Projects in manganese world Proiecte Mn 1.= Africa de Sud South Africa is the most resource-rich nation on Earth.

A 2010 report from Citigroup gave the countrys mineral reserves a total value of more than $2.5 trillion. Manganese makes up a big part of that wealth. South Africa has about 75 percent of the worlds reserves, according to the US Geological Survey. The country also led the way in manganese production in 2011, with about 3.4 million tonnes of output, ahead of second-place Chinas 2.8 million tonnes. Even with its huge reserves, South Africa only controls 20 percent of the global manganese market. And that could be set to shrink due to an ongoing decline in its output. The countrys manganese production dropped 22 percent in April 2012 from April 2011, according to Statistics South Africa. Manganese output also fell 6.5 percent in April from March.

ArcelorMittal (NYSE:MT) is one global miner that is currently active in South Africa. The company has a 50/50 joint venture with Kalagadi Manganese, which is building an underground mine in Hotazel, in the Northern Cape province. The company expects the mine to produce 3 million tons of manganese ore a year. The project also includes a sinter plant on the site and a smelter at the port city of Coega that will produce 320,000 tons of ferromanganese a year. Kalagadi Manganese (Pty) Ltd, a company that is held by ArcelorMittal (50%), Kalahari Resources (40%) and the Industrial Development Corporation (10%) has been involved in the exploration for Manganese in the Kalahari Basin. The three farms on which the company holds new order mining rights are believed to overly some 960 million tons of manganese ore. The recent exploration programme has identified 102 million tons of Mineral Resources. 2.= Guyana Aims to Become a Top Manganese Producer Thursday May 24, 2012, 3:15am PDT By Chad Fraser - Exclusive to Manganese Investing News

According to the World Steel Association, global steel demand will slow to 3.6 percent in 2012 from a growth rate of 5.6 percent in 2011. However, the agency expects steel demand to rise 4.5 percent, to 1.49 billion tons, in 2013. A big part of that growth will come from India, which is industrializing rapidly. The association sees that countrys steel consumption rising 6.9 percent this year before accelerating to 9.4 percent in 2013. Rising steel demand should snap manganese prices out of their current doldrums. Thats because about 90 percent of global manganese output is used in steel production. Whats more, there is no known replacement for manganese in that role. Higher manganese prices would be welcome news in the South American nation of Guyana, which is on the verge of restarting its manganese mining industry after a hiatus of almost 50 years. The country last produced the mineral in the 1960s, when a subsidiary of Union Carbide operated a mine at Matthews Ridge in the northwest, near the border with Venezuela. That mine produced 1.66 million tonnes of manganese from 1962 to 1968. However, the sluggish global economy at the time depressed manganese prices, forcing Union Carbide to close the mine. Timing looks right for the revival of Guyanas manganese industry Even though manganese prices have been relatively flat recently, mining the metal in Guyana has nevertheless again become viable, according to the countrys President, Donald Ramotar. In 2010, the Guyanese government granted Canadian junior miner Reunion Gold Corp. (TSXV:RGD) four prospecting licences to explore for and develop manganese in the area surrounding the old mine at Matthews Ridge. In all, these licences cover 45,729 acres. The company is now conducting a drilling program to define the size of the manganese deposit. The 1960s mine site included a 12 kilometer series of hills within the ridge that contains the manganese. The primary manganese zone is believed to be 150 to 175 centimeters thick and about 30 kilometers long.

Reunion plans to build a pilot plant at Matthews Ridge by April 2013. It will then send the commercial ore from the site to market and collect feedback from buyers. If all goes according to plan, the company will begin building the mine in August 2013, with full production starting up by the fourth quarter of 2014. In all, the company plans to invest $250 million in developing the mine. In April, Reunion raised $40.25 million by selling 23 million common shares. It will use these funds to continue its exploration drilling and complete a prefeasibility study. According to Joachim Bayah, the Chief Operating Officer of Reunion Manganese, the project could take Guyana from zero to among the top five manganese producers in the world. In a January 26 Business Guyana article, he was quoted as saying, [o]ur initial target is to put on the books 20 million tonnes of concentrate exceeding 40 percent in concentrate terms for manganese by the middle of this yearWe think by developing a mine of this size we can put Guyana on the map. If we are able to put out 2 million tonnes of concentrate we will join the league of the top five world producers. Guyana aims to burnish its reputation as a mining-friendly country When Union Carbide pulled up stakes in 1968, it took a lot of well-paying jobs with it. By cooperating with Reunion and other mining firms, the Guyanese government hopes to bring these types of positions back. There are a lot of benefits, said Ramotar, [t]here is the opportunity to collect a lot of taxes there [at Matthews Ridge], and it will create jobs for people in the region. According to Bayah, the companys exploration program created 300 jobs last year and will create 300 more this year. In all, he said the company will need 1,000 people to build the project and 500 to staff the ongoing operations. The government is aiming its mining investments at projects that will build roads and other infrastructure. Reunion, for example, is benefiting from a $50 million government investment to improve a 50 kilometer road running from Matthews Ridge to Port Kaituma. Reunions plan also calls for the rebuilding of the railway line between the two communities, because the manganese will be sent to Port Kaituma for shipping overseas. The company has also refurbished an airstrip and several of the facilities and offices at the old Union Carbide mine. 3.= . Ivory Coast Late last year, China National Geological and Mining Corporation (CGM) said it would invest more than USD 20 million over the next two years to double Ivory Coasts manganese output to 300,000 tonnes per year. Ivory Coast is a small-scale metals producer, but is attempting to develop its mining sector, which also contains gold, to diversify its cocoa-based economy.

