[cid:image001.jpg@01CC2428.01E701B0] 06 June 2011 SUBJECT: 1Bt thermal / coking coal project acquired in Zimbabwe SUMMARY Sable Mining have acquired 49% (complies with indigenisation legislation) of the Lubimbi thermal + coking coal project in Zimbabwe.

The project has a 20-45m thick seam that dips gently and outcrops on surface.

A 10,000m drill programme will now commence, and run in parallel with that at the existing Lubu project (existing 786Mt resource). Sable now has potential multi-billion-ton coal projects in Southern Africa, and multi-billion-ton iron ore projects in West Africa.

While still in the early stages of assessment, these two portfolios clearly stand out from one-asset one-country peers of similar enterprise value.

We think drilling on each portfolio over the coming years could create value similar to that of management previous company, CAMEC, which sold for US$950m. DETAILS Sable Mining has acquired a 49% interest in the Lubimbi coal project in the Kariba coal basin in Zimbabwe, 35km from the Dete rail siding, from Liberation Mining, holder of Special Grant 4977 which covers the project.

Historic work indicates an in-situ tonnage of >1Bt - recent drilling by Liberation of 45 holes totaling 4,500m supports this tonnage, and suggests the main coal zone varies from 20-45m thickness, outcrops, and dips at around 2 degrees. Preliminary analytical work suggest a high-grade thermal coal with a soft- or blend-coking coal fraction.

Sable will now start a 10,000m drill programme to test both tonnage and coking potential with two rigs over the coming 10-12 months. OUR VIEW This project supplements the companys existing Lubu project, also in Zimbabwe (also a thermal coal, with 21% coking fraction identified from recent work).

At Lubu drilling is also underway on the existing 786Mt resource.

With think there is a strong likelihood of a resource of over 2Bt between the two projects, with a coking fraction adding to the quality of the product. Logistics are interesting - certainly major infrastructure investment in Zimbabwe is on hold under the current government.

However, the big difference between this and other similar sized bulk-commodity projects in Africa (ie West African iron ore, Mozambique coal at Tete) is existing infrastructure (Bulawayo rail line to Maputo).

In our view, in the advent of a regime change, rail and cross-border agreements can be rehabilitated faster than peers will take to build new rail.

As such, we think that these two projects, once Sable has drilled and fully assessed them, will be extremely attractive to potential bidders in the medium term. [cid:image002.jpg@01CC2428.01E701B0]
Brock Salier Email: Dir : +44-20-7016 1904
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