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NAME OF APPLICANT: HOROMELA INVESTMENT (PTY) LTD

REFERENCE NUMBER: NC30/5/1/1/2/11594PR

PROSPECTING WORK PROGRAMME

SUBMITTED FOR A PROSPECTING RIGHT

APPLICATION WITHOUT BULK SAMPLING

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AS REQUIRED IN TERMS OF SECTION 16 READ TOGETHER WITH

REGULATION 7(1) OF THE MINERAL AND PETROLEUM RESOURCES

DEVELOPMENT ACT (ACT 28 of 2002)

STANDARD DIRECTIVE

All applicants for mining rights are herewith, in terms of the provisions of Section 16 and in

terms of Regulation 7(1) of the Mineral and Petroleum Resources Development Act, directed to

submit a Prospecting Work Programme, strictly under the following headings and in the

following format together with the application for a prospecting right.

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1. REGULATION 7.1.(a): FULL PARTICULARS OF THE APPLICANT

Table 1: Applicant’s Contact Details

ITEM COMPANY CONTACT DETAILS

Name Horomela Transport Services 1228 cc

t/a Horomela Investment (Pty) Ltd

Tel no 011 333 2672

Fax no: 011 337 9805

Cellular no (072) 490 8608

E-mail address 27724908608@vodamail.co.za

Postal address

P. O Box 187 Johannesburg 2000

Table 2: Consultant’s Details

ITEM CONSULTANT CONTACT DETAILS

(If applicable)

Name Nievenda Resources (Pty) Ltd

Tel no 011 454 0778

Fax no: 086 611 3659

Cellular no +27 78 753 0906

E-mail address davekatema@gmail.com

Postal address

P.O Box 223

Cresta , 2118

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2. REGULATION 7(1)(b): PLAN CONTEMPLATED IN REGULATION 2(2) SHOWING THE LAND TO WHICH THE

APPLICATION RELATES

Plan also attached.

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3. REGULATION 7(1)(c): THE REGISTERED DESCRIPTION OF THE LAND TO

WHICH THE APPLICATION RELATES

Farm Name Farm Number Portion(s)

Extent (ha) Land Owner Title Deed Number

Rozynbosch 41 RE 5 098.4943 Luttig Jacoba Wilhelmina T33120/1987

Rozynbosch 41 1 4 569.1080 Luyt Sophia Dorothea &

DU Chavoux Luyt Eustatius

T12736/1997

T12736/1997

Koenabib 43 RE 4 144.6424 Vanden Heever Johannes

Albert

T47462/2001

Koenabib 43 2 4 144.6795 Van den Heever Johannes

Albert

T47462/2001

Hoogoor 37 RE 13 496.3961 Plaaslike Owerheid-Pella T17391/1999

Dabenoris 44 RE 12 143.5667 Oorgangsraad-pella T5388/1997

4. REGULATION 7(1)(d) and (e): THE MINERAL OR MINERALS TO BE

PROSPECTED FOR

Table 4.1: Minerals to be prospected for

ITEM DETAIL

Type of mineral(s) Zn, Pb, Cu, Ag

Type of minerals continued

Type of minerals continued

Locality

(Direction and distance from nearest town)

50km SW of Pofadder

Extent of the area required for prospecting 43 596.887 ha

Geological formation Metamorphosed sediments of the Nab

Subgroup in the Bushmanland Group

and are genetically related to the

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nearby base-metal deposits.

4.2 Description why the Geological formation substantiates the minerals to be

prospected for (provide a justification as to why the geological formation supports the possibility that

The farms are underlain by Quaternary sediments that partially cover the

Bushmanland Group supracrustals and these in turn overly a gneissic basement with

some intrusions. The Bushmanland Group is divided into two subgroups; Aggeneys

and Nab Subgroup. The variations in the two subgroups are shown in Table 1 below.

It is accepted that there are lateral facies chances between the two subgroups, the

Gams and Kouboom Formations are facies equivalents of Hotson Formation and the

Wortel Formation is the equivalent of the Witputs Formation

Table 1. Stratigraphic subdivisions of the Bushmanland Group (van Schalkwyk, 1991)

AGGENEYS SUBGROUP NAB SUBGROUP

Koeris Formation Koeris Formation

Gams Formation Hotson Formation

Kouboom Formation

Poortjie Formation

T'hammaberg Formation

Wortel Formation Witputs Formation

The ore occurs in metamorphosed sediments of the Nab Subgroup and the principal

ore minerals are haematite, jacobsite, cryptomelane, bixbyite, pyrolusite and

psilomelane. These deposits occur in the Bushmanland Group and are genetically

related to the nearby base-metal deposits.