Production at the moment is around 150,000 tonnes per year. With the support of the Chinese, it will go up beyond 300,000 tonnes in 2011. The Ivory Coast is investing in a new railway to transport nickel, iron and manganese to the port town of San Pedro. The west is overflowing with nickel, manganese and iron. Construction of the railway will begin in 2014 and were looking to transport about 22 million metric tons of minerals a year, said Mines and Energy Minister Augustin Comoe. The country plans to boost mining percentage of GDP from the current level of 1.5 percent, to 10 percent in 2020. The growth of mining in the country is a story to watch over the year.

4.= South Korean steel maker Posco, too, had announced that it would be putting in USD 200 million to take a 13 per cent stake in a manganese mine in South Africa. Posco said the purchase will be made by joining international consortium Pallinghurst, which owns a 49.9 per cent stake in the Kalahari mine in Northern Cape province and is controlled by American Metals & Coal International and South African financial firm Investec 5.= , Rocher Deboule Minerals Corp (TSX.V: RD) which recently changed its name to American Manganese Inc is said to be focusing on the development of its Artillery Peak Manganese Project in Nevada, US. The company has had a private placement recently. Rocher Deboule Minerals Corp is a diversified exploration and development company focusing its attention on mineral properties and commodities used in the steel manufacturing industry. In 2008, Rocher Deboule had completed the assembly of all target properties in the Artiller Peak manganese district, and drilling and metallurgical testing programs were executed. An updated NI 43-101 compliant resource calculation in 2009 indicated a manganese resource in excess of 100 million tonnes, with indicated and inferred resources of 10+ billion lb manganese. Manganese is used in many forms and applications today and one of the latest is in Cathodes for Lithium-Ion batteries for Hybrid vehicles. This is one reason where I ask Why when many are so concerned with Lithium supplies (there are literally mountains of this mineral in Bolivia & Argentina as well as minable deposits in the US and Canada) that little to nothing is being said about Manganese. The battery use form of Manganese is Electrolytic Manganese Dioxide (EMD) and both EMD & EMM must be supplied or produced from raw Manganese ore produced by outside Nations. Over the past 6 years the annual demand growth rate for Electrolytic Manganese has been an astounding 26% per year, primarily due to the steel market

and here we are almost totally dependant on China for all the EMM/EMD used by American industry. Some reading this commentary will recall a previous editorial I penned that outlined the fact that Manganese is listed as a Strategic Metal by the US Govt. (excerpt from that commentary) On Jan. 7, 1987, Manganese was certified by the U.S. Dept. of State as a Strategic Mineral essential for the economy and defense of the United States that is unavailable in adequate quantities from reliable and domestic suppliers. The problem created by this unavailability is aggravated since there is no satisfactory substitute for Manganese among its major applications and it has itself now become a substitute in certain alloy applications due to new and innovative metallurgical discoveries. * The US Geological Survey also states: there are no substitutes for Manganese in its major applications the manufacture of steel, steel alloys, non-steel alloys, batteries (alkaline), fertilizers and animal feed. Just to add insult to injury, the US Govt adds a 14% Import Tax on EMM to compliment the 20% Export Tax China imposes. Now as any person in their right mind can see, we are immediately placed at a major disadvantage to China when it comes to the wide uses of Manganese in our domestic industries. Here are a few more pertinent statistics regarding Manganese. (EMM/EMD)

KR: The Chevrolet Volt is already utilizing this lithium-ion manganese rich battery at present. MIT is developing another battery technology for wind farms, and these are container-size batteries that are liquid. There is liquid antimony in the lower portion of this battery, and a proprietary catalyst in the middle. There is molten magnesium on top. They state that a farm of these batteries can supply the power for a small city. Of course, the power is generated by wind farms. I'm assuming that the same can be done with solar farms. Magnesium is another key critical metal that I have recently started writing about and of which the U.S. has only one small domestic supplier. lithium-ion manganese rich batteries can store power about five times longer. Because of the electrolytic manganese-rich cathode, they can use about 50% less batteries in EVs and thus gain a weight, as well as a capacity, advantage

Well, manganese is a very common element so there's lots of it. There are various types of ores carbonate and oxide ore. The carbonate ores are more expensive for extraction to pure metal. A mix of toxic chemicals is used, as well as multiple grinding and crushing processes that aren't used or needed in a clean (of impurities) oxide ore. The key thing I focus on is the fact that the U.S. has no domestic supply and only three companies currently have manganese projects in North America; one is in Canada and two are in Arizona. In North America, this EMM can be produced much more cheaply by one of these companies than it can in China where electrolytic manganese costs roughly $1/lb. to produce. If it's sold at $1.65/lb. and taxed at 20%, and then the U.S. adds a 14% import tax, this leaves American end users at a disadvantage Manganese itself isn't that finite at all but oxide manganese ore deposits are much less common. Manganese is the fourth-most traded metal in the world. The overall manganese ore industry is growing at about 8% per year and electrolytic manganese demand has been growing at 26% each year for the last fivethat shows the huge growing demand for it. KR: Well, the only company that has revealed a cash cost is American Manganese Inc. (TSX.V:AMY, OTCPK:AMYZF), and it's expecting an EMM cash cost of $0.44$0.45/lb. In China, electrolytic manganese costs $1/lb. plus shipping costs, and then you have the 20% export tax and a 14% U.S. import tax. TGR: Well, at a $1.65/lb. spot price, that would be a very generous margin for American Manganese. KR: Yes, the company has a tremendous benefit there. According to the USGS, American Manganese's Arizona deposit at Artillery Peak is an oxide ore. It's a friable ore, which, in geological or mineralogical terms, means it's very soft and doesn't require multiple milling and grinding processes, roasting process or toxic chemicals. It also has a low water use with benign tailings. The key component to the low cost is a process perfected by Kemetco Research Inc., which is under patent application by American Manganese. The complete Kemetco Process can be viewed here. KR: I've spoken with the management of Wildcat Silver Corp. (TSX.V:WS) and Buchans Minerals Corporation (TSX.V:BMC), and I think they both have very robust projects. Wildcat Silver, for example, has about 120 million ounces (Moz.) of silver and its deposit contains zinc, as well as a manganese grade of 7%8%. In the case of Buchans Minerals, I believe it has a 7% or 8% average grade of manganese, as well as 12% iron. Both companies' deposits appear very large. I suspect its costs will be quite a

