executive summary short form samrec compliant …€¦ · the world's largest layered igneous...

TABLE OF CONTENTS

! Locality, Property Description And

Neighbouring Properties

! Physiography Climate And Access

! Legal Tenure And Agreements

KEY FEATURES

InterActionCorporate Reporting & Identity Specialists,

Annual Reports, Graphics

Information in this statement is to be used for marketing and illustrative purposes only. herein may not be edited or transmitted in any form or by any means without prior written permission.

PAGE 1

The diagrams and the information

D795M_AbsoluteBauba'10FigNorthernCentralSouthern_Valuation

! Regional Geology

! Local Geology

! Deposit Type And Mineralisation

! Reconnaissance Mineral Resource

Statement

! Exploration Work Strategy

! Estimated Exploration Costs

! Effect Of Mineralisation Depth To Shaft Depths

! Brief Review Of Neighbouring Properties

! Conclusions And Recommendations

Competent Persons and Competent Valuators: Mr. Andy Clay, M.Sc. (Geol), M.Sc. (Min. Eng.), Dip.Bus.M. Pr.Sci.Nat., MSAIMM, FAusIMM, FGSSA, IOD,

AAPG, CIMMP.

Mrs. Carol Taylor, B.Sc. Hons (Geol.), Pr. Sci. Nat., MGSSA, MGASA.

Compiled by: Mrs. Carol Taylor, B.Sc. Hons (Geol.), Pr. Sci. Nat., MGSSA, MGASA.thEffective Date : 14 April 2010.

Prepared For : Absolute Holdings Limited, (Absolute).

Purpose: This is an Independent assessment and verification of Bauba's PGE prospective properties on behalf of

Absolute Holdings. Absolute's strategic objective is to initially build a 0.35Moz p.a. PGE mine within the next

10 years and ramp it up to 1Moz p.a. within 20 years. The Company has entered into a binding agreement

with Bauba A Hlabirwa Mining Investments (Pty) Limited (“Bauba”) whereby Absolute will acquire a 60%

share in the PGE explorer.thSources of Information : Technical Reports as supplied by Qinisele Resources including Press releases of 16 February 2010 and a

Business Day article, “Absolute takes 60% stake in the PGE explorer Bauba”, as well as reports from the

public domain of adjacent mineral properties. Property areas were obtained from Win Deed, a Deeds and

Office Enquiry website.thPersonal Inspection : A site inspection was carried out on 25 February by Venmyn, Gain Consulting cc and Qinisele Resources

personnel. The Southern and Central Clusters were visited at the time.

Reliance on Other Experts: Stephen Gain (Pr.Sci.Nat Msc), Snowden, Qinisele Resources.

Property Description and Location: Bauba holds prospecting rights, in the North Eastern Bushveld Igneous Complex (BIC), over nine farms

extending over an area of approximately 56km in length and 6km in width (approximating 14,480ha). The

farms have been grouped into three areas namely the Northern, Central and Southern Clusters. The

Northern Cluster is being dealt with in this report. It consists of Schoonoord 462KS, Indie 474KS, Zwitzerland

473KS and Fisant Laagte 506KS. The total area is about 7,700ha. All the Bauba farms lie along the Leolo

mountain range in the Limpopo Province approximately 40km northwest of the Limpopo Province town of

Steelpoort and 245km northeast of Johannesburg. To the east and up-dip, the Bauba mineral assets are

surrounded by several current operating mines and development projects. th License Status: Prospecting Right No. 256/2006 PR due to expire on the 6 July 2011.

thOwnership Details: Bauba owns the prospecting rights. These were ceded to Bauba, on 9 April 2007, by King Moruthane Ben

Sekhukhune and Motubatse Ben Bokgobela representing Sekhukhune Rhyne Thulare for and on behalf of

the Bapedi Nation. Absolute Holdings is in the process of acquiring 60% of the PGE explorer, Bauba.

Topography and Climate: The Northern Cluster lies in a mountainous area with elevations lying between 800m and 1,270m. The

elevation difference between the peaks and the flat valleys is about 470m. The climate of the area is typical of

sub-tropical Highveld with warm moist summers and cool dry winters. The rainfall on the escarpments is

higher at 700mm compared to about 500mm in the valleys. Temperatures recorded at Steelpoort vary 0 0 0 0 0 0between 30 C and 17.6 C in January and 21.6 C to 3.8 C in July. Extremes of 40 C and -2.3 C have also

been recorded.

Infrastructure and Accessibility: The farms are relatively easy to access but field camps will have to be constructed. Access roads will be cut

with the aid of bulldozers and water for drilling will have to be taken to site using bowsers.

Geological Setting and Deposit Type: The Bauba prospects are located on the North Eastern Limb of the BIC, which lies on the eastern portion of

the world's largest layered igneous intrusion and known to host more that 80% of the world's PGE's and

associated base and precious metal deposits. The farms lie down dip of existing mines and exploration

projects. Reconnaissance mapping carried out to-date shows that the farms lie in the Main and Upper Zones

of the BIC. The Critical Zone which is known to host both PGE targets, the Merensky Reef and the UG-2

Chromitite, lies directly below the Main Zone. These two layers are expected to be at least a 1,600m below o 0surface and 390m apart, with dips ranging between 18 W in the South East and 30 SW in the North West.

