Current Feasibility Programme

Following recent funding, a feasibility programme necessary for a mining licence application in 2015 is currently underway including metallurgical and process design, environmental work and mine planning. A major RC and Diamond drilling programme is also underway to further define and extend known high grade uranium mineralisation and provide further data for resource modelling.

Drilling

A major RC and Diamond drilling programme is underway with the purpose of defining the resource at a mining scale. The results will provide valuable information required for the pit optimisation as part of the feasibility study to enable application for a mining licence early next year.

This consists of a 12 PQ diamond drilling programme to collect samples for lithological gamma studies and comminaition test work and a +3000m RC drilling programme to establish mining scale uranium variability and selected infill drilling to improve information in higher grade areas

Metallurgy

A Scope of Work for the remaining metallurgical test programs, required to complete the Feasibility work necessary for a mining licence application in 2015 has been completed and sent out to various groups for tender. A scope of work for the geotechnical, geochemical and hydrological study of the heaps and waste products of the proposed Letlhakane uranium operation has also been prepared and sent out to tender. This work will be awarded and commence in June 2014.

Environmental and Social Impact Assessment (ESIA)

Due to recent successful exploration efforts, a gap analysis for the main project ESIA has been undertaken to assess the impact of including the expanded resource area and potential inclusion of coal. An amended ESIA Scoping Report including a Gap Analysis has been submitted and approved by the Department of Environmental Affairs. Specialist studies are ongoing.

Water supply

A detailed water exploration program was undertaken. Applications to register water rights for each of the 17 boreholes have been approved by the Water Apportionment Board.

Power Supply

A system survey has been undertaken by Botswana Power Corporation. They have confirmed that they can supply the required power and recommendations and a quotation have been provided. It is planned to sign an Memorandum of Understanding with Botswana Power Corporation and start detailed design and construction of the infrastructure.

Tenure – PL45/2004

Prospecting Licence PL45/2004 – Letlhakane has been extended for a period of 2 years from 1 July 2013. The Company relinquished approximately 25% of the licence in areas that are considered unprospective for uranium, coal or base metals mineralisation. The two year extension will allow adequate time for A-Cap to complete all feasibility and environmental work necessary to enable the submission of a mining licence for the Letlhakane Uranium Project. This extension reflects the Government of Botswana’s recognition of A-Cap’s commitment to the development of the Letlhakane Uranium Project, the high quality of work undertaken on the project to date and importantly, A-Cap’s high standing with the communities in which it operates and all stakeholders in general.