Kenya Fluorspar

The Company embarked on an exploration drilling program end of March 2009.This project was completed end October 2009 and the final 43-101 report was submitted by Scott Wilson Roscoe Postle Associates Inc on 15 January 2010.

A total of 24 820 metres comprising 350 RC drill holes and 5 477 metres comprising 43 diamond drill holes were completed to test the 3 main mineralized areas currently being mined.

Grades varied between 27% and 45% on the average per zone with individual smaller zones recording CaF2 in excess of 60%.

The estimated mineral resource is 22 152 000 tonnes categorized as:

Indicated   resource of 17 128 000 tonnes; and
Inferred resource of 5 024 000 tonnes

KFC has just concluded a contract with Scott Wilson for the next phase in the process which is to prepare a life of mine plan and mineral reserves estimate for the deposit. Work is due to commence end March and concluded by the end of June 2010.