However, in the Northern to Central Cluster, two diapiric structures, the Paradys and the Phoshiri domes are

thought to have deformed the Critical Zone rocks close to their outer edges, hence possibly uplifting the ore

hosting rocks closer to surface.

LOCATION WITHIN SOUTH AFRICA

Cape Town

Durban

JohannesburgPROJECT

AREA

Northern Limb

Eastern Limb

Western Limb

Pretoria Middelburg

Mokopane

Steelpoort

0 100kmSCALE:

PROJECTAREA

BUSHVELD IGNEOUS COMPLEX (BIC)

Rustenburg

EXECUTIVE SUMMARY SHORT FORM SAMREC COMPLIANT TECHNO ECONOMIC VALUATION STATEMENT On The Cluster Of The Bauba Mineral Platinum Properties For Absolute HoldingsNorthern

thAs at 14 April 2010

These documents comply with the Executive Summary requirements of Section 12.9 (h)


PAGE 2


D795M_AbsoluteBauba'10FigNorthernCentralSouthern_ValuationInterActionCorporate Reporting & Identity Specialists,


1. LOCALITY, PROPERTY DESCRIPTION AND NEIGHBOURING

PROPERTIES

2. PHYSIOGRAPHY, ACCESS AND CLIMATE 3. LEGAL TENURE AND AGREEMENTS

The sudden downpours pose some risk of flooding in low-lying areas. 0 0Temperatures recorded at Steelpoort vary between 30 and 17.6 C in

0 0 0 0The Bauba farms lie along the Leolo mountain range in the Limpopo January and 21.6 to 3.8 C in July. Extremes of 40 and -2.3 C have also Province. approximately 40km north-northwest of the Limpopo been recorded. Province town of Steelpoort and 245km northeast of Johannesburg.

The farms are surrounded, on the eastern side by operating PGE mines The mostly moderate climate means that exploration and mining and development projects on the North Eastern limb of the BIC. The operations can be undertaken throughout the year, with no Northern Cluster, in particular, lies due west and down dip of Bokoni extraordinary measures required.Platinum mine and the Ga-Pasha PGE Project, both jointly-owned by

Anglo Platinum and Anooraq. The location of these properties is shown Field camps will be constructed for the drilling. Where necessary, in Figure 1 . access roads into the properties will be cut with the aid of bulldozers.

Water for drilling will be transported to site.

The Northern Cluster lies along the Leolo mountain range in the The Prospecting Right 256/2006PR was issued in June 2006 to King

Limpopo Province. The peaks are interspaced with flat valleys with Moruthane Ben Sekhukhune and Motubatse Ben Bokgobela, as

elevations lying between 800m and 1,270m. The elevation difference representatives of Sekhukhune Rhyne Thulare for and on behalf of the thbetween farms is about 470m. The climate of the area is typical of sub- Bapedi Nation. The Prospecting Right was ceded to Bauba on the 9 of

thtropical Highveld with warm moist summers and cool dry winters. The April 2007. This is due to expire on the 6 July 2011. Absolute has now rainfall on escarpments is higher at annual averages of 700mm entered into a binding agreement with Bauba where Absolute will hold a compared to about 500mm in the valleys. Precipitation is usually in the 60% direct and indirect share in Bauba. (Table 1).form of thunderstorms during summer.

Steelpoort

Bothashoek

Nkwe Platinum

DILOKONG

Northern ClusterProject Area

AngloPlat/Anooraq(Ga Phasha)

Anooraq(Bokoni)

JubileePlatinum

EASTERN CHROME MINES(Chrometco)

African Rainbow/Angloplat(Modikwa)

Mooihoek

7.5kmScale:

0

B’ B

C D

E F

A’ A

ZWITZERLAND 473 KS

FISANT LAAGTE 506 KS

MAGNEETSVLAAKTE 541 KS

DINGAANSKOP 435 KS

GENOKAKOP 285 KT

GROOTVYGENBOOM204 KT

INDIE 474 KS

SCHOONOORD462 KS

EASTERN CHROME MINES(Clapham)

MOOIHOEK

EASTERN CHROME MINES

(Montrose)

AngloPlat(Twickenham)

Implats(Marula)

EASTERN CHROME MINES(Mecklenburg)

FIGURE 1: LOCATION MAP SHOWING THE BAUBA NORTHERN CLUSTER ON THE EASTERN BIC

Anglo Platinum Operating Mine

Anglo Platinum Prospecting Right/Option

Anooraq/Anglo Platinum Operating Mine

Bauba Project Areas(Absolute Holdings Ltd)

