Moiyabana

The Moiyabana Coal Project is located approximately 70Km from Morupule Colliery and 50Km from existing rail infrastructure, in central east Botswana. The project consists of two prospecting licenses, PL93/2007 and PL94/2007, covering a total of 593.1 square kilometres which lie within the South East Central Kalahari Sub-Basin of the Karoo Supergroup.

Historically the area was partially explored by Shell Coal Botswana during the 1970’s and more recently by the licensee company, Jaquar Ventures (Pty) Ltd, who completed thirteen diamond drill holes during the period 2009 – 2010.

Based on the results of Runge Limited’s Independent geological report as reported in Hodges ASX press release on the 7th June 2011, a coal exploration target of around 1.4 to 1.6 Billion Tonnes could be defined in the 140km2 area; of which an estimated 660 Million Tonnes indicates suitability for open cast mining.

Coal quality intersected in previous drilling at the project is variable, but raw qualities are interpreted as suitable for domestic thermal markets and indicative of the areas coalfields. There is evidence within completed laboratory test work that some of the coal could be upgraded to export quality coal.

Key points of the Project:

- Exploration Target of an estimated 1,400Mt to 1,650Mt of in situ coal

- Estimated 660 million tonnes with potential for open cast mining methods

- 14,000m drilling program commenced

Future perspectives for the Project:

- Further exploration will increase the tonnage estimates

- A targeted drilling program could raise the deposit to a JORC standard Resource and Reserve estimate;

- Further exploration will improve knowledge of raw and product coal qualities, allowing for economic optimisation;

- Future coal sampling could test for coking properties;

- The relatively unexplored middle and upper seams have potential to add value to the project area.

- Initial phases are concentrating on a 100km2 area; another 400km2 of highly prospective land reamains to be explored.