bit higher than American Manganese's Artillery Peak project, as it has multiple grinding and milling and separation processes that will require roasting and use of chemicals because they are not oxide ores and do contain byproduct minerals. TGR: American Manganese is up 196% over the past three months. Wildcat Silver is up 130% and Buchans is up 31% over the same period. Is there still upside on these? KR: Oh, I believe so. These companies have a long way to go, but American Manganese has already identified approximately 15 billion pounds (Blb.) of EMM with a lot more drill work yet to be done. Buchans Minerals is in the early stages of its discovery work. Wildcat Silver is primarily a silver deposit, and it just closed a $13 million private placement with Silver Wheaton Corp. (TSX:SLW; NYSE:SLW) that gives SLW first refusal on any rights Wildcat might want to sell from its Hermosa property in Arizona [formerly known as the Hardshell property]. Wildcat is primarily a silver play with a potential carbonate manganese byproduct. KR: Well, I would say yes. I've been consulting for American Manganese for some time now and I know what its project entails. It's much more advanced and it's open pit. The ore is amenable to sulfurous acid leaching and doesn't require the multiple grinding and crushing circuits, the roasting of ore or hazardous chemicals, therefore, it has benign tailings. So, you could say that it's a very environmentally friendly process. AMY's putting up a pilot mill this spring to bulk test the process. Also, it has a lot more drilling to do because it appears the company's 15 Blb. EMM resource can be greatly expanded. The company has recently contracted with Wardrop to complete an NI 43-101 prefeasibility study.

6.= Wildcat Silver, for example, has about 120 million ounces (Moz.) of silver and its deposit contains zinc, as well as a manganese grade of 7%8%.

7.= Buchans Minerals, I believe it has a 7% or 8% average grade of manganese, as well as 12% iron

8.= India plans to launch an unmanned mining exploration submersible. On June 7th, Manganese Investing News reported on a Korean submersible that was to mine manganese nodules on the sea floor. The Indian ROV is operational at the Poly-Metallic Nodule (PMN) site that has been allotted to the country by the International Sea Bed Authority (ISBA) of United Nations, from the article by The Press Trust of India. 9.= The Manganese Metal Company of South Africa

The structural dependence on Chinese supply has triggered great interest in investing in manganese metal outside of China. Some of these projects happen to be located in North America, but there are also projects in Russia. At present, there is only one manganese metal producer outside of China, and that's in South Africa.

10.= Los Pumas Manganese Project Los Pumas Manganese Project in northern Chile has been the main focus of the Companys exploration and development activities over the last two years. It is located 175 km inland from the Port of Arica and is a multiple layered tabular style manganese occurrence with a surface expression over 3.6 km in length. A Technical Report dated 21 March 2011 from Coffey Mining contained an estimate of the resource at Los Pumas. This resource estimate increased the total measured and indicated resources to 18.3 million tonnes at a grade of 7.58% Mn consisting of a measured resource of 5.27 million tonnes at a grade of 7.39% Mn, and an indicated resource of 13.06 million tonnes at a grade of 7.65% Mn. Also reported was an inferred resource of 5.39 million tonnes at a grade of 8.59% Mn. A Preliminary Assessment on the Los Pumas project was lodged on SEDAR January 28, 2011 and an amended Environmental Impact Statement lodged with the Regional Authorities in May 2011, and awaits approval. An easement agreement with the local community over the use of their land for mining has been executed. Work continues on the completion of final pit plans, ongoing metallurgical test work and feasibility studies, however the current manganese market conditions have reduced the priority of this project in the Companys plans.

11Avontuur Project

Aquila's Avontuur project area is located in the Northern Cape Province of South Africa near the towns of Kathu and Hotazel. Kathu is approximately 520 kilometres south-west of Johannesburg and Hotazel 68 kilometres north of Kathu. The project is comprised of the Avontuur and Kathu tenements. The tenements are currently held in a joint venture in which Aquila holds a 74% stake. The village of Hotazel was built to accommodate workers employed on the manganese mines. In 1960, the railway line was extended from Sishen to Hotazel. The town of Hotazel is adjacent to South African Manganese Armcor Limited's (Samancor) Mamatwan manganese mine and sinter plant as well as the Wessels underground manganese mine and railway terminal. The largest local manganese producer, Samancor, was formed through the merging of two manganese producers, SA Manganese and African Metals Corporation (Armcor), in 1975.

The Manganese deposits of the Northern Cape are found within the structurally preserved Griqualand West basin of the Transvaal Supergroup. Iron Ore occurrences are found within the Ghaap Group, which is uncomfortably overlain by the Postmasburg Group which contains the Manganese-bearing Hotazel Formation. The manganese-bearing Hotazel Formation is generally covered by the Karoo Supergroup and Kalahari sands of various thicknesses. The only outcrop is observed at Black Ridge where the Hotazel Formation has been thrust up. The Kalahari manganese field is made up of five structurally preserved erosional relics of the Hotazel Formation, consisting of an iron formation with interbedded units of manganese ore. Two main ore types are present in the Kalahari deposit, namely low-grade primary sedimentary Mamatwan-type ore and hydrothermally altered high-grade Wessels-type ore (Preston, 2001).