Implats/Misc Operating Mine

African Rainbow/Anglo Platinum

Operating Mine

Jubilee

Lesego

Nkwe Platinum

Anooraq

Chrome Mines

Smelters

MR

CR

UG2 Reef

Merensky Reef

Chromite Reef

Fault

Road

Railway

River

Limit

Town

Cross Section Lines

FARM FARM AREA APPLICATION PROSPECTING DATE EXPIRY

NAME No. (ha) NAME RIGHT ISSUED DATE

Fisant Laagte 506KS, 2,013

Zwitzerland 473KS 1,952

Indie 474KS 1,516

Schoonoord 462KS 2,212

6-Jul-11

COUNTRY PROVINCE CLUSTER

South Africa Limpopo Northern

Bauba A

Hlabirwa

Mining

Investments

(Pty) Limited

256/2006PR 7-Jun-06

TABLE 1: LEGAL TENURE

Central ClusterProject Area



LesegoPlatinum(Phosiri)

Southern ClusterProject Area

HOUTBOSCH323 KT

disputedportion


PAGE 3




4. REGIONAL GEOLOGY

The Merensky Cyclic Unit and Merensky Reef

The Main Zone

The Critical Zone

The Bauba prospects are located on the eastern limb of the BIC as

shown in Figure 2 .The limb forms part of three layered mafic-ultramafic The Merensky Cyclic Unit occurs close to the top of the Critical Zone. At

bodies, defined as the northern, western and eastern limbs. These form Winnaarshoek this unit consists of a 2-5 meter thick feldspathic

an ellipse in plan, some 200km by 370km in extent with granites and orthopyroxenite that is overlain by norite-leuconorite, spotted

felsic volcanic in the central and southern regions. The Bushveld anorthosite and then mottled anorthosite. A similar stratigraphic

Complex exhibits remarkably consistent layering that can be correlated sequence is described on Nkwe's Garatau and Maandagshoek. The

extensively throughout the geologic expression of the whole complex. Merensky pyroxenite is typically medium-grained, brownish-gray, and

can be described as feldspathic orthopyroxenite. Detailed microscopic

Figure 2 portrays the plan view as well as the vertical representation of studies have shown the feldspathic pyroxenite to consist of medium-

the stratigraphy of the Bauba Project area in relation to the geology of grained (1-30mm) orthopyroxene with intercumulus plagioclase. This

the Eastern BIC. The units in Table 2 are the units as they have been rock can exhibit both poikilitic and porphyritic textures due the presence

described by S. Gain. of variably distributed, oikocrysts (10-20mm) of clinopyroxene.

Two thin chromitite layers occur to the top of the orthopyroxenite. At

The Main Zone is generally poorly layered and contains a monotonous Garatau the lower stringer is defined as the bottom reef contact or

sequence of norite and gabbro-norite, with only minor anorthosite (“BRC”) and the top reef contact (“TRC”). The TRC occurs some 1,8m

layers which allow for stratigraphic correlation. above the BRC (Winnaarshoek). The BRC is 1-25mm thick and is

generally less persistent than the 1-25mm thick TRC which is

commonly present and laterally persistent. Sulphide mineralization is

The Critical Zone, which lies below, contains well defined, and easy to associated with both chromitite layers and can comprise up to 2% of the

correlate, layers which can be broadly sub-divided into the rock types mode.

dunite, harzburgite, pyroxenite, norite, anorthosite and chromitite.

These layers have both sharp and gradational contacts and progress The best combination of sulphide and associated PGE mineralization

through subtle variations to produce leucocratic and melanocratic occurs for about a metre below the TRC. Diffuse segregations and

variations of medium grained rocks. In places the rocks are pegmatoidal selvages of pegmatoidal pyroxenite occur above the TRC and

and can form pipes and segregations. Later dolerite dykes intruded into sometimes below the BRC.

faults. The Critical Zone contains the main economic targets namely the

Merensky Reef and the UG2 chromitite layer.

Steelpoort

Bothashoek

Nkwe Platinum



JubileePlatinum

Implats(Marula)

Mooihoek

7.5kmScale:

0

F

MERENSKY REEF

UG2UG1

Upper Group

MG4

MG3

MG2

MG1

MiddleGroup

LG7

LG6 & LG6A

LG5

Lower Group

MAIN ZONE

UPPER CRITICAL ZONE

LOWER CRITICAL ZONE

LOWER ZONE

PYROXENITE MARKER

LEGEND:

Chromitite

Anorthosite

Norite

Pyroxenite

MARGINAL ZONE

UPPER ZONE

RUSTENBURG LAYERED SUITE:

B

C D

E F

MAGNEETSVLAAKTE541 KS

ZWITZERLAND473 KS

FISANT LAAGTE506 KS


(Montrose)


DILOKONG

MOOIHOEK





Lebowa Granite Suite

Alluvium

Upper Zone

Main Zone

Merensky Reef

UG2 Reef

Upper Critical Zone

Lower Critical Zone

Chromite Reef

Lower Zone

Southern Facies Lower Zone

Marginal Zone

UG2 Reef

Merensky Reef

Cross Section Lines

MR

VMR

CR Chromite Reef

Vandiferous Reef

Fault

Road

Railway

River

Limit

Town

Chrome Mines

Smelters

FIGURE 2: NORTHERN CLUSTER GEOLOGY ALONG THE EASTERN BIC

Anooraq(Bokoni)




HOUTBOSCH323 KT


SCHOONOORD462 KSLesego

Platinum(Phosiri)

A’ A B’

disputedportion

INDIE 474 KS

DINGAANSKOP543 KS

GENOKAKOP 285 KT



PAGE 4




The Genesis of the PGE sulphide

Mineralisation

UG2 chromitite layer

5. LOCAL GEOLOGY

Later Dykes, Pipes and Structural Setting

6. DEPOSIT TYPE AND MINERALISATION

Depth of Mineralisation

! various ultramafic pipes occur on

Maandagshoek and Garatau. There is no

information on their composition and

whether they have been tested for their

PGE content.

