Projects - Blue Ridge

BLUE RIDGE SUMMARY

• Development commenced January 2007
• Mineral Resources totaling 5.34 million ounces 4PGE
• Bankable Feasibility Study completed end 2005
• Mine planned to produce 149,000 ounces 6 PGE per annum
• Offtake Agreement signed with Impala Platinum
• Banking finance signed for US$107 million.
• 50% owned by BEE Company, Imbani Platinum
• First production planned fourth quarter 2008

LOCATION AND LICENCE

The Blue Ridge project is situated on the farm Blaauwbank, approximately 30 kilometres Southeast of Groblersdal, on the eastern limb of the Bushveld Complex, South Africa. An "old order" mining permit was granted to Ridge in 2004 which gives Ridge the authority to commence mining on the project. A "new order" mining right, in line with the new Minerals Act, has been applied for.

EXPLORATION AND RESOURCES

Ridge Mining started work at Blue Ridge in 2001 and has since then carried out extensive exploration of the area including drilling 92 boreholes with 155 deflections therefrom, high resolution aeromagnetic surveys, strike and dip trenching and structural mapping.
This resulted in the identification and delineation of the UG2 chromitite reef along a strike length of 3.6km and extending from surface to a depth of over 1,000 metres. This reef forms the basis of the Blue Ridge mineral resource which was estimated in accordance with the JORC Code and audited by SRK Consulting as follows:

* includes approx 1.5Mt from an area under negotiation

METALLURGICAL TESTWORK

The metallurgy of the Blue Ridge UG2 ore has been extensively tested. Mineralogical studies, laboratory flotation tests, crushing and milling tests and variability testwork were followed by a 5 day pilot scale test on a 360 tonne bulk sample of ore extracted from underground through the excavation of a 100 metre adit. This test, carried out at Mintek, yielded recoveries into concentrate of 82%-86%. This recovery rate was reconfirmed by a further pilot plant test run at Mintek in 2005 using ore excavated from the trial mining as part of the feasibility study.

FEASIBILITY STUDY AND ORE RESERVES

A feasibility study was completed in December 2005. The study was carried out by Ridge Mining using experienced consultants of international repute. SRK (UK) has reviewed the entire study to ensure that all aspects were completed to "bankable" standard.

The feasibility study is based on processing 120,000 tonnes of ore per month from three decline shafts. The mining plan utilises an innovative approach whereby only the higher grade portion of the reef is mined thereby providing a higher mill feed grade. This mining method has been termed the "Efficient Cut" and was successfully proved up through a trial mining programme in 2005 during which over 10,000 tonnes were successfully mined.

The mining plan for the feasibility study only took into account ore down to a depth of approximately 800 metres below surface, although the reef extends below this level. Calculations of the ore reserve were undertaken by Snowden Mining Ore Reserve Industry Consultants P/L of Australia in accordance with the JORC Code.:

* includes approx 1.5Mt in 1.2Mt in reserves from an area under negotiation

FORECAST PRODUCTION

The forecast annual production is approximately 124,500 ounces 4E (149,000 ozs 6E) per annum over an 18 year period, broken down as follows:

An Offtake Agreement has been signed with Impala Refining Services under which Impala has committed to acquire all the proposed production from the Blue Ridge Mine.

An Offtake Agreement has been signed with Impala Refining Services under which Impala has committed to acquire all the proposed production from the Blue Ridge Mine.

In June 2007. Imbani Platinum acquired a 50% interest in the project by investing Rand 340 million (US$50 million) of equity towards the project’s development. In December 2007, project finance agreements were signed with a consortium of banks consisting of The Development Bank of Southern Africa, The Industrial Development Corporation of South Africa, Standard Bank and Investec Bank for Rand 715 million (US$104 million) following which the project is fully financed through to first production.