Name and Location
Moiyabana coal project, Botswana.

Client
Jaquar Ventures owns 100% of the project.

In March 2011, Australian exploration company Hodges Resources reached an agreement with Jaquar Ventures to acquire up to 90% of the equity of the company.

Hodges Resources has since exercised its option to acquire the 90% share in Jaquar.

Hodges has the right to earn up to a 90% stake in the equity of Jaquar.

However, following the completion of the recent drill campaign at Moiyabana, the Hodges board has decided that it will not exercise its first option in October.

It will seek to reclaim its expenditure in the project through an allocation of Jaquar shares and has also requested a repayment of the refundable $3-million option fee originally paid to existing Jaquar shareholders.

The decision not to take up the first option means that Hodges is not required to pay the balance of the first option fee (up to $9-million) in October.

The company is not required to pay any further funds (about $58-million) for the second option fee in July 2013.

Project Description
The Moiyabana coal project is located about 90 km from the Morupule mine and power station, and 50 km from existing rail infrastructure in central east Botswana, just north of Kodibeleng Village.

The project consists of two prospecting licences, PL93/2008 and PL94/2007, covering a total of 593.1 km², which lie within the south-east central Kalahari sub-basin of the Karoo Supergroup.

A recent drilling campaign has confirmed a maiden resource of 768-million tons, a 358-million-ton indicated resource within the depths amenable to opencut mining, and a 410-million-ton inferred resource.

An additional 614-million to 897-million tons of inventory coal has also been estimated.

Value
Not stated.

Duration
A timeframe has not been disclosed.

Latest Developments
Hodges MD Mark Major has said that while the confirmation of a maiden resource for the project is pleasing for the company, the board has decided not to increase its stake in the Moiyabana project, given the solid progress and recent developments at Hodges’ flagship Morupule South coal project.

As the Hodges board will not exercise its option in October to increase its holding in the Moiyabana project, it will seek to reclaim its expenditure in the project through the allocation of Jaquar shares and will apply for repayment of the refundable $3-million option fee originally paid to existing Jaquar shareholders.

Meanwhile, further interpretation of seam correlations and the extent of the shallow coal in the central area will be investigated. No additional drilling is envisaged in the near term.

Key Contracts and Suppliers
GeoConsult (resource estimation).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Hodges Resources MD Mark Major, tel +61 8 9322 6412, fax +61 8 9322 6398 or email info@hodgesresources.com.au.
GeoConsult, tel +61 7 3851 7400, fax +61 7 3851 7499 or email geoconsult@geoconsult.com.au.