The origin of the PGE mineralisation in the BIC

has been investigated for 100 years and

remains a matter of debate. A possibility exists

that PGE's are concentrated in primary basaltic

to komatiitic composition magma when a high

degree of partial melting (30%) of the upper

mantle occurs. Within this primary melt, some

mechanism to induce sulphide saturation was

active to produce a sulphide liquid which

segregates from the primary magma. Magma

mixing, crustal contamination and fractional

crystallisation are the most important

processes known to induce sulphide saturation

in magma during intrusion.

Once sulphide saturation of magma was

reached, a sulphide liquid segregated from the

primary magma and strong partitioning of

PGE's, Ni and Cu into this segregated liquid

took place. It is has been suggested that these sulphide droplets act as The UG2 chromitite layer (“UG2”) is located some 350-360m below the a scavenging medium for the PGE's and the droplets collect on the floor Merensky Reef (Gain, 1995). The following description of the UG2 of the magma chamber where the ore-bearing layers form (Eales, pertains to work conducted on Garatau by Nkwe Platinum, but is typical 2001).for this part of the Bushveld Complex. The UG2 is a composite layer

commonly, but not always, underlain by a basal pegmatoid. This is

overlain, through a dimpled contact, by a massive chromitite layer which Reconnaissance mapping carried out has revealed that the farms lie in is 0,5 to 0,8m thick. This massive chromitite layer consists of fine the Main and Upper Zones of the BIC. The Critical Zone which is known grained chromite grains with intercumulus orthopyroxene and to host both PGE targets, the Merensky Reef and the UG2, lies directly plagioclase and commonly has a sharp and planar upper contact. The below the Main Zone. silicate minerals, found in the chromitite layer, form irregularly

distributed crystals which poikilitically enclose the chromite and form Throughout the BIC the PGE and other mineral layers are tabular “mottles” up to 15mm in diameter. The UG2 has up to 3 chromitite bodies extending laterally over hundreds of square kilometres, resulting stringers above which are enclosed within a fine- to medium-grained in extensive mineral resources whose continuity has been established feldspathic orthopyroxenite forming a composite package, 0,10-0,15m over years of exploration and mining. Using exploration information thick. PGE mineralization is associated with very meager sulphide from public domain of companies surrounding the Northern Cluster, a (<1% of the mode) and increases towards the top and bottom of the series of reef contours was constructed by S. Gain and used to predict chromitite layer. It can also occur within the overlying chromitite the behaviour of the mineralisation on the farms.stringers and the basal pegmatoid.

0The two PGE layers are expected to have dips ranging between 18 0A detailed aeromagnetic survey, under the supervision of GAP west in the south-east and 30 South-Eest in the North-West under the

Geophysics, was conducted on the Garatau during 2007. Line spacing Northern Cluster farms.

was 50m and the ground clearance was 20-30m. This work, together

with diamond drilling, has allowed for the production of a map in which Two diapiric structures, the Paradys and the Phoshiri domes are

the general structural setting is defined. S. Gain outlines that this work thought to have deformed the Critical Zone rocks close to the outer

has determined the following:- edges of the Northern and Central clusters, providing an uplift of the ore

! both the Merensky Reef and the UG2 dip constantly at angles host rocks closer to surface than the norm for the area. This is shown in

varying from 6-8ºW. Indications are that dip reduces with depth as Figure 3 . The precise extent of the structural complexity of the area will

the measurements on Maandagshoek showed an average dip of 9- be a focus of the technical assessment of the area by Absolute.

10ºW;

! the airborne magnetic information, combined with SPOT and

conventional airborne photography and ground mapping, show the The mineralised Merensky Reef and UG2 are magmatic and layered,

strike of the layering to be NNW-SSE; segregation deposits containing economic quantities of PGE's and

! dykes of a Karoo to post-Karoo age occur in the region. Two base metals. The PGE's are associated with chromite and base metal

prominent dykes on Garatau trend N-S and show a positive sulphides.

magnetic polarity. The dykes are commonly vertical to sub-vertical.

If there is a dip, it is towards the east;

! the dolerite dykes intrude along fault lines and structural zones of The Merensky layer is expected to be between 1,600 to 2,500m below

weakness. Displacements (faulting) are generally minimal, surface in the Northern Cluster and the parting between the Merensky

although one dyke on Garatau shows a 65m normal throw; and and the UG2 is expected to be about 390m.

UNIT THICKNESS DOMINANT LITHOGLOGY DESCRIPTION

Upper Zone VariesGabbros with banded anorthosite and

magnetite layers.

