AREA 2 / AREA 4 (PPLS 73 & 100)

Reported on Area 4, 1,416m have been drilled: At the Chipopo anomaly, two boreholes for 299.2m were drilled, and a strong sulphide rich alteration zone was intersected, which is encouraging. Logging and sample preparation for assay results is now in progress; At the Kabula Prospect, three boreholes for 814.5m have been drilled, and copper mineralization was intersected. Logging and sample preparation is in progress.

Good progress was made and the first reconnaissance program in Area 2 has been completed. A large soil sampling program has also been undertaken within Area 4, and while the majority of the results are being awaited, it has been possible to identify a number of drill targets and drilling has now commenced on the high-priority selections.

Three scout diamond drill holes (724 metres) were completed in the Chipopo area. This drilling was intended as initial stratigraphic assessment of this area. The units intersected are considered to represent Upper Roan and Mwashia sequences. Results from this drilling are being compiled with data recovered from historical exploration in the region. In addition, a scoping geological model of the Kabula copper prospect located within Licence No. 100 was completed. This model indicated areas for further exploration drilling. TEAL completed five diamond drill holes for 1,026 metres. This drilling confirmed localised copper mineralization hosted by Lower Roan units. The results suggest there is an important structural control on the copper mineralization. Data is being compiled and will be modelled.