamond and manganese prospecting rights have been granted on the property, De Paarl 54 IO, of 4,616 hectares, situated in the Magisterial District of Lichtenburg. TLMR holds a 57% interest in the manganese project and a 65% interest in the diamond project.

Mineral resource target identification indicates a number of palaeo channels as well as the possibility of considerable manganese occurrences on the property. The geology in the area indicates that all the mineralisation occurred above this dolerite bedrock and the occurrence of several potholes is indicative due to the formation of sinkholes in the area.

TLMR understands that a major listed diamond company, who conducted extensive aerial surveys on the property in recent months, endeavoured to secure a diamond prospecting right, but TLMR now hold the majority interest together with the land owner. Both prospecting rights are valid until 2013.

Northern Cape Province

TLMR also owns a majority interest in Farm 92, adjacent to the successful De Beers mine, Bells Bank in the Kimberly Magisterial district.

Mozambique

TLMR hold a 60% interest in the Joint Venture with a Mozambican partner on a 25,000 hectare diamond prospecting right in the Moamba area in Mozambique.

Following extensive mineral mapping and employing infra red remote sensing technology through the Satellite Application Centre at Hartbeeshoek, South Africa, areas of interest were identified for alluvial diamond mining. (Fig.5) Our initial work will see the establishment of a wash plant targeting the alluvial channels. We will continue the geophysical surveys in this area to locate the most appropriate channels and enhance the prospectivity of possible kimberlitic structures on the location.

A geophysical survey was conducted on one target area generated by the mineral mapping and the results are indicative of a vertical, kimberlitic structure. Further exploration in the form of drilling and trenching will be undertaken as well.

We have already prepared a detailed exploration budget to capitalise this project since its exploration is imminent – most likely within the first quarter of 2011.

COAL PROSPECTS

Coal Prospects: Free State

Several boreholes have been drilled on the farms where TLMR hold a majority interest in various prospecting permits in the Free State coal fields, (in excess of 100 holes) as indicated on the attached maps (Fig 7 & 8). This coal tends to be at around 200 meters. A number of mines operate in the Free State area, including the Vierfontein Coal mine.

The South African Petrochemical giant Sasol hold several prospecting permits in between the location of our prospecting rights and are currently drilling in the area. This area is of great significance to Sasol because of the nature of the coal in the area that is critical to their coal to liquids processes. To this end, these coal prospects are potentially of high significance due to the current work of Sasol in the area. There is good road and rail infrastructure in the area.

PGM & CHROME

TLMR hold a majority interest in a chrome and PGM property in the Lydenburg area of the Mpumalanga Province. Our mineral mapping will take place during early 2011 to enable us to conduct geophysical surveys and drilling operations between the first and second quarters of 2011.

GRANTING & EXECUTION LETTERS

TLMR is also in possession of three granting letters, awaiting execution on several properties in which we applied for chrome, PGM’s, coal and iron ore prospecting rights within South Africa.

The granting letters will be executed during the second quarter of 2011 enabling us to proceed with mapping and geophysical work. In total, these rights will add 46 farms to the TLMR portfolio.

SADC

TLMR is in an advanced stage of completing MOU’s regarding iron ore and coal in Mozambique while several reconnaissance visits to Zimbabwe have yielded positive feedback.

Our strategy is to extend, within our means, to these markets to procure sound prospecting rights. Given the nature of work done by TLMR partners in SADC during the last 20 years, we have a sound understanding of the environment and wish to now capitalise on the opportunities these markets hold for us.