NOTES ON RESOURCES STATEMENT
Shumba Energy has over 4 billion tons of coal of which an excess of 1 billion tons have been drilled to indicated and measured levels. These are the highest confidence levels of explorattion drilling and allowable resources to be converted to mineral reserves for mining purposes
Sechaba Project coal can be used for generating power and international export coal. The group has entered into a startegic partnership with Lurco Group South Africa for the development of the Sechaba project The multiple Thermal coal products from Morupule South Project may be sold into both Power Generation and Industrial markets both locally and internationally according to demand and the company’s overall trade and supply demands.
The group entered into an agreement with Kibo Energy plc (“Kibo”) to consolidate the Mabesekwa resource. Previously Kibo acquired 85% of one third of the resource with the group holding the remaining two thirds. In the new agreement Kibo will hold 35% of the consolidated resources and the group will hold the remaining 65%