Name and Location   
Marampa iron-ore project, Sierra Leone.

   Client   
The Timis Mining Corporation acquired the Marampa mine from London Mining’s administrators at PwC in November this year. London Mining went into administration after struggling with high costs, a sharp drop in iron prices and the impact of the Ebola virus on its operations in West Africa.
Timis and African Minerals are considering blending the products from Marampa and African Minerals’ Tonkolili mine to access European steelmaking markets “with a suitable quality high grade product” and to benefit from lower freight rates.

P   roject Description
Marampa is a specular hematite project, located 90 km north-east of Freetown, in Sierra Leone.

It has a mineral resource of more than one-billion tonnes of iron-ore, including a probable ore reserve of 539-million tonnes grading 31.1% iron, sufficient for a mine life of more than 40 years.

The mine is being expanded to 5.4-million wet tonnes a year and is expected to reach production capacity of 6.5-million wet tonnes in 2014.

Marampa has sufficient resources to support a staged expansion to more than ten-million wet tonnes a year. A bankable feasibility study for an expansion to 9.7-million wet tonnes was completed in 2012.

Net Present Value/Intenal Rate of Return
Not stated.

Value
Capital committed to the five-million-tonne-a-year operation is estimated at $340-million.

Capital for the life-of-mine extension is estimated at $240-millon.

Duration
Production started in December 2011.

Latest Developments
Romanian businessperson Frank Timis is in talks with trader Gerald Metals about an offtake agreement for iron-ore from the Marampa mine.

Timis, who is chairperson and founder of African Minerals, a heavily indebted rival to London Mining in Sierra Leone, bought the Marampa mine in November through his private vehicle Timis Mining Corporation.

Signing an offtake deal, whereby a buyer prepays for a portion of future production, will provide financial support for Timis's private company to operate the Marampa mine.

Gerald Metals and Timis Corporation have declined to comment on the deal.

African Minerals' Tonkolili mine neighbours the Marampa mine, with both being of vital importance for the economy of Sierra Leone.

The two assets would benefit from sharing infrastructure to export the ore, but London-listed African Minerals has said that when Marampa has been put up for sale, it had decided not to try to buy it because of the potential impact on its own debt refinancing schedule.

After buying the mine, Timis Mining Corporation then agreed upon access for Marampa to African Minerals' transport infrastructure.

However, African Minerals has said that it has started to shut down its operations in Sierra Leone because it does not have enough working capital.

Key Contracts and Suppliers
Bateman Engineering (updated scoping study); Southern Mining Consultants or SMC (financial modelling).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Bateman Engineering, tel +27 11 899 9000, fax +27 11 899 4903 or email enquiries-africa@batemanengineering.com.
SMC, tel + 61 407 884 667 or email je@southernmc.com.au.
Cape Lambert Resources investor relations, Eloise von Puttkammer, tel +61 8 9380 9555 or email eloisev@capelam.com.au.