Portions of the manganese field are overlain by Dwyka tillite, which is preserved within a prominent north-south trending, paleo-glacial valley-fill along the central and western parts of the Kalahari Manganese Basin. In places the glacial valley fill is up to 600m deep, with individual channels known to cut down through the Hotazel Formation. These channels can sometimes cause partial or total eradication of the manganese-bearing horizons. Drilling has been undertaken on the Eersbegint target in the south of the Avontuur tenement and on the Gravenhage target in the north of the tenement. On both targets, Aquila has intersected significant zones of manganese mineralisation with high grade levels, typical of the Wessels type ore found in the Kalahari Manganese Field. Significant intersected manganese mineralisation include: Southern Project
4.31m @ 38.81% Manganese 3.54m @ 47.52% Manganese 4.41m @ 49.79% Manganese

Northern Project
5.40m @ 56.82% Manganese 3.68m @ 50.81% Manganese 2.68m @ 47.42% Manganese and 1.86m @ 46.73% Manganese 2.12m @ 55.24% Manganese and 1.57m @ 59.24% Manganese

Access to both the project areas is very good, consisting of main bitumen covered roads and secondary gravel covered roads. Rail access is available from the Hotazel siding to Port Elizabeth on the south-east coast, servicing the Kalahari manganese fields. Power links are proximal to the tenements, however water resources are limited. .

12.= SPITFIRE RESOURCES - THE SOUTH WOODIE WOODIE

MANGANESE PROJECT - AUSTRALIA HOLDING IN SPITFIRE RESOURCES (18.45%)

Spitfire Resources Limited (Australian Securities Exchange Ticker: SPI) is an Australian minerals company focused on the exploration and development of raw materials for the carbon steel and energy sectors.
Originally established in 2007 as a spin-off of the Australian manganese assets of the AIM-listed coal company, Churchill Mining PLC, Spitfire has developed a diversified minerals portfolio comprising:

the South Woodie Woodie Manganese Project, located in the heart of an emerging manganese province in the East Pilbara region of Western Australia, where it has defined an initial JORC compliant manganese resource inventory at the Tally-Ho Deposit and is aggressively exploring for other manganese deposits; an emerging thermal coal portfolio in Tasmania, located close to established infrastructure including Rail, Roads and Ports; and a nickel-copper and platinum group elements (PGE) exploration project in the Northern Territory.

13.= Otjozondu ("Otjo") Manganese Project, Nambia See also our Otjozondu Project Flyer

Overview
Shaw River has purchased 75.5% of the Otjozondu Manganese Project ("Otjo") in Namibia. The Otjo Project is located 150km North- East of the Namibian capital of Windhoek and lies in a historical manganese field which has produced in aggregate approximately 550,000 tonnes of high grade (~48%) manganese since the 1950's. Recent production at Otjo was by way of a shallow free dig and drill-and- blast surface mining methods, utilising a basic crushing and jigging circuit to produce saleable ore. Shaw River is planning the introduction of modern technology, mine planning practices and processing expertise to allow production to re-commence in 2012. This would involve the use of a jig or dense media separation plant, which would produce manganese lump and fines products. Shaw River proposes to use a combination of existing road and rail infrastructure to transport product 538km to the Walvis Bay port where it will be loaded onto Handymax-sized vessels of up to 25,000 tonnes, for export to predominately Asian markets.

The favourable geology, shallow open- pittable mineralisation and the availability of existing infrastructure are expected to underpin low operating costs and attractive margins, using conservative long term manganese pricing. A Scoping Study has indicated strong economics from a proposed mining operation from 2012 targeting producing a high- grade, high-quality product using simple beneficiation methods. The manganese product grade is estimated at 38-40%Mn. A feasibility study to extend and confirm the Scoping Study has commenced with final results expected in early 2012. Further resource definition and upgrade drilling has been undertaken as part of this study and is expected to guide development for an open cut mining operation, targeting production of manganese product commencing in 2012.

Manganese Exploration
Extensive road, rail and port infrastructure elements are available for Otjo, including the bulk commodity port facilities at Walvis Bay, which are controlled by Grindrod, the owners of Otjo's minority (24.5%) partner, Oreport. Shaw River holds exploration and mining licences over 1,700km2 covering 144km of the known strike of the Otjozondu manganese field. The project currently has Inferred JORC resources of 6.8 million tonnes at 23.1%Mn1. The current resources are based on 33,000m of historical drilling (22,000m of diamond drilling and 11,000m of RC drilling). The Company has just completed an additional drill programme of 1,600m of diamond drilling and 5,000m of RC drilling at Bosrand, Labusrus and North Bosrand deposits. The PQ diamond core will be used for beneficiation test purposes and ore characterisation on three Inferred Resource prospect areas within the current mining licence. The NQ diamond core will be used to improve resource quality within conceptual pit outlines and improve the resource delineation. All of these prospect areas host Inferred JORC resources and lie within a granted Mining Lease. Results for this drill programme will be assessed for a potential review of the site JORC resource and underpin the feasibility study works. Ongoing RC drilling will target the excellent brownfield prospects within the 5 granted EPLs, including the Uitkomst and Ouparakane prospects, that surround the mining licence. Namibia is a politically stable country with a modern system of mineral tenement management. In addition, the Namibian mining industry and government is very supportive of foreign investment in the country. Paladin Energy Ltd and Rio Tinto have been successfully operating in Namibia for a number of years.

