Reserves & resources

Mineral Resources and Reserves for Petmin’s operations are reported in accordance with the requirements of the South African Code for the Reporting of Mineral Resources and Mineral Reserves (SAMREC).

The Mineral Resources and Reserves reported for Samquarz are based on information compiled by SRK Consulting (South Africa) (Pty) Ltd, which was published in the Competent Person’s Report on 1 October 2008.

SamQuarz

SamQuarz Revised Mineral Resources Statement – as updated by SRK in October 2008

Resource classification	Quartzite* (Mt)	Chert** (Mt)
Measured	60.63	7.94
Indicated	19.97	3.54
Total Measured and Indicated	80.60	11.48
Inferred	-	48.31
Total Resources	80.60	59.79

*	The estimated quartzite Mineral Resource was divided as follows:
Measured:	total resource within the base case pit outline.
Indicated:	balance of the resource outside the base case pit outline.
Inferred:	there are no Inferred Resources.
**	The estimated Mineral Resource for chert and chert products was divided as follows:
Measured:	estimated resource of chert and chert products within years one to 20 in base case pit outline.
Indicated:	balance of the estimated resource from year 21 onward.
Inferred:	balance of the estimated resource lying outside the base case pit limits.

SamQuarz Revised Mineral Reserves Statement – as updated by SRK in October 2008

Reserve classification	Quartzite (Mt)	Chert–grade product (Mt)
Proved	19.16	7.94
Probable	41.48	3.54
Total	60.64	11.48

SamQuarz mine depletion to June 2009

	Mineral	Reserve	Mining method	ROM (Mt)
Reserves - 30 June 2008	Quartzite/chert	Proved	Opencast	72.72
Mined this year				(1.33)
Reserves - 30 June 2009				69.39

The 2007 Mineral Reserve estimates presented in the table above are based on an updated CPR by SRK, as published in October 2008, and are in accordance with the SAMREC code 2007. The estimated depletion of reserves due to mining operations from the dates of the previous CPRs has not been independently verified.

Somkhele

Anthracite Resources for Somkhele Area 1, 2 and 3

Resource classification	Gross in-situ tonnes (Mt)	Geological loss (%)	Mineable in-situ tonnes (Mt)
Area 1 – Measured	10.911	10	9.820
Area 1 – Indicated	16.568	20	13.254
Area 1 – Inferred	8.596	50	4.298
Total – Area 1	36.075	24	27.372
Area 2 – Measured	2.667	10	2.400
Area 2 – Indicated	NIL	-	-
Area 2 – Inferred	NIL	-	-
Total – Area 2	2.667	10	2.400
Area 3 – Measured	NIL	-	-
Area 3 – Indicated	NIL	-	-
Area 3 – Inferred	42.847	50	21.424
Total – Area 3	42.847	50	21.424
TOTAL Areas 1, 2, 3	81.589	37	51.196

Anthracite Reserves for Somkhele Area 1 and 2

Reserve classification	Mining Method	Mineable in Situ (Mt)	Extraction (%)	ROM (Mt)	Practical yield (%)	Sales tonnes (Mt)
Area 1 Proved	Opencast	9.820	95	9.329	68.6	6.400
Area 1 Probable	Opencast	13.254	95	12.591	68.6	8.638
Total Area 1	Opencast	23.074	95	21.920	68.6	15.038
Area 2 - Proved	Opencast	2.400	95	2.280	68.6	1.564
Area 2 - Probable	Opencast	-	-	-	-	-
Total - Area 2	Opencast	2.400	95	2.280	68.6	1.564
Total Area 1, 2		25.474		24.200		16.602

Somkhele mine depletion to June 2009 (based on selective mining – excludes seam partings)

	Mineral	Reserve classification	Mining method	ROM (Mt)
Reserves at start of mining	Anthracite	Proved & Probable	Opencast	24.200
Mined in 2007				(0.090)(1)
Reserves - 30 June 2007				21.110
Mined in 2008				(0.800)(1)
Reserves - 30 June 2008				23.310
Mined in 2009				(0.810)(1)
Reserves - 30 June 2009				22.500

⁽¹⁾ Based on selective mining – excludes seam parting, and is equivalent to the 1.1 million ROM tonnes (bulk mining basis) reported in the director’s review in this report

Note – the mine depletion table has not been reviewed by an independent competent person and is provided by management for guidance only.

Veremo

Snowden Mining Industry Consultants published a resource statement in February 2008 prior to the acquisition of Veremo by Kermas and Petmin. This data is currently being validated and the extent and quality of the Veremo resources will be finalised in the first quarter of 2010.