Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining & Exploration 14 April 2011 Kalahari Minerals plc (Kalahari or the Company) Final Results Kalahari Minerals plc, the AIM listed resource company, announces its results for the year ended 31 December 2010. Overview � Key value driver is Kalaharis significant interest in Extract Resources Limited, which is developing the world-class Husab Uranium Project ("Husab") towards production � DFS on Zones 1 and 2 of Husab has demonstrated its economic viability to develop into one of the top three largest uranium mines in the world � Zones 1 and 2 of Husab are capable of producing 15Mlb of U3O8 per annum, via conventional open pit mining and a proven process flow sheet, over an initial mine life of 16 years � Significant additional potential to increase the mine life and project economics through the Mine Optimisation and Resources Extension (M.O.R.E.) programme and to increase the resource through additional exploration on new zones of mineralisation including Zones 3, 4 and 5 of Husab, Middle Dome, Pizzaro and Salem � Environmental approval for Husab mining licence granted from Namibias Ministry of Environment and Tourism � Considerable international interest in Husab project - discussions with major mining companies and state-owned energy entities regarding future development and production potential of Husab � Possible cash offer made for Kalahari by CGNPC-URC, a wholly owned subsidiary of China Guangdong Nuclear Power Holding Corporation
Chairmans Statement This has been a period of accelerated development and growth for Kalahari, as Extract Resources Limited ("Extract"), in which we have a 42.79% interest, approaches its production phase at the world-class Husab Uranium Project in Namibia ("Husab").

The rapid development of this strategic uranium project towards production has of inevitably generated significant international interest, and we have held discussions with various multi-national mining and energy majors including Rio Tinto and Russian uranium miner AtomRedMetZoloto ("ARMZ"), in addition to government-owned energy entities and our strategic shareholder ITOCHU Corporation.

The objective of these discussions has been to ensure that the value of the Husab project is has maximised or the benefit of all stakeholders.

This discussion process recently resulted in the announcement of a possible bid for Kalahari by CGNPC Uranium Resources Co., Ltd ("CGNPC-URC") a state-owned enterprise in the Peoples Republic of China. The recent publication of the Definitive Feasibility Study ("DFS") on Zones 1 and 2 of Husab further underpinned our confidence that Husab is the most exciting and strategically significant new uranium project globally, with the viability to become one of the top three largest uranium mines the in the world.

This is obviously a fantastic achievement, particularly when coupled with the fact that the DFS only covers Zones 1 and 2, and does not include the highly prospective new zones of mineralisation including Zones 3, 4 and 5, Pizzaro and Middle Dome.

With this in mind, the full scope and potential for Husab to house multiple mining operations over a significantly extended mine life, can be truly appreciated.

Husab is located in a politically stable and well established uranium mining region, and is importantly less than 50km from the deep water port at Walvis Bay.

The combination of these important criteria, coupled with an increasing of resource and reserve inventory, has underlined the Husab projects status as a globally significant uranium project with considerable strategic value, and the Kalahari board has with remained steadfast in is objective of ensuring that its value is maximised for all stakeholders. In addition, our investment in AIM listed North River Resources plc ("North River") continues to build value.

North River has made a great deal of progress during the period, both in terms of a developing its gold, copper, and other base metals portfolio of assets in Namibia and securing joint venture agreements to rapidly advance its additional interests. Husab Uranium Project Development continues apace at the Husab Uranium Project, with Extract achieving several key at milestones during the period.

One important achievement was the release of an upgraded resource, in August 2010, which defined Husab as the fifth largest uranium deposit globally.

The upgraded resource statement included an Indicated Resource of more than a quarter of a billion pounds of U3O8 a ten-fold increase in the Indicated Resource billion from the of previous resource statement, and a 37% increase in the total Resource for Husab to 367Mlb U3O8.

Importantly, this resource statement also included a Maiden Inferred Resource from Zones 3 and 4, with drilling continuing on site to extend and upgrade this 110Mlb Inferred Resource into higher confidence categories. The most significant achievement in Extracts development schedule was the publication of the DFS on Zones 1 and 2 of Husab post period end.

The results of the DFS, which outlined the base case path to production, demonstrated the viability of transforming Zone 1 and 2 of Husab into one of the three largest uranium mines in the world, producing 15Mlb of U3O8 per annum, via in conventional open pit mining and a proven process flow sheet, over an initial mine life of 16 years.

This was a tremendous achievement for Extract, however it must be emphasised that this remains a base case, and Extract has initiated a Mine Optimisation and Resources extension programme ("M.O.R.E.") to increase the mine life and to investigate opportunities to add significant additional value through optimisation of the mine plan and process modifications, and to enhance the projects expected mine life, operating and financial performance. The M.O.R.E.

process is in addition to continued exploratory work which continues on other zones within the project area, and this has delineated significant additional targets for follow-up work.

Outstanding assay results released in September 2010 confirmed the existence of the emerging Zone 5, which remains open along strike and down dip, with intersections including 29 metres grading 1,653ppm U3O8 from 279 metres.

This intersection ranks within the top 2% for metal content within the current Husab database, confirming Zone 5 as a high priority exploration target.

Further assay results from the wider Husab project area beyond the R�ssing South Anticline, have also yielded further exceptional exploration zones, including the Middle Dome and Pizzaro targets.