Historical Bulk Exploration and Trial Mining

Otjo has been periodically open pit mined since 2008, however, previous mining and processing has been based on very limited mine and infrastructure planning and limited laboratory scale metallurgical testwork to refine manganese recovery. Recently, the Otjo project has produced manganese on a trial mining basis at the relatively limited rate of approximately 25,000 tonnes per year grading approximately 38% manganese. Shaw River's technical due diligence to date has confirmed that the Otjo project's operating costs, scale and product quality delivery can be vastly improved with adequate planning, testwork, capital investment and best practice operations management. The introduction of modern technology, mine planning practices and processing expertise could see production commence in early 2012.

Otjo Scoping and Feasibility Study

A feasibility study, primarily focussing on suitable execution strategies, has been commenced following completion of the Scoping Study. The Scoping Study indicates Otjo's potential to generate strong cash flows that are significantly leveraged to the manganese price, from a relatively low capital cost of development. Favourable geology, shallow open-pittable mineralisation and the availability of significant existing infrastructure are expected to underpin low operating costs delivering ore by road and rail to Walvis Bay port, for export to predominantly Asian markets. The existing logistics infrastructure will greatly reduce the Otjo up-front fixed capital requirements and aid a speedy start up and capacity expansion. The cost modelling study arising from the Scoping Study was undertaken at a project level. Life of mine and production level considerations were based on the maiden Inferred Resource of 6.8 million tonnes at 23.1%Mn1, which will underpin at least the first five years of production from a new gravity separation plant. Further drilling in 2011 in known areas of mineralisation targeted a resource upgrade to a 10+ years of mine life. There is significant potential for further growth in the existing mineral inventory given the maiden resource covers only 7km of the identified 144km of strike within the manganese field (just 5%). Shaw River is targeting to at least double this 6.8Mt1 maiden resource by early 2012 and currently has an Exploration Target1 at Otjo of 35-50 million tonnes grading 23-27%Mn. In addition, drilling will be targeting the conversion of a significant portion of its resource to reserve status.

Future Operations
The Company's principal operating goals into 2012 are;

The completion of a feasibility study currently underway to commence manganese production in 2012. Increasing the existing 6.8 million tonnes at 23.1%Mn JORC Inferred Resource1 to support a long life (+10 years) mining operation. Funding and construction of a new processing plant and commencement of production in 2012. Upgrade of site support infrastructure. Training and development of onsite employees. Construction of onsite accommodation facilities.

14.= Capacity increase project in Gabon ERAMET This project began in 2008, with medium-term goals of: maximising the value of unexploited Moanda site resources (Moulili river sediment); ending all waste from the washing plant; and achieving an annual capacity of 4 million tons.

15.= Russian Renova group is considering enhancement of its South African manganese operations, including the building of a manganese sinter plant which will make use of the manganese from a mine it co-owns in the Kalahari.2011 The group is considering strategic options to enhance its global presence in the manganese business The plant would convert the low-value fine fraction of the manganese ore into high-value sinter product 16.= erenje Manganese Project The Serenje Manganese Project in Zambia was identified by Zamanco based on the known widespread occurrences of high grade manganese, the available power supply and the ability to transport beneficiated product to port.

The business case for smelting manganese from high grade ore close to the mine is attractive when taking into consideration the cost of transport from African mines to smelters elsewhere in the world. The projects become more feasible where longer distances preclude the transportation of larger volumes of direct shipping ore material.

The Serenje Manganese Project comprises three individual components - mining/ore supply, ferromanganese smelters and an aluminothermic manganese metal smelter.

Exploration and Mining

With regards to the exploration and mining phase, Zamanco has entered into joint ventures over known manganiferous landholdings in the Mansa and Mkushi areas of Zambia.

At Mkushi, Zamanco has entered into a Joint Venture with Jack Stuart, a Zambian national, who holds a granted Prospecting Permit (15836-HQ-SPP) in the Mkushi region of Zambia. This tenement provides a strategic fit for Zamanco as it provides a foothold into the Mkushi region, which is closer to the proposed Serenje smelter site. The other major benefit is that the Mkushi tenement is not subject to the moratorium that is currently in place and allows exploration to commence as soon as practicable.

The tenements in Mansa, LPL12897 and LPL14554, are currently subject to the moratorium on the granting and renewal of licences in Zambia. These tenements will undergo high priority trenching and drill testing once the tenements have been renewed.

Zamanco has also entered into discussions with various small scale miners in the Mansa area regarding the purchase of fines material, currently being stockpiled as waste. Zamanco has a

competitive advantage with regards to the fines material in that it can smelt this material in the DC smelters to produce a high value product.

Photos of outcrops within the Mansa tenement (LPL12897)

Proposed Ferromanganese and Manganese Metal Production

Once resources have been defined and feasibility studies confirm the economic viability of the Project, construction of the mining and processing operations is expected to commence. Once mining operations are established, the Company plans to transport ~220,000 tonnes of beneficiated ore (~50% Mn) via truck to the Company's proposed smelter location at Pensulo, near Serenje. The Pensulo location has been selected based upon its proximity to Zesco'sPensulo sub-station, tar road access to Beira and the rail system linking to Dar-Es-Salaam. Zamanco has secured 150ha of land near Pensulo for its smelting hub. The smelting operations at Pensulo will consist of an aluminothermic smelter, producing 12,000 tonnes of 95% content low carbon manganese metal per annum, and three 8MVA DC smelters producing 60,000 tonnes of High Carbon Ferro-Manganese per annum.

