UNIVERSAL ANNEX & MOPANE

PR Reference No: LP/5/1/1/2/1594 PR & LP/5/1/1/2/1685 PR.

Farms: Vrienden 589 MS, Gruisfontein 368 MS, Renfrew 620 MS, Riebelton 488 MS, Thurso 619 MS, Mansfield 356 MS, Kaal Kraal 100 MS, Icon 95 MS, Hartz 233 MS, Kilgour 176 MS, Mirrior 111 MS and Rietfontein 109 MS.

Rights Holder: Exotic Coal Exploration (Pty) Ltd.

The Soutpansberg coalfield is divided into three separate sectors named from west to east as Mopane, Tshipise and Pafuri. Within the Mopane Sector are ASX/JSE listed Coal of Africa’s (CoAL) Chapudi project (formerly owned by Rio Tinto) and the Berenice project controlled by ASX listed Universal Coal. CoAL is currently exploiting a Semi soft coking coal at their Vele Project, located along the South African side of the Botswana and Zimbabwe borders, several kilometres to the north of the Signet’s Mopane project area. The twelve farms that make up Signet’s two projects are located in the sector that forms the western part of the Soutpansberg Coalfield.

The UNIVERSAL ANNEX project sits 20.4km from the town of Waterpoort. The MOPANE project is 67km from the town of Waterpoort and 80km from the town of Musina. Currently, TRANSNET (South Africa’s Coal Freight agency) is conducting an engineering conceptual study via engineering consultancy HATCH, to upgrade the existing rail sidings at all 3 towns.  All projects have direct access to fully tarred roads, roads capable of linking coal haulage vehicles to any part of South Africa, concluding existing railway sidings at Waterpoort, Mopane and Musina linking the area to the ports of Durban, Richards Bay and Matola in Mozambique.

Currently, CoAL and Universal Coal are conducting exploration adjacent and/or nearby.  From the publicly presented data there is enough lithological information available to infer coking coal occurrences for Signet’s project areas. These potential resources will likely be made up of a Semi soft coking and Thermal coal product.

In South Africa, prospecting right boundaries are defined by farm boundaries, which can be clustered together to form a single prospecting right area wherever contiguous.