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4.3 Attach a geological map that justifies the description why there is a possibility that the minerals applied for

could occur on the land concerned.

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5. REGULATION 7(1)(f): A DESCRIPTION OF HOW THE MINERAL RESOURCE

AND MINERAL DISTRIBUTION OF THE PROSPECTING AREA WILL BE

DETERMINED

The work required through the prospecting phase will consist essentially of a

desktop study, geological mapping, soil geochemistry interpretation and airborne

geophysics interpretation in order to establish the potential occurrence of the

required minerals. This is expected to take twelve months. Follow up soil

geochemistry, ground geophysics and trenching will be done in the second phase.

It is anticipated that once targets have been generated drilling programme can be

designed to test the identified targets. Once this has been achieved there will be

need to evaluate the project before further drilling is planned. Thereafter, the

project should be sufficiently advanced to justify a pre-feasibility study.

It should be noted that all work and exploration estimates (other than the

prospecting phase) are speculative and are presented here only by way of

illustration.

AND

REGULATION 7(1)(h): ALL PLANNED PROSPECTING ACTIVITIES MUST BE

CONDUCTED IN PHASES AND WITHIN SPECIFIC TIMEFRAMES

AND

REGULATION 7(1)(i):TECHNICAL DATA DETAILING THE PROSPECTING

METHOD OR METHODS TO BE IMPLEMENTED AND THE TIME REQUIRED

FOR EACH PHASE OF THE PROPOSED PROSPECTING OPERATION

The prospecting work programme will take on a phased approach to assess the

potential resources in the area.

Phase 1 – Desktop Study - Analysis of Existing Data,

The exploration records of all previous work in the area will be re-examined, and

the following studies will be carried out:

• Literature review

• Detailed aerial photograph and satellite image interpretation

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• Regional airborne geophysics with main emphasis on magnetic and

gravity

• Regional soil geochemistry interpretation

• Geological mapping will also be carried out.

These records will need to be captured into a GIS format for geological modelling

and exploration scheduling analysis.

This work will form an initial desktop and surface fieldwork study to be continued

during the period that the prospecting permit application is being assessed and,

presumably, approved. A period of 12 months is estimated for this.

Phase 2 – Follow Up Ground Geophysics, Soil Geochemistry and

Trenching

Once targets have been generated in the first phase there will be a need to follow

up on these targets. A detailed and denser soil geochemistry exercise will need

to be carried out. Coupled with this will be ground geophysics to sharpen the

identified potential areas. Gravity magnetic and time domain EM will need to be

done.

After soil geochemical and geophysical targets are generated a trenching or

pitting exercise will be done on the anomalies to determine the sidewall

properties, profiles and average grades and to do drillhole targeting.

It is anticipated that phase will take approximately 12 months to complete.

Phase 3 –Drilling and Resource Generation

In the event that the present application is approved and areas with possible

targets for the minerals applied for, this identified prospective targets will require

further subsurface investigation.

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Drilling (diamond, aircore, or RAB or RC) of the prospective areas will commence

to establish presence of mineralization. Geological borehole logging, down the

hole logging and sampling will also be carried out.

Whole rock analysis of all the potential intersections will be carried out. For

budgeting purposes, it is assumed that every meter of the initial holes will be

analysed will be made.

It is anticipated that initially approximately 25 drill-holes will be drilled. Drill holes

could vary in depth from 50 to 150m, with an average depth in the order of 100

metres. The total amount of drilling to be budgeted for at this stage is 2 500

metres. Dependent on the results of this drilling further 50 drill-holes totaling

5000 metres may be required.

The geological information generated will be used to model and estimate

resource. The resources will at least be expected to be in the Indicated Category

according to the appropriate reporting standard (SAMREC, JORC, or NI43 -101).

Phase 4 – Resources drilling and Pre-feasibility Study

The final phase of the prospecting programme would involve preparation of a

prefeasibility study. This would include:

Resource drilling

Geological Modelling

Initial conceptual Mine Planning.

