Name of the project and location
Mwambashi copper project, Zambia copperbelt.

Project description
The new openpit mine aims to produce 12 000 t of finished copper a year.

The Mwambashi copper project resource is estimated at 11-million tons at a grade of 2,03% copper in the measured, indicated and inferred categories.

Value
A value for the project has not been disclosed.

Duration
It is anticipated that mine site establishment and openpit prestripping will commence during 2007 followed by the build-up to full production during early 2008.

Breakdown of main contracts
None stated.

Client
South Africa-based Teal Exploration & Mining owns 70% of the project and Korea Zinc owns 30%.

Latest developments
Teal will be launching a full-scale mining operation at Mwambashi.

This follows the news that the company has received official Zambian government approval for a large scale mining licence for its Mwambashi copper project.

The newly-acquired mining licence covers an area of 330 km2 and also incorporates three other exploration targets held by Teal, known as the Samba, Pitanda and Mwambashi “A” copper prospects. These prospects were explored in the past and historical inferred resources have been defined. Teal is currently engaged in further drilling of the three areas to expand the resources and to bring these resources into compliance with National Instrument 43-101.

These areas all form a part of Teal’s Copperbelt joint venture.

Teal vice president, Julian Gwillim, has confirmed that the technical work of the feasibility study for a 12 000 t/y copper producer at Mwambashi has been completed.

The Teal board is now preparing to release the project for development.

In order to proceed with developing a mine at Mwambashi a successful off-take agreement must still be concluded. Negotiations with off-take partners are at an advanced stage. The company will also select one of the funding proposals received from several financial institutions to finance a portion of the capital expenditure required for the project.

Participants
None stated.

Construction materials
Not stated.

On budget and on time?
Too early to state.

Contact details for project information
Teal Exploration & Mining investor relations, Julian Gwillim, tel +1 416 572 2117, fax +1 416 572 2201 or email julian@tealmining.com