No chilled contact with the hanging wall rocks,

which consist of rhyolites and granophyres.

Main Zone 3,900mNorite, gabbro-norite, anorthosite and

minor pyroxenite.

Comprises half of the RLS. Banding and layering

not well developed.

Upper Critical

Zone

Layered pyroxenites, norites,

anorthosites and chromitites.

The base of the UCZ marked by cumulus

plagioclase. Norites dominate the UCZ, with

subordinate pyroxenites and anorthosites present

at intervals through the sequence.

Critical ZonePyroxenite inter-layered with

hartzburgite and chromitite.

Chromititeseams occur in three distinct groupings.

The LG series of seams occur exclusively in the

Lower Critical Zone, the MG series of seams

straddle the contact between the Lower and UCZ,

whereas the UG2 group of seams occur within

the UCZ. EconomicPGEmineralisationis hosted in

the Merensky Reef and UG2, a laterally continuous

pyroxenite unit containing PGE and base metal

sulphide mineralisation.

Lower Zone

Varies ,

reaches a

maximum of

1,700m

Cyclically layered units of dunite-

hartzburgite.

Thickness varies and thins over basement highs.

The most complete exposure is in the northeastern

part of the Eastern Limbof the RLS which occurs

as a series of dunite-harzburgite cyclically layered

units.

Marginal Zone

Several

metres to

hundreds of

metres

Unlayered, heterogeneous ultramafic

rocks mostly norites.

Contamination of the basic magmas by the

enclosing host rocks. Sedimentary rock fragments

are contained as xenoliths in the lower portions.

Exposures of this zone are poor.

1,400m

TABLE 2: STRATIGRAPHIC ZONES OF THE RUSTENBURG LAYERED SUITE




PAGE 5




Figure 4 illustrates a schematic cross sectional view, through line A-B,

of the Eastern BIC including the Northern Cluster PGE prospects. Desk top studies have already been carried out by S. Gain and

The section is important to illustrate the disposition of the chrome, Snowden of the Clusters and surrounding properties. Due to the

Merensky and UG2 mines in the area and the extent to which Absolute's remoteness of the area under review, a base camp will have to be

strategy to explore the deeper extension of the existing operation is constructed and access roads to some of the drill sites be constructed

technically feasible. The figure also illustrates how the reefs outcrop on by bulldozers. The 1:10,000 topographic map has been used to lay

surface on the adjacent Ga-Pasha property. boreholes and roads for the Northern Cluster. Reconnaissance

mapping will be carried out in conjunction with the diamond drilling. S.

Gain suggests that field traverses using a portable magnetometer be

Surrounding properties and projects were studied and used to predict conducted to better define the positions of dykes, faults and ultra-mafic

the resource parameters for the Northern Cluster target area. pegmatoids. The results obtained will be plotted onto a 1:10,000 maps.

Information was obtained from reports by S. Gain, Qinisele internal

reports, Snowden as well as projects and mines on the public domain. A phased diamond drilling programme was designed by Snowden and

The summary of these is shown in Table 3. reviewed by S. Gain. Wire-line logging and relative density analyses

have been included. The mother holes are to be deflected into four short

The above parameters were then used to estimate a reconnaissance deflections from 6, 12, 15 and 24m above reef intersections. These

estimate for the Northern Cluster in Table 4. The areas used are as holes should go at least 1m into the footwall of the reef. S. Gain has

given through the Deeds' office website. reviewed the Snowden work and has proposed starting four exploration

boreholes (S-001 to S-004) in the Northern Cluster. These are shown in

Figure 5.

8. EXPLORATION WORK STRATEGY

7. EXPLORATION TARGETS

1:100 000

W E

A B

Zwitzerland473 Ks

Indie474 Ks

Angloplat/anooraq(Ga Phasha)

Chromex(Mecklenburg)

Wa

terk

op

20

00

m

0m

-20

00

m

ma

msl

0 5kmScale:B’

Zwitzerland473 Ks

Indie474 Ks2

00

0m

0m

-20

00

m

Sp

elo

nk

Ko

pp

iesk

raa

l

39km

Go

vern

me

nt

Gro

un

d

W E

A B’A’

Main Zone

Upper/LowerCritical Zone

Merensky ReefUG2 Reef

Chromitite Layer

LEGEND:

Lower Zone

Marginal Zone

Main Zone



Chromitite Layer

LEGEND:

Lower Zone

Marginal Zone

FIGURE 3:SCHEMATIC E-W CROSS SECTION ILLUSTRATING THE EFFECT OF THE PHOSHIRI DOME ON THE STRATIGRAPHY

FIGURE 4:SCHEMATIC E-W CROSS SECTION VIEW OF THE EASTERN BIC INCLUDING NORTHERN CLUSTER

TABLE 3: EXPLORATION TARGETS FOR THE NORTHERN CLUSTER AS DEDUCED FROM THE EASTERN NEIGHBOURS

MR-UG2 WIDTH

GEO GRADE

PROPERTY REEF MIN MAX PARTING (m) (m) RD LOSS (%) 4E (g/t)

