Name and Location
Mayoko iron-ore project, Republic of Congo.

Client
The project is owned by DMC Iron Congo and controlled by JSE-listed resources group Exxaro Resources.

Project Description
The Mayoko project is located in the Niari Prefecture about 300 km north-east of Pointe-Noire, on the Atlantic Ocean. It represents a near-term development opportunity in an emerging iron-ore province, with an existing underused, heavy-haulage mineral railway passing within 2 km of the main prospect that terminates at the Port of Pointe-Noire.

The project currently has a Joint Ore Reserves Committee-compliant mineral resource of 121-million tons of iron-ore, consisting of a hematite cap of direct shipping ore (DSO) at 55% iron and beneficiable DSO at 41% iron.

The intention is to develop the project in phases, resulting in the eventual production and export of ten-million tons a year of iron-ore by 2016.

Value
Not stated.

Duration
Not stated.

Latest Developments
Exxaro Resources has won a permit to start production at the Mayoko iron-ore mine, according to an official in the Ministry of Mines.

A geologist at the Congolese Ministry, Medard Ndombi, has further confirmed that two other contracts were signed on January 29, covering rail transport to the coast and port infrastructure at Pointe-Noire.

Exxaro could export up to two-million tonnes of iron-ore used for steelmaking this year and ten-million tonnes by 2017 as the port is being expanded.

Meanwhile, the shareholders of ASX-listed Cape Lambert have welcomed the news that the company is expecting a royalty payment from the Mayoko project, after Exarro’s recently granted mining convention.

The Mayoko royalty was negotiated by Cape Lambert as part of its consideration when it sold the project to African Iron in 2011, with the company subsequently being taken over by Exxaro in 2012.

The royalty will equal $1 for every tonne of iron-ore shipped from the Mayoko project.

The mining convention is subject to certain conditions, including the execution of definitive agreements for access to port and rail facilities.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Exxaro Resources, tel +27 12 307 5000 and fax +27 12 323 3400.