Low carbon manganese metal is used as an alloying agent for aluminium as well as in the stainless steel industry, where it is increasingly being used as a substitute for nickel. The aluminothermic reduction method for producing manganese metal involves an exothermic reaction between aluminium and manganese ore to produce 95% manganese metal. High carbon ferromanganese is essential to iron and steel production by virtue of its sulphur-fixing, deoxidizing, and alloying properties. Steelmaking,including its ironmaking component, has accounted for most manganese demand, presently in the range of 85% to 90% of the total demand. Zamanco is proposing to construct three 8MVA DC smelters, which will have the capacity to produce a combined 5,000 tonnes of 78% high carbon ferromanganese per month. Both the manganese metal and ferromanganese will be transported either via rail to Dar-EsSalaam or via road to the port of Beira in Mozambique. Trucks returning from port will be loaded with either aluminium (for the manganese metal process) or coking coal (for the ferromanganese process).

Proposed transportation routes to port

Studies by Zamanco indicate that the production of manganese metal and ferromanganese will result in an operating margin (per tonne) approximately seven times greater than that for direct

shipping ore product. When the lower Proposed transportation routes to port tonnages due to beneficiating are factored in, the production of manganese metal and ferromanganese produces an overall net margin increase of 2.2 to 2.6 times that of DSO. All the logistical, engineering and mining elements required for the implementation of the business have been identified and will be subjected to a Bankable Feasibility Study commencing

in Q4 2011. All of the equipment manufacturers and construction engineering firms have extensive experience in southern Africa. 17.= South Woodie Woodie Manganese Project

Project Overview The South Woodie Woodie Manganese Project comprises 13 granted Exploration Licences and 4 Exploration Licence Applications covering a total area of 2249 km2 in Western Australias emerging East Pilbara Manganese province. The tenements lie along strike and to the south of the 1.2Mtpa Woodie Woodie Manganese Mining Centre (operated by Consolidated Minerals Limited) and in close proximity to several emerging manganese projects which are being actively explored or developed. Contact and the Contact North Discovery Spitfire announced in March 2012 its maiden inferred JORC Contact and Contact North resource of 11.3 Million Tonnes (Mt) at 15.0% Mn, delineated during the 2010 and 2011 field seasons. The initial campaign in 2010 included the drilling of 54 RC holes for 4,895 metres which encountered the Contact area. The 2011 campaign had 234 RC holes for 25,436 metres covering the infill and definition of Contact and Contact North deposits. 11 PQ diamond holes (8 holes at Contact and 3 holes at Contact North) were used for bulk core sampling for the metallurgical beneficiation test work.

Table 1: Contact/Contact North combined deposit summary @ 10.2% Mn cut-off

Image 1: 3D model of deposit with drill hole traces Further drilling will target potential high-grade mineralisation under the Contact North deposit which Spitfire believes could add additional tonnes to the deposit. Beneficiation test work program The test work was undertaken on PQ diamond core in collaboration with Mineral Engineering Technical Services (METS) to maximise recovery and grade. Composites intervals were identified, taken and put through a scrubbing test to remove slimes (<1mm) size particles before being separated into fines and lump and then passed through Density Media Separation (DMS) to remove additional waste. After the DMS tests the final grade and yield of both products was determined. Based on the results of the test work an end product grading 40% Mn can be produced from the combined deposits.

Table 2: Final DMS Grade and Yield from Contact/Contact North Gradient Array Induced Polarisation (GAIP) Spitfire has used the ground-based geophysical technique, widely utilised by Consolidated Minerals at Woodie Woodie in its exploration process. It has been validated through the discovery of the Contact and Contact North anomalies and the identification of the corresponding geophysical response associated with them. Based on this success, Spitfire will continue to utilise this important tool by expanding its use extensively over new target areas which it believes will lead to the identification of multiple new drilling targets in 2012 onwards. Tally-Ho Manganese Deposit The Tally Ho target was Spitfires first significant discovery within the South Woodie Woodie Project area, and comprises a zone of near-surface manganese mineralisation. In May 2010, the Company announced an expanded JORC compliant Inferred Resource estimate for the Tally Ho deposit comprising 2.94 million tonnes grading 7.07% Mn, with results from preliminary metallurgical test work indicating the material can be beneficiated to achieve a manganese product grading around 40% Mn.

Table 3: Tally-Ho deposit summary Inferred Resource estimate as at May 2010 quoted incorporating all modelled blocks within mineralised envelope wireframe. Calculated by independent resource consultants Optiro Pty Ltd. The updated resource was based on results of resource extension drilling which increased the resource strike length by approximately 480 metres to 680 metres.

In addition, the resource estimate represents a fully diluted resource, with the grade of 7% Mn reflecting the inclusion of barren material between the high grade seams. Spitfire believes there is still scope to further increase the resource inventory at the Tally-Ho deposit through further drilling and metallurgical work. Exploration Program Spitfires exploration programme is based on three fundamental principals;
1. Mapping and understanding the ground 2. Specific geophysical surveys of the mapped areas (GAIP) 3. Targeted drill programmes

With the flow of information from these principals and the combined knowledge of the Staff and consultants each exploration programme has been more and more successful. The Mapping programme for the upcoming field season will cover primary areas of interest, to the North and North East of the Contact North deposit, in collaboration with the extensive 100 Square Km GAIP surveys. The northern areas will broadly target the local faulting between the Manganese and the Hamersley group rocks as this is known to be a conduit for the manganese mineralisation.