MR 0.80 3.44 15 4.22

UG2 0.90 4.00 20 5.23

MR 140 to 180W 1.17 3.44 22 4.49

UG2 0.74 4.00 27 6.50

MR 300SW

to 180W 1,600

>2,500 0.99 3.44 19 4.29

UG2 0.82 4.00 23 5.55

390

REEF DEPTH (m)EXPECTED

DIPS

Northern Cluster

Ga-Pasha PGM Project

Bokoni Mine



Upper Zone

Upper Zone


PAGE 6




Steve Gain obtained geological information from Bokoni Mine for the

area. The geologic losses at Bokoni are estimated to be 20% for the

Merensky Reef and 15% for the UG-2 chromitite layer. The losses are

attributable to potholes (UG2-9% and Merensky-16%), pegmatites,

which replace the reef (<3% for both reefs), dykes (4% in both reefs),

structural and alteration features such as faults, shears, joints, veins

and alteration zones, which cause minor complications in mining.

On a macro scale dyke swarms cut the farms Zeekoegat, Middelpunt

and Umkoanestad with a northeast predominant direction. They can

vary in width up to 10m wide. The dykes do not present serious

problems during mining and previous and current mining operations

report insignificant displacements. In 2009, Bokoni refined 57,200oz of

4PGE. The reserves and resources published by Anglo Platinum as at

the end of 2009 are shown in Table 6 and 7 respectively. Two expansion

projects, the Middelpunt Hill UG2 expansion and the Brakfontein

Merensky expansion are well advanced and will progressively increase

the platinum production of Bokoni Mine. Stoping widths appear to be

standardized to 0.95m for both reefs.

Ga Pasha is immediately south of Bokoni and is owned by Anooraq and

Anglo Platinum. It also lies due east of the Northern Clusters and is at a

Pre-Feasibility stage with potential for underground mining. The Project

area overlies the Critical Zone which strikes northwest-southeast and 0 0 0dips 14 to 18 southwest with local deviations nearing 20 dip. At Ga-

Pasha, the Merensky and UG2 reefs are separated by about 390m. Ga-

Pasha uses a minimum potential mining width of 0.90m for its resource The total depth per hole is predicted to be in the region of about 2,000m. estimate. The average resource width ranges between 0.93 and 0.95m.

Table 8 is a summary of the declared Mineral Resources. S. Gain All the reef drilling, sampling, core storage and logging will be carried reports average geological losses of 27% in the Merensky Reef and out in accordance with the accepted industrial QA/QC normal practices 22% in the UG2 reef for Ga-Pasha.as defined in Table 1 of the SAMREC Code.

A study was carried out by Snowden to show the shaft depths of existing

mines and expected shaft depths of future mines. The Northern Cluster S. Gain could provide the cost to drill the first four holes on the Northern lies in the middle range as shown in Figure 6:-Cluster. The cost amounted to ZAR16.94m.

The Anglo Platinum – Anooraq jointly-owned Bokoni Platinum Mine,

which has been in operation for over 30 years, lies due east and up dip

of the Northern Cluster. Both the UG2 and Merensky Reefs are being

mined from underground. The local geology is typical of that described

for the Eastern Limb.

Ga Pasha PGM Project

11. EFFECT OF MINERALISATION DEPTH ON SHAFT DEPTHS 9. ESTIMATED EXPLORATION COSTS

10. BRIEF REVIEW OF NEIGHBOURING PROPERTIES

Bokoni Platinum Mine (previously Lebowa Platinum Mine)

TABLE 4 : EXPLORATION TARGET ESTIMATE FOR THE NORTHERN CLUSTER

3kmScale: 0

ZWITZERLAND473 KS

S - 002

SCHOONOORD462 KS

S - 001

S - 004


FIGURE 5: PROPOSED BOREHOLE POSITIONS FORTHE NORTHERN CLUSTER

Project Area

Chromitite Reef

UG2 Reef

Merensky Reef

Farm Boundary

Boreholes

AREA WIDTH GRADE GEO MR WIDTH GRADE GEO UG2 TOTAL

FARM NAME (ha) RD (m) (Mt) 4E (g/t) LOSS (%) (Moz) RD (m) (Mt) 4E (g/t) LOSS (%) (Moz) (Moz)

Northern Cluster*

Schoonoord 2,212 3.44 0.99 75.0 4.29 19 10.3 4.00 0.82 72.6 5.55 23 12.9 23.1

Indie 1,516 3.44 0.99 51.4 4.29 19 7.0 4.00 0.82 49.7 5.55 23 8.8 15.8

Zwitzerland 1,952 3.44 0.99 66.2 4.29 19 9.1 4.00 0.82 64.0 5.55 23 11.3 20.4

Fisant Laagte 2,013 3.44 0.99 68.2 4.29 19 9.3 4.00 0.82 66.0 5.55 23 11.7 21.0

TOTAL 7,693 260.7 35.7 4.00 252.3 44.7 80.4

MERENSKY UG2

NORTHERN CLUSTERNo. OF DEPTH PERTOTAL COST ZARm COST ZARm

COST ITEM HOLES HOLE (m) METRES EXCL VAT INCL VAT

Geology Staff 1.34 1.53

Road building 2.00 2.28

Diamond Drilling 10.00 11.40

Analytical costs 0.87 0.99

other 0.65 0.74

TOTAL 14.86 16.94

2,000 8,0004

TABLE 5: APPROXIMATE COSTS FOR DRILLING FOUR HOLES IN THE NORTHERN CLUSTER.

