Location and Tenure

Located on the northwest coast of Madagascar, 35km southwest of the port city of Majunga, the Majunga Project comprises a single permit of four (4) permits totalling 25.0 square kilometres. The exploration (RP) permits were granted in March 2005 for a period of 10 years. They are beneficially owned by the Company with title held by MDA.

Geology, Exploration History and Targets

The Majunga Project is located in an area prospective for Quaternary alluvial – hosted ilmenite mineralisation (mineral sands). Early assessment of the project has indicated a favourable mineralisation environment. An additional advantage is provided by proximity to significant coastal port facilities. Majunga is located in an area of environmental sensitivity, a factor which may complicate project advancement going forward. However the strength of the experience base of the MDA management team should allow effective negotiation of any regulatory hurdles.

No systematic field programmes have been completed by MRNL over this area; the permits were acquired on the knowledge that they contain deposits of ilmenite-rich sands and that MRNL possesses significant expertise in the development of such deposits.

Proposed Exploration Program & Budget

It is initially planned to utilise the expertise of MDA personnel (Toliara Sands Project) to conduct an initial first-pass assessment of this project. The exploration rationale involves surface mapping and auger sampling in the first instance, followed by metallurgical testing of any ilmenite-bearing material delineated. Favourable results from this exercise will allow transition to targeted drill testing of prospective areas. A total of 660 metres drilling have been allocated for this purpose.

Information as of Mar 2010