South Woodie Woodie Image Gallery

South Woodie Woodie Tenement Map

18.=

BELU MANGANESE PROJECT The Belu Manganese Project is located approximately 35km east of Atambua, the capital of Belu Regency in West Timor, Nusa Tenggara Timur province of the Republic of Indonesia. Atambua is approximately 20km south of the port of Atapupu. The project consist of three concessions (IUP's) covering a combined area of 5,934 hectares. Two of the concessions are contiguous (Sischo Artha and Mugirato) and the third concession (Asia Traco) is located approximately 2.0km to the north. The project is in an area of known manganese mineralisation and is predominantly underlain by rocks of the Tertiary aged Bobonaro Complex, a unit consisting of a clay matrix and blocks derived from older sequences. Known manganese mineralisation in the region is associated with the Bobonaro Complex. Rocks of the Permian aged Bisane Formation, which is dominated by dark grey shale, with siltstone, calcareous sandstone, slate and chloritised lava intercalations, occur along the eastern edge of the project area. The area has been subjected to negligible modern exploration, with no drilling or modern geophysics completed. Two reconnaisance rock chip sampling programs have been completed in the area of the two contiguous concessions over the past year, one by the local concession holders and one by Killara. Results of these programs highlight the distribution of high grade manganese mineralisation, with results ranging up to 53.7% Mn. Artisinal miners have in recent times been extracting high grade manganese ore from near surface deposits throughout the project area, which combined with the results of the reconnaisance rock chip sampling programs, highlights the prospectivity of the Belu Manganese Project.

19.=

Manganese Projects Centaurus is currently exploring several 100% owned tenements for economic occurrences of manganese within Minas Gerais, Brazil. A critical part of the steel making process, manganese is highly sought after by both the domestic and international steel markets. Ponte de Pedra Centaurus has been exploring for economic occurrences of Manganese at the large Ponte de Pedra project, in the state of Minas Gerais since 2009. The work conducted at the Project to date has been along the western border of the interpreted basin margin where old lateritic manganese workings and outcrops are present. Holes drilled in this most Westerly part of the project intersected anomalous grades of manganese with both supergene and primary mineralisation recognized. As Centaurus moves deeper into the interpreted basin the regional geology and surface occurrences suggest that the broader tenement package of approximately 80 sq km remains highly prospective for the hosting of significant manganese mineralisation. Outcrops in Centaurus exploration licence applications and in the broader region, including an operating Manganese mine immediately adjacent to the Centaurus tenement package shows that zones with larger sized manganese anomalies are present in the area. Future exploration is currently being considered with the aim of targeting these thicker occurrences (>metre sized laminations of manganese) in the outstanding areas of the current tenements and in the application tenements upon granting.

20.= shipi Kalahari Manganese Project - Overview

Tshipi Ntle Manganese Mining (Pty) Ltd (Tshipi) is presently constructing a new open pit manganese mine in the Kalahari Manganese Field (KMF) located in the Northern Cape of South Africa. Tshipi owns two manganese properties in the KMF:
1. The flagship project, Tshipi Borwa, which is presently in the construction phase, and 2. Tshipi Bokone, which is still in exploration phase.

The Tshipi Borwa open pit mine has been designed to produce 2.4mtpa of manganese ore grading 37%, and the 163mt of open pit resources should ensure that the mine will continue to deliver economic benefits to the surrounding communities for many decades to come. The manganese ore will be railed to the ports of Durban or Port Elizabeth before being exported to clients predominantly located in the Far East. 21.=

22.= haw River Manganese Limited (Shaw River) is a manganese explorer and developer. Shaw River is currently operating one Namibian manganese project, one Ghanaian manganese project and several manganese projects in the Pilbara region of Australia. Shaw River offers excellent exposure to this strategic metal, critical to the global steel industry. Manganese offers investors the benefits of strong global demand, low capital and time costs for the development of feasible projects.

Future Operations
The Company's principal operating goals into 2012 are;

Otjozondu Project Manganese (Otjozondu Mining Pty Ltd 75.5%, Oreport, 24.5%)

Shaw River will principally focus on its 75.5% owned Otjozondu Manganese Project ("Otjo"), in Namibia, to increase the mineral resource base and progress project studies so that the Company is positioned for a rapid transition to development. Drilling will target shallow (<60 metre) mineralisation, nominally at 100 metre spacing, reflecting the open pitable potential of the Otjo project and, will test extensions to both existing mineralized zones and new areas. The objective of the drilling program is to further extend the mineral resource base to underpin project and development studies. Advance project studies for the development of Otjo following the resource drilling and metallurgical test work, to determine the optimum project parameters. Continue regional exploration on the 1,367 sq.km on the exploration leases. The exploration program comprises mapping, soil sampling and XRF (Niton) testing and is aimed to delineate and prioritise new areas for follow up exploration. Training and development of onsite employees.

Baramine Project Manganese, Iron (70% Shaw River, 30% Pandell Pty Ltd, Laconia Resources Pty Ltd)
Shaw River is testing the potential to define large-scale manganese resources at Baramine to pave the way for a long-life mining operation.

Soil sampling results have indicated numerous new target structural zones associated with near surface manganese mineralization. DMS/JIG beneficiation testing was undertaken on zones of manganese mineralisation to determine the upgrade potential of the oxy-hydroxide minerals. A further series of metallurgical tests were done at Nagrom in late 2011 on RC chips from the previous Baramine drilling campaign and results were analysed. This test work was to characterise the designated ore types by magnetic profiling and HLS analysis. The results indicated that the majority of the mineralisation was responsive to gravity concentration by either DMS or Jigging. Modelling of the higher quality mineralisation showed an upgrade from 30% to 40% manganese at a mass yield of 50% and silica rejection down to 5% SiO2. The lower quality mineralisation indicated an upgrade from 10% to 36% manganese at a mass yield of 12%. A decision on the nature of the next stage of exploration and project studies will be made during the course of this year.

