Name and Location
Tulu Kapi gold project, Ethiopia.

Client
Nyota Minerals.

Project Description
A definitive feasibility study (DFS) on Tulu Kapi has confirmed a technically feasible and economically robust project.

The project has a maiden Joint Ore Reserves Committee-compliant probable ore reserve of 16.9-million tons, grading 1.82g/t for 986 000 oz of contained gold.

About 170 000 oz of the current inferred mineral resource is located within the designed openpit, which is expected to eventually be converted into an ore reserve, either through additional infill drilling or, more likely, through grade control drilling prior to mining.

The conversion from waste to ore will increase the amount of gold recovered and reduce the waste-to-ore stripping ratio, it is expected to increase the life of the project and improve project economics.

The DFS envisages an openpit mine producing an average of 105 000 oz/y of gold at steady state, at an average grade of 1.82g/t, with gold production of 924 000 oz over the proposed project life.

The mine design consists of a single openpit, with estimated dimensions of 1 150 m (north to south) by 730 m (east to west) and a maximum depth of 300 m.

The openpit will be mined using conventional openpit mining methods – drilling and blasting of the ore and waste-rock excavation and hauling – using 90 t trucks and matched excavators.

Value
Initial capital costs are estimated at $221-million, excluding contingency, but including working capital and construction contracts.

Duration
A timeframe has not been confirmed.

Latest Developments
The Ethiopian Ministry of Mines has renewed the exploration licence of Nyota’s Tulu Kapi gold project.

The renewal is valid until May 26, 2014, prior to which a further renewal for one year can be applied for under existing Ethiopian legislation. The yearly renewal of licences in Ethiopia is subject to satisfactory performance during the past year and the approval of the work programme and budget for the next year.

Meanwhile, in October this year, a strategic review was completed on the development of the Tulu Kapi project to evaluate the options available to the board, including the possibility of a strategic partner assisting in developing the project.

As a result of the review, Nyota confirmed that it had entered into two agreements with a new development partner for Tulu Kapi.

The first agreement is a heads of terms for the sale of a 75% interest in Nyota Minerals, the subsidiary that holds Tulu Kapi, and proximal exploration licences in Ethiopia.

The second agreement is a short-term secured loan facility for up to £360 000, which the directors believe is sufficient to enable the company and its subsidiaries to continue operating during the period required to complete the sale.

Key Contracts and Suppliers
Senet (lead engineer); Golder Associates (environmental- and social-impact assessment and design of the tailings storage facility), Wardell Armstrong International (resource estimation and mine design/planning) and the International Finance Corporation (finance).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Nyota Minerals CEO Richard Chase, tel +44 20 7400 5740 or email richard.chase@nyotaminerals.com; or contact Anthony Rowland (business development), tel +44 (0)20 7400 5740 or email anthony.rowland@nyotaminerals.com.
Senet, tel +27 11 409 1300 or fax +27 011 409 1301.
Golder Associates, tel +27 11 254 4800 or fax +27 11 315 0317.
Wardell Armstrong International, tel +44 845 111 7777.
International Finance Corporation, tel +1 202 473 3800 or fax +1 202 974 4384.