No

rth

am

#2 No

rth

am

#1

Am

an

de

bu

lt

Imp

ala

#1

7

Ba

ub

a (

No

rth

ern

Clu

ste

r)

Am

an

de

bu

lt #

3

Un

ion

Ric

ha

rd

Ma

rika

na

Jub

ilee

(Fe

asi

bili

ty)

Ba

ub

a (

Ce

ntr

al C

lus

ter)

Ba

ub

a (

So

uth

ern

Clu

ste

r)

Nkw

e

(In

ferr

ed

)

0

DE

PT

H (

m)

SHAFT DEPTH

FIGURE 6: COMPARATIVE SHAFT DEPTHS OF EXISTING AND PLANNED PROJECTS

25

00

50

01

00

01

50

02

00

0



S - 003

INDIE474 KS

FISANT LAAGTE506 KS


disputedportion

*The potential quantity, quality and

content as expressed above are

conceptual in nature and there has

been insufficient exploration to

define Mineral Resources and it is

unclear if further exploration will

result in the determination of a

Mineral Resource.

STTABLE 6: MINERAL RESERVE BY MINE/PROJECT AS AT 31 December 2009

MINE/PROJECT OWNERSHIP CATEGORY Mt 4E PGE g/t 4E MOZ Mt 4E PGE g/t 4E MOZ

Proved 19.0 4.53 2.9 33.1 5.47 5.7

Probable 5.1 4.14 0.6 8.6 5.31 1.4

Total 24.1 4.44 3.5 41.6 5.44 7.1

MERENSKY UG2

Bokoni Platinum Mine 49% Anglo Platinum, 51% Anooraq

STTABLE 7: MINERAL RESOURCE BY MINE/PROJECT AS AT 31 December 2009

MINE/PROJECT OWNERSHIP CATEGORY (Mt) 4E PGE (g/t) 4E (Moz) (Mt) 4E PGE (g/t) 4E (Moz)

Measured 24.7 5.92 4.7 108.8 6.75 23.7

Indicated 29.0 5.73 5.3 73.9 6.82 16.1

Inferred 92.0 5.55 16.3 131.2 6.78 28.6

TOTAL 145.7 5.65 26.3 313.9 6.78 68.4

MERENSKY UG2

Bokoni Platinum Mine 49% Anglo Platinum, 51% Anooraq



Measured 8.4 4.32 1.2 24.9 6.50 5.1

Indicated 48.2 4.65 7.1 57.3 6.56 12.0

Inferred 180.0 4.45 25.7 186.7 6.48 39.0

TOTAL 236.6 4.49 34.2 268.9 6.50 56.1

MERENSKY UG2

49% Anglo Platinum, 51% AnooraqGa-Pasha PGM Project


PAGE 7




12. CONCLUSIONS AND RECOMMENDATIONS

13. REFERENCE TO RISK IN THE FULL CPR

14. COMPETENT PERSONS DECLARATION

The Northern Cluster is situated within a prime segment of the Eastern Limb of the BIC, where numerous companies are prospecting and successfully mining

PGE's from the Merensky Reef and UG2. The exploration approach for the project is systematic and appropriate for the style of mineralisation and the expected

target resource would be of a sufficient quantity to support the exploration programme being suggested. Prospecting rights are still valid and the companies

should initiate exploration.

As part of the second generation mines that would soon come into production, the Bauba properties are relatively 'shallow' still. Geologically the Bauba project

should be suitable for mining as the mineralised reefs are expected to be continuous, judging from their neighbours. The reefs have partings in excess of 390m

and this may have advantages in that the two reefs can be co-extracted without affecting mining sequences and geotechnical properties. The disadvantages

are that the accesses haulages etc cannot be shared between the two reefs.

Though collectively the Clusters are considered potentially deep mines, South Africa has the capabilities and the technology to mine down to 4,000m below

surface as evidenced by the current deep mining in the Witwatersrand gold mines.

As of the effective date, Venmyn is not aware of any significant risk that could affect Absolute's business plan and production plans other than the normal risks

associated with a mining of the PGE's, construction and operation of a PGE processing plant as detailed in Section 18 of the CPR.

Venmyn is an independent advisory company. Its consultants, have extensive experience in preparing competent persons', technical advisors' and valuation

reports for mining and exploration companies. Venmyn's advisors have, collectively, more than 75 years of experience in the assessment and evaluation of

mining projects and are members in good standing of appropriate professional institutions. The signatories, advisors and associates to this report are qualified

to express their professional opinions on the values of the mineral assets described. To this end, Competent Persons and Competent Valuators Certificates are

presented in the full CPR.