Butre Project Manganese, Gold (80% Shaw River, 10% Ahanta Mining Ltd, 10% Ghanain Govt)
The Butre Project is strategically located 30km on sealed roads from bulk port of Takoradi and 200km west of the capital Accra, Republic of Ghana.

A decision on the nature of the next stage of exploration will be made during the course of this year.

701 Mile Project Manganese, Iron (70% Shaw River, 30% Pandell Pty Ltd, Laconia Resources Pty Ltd)

Inferred Resource calculation and discussions with 3rd party for processing evaluation.

Disclaimer :: Copyr

23.= Fenn Gap Iron-Manganese Project (Genesis 100%)

The Fenn Gap project is located approximately 25 kilometres south west of Alice Springs in the Northern Territory. The project is close to major infrastructure such as the Stuart Highway and the Alice Springs to Adelaide Railway. The project comprises one granted Exploration Licence

(EL 24839) which covers a total area of 98 km2. Fenn Gap is prospective for iron and manganese. The known manganese mineralisation at Fenn Gap occurs in the eastern part of the licence area where previous rock-chip sampling has outlined a strata-bound dolomite-hosted manganese-rich zone over several kilometres in length with manganese grades up to 50.9% Mn (averaging 39% Mn). Geological mapping conducted by Genesis has delineated over 9.9 kilometres of outcropping goethite (iron) mineralisation (between 43% and 53% Fe) with moderate grade (33.2% Mn) manganese assays obtained from the Table Prospect area. Through geophysical consultation with Resource Potentials Pty Ltd in Western Australia, they recommended that ground gravity survey based on 400m line spacing and 50m stations across the lines would potential delineate the extensive lodes for drill testing. The survey was successful in defining broad scale gravity anomalies which can be correlated in most instances to mapped outcrop and goethite/manganese mineralisation. The residual filtering and modelling has highlighted local areas of gravity anomalism which indicate areas of higher density, and it is recommended these be followed up by a drilling campaign to suitably test these areas. The modelling showed that a source bodies with widths of 30-40m, 100m depth extents and similar strike extents to the mapped mineralisation provided a good correlation to the gravity anomaly. All model bodies had dips 70 to the south and are located to the north of the gravity anomaly, which suggests that the gravity response is due to a down dip component rather than the surface mineralisation. A review of the geology and potential for mineralisation corresponding to the strong gravity anomalies in the north of the survey area should be undertaken to determine if these are due a more silicified/dense stratigraphic unit of the Bitter Springs Formation or if it may potentially represent mineralisation at depth.

Outcropping massive iron-manganese mineralisation striking over 320m at the Table Manganese Prospect

Massive outcropping iron mineralisation over Black Ridge Prospect area

25.= Gabon has strong proven history in manganese mining, and along with Australia and

Brazil is one of the top three producers of manganese in the world. Work by both Bureau de

Recherches de Gologiques et Minire (BRGM) and Silver Bull, show there are wide spread manganese occurences within the Proterozoic rocks of Silver Bull's exploration licences. Further to this, the presence of a manganese deposit in the same sequence of rocks immediately adjacent to Silver Bull's licences coupled with the fact that the manganese occurences within Silver Bull's licences have never been followed up clearly shows the prospectivity of the region. Geology: Silver Bull's Ndjole and Mevang exploration licences cover just under 4000 sq. km of Proterozoic sedimentary rocks with similar characteristics to the rocks from the Francevillian basin - which host Gabon's major manganese mines. The best known manganese occurrence in these rocks is the "Bembele" deposit, a manganiferous laterite cap up to 10m thick that has been derived from the weathering of quartzites and schists found at the base of the Proterozoic sequence. Due to their resistant nature, these rocks form obvious topographic features in the region with over 700m of relief in places, and mark the Archean-Proterozoic contact.

Click to Enlarge

Above: BRGM Mn occurences (yellow) within Silver Bull's Ndjole and Mevang licences. The main geographical feature of the Bembele Manganese deposit (red outline) clearly extends into, and coincides with, manganese occurences within Silver Bull's licences. Trans-Gabon railway is shown as dashed orange line. Work completed:

The immediately adjacent "Bembele" manganese deposit currently undergoing feasability study covers approximately 9 sq. km and has an estimated reserve of approximately 30 M/t grading between 30% to 40%. Bembele occurs along a major topographic high and within the basal unit of the Proterozoic rocks that extend into Silver Bull's licences. These features coincide with Click to Enlarge manganese occurences found by the BRGM within Silver Bull's licences, and although Above: Silver Bull's manganese results for the Mianga region found in the Mevang they have yet to be followed up, Silver Bull's licence. A lateritic cap of rocks grading upto fieldwork has identified several new 47% manganese that is associated with the manganese occurrences grading up to 47% weathering of the quartzites and schists, Mn, along similar topographic features form a topographic feature over 170km long formed by the same rocks in other parts of within Silver Bull's licence. Future work licences. The mountains formed by the basal will target these areas. unit of the Proterozoic rocks have a combined strike length of over 200km within the licences. Summary: The existance of a manganese deposit currently undergoing feasability, coupled with the underexplored nature of the area and the strike length of the prospective terrain, indicates the prospectivity of the region. This combined with the nearby railway system (less than 30km from the railway) leading to Gabon's major port makes this an extremely propective area. To view the complete Manganese Summary, please click here.