Metals Finance Africa Pty.Ltd. ( MFA ) has in place a joint venture agreement to examine the feasibility of establishing a treatment facility to recover cobalt and copper from a substantial stockpile of refinery waste at the Chambishi copper-cobalt mine in Zambia. The Chambishi Metals copper and cobalt refinery is located in the well known copper belt in Zambia. It is a primary producer of cathode copper and high grade cobalt cathode. The target material under this agreement is a substantial stockpile of refinery residue which contain high levels of residual copper and cobalt. The general terms of the joint venture agreement are as follows: Metals Finance is responsible for completion of all feasibility study work. Subject to positive feasibility outcomes and Chambishi Metals review, Metals Finance is responsible for design, engineering and installation of an appropriate treatment plant. Once the plant is in operation, MFA will receive 95% of any operating surplus until all capital is repaid. Once capital and interest are repaid operating surplus will be divided equally between the parties. Metals Finance has completed the first stage of this process and the feasibility study is under review by the Company's joint venture partners.

The Resource As part of the feasibility study process the Company completed a detailed drilling programme over the resource during the second half of 2009. The total area of the dump (approximately 30 ha) was drilled on surveyed 50 metre centres; with infill drilling being completed in two areas on 12.5 metre centres, for a total of 120 drill holes. The drilling was conducted by mechanical auger, with all holes being cased over their entire depth to prevent sample loss and/or dilution. Each hole was sampled at one metre intervals and samples submitted to the Alfred H Knight Analytical Laboratory in Kitwe for assay for copper and cobalt. For assay verification purposes, unidentified duplicates of 55 samples were submitted for comparative assay, and the laboratory carried out assay checks on every tenth sample submitted. All of the material from each one metre drill hole interval was collected, weighed and dried to provide a determination of moisture content and dry bulk density of the tailings. Detailed analysis of the results of this drilling programme has been carried out and Snowden Mining Consultants (Pty) Ltd were requested to provide independent supervision of the programme and an Independent Geologist Report on the results. The Snowden report has been based on the results of this drilling, and on supervisory visits to the site and the laboratory who conducted the assays. It has been prepared in accordance with the Code and Guidelines for Assessment and Valuation of Mineral securities (The Valmin Code) and the Australasian code for Reporting of Exploration Results, Mineral Resources and Ores reserves (JORC). It is Snowden's opinion that the target tailings dam has a Mineral Resource of approximately 1.6 million tonnes at 1.30% copper and 0.21% cobalt. The majority of the Mineral Resource can be classified as Measured (70%) with the balance regarded as Indicated (30%). Feasibility Study The feasibility study, which has been based on metallurgical testing of representative samples from the dump and engineering and other assistance provided by Bateman Engineering and Mintek in South Africa , provides projected capital and operating costs to a reasonably high level of accuracy. The analysis based thereon indicates a positive financial outcome under a wide variety of potentially more adverse conditions than modelled as a base case scenario. Under the joint venture agreement, Chambishi Metals has an opportunity to review the feasibility study, and to provide agreement that the project is both technically and financially viable. The agreement provides benchmark factors on which this assessment is to be made, and the study (under the conditions currently modelled) meets those benchmarks. The feasibility study has now been submitted to Chambishi Metals for review, and discussions are expected to commence shortly with a view to confirming a formal joint venture decision with respect to development of the project. Subject to the outcome of these discussions, Metals Finance will commence a review of permitting requirements for the project, establishment of an appropriate corporate structure in Zambia and drafting of formal operating agreements for the project.