Planning the infrastructure requirements

Environmental management planning

Financial modelling

Market analysis

Analysis of transport logistics to markets

Assessment of personal and training requirements

Assessment of socio-economic factors

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A feasibility study is multidisciplinary in nature, and requires the highest levels of

expertise available. Such studies are both costly and time consuming.

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PHASE ACTIVITY

(what are the activities that are planned

to achieve optimal prospecting)

SKILL(S) REQUIRED

(refers to the competent

personnel that will be

employed to achieve the

required results)

PLANNED

TIMEFRAME

(in months) for

the activity

OUTCOME

(what is the expected

deliverable)

OUTCOME

TIMEFRAME

(deadline for the

expected outcome

to be delivered)

QAUALIFIED

SIGNATORY

What technical expert

will sign off on the

outcome?(eg.

geologists, mining

engineers, surveyors,

etc)

e.g.1 Non-Invasive Prospecting

Geophysical Survey

Geologist / Mineral

economist

Month 1 – 6 Flight Plans, Flight Line

and Traverse Lines

Digital Data gathered

Month 6 Geophysicist

Non-Invasive Prospecting

Literature Survey

Geologist Month 1 – 6 Maps or Plans and

detailed report on results

Month 6 Geologist

Invasive prospecting

Boreholes,

Geologist Month 6-24 Borehole core data Month 24 Geologist

e.g.2 Trenches and/ Geologist Month 7- 24 Detailed report on

sidewall profiles,

volumes, average

grades, locality

Month 24 Geologist

e.g.3 Excavations Works foreman / labourers

/ drilling con.

Month 7- 24 sidewall mapping,

lithological profiles

Month 24 Geologist

e.g.4 Non-Invasive prospecting

Analytical Desktop Studies

Mine Economist / Geologist Month 24-36 Geological or pre-

feasibility Reports

Resource Statements,

Geological Maps/Plans

Month 36

Geologist / Mineral

Economist

(professionally

Qualified Persons)

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The table below incorporates the information required in respect of Regulations 7(1)(f), 7(1)(h) and 7(1)(i):

Table 5.1

Phase Activity

(what are the activities that are

planned to achieve optimal

prospecting)

Skill(s) required

(refers to the competent

personnel that will be

employed to achieve the

required results)

Timeframe

(in months) for the

activity)

Outcome

(What is the expected

deliverable, e.g. Geological

report, analytical results,

feasibility study, etc.)

Timeframe for

outcome

(deadline for the

expected outcome to

be delivered)

What technical

expert will sign off

on the outcome?

(e.g. geologist, mining

engineer, surveyor, economist,

etc)

1 Non-Invasive Prospecting

Literature Review

Remote Sensing

Regional Airborne Geophysical

Interpretation

Geological mapping

Regional Soil Geochemistry

Geologist

Geologist/GIS Specialist

Geophysicist

Geologist

Geochemist

1 – 6

1 – 6

1 – 6

1 – 6

1 - 6

Geological report with a

summary of previous work and

prospecting targets.

Prospecting targets

Prospecting targets/structural

interpretation plans

Detailed Geological Map

Soil geochem anomalies

Month 6

Month 6

Month 6

Month 6

Month 6

Geologist

Geologist

Geophysicist

Geologist

Geochemist

2 Invasive Prospecting

Ground geophysics

Soil Geochemistry

Trenching

Geophysist

Geochemist

Geologist

6 - 18

6 – 18

6-18

Borehole Log data, analytical

data, sections

Soil geochemistry anomalies

Drilling Targets, sidewall

properties, profiles and

average grades

Month 18

Month 18

Month 22

Geophysist

Geochemist

Geologist

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3 Invasive Prospecting

Drilling (DD, Aircore, RAB or RC)

Sampling

Geological Modelling

Geologist

Geologist

Geologist

18 - 36

18 - 36

18 – 36

Borehole Log data, analytical

data, sections

Analytical results

Resource Model

Month 36

Month 36

Month 36

Geologist

Geologist

Resource Geologist

4 Resource Drilling &

Pre-feasibility

Geologist/Metallurgist/M

ining Engineer

Geologist/Metallurgist/M

ining Engineer

36 - 54

36 -54

Borehole Log data, analytical

data, sections

Prefeasibility report (Mine

plan, optimization, cash flows)

