230328001217 - (Old Application No. APP-00471) Proposed Exploration Activities in the Exclusive Prospecting License (EPL) 8451, Berseba District, //Karas Region

The ECC is required by the Proponent with respect to the following proposed minerals exploration activities in the EPL Nos. 8451: (i) Initial desktop exploration activities covering the review of existing information and all previous prospecting activities undertaken in the general area in order identify any potential target/s. This initial stage will also include the purchase and interpretation of the existing Government high resolution airborne geophysical data sets. No field-based visit or activities undertaken at this stage. (ii) Regional reconnaissance assessment covering field-based activities such as reginal mapping and sampling to identify and verify potential targeted areas as delineated during the desktop stage (i) above. This stage is only undertaken if stage (i) has found some potential targets needing further investigation / verification. Alternatively, the licence is abandoned if no potential target is found. (iii) Initial local field-based activities such as widely spaced geological mapping, sampling, surveying and possible widely spaced trenching and drilling to test the viability of any delineated local target based on the regional data collected under (ii) above. The level or depth of investigation undertaken at this stage is subject to finding a viable / potential minerals deposit that need to be defined. Alternatively, the licence is abandoned if the identified target/s proves not variable, and. (iv) Detailed local field-based activities such as localised site-specific detailed geological mapping, trenching, bulk sampling, surveying, and detailed drilling to determine the feasibility of the delineated local targets. If the detailed exploration activities lead to positive results, the exploration data collected will then be put together into a prefeasibility report and if the prefeasibility results prove positive, a detailed feasibility study supported by detailed site-specific drilling, bulk sampling and laboratory testing / test mining will be undertaken on the identified site-specific area. A positive feasibility study will be required to support the application for a Mining License (ML) together with a new site-specific Environmental Impact Assessment (EIA) and Environmental Management Plan (EMP) with specialist site-specific studies such as flora, fauna, socioeconomic, water, traffic, dust, and noise modelling and archaeology being undertaken to support the application for the new ECC for mining and minerals process operations (opening a mine). Currently, there no minerals deposits or target known to exist within the EPL 7875 area and the Proponent intend to conduct prospecting activities as part of the search for economic minerals deposits based on the testing of the developed theoretical geological and minerals depositional models. There is no guarantee whatsoever that the proposed prospecting activities will find economic minerals resources that could led to the development of a mine. To search for possible targets, the company will buy airborne geophysical data (magnetics and radiometric) held by the Ministry of Mines and Energy, and the data will be processed and using this information, the Proponent will look for possible targets. The targets will then be visited to see how the surface looks like if possible collect surface samples (Geochemical sampling) followed by further field-based assessments such as geological mapping to validating the airborne-based data delineated targets. Even if the mapping or drilling finds some indications of mineralisation, it takes many years (5 - 10 years or even more) to move an exploration / prospecting project to a mining stage and so many technical inputs including technology, markets, costs environmental liabilities and cost of services such water, roads and energy will need to form part of the project developmental stages, starting with the scoping, prefeasibility and then feasibility phases. If a project is feasible, then the company will need to apply for a separate Mining License (ML) from the Government and a land owner agreement is required and mandatory before a Mining License is granted by Mining Commissioner. A Mining License application requires separate detailed site-specific studies of the local area of interest to have been conducted as part of the feasibility study. Environmental Impact Assessment (EIA), Environmental Management Plan (EMP) and specialist studies such as water, fauna, flora, dust, noise for mining operations as well as linear structures such as water, roads and powerline form part of the feasibility study to be conducted before such a project can even be considered for review by the Government.

Prpject status APPROVED

For further information contact:

Ministry of Environment and Tourism

Department of Environmental Affairs

(+264 -61) 284 2701 (T)

(+264-61) 240 339 (F)

http://www.met.gov.na