Name of the project and location
Gabon uranium exploration agreement.

Project description
Motapa Diamonds has announced that a letter of agreement has been signed with Cameco Corporation and Pitchstone Exploration to jointly explore its uranium exploration licences in Gabon.

The licences cover an area of 396 100 ha of the Francevillian Basin in east-central Gabon. Deposits in the Francevillian Basin have produced in the order of 100-million pounds of U3O8, ranking it as one of the worlds most significant uranium districts. The parties feel the region is underexplored and offers excellent potential.

Value
Terms of the letter agreement provide Cameco and Pitchstone with the option to earn a 56% interest in the licences (28% each) by incurring exploration expenditures of C$3,5-million (C$1 750 000 each) over a four-year period. Subsequent to this initial vesting period, Cameco and Pitchstone will have a second option to acquire an additional 24% interest (12% each) by expending a further C$8 500 000 (C$4 250 000 each) within three years following the completion of initial vesting.

Duration
The letter agreement is subject to the satisfactory completion of a due-diligence review by Cameco and Pitchstone and is further subject to the waiver by Motapa’s alliance partner, BHP Billiton, to certain back in rights to the project pursuant to a preexisting agreement.

Breakdown of main contracts
None stated.

Client
Motapa Diamonds in agreement with Cameco Corporation and Pitchstone Exploration.

Latest developments
None stated.

Participants
None stated.

Construction materials
Too early to state.

On budget and on time?
Too early to state.

Contact details for project information
Motapa Diamonds, tel +1 604 980 6770 or email info@motapadiamonds.com