Plant design, metallurgical

reports

Month 546

Month 54

Professionally Competent

Person

Professionally Competent

Person

5 Feasibility Study Geologist/Metallurgist/M

ining Engineer?Other

specialist

54-60 Feasibility Report Month 30 Professionally competent

person to sign off

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6. REGULATION 7(1)(g): A DESCRIPTION OF THE PROSPECTING METHOD OR

METHODS TO BE IMPLEMENTED

(i) DESCRIPTION OF PLANNED NON-INVASIVE ACTIVITIES:

(These activities do not disturb the land where prospecting will take place e.g. aerial

photography, desktop studies, aeromagnetic surveys, etc)

The non-invasive activities will include;

Literature review of all the information available on potential area,

Remote sensing methods

o Aerial photo interpretation,

o Satellite imagery,

o Regional airborne geophysical data

Geological Mapping

Soil geochemistry

(ii) DESCRIPTION OF PLANNED INVASIVE ACTIVITIES:

(These activities result in land disturbances e.g. sampling, drilling, etc)

The invasive prospecting activities will include;

Geological mapping

Trenching

Diamond, RAB, or RC drilling

Rehabilitation

(iii) DESCRIPTION OF PRE-/FEASIBILITY STUDIES

(Activities in this section includes but are not limited to: initial, geological modeling,

resource determination, possible future funding models, etc)

The pre-/feasibility studies will include the following

Geological modeling and resources evaluation.

Mine planning

Plant design

Financial modelling

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Commitment to provide addendums in respect of

additional prospecting activities

I herewith commit to provide the Department of Mineral Resources with an

addendum in respect of both the EM Plan and Prospecting Work Programme

regarding any future in-fill prospecting required but not described above, prior to

undertaking such activities. The addendum will cover all the Regulations as per

the Prospecting Work Programme.

I agree that the addendums will provide for similar activities only and if the scope

changes I would be required to apply in terms of Section 102 of the MPRDA for

an amendment of the Prospecting Work Programme

Mark with X

ACCEPT X

7. REGULATION 7(1)(j)(i):DETAILS WITH DOCUMENTARY PROOF OF THE

APPLICANT’S TECHNICAL ABILITY OR ACCESS THERETO TO CONDUCT

THE PROPOSED PROSPECTING OPERATION

7.1 Competencies to be employed in terms of the Mine Health and Safety

Act

COMPETENCIES TO BE EMPLOYED (List the legal appointments that will be made in

terms of the Mine Health and Safety Act, appropriate for the type of operation)

I herewith confirm that I, in Table 9.1 have budgeted and financially provided

for the required skills listed above.

CONFIRMED (Mark with an X) X

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7.2 List of Appropriate equipment at your disposal (If Applicable)

Table D: Appropriate Equipment Available

JCB: To be hired

Drilling equipment: To be hired

7.3 Technical skills provided Free of Charge

7.3.1 Information (CV’s) in respect of skills already acquired (append)

7.3.2 Copy of the relevant contractual agreements between the service provider

and the applicant relative to the duration of the planned prospecting period,

where applicable.(append)

7.3.3 ALL other evidence of Technical Ability (append)

David Katemaunzanga of Nievenda Resources (Pty) Ltd.

8. REGULATION 7(1)(j)(ii):DETAILS WITH DOCUMENTARY PROOF OF A

BUDGET AND DOCUMENTARY PROOF OF THE APPLICANT’S FINANCIAL

ABILITY OR ACCESS THERETO

Please find attached projected financial statements and supporting letters.

AND

9. REGULATION 7(1)(k) A COST ESTIMATE OF THE EXPENDITURE TO BE

INCURRED FOR EACH PHASE OF THE PROPOSED PROSPECTING

OPERATION (remember to also include prospecting fees)

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Table 9.1

NOTE! If any person (including the applicant) provides services in any job or skills

category at a reduced rate or free of charge, then such person’s Curriculum Vitae

(CV) must be attached as documentary proof of the technical ability available to the

applicant.