Neither Venmyn, its staff, nor associates have or have had any interest in this project capable of affecting their ability to give an unbiased opinion and have not

and will not, receive any pecuniary or other benefits in connection with this assignment, other than normal consulting fees. Absolute Holdings Limited has

warranted in writing that it has openly provided all material information to Venmyn, which, to the best of its knowledge and understanding, is complete, accurate

and true.

Venmyn have prepared this Section 12 Executive Summary from the Independent Competent Persons' Report on the Northern Cluster of the Bauba Mineral

Platinum Properties for Absolute Holdings Limited and state that the Executive Summary is a true reflection of the full CPR.



KEY FEATURES



Northern Limb

Eastern Limb

Western Limb

Pretoria Middelburg

Mokopane

Steelpoort

0 100kmSCALE:

PROJECTAREA


Rustenburg

Competent Persons and Competent Valuators: Mr. Andy Clay, M.Sc. (Geol), M.Sc. (Min. Eng.), Dip.Bus.M. Pr.Sci.Nat., MSAIMM, FAusIMM,

FGSSA, IOD, AAPG, CIMMP.

Mrs. Carol Taylor, B.Sc. Hons (Geol.), Pr. Sci. Nat., MGSSA, MGASA.

Compiled by: Mrs. Carol Taylor, B.Sc. Hons (Geol.), Pr. Sci. Nat., MGSSA, MGASA.thEffective Date : 14 April 2010.


Purpose: This is an Independent assessment and verification of Bauba's PGE prospective properties on

behalf of Absolute Holdings. Absolute's strategic objective is to initially build a 0.35Moz p.a. PGE

mine within the next 10 years and ramp it up to 1Moz p.a. within 20 years. The Company has entered

into a binding agreement with Bauba A Hlabirwa Mining Investments (Pty) Limited (“Bauba”)

whereby Absolute will acquire a 60% share in the PGE explorer. thSources of Information : Technical Reports as supplied by Qinisele Resources including Press releases of 16 February 2010

Business Day article, “Absolute takes 60% stake in the PGE explorer Bauba”, as well as reports

from the public domain of adjacent mineral properties. Property areas were obtained from Win

Deed, a Deeds and Office Enquiry website.thPersonal Inspection : A site inspection was carried out on 25 February by Venmyn, S. Gain from S.Gain Consulting cc and

Qinisele Resources personnel. The Southern and Central Clusters were visited at the time.


Property Description and Location: Bauba holds prospecting rights, in the North Eastern Bushveld Igneous Complex (BIC), over nine

farms extending over an area of approximately 56km in length and 6km in width (approximating

14,480ha). The farms have been grouped into three areas namely the Northern, Central and

Southern Clusters. The Central Cluster is being dealt with in this report. It consists of the

Magneetsvlaakte 541KS and Dingaanskop 543KS. The combined area of the two farms covers just

over 2,100ha. All the Bauba farms lie along the Leolo mountain range in the Limpopo Province

approximately 40km northwest of the Limpopo Province town of Steelpoort and 245km northeast of

Johannesburg. To the east and up-dip, the Bauba mineral assets are surrounded by several current

operating mines and development projects.

License Status: Prospecting Right No. 248/2006PR and Prospecting Right No. 256/2006PR both due to expire on ththe 6 July 2011.

thOwnership Details: Bauba owns the prospecting rights. These were ceded to Bauba, on 9 April 2007, by King

Moruthane Ben Sekhukhune and Motubatse Ben Bokgobela representing Sekhukhune Rhyne

Thulare for and on behalf of the Bapedi Nation. Absolute Holdings is in the process of acquiring 60%

of the PGE explorer, Bauba.

Topography and Climate: The Central Cluster lies in rugged terrain with elevations lying between 980m and 1200m. The

elevation difference between the two farms forming the Central Cluster is about 220m. The climate

of the area is typical of sub-tropical Highveld with warm moist summers and cool dry winters. The

rainfall on the escarpments is higher at 700mm compared to about 500mm in the valleys. 0 0 0 0Temperatures recorded at Steelpoort vary between 30 C and 17.6 C in January and 21.6 C to 3.8 C

0 0in July. Extremes of 40 C and -2.3 C have also been recorded.

Infrastructure and Accessibility: The farms are relatively easy to access but field camps will have to be constructed. Access roads will

be cut with the aid of bulldozers and water for drilling will have to be taken to site using bowsers.

Geological Setting and Deposit Type: The Bauba prospects are located on the North Eastern Limb of the BIC, which lies on the eastern

portion of the world's largest layered igneous intrusion and known to host more that 80% of the

world's PGE's and associated base and precious metal deposits. The farms lie down dip of existing

mines and exploration projects. Reconnaissance mapping carried out to-date shows that the farms

lie in the Main and Upper Zones of the BIC. The Critical Zone which is known to host both PGE

targets, the Merensky Reef and the UG-2 Chromitite, lies directly below the Main Zone. These two

layers are expected to be at least 1,400m below surface and 400m apart, with dips ranging between 0 011 W and 12 W in the Central Cluster. However, in the Northern to Central Cluster, two diapiric

structures, the Paradys and the Phoshiri domes are thought to have deformed