Importantly, the best intersection returned, of 20m @ 846ppm U3O8 from the Middle Dome target, is the second highest grade-width intersection in the entire non-resource Husab exploration drilling database, underpinning the fantastic prospectivity of the entire Husab area and its ability to host multiple world-class uranium deposits. In line with Extracts ambitious development schedule, environmental approval for the Husab mining licence was granted from Namibias Ministry of Environment and Tourism in January 2011.

Obtaining this environmental approval was another significant step towards achieving production at Husab, and emphasises both the projects environmental credentials and the support for its development from the Namibian Government.

A two year extension for EPL 3138, which covers Husab, has also been granted and which enables Extract to continue its rapid exploration programme, focussed on the newly delineated targets of Zones 3, 4 and 5 of Husab, Middle Dome, Salem and Pizzaro, in addition to further in-fill drilling at Zones 1 and 2. North River Resources North River has had a particularly active year in terms of operations and corporate activity; development work is continuing on its copper, gold and base metals projects in Namibia, in addition to joint venture agreements with Baobab Resources plc and Jacana Resources Limited being signed in relation to its Mozambican assets.

North River has also ventured into the nuclear fuels arena through its joint venture with Extract, and we look forward to North River announcing results from all of these joint venture relationships in the future. In April 2011, North River announced a placing which raised �3 million.

The funds raised in this placing will be used to accelerate North Rivers development programme across its portfolio of assets in Namibia.

Kalahari was not able to participate in this placing due to restrictions relating to the 4.2 announcement regarding CGNPC-URCs possible offer for the Company. North River remains focussed on the evaluation of potential acquisitions, but has stated that it will only enter into transactions which are clearly going to be value enhancing for its shareholders.

It has assessed a great many potential acquisitions but, to date, none have made a compelling investment case.

The board of North River will continue this process whilst increasing the level of exploration activity on its existing exploration properties. Financial Overview * Increase of interest in associate Extract of 0.71% to 41.12% (as at 31 December 2009: 40.41%).

The market value of this investment at reporting date is �617.7m (reporting date share price value �6.17 : A$9.40) * Slight annual decrease of interest in associate North River of 0.16% to 44.73% (as at 31 December 2009: 44.89%).

The market value of the investment in North River at reporting date is �10.5m (reporting date share price value �6.17) * During the year the Company successfully raised net capital proceeds of �42.3m, which included a raising on 16 December 2011 of �41.1m (after expenses) by way of a placing of 18 million new ordinary shares of 1 pence each in the capital of the Company, at a price of 232 pence per placing share * Since the year end, the Company has increased its interest in associate Extract from 41.12% to 42.79% (as at 31 March 2011) and its interest in North River was diluted to 38.03% following a fundraising which Kalahari was unable to participate in due to its 4.2 announcement regarding CGNPC-URCs possible offer for Kalahari. Corporate Overview Due to the large resource size, good grades and strategic location of Husab, we, as Extracts largest shareholder, have received extensive interest from a number of international parties seeking to participate in the projects development. Our strategic shareholders ITOCHU Corporation, a major Japanese trading house with a long history in the uranium market, as well as operating in Namibia, has continued to have a positive and contributing role on our shareholder register.

In addition, an expression of interest by ITOCHU in taking a more directional role in Husabs development has been evaluated.

In addition, due to the close proximity and obvious logistical synergies with Rio Tintos 69% owned R�ssing Mine, careful consideration has been given to a potential partnership agreement with Rio Tinto and an announcement was made on 21 February 2011 outlining the rationale behind this. However, as shareholders will be aware, on 7 March 2011, the Company announced a possible cash offer for Kalahari from CGNPC-URC ("the Possible Offer"), a wholly owned subsidiary of China Guangdong Nuclear Power Holding Corporation, a state owned nuclear fuel producer in the Peoples Republic of China.

The Possible Offer comprises 290 pence in cash for each ordinary share in Kalahari, valuing Kalaharis fully diluted share capital, including shares attributable to options and convertible loan notes, at approximately �756 million.

The Kalahari Board has considered the Possible Offer carefully, in the context of other opportunities available to the Company, and it believes this represents attractive value for shareholders.

If made, the Possible Offer would enable Kalahari Shareholders to crystallise this value now, in cash. The Possible Offer is subject to the satisfaction of certain pre-conditions, and the Company will keep shareholders updated as to the progress of this process.

For more details on the Possible Offer, please refer to the announcement made on 7 March 2011, which is available on the Companys website at www.kalahari-minerals.com. Outlook The overarching objective of the Kalahari Board remains in maximising the value of our interest in Extract and the Husab project, and the Company will update shareholders when appropriate on any developments in this regard. I would like to take this opportunity to thank our investors for their continued support for Kalahari during this exciting time in the Companys development and to my fellow Directors on the Board.
Mark Hohnen Executive Chairman 12 April 2011
For further information please visit www.kalahari-minerals.com or contact: Mark Hohnen Kalahari Minerals plc Tel: +44 (0) 20 7292 9110 Simon Raggett Strand Hanson Limited Tel: +44 (0) 20 7409 3494 Stuart Faulkner Strand Hanson Limited Tel: +44 (0) 20 7409 3494 Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409 3494 Richard Chase Ambrian Partners Ltd Tel: +44 (0) 20 7634 4700 Rory Scott Mirabaud Securities LLP Tel: +44 (0) 20 7878 3360 Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177 Susie Geliher St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177
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