ACTIVITY YEAR1 YEAR2 YEAR3 YEAR4 YEAR5 TOTAL

DIRECT PROSPECTING

Analytical

Proximate Analyses of samples+10% QC - 1 500 000 1 250 000 2 500 000 - 5 250 000

Sample Preparation - - - - - -

Semi-quantitative XRFscan - - -

Trenching -

Excavating, Pitting - 50 000 - - - 50 000

Mobilisation - 50 000 - - - 50 000

Drilling -

Diamond holes/ deflections (R1000/metre) - - 2 500 000 5 000 000 - 7 500 000

Percussion drilling - - - - - -

Mobilisation / Demobilisation - - 100 000 100 000 - 200 000

Borehole surveys? - 25 000 50 000 50 000 - 125 000

Road Building/drill moves - 50 000 50 000 - - 100 000

Sub total - 1 675 000 3 950 000 7 650 000 - 13 275 000

-

LABOUR -

Geologist 630 000 630 000 630 000 630 000 630 000 3 150 000

Field Assistant 40 000 160 000 160 000 160 000 - 520 000

Field Labour - 56 000 56 000 56 000 - 168 000

Geophysics Consultant 50 000 250 000 - - - 300 000

Surveyor - - - 30 000 - 30 000

Downhole logging - - - - - -

Resource Geologist- Consultant - - 100 000 100 000 200 000

Other Consultants - 50 000 50 000 200 000 120 000 420 000

Sub total 720 000 1 146 000 996 000 1 176 000 750 000 4 788 000

-

Environmental study - - - - 60 000 60 000

Rehabilitation and management - 50 000 50 000 50 000 - 150 000

Sub total - 50 000 50 000 50 000 60 000 210 000

OTHER DIRECT COSTS -

Accommodation/subsistence 20 000 100 000 200 000 200 000 50 000 570 000

Transport (Hired vehicle) 20 000 250 000 300 000 300 000 200 000 1 070 000

Field consumables/equipment 10 000 20 000 30 000 30 000 5 000 95 000

Communication/cell phones 10 000 20 000 20 000 20 000 8 000 78 000

Computing/Stationary 10 000 10 000 10 000 10 000 3 000 43 000

-

Metallurgical test work - - 1 000 000 1 000 000

Pre- Feasibility Study - - - 5 000 000 5 000 000

Sub total 70 000 400 000 560 000 560 000 6 266 000 7 856 000

Total 790 000 3 271 000 5 556 000 9 436 000 7 076 000 26 129 000

REHABILITATION AND ENVIRONMENTAL MANAGEMENT

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10. FINANCIAL ABILITY TO GIVE EFFECT TO THE WORK PROGRAMME

10.1 The amount required to finance the Work Programme. (State the amount required to complete the work)

R26 129 000.00

10.2 Detail regarding the financing arrangements (Elaborate on the financing arrangements, in terms of where the finance will be sourced,

extent to which the financing has been finalized and on the level of certainty that such

financing can be secured.)

Finance for early-stage exploration development will be sourced from external investors.

Horomela Investments (Pty) Ltd has held numerous high-level discussions with

International Base Metal mining firms regarding the early-stage to production stage

funding for our mining projects, with a condition that Horomela Investments (Pty) Ltd

should first secure the Prospecting Rights For the above-mentioned base metals before

any financial commitments/guarantees can be firmed. We have also, through Macquarie

Capital Group, secured a large pool of large mining conglomerates that are actively

looking to develop mining projects under the above-mentioned mineral group. We have

initiated a Confidentiality Agreement with Macquarie Capital Group regarding the

exchanging of critical information regarding our future mining activities and therefore

financial commitments/guarantees can only be firmed when prospecting rights are

secured. When the project is at a Definitive Feasibility Stage (DFS) and/or Bankable

Feasibility Stage (BFS) Horomela Investments will, through structured funding from

development finance institutions (IDC, PIC etc), contribute towards the construction and

infrastructure development of the project.

10.3 Confirmation of supporting evidence appended

(Attach evidence of available funding and or financing arrangements such as balance sheets, agreements with financial institutions, underwriting agreements, etc. and specifically confirm in this regard what documentation has been attached as appendices).

Please find attached projected financial statements and supporting letters.

11 Confirmation of the availability of funds to implement the proposed project.

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12 I herewith confirm that I have budgeted and financially provided for the total budget

as identified in Regulation 7(1)(k).

Confirmed (Mark with an X) X

13 REGULATION 7(1) (m): UNDERTAKING, SIGNED BY THE APPLICANT, TO

ADHERE TO THE PROPOSALS AS SET OUT IN THE PROSPECTING WORK PROGRAMME

Table: 13.1

Herewith I, the person whose name and identity number is stated below,

confirm that I am the Applicant or the person authorised to act as

representative of the Applicant in terms of the resolution submitted with the

application, and undertake to implement this prospecting work programme

and adhere to the proposals set out herein.

Full Names and Surname

Abongile Lawrence Mdingi

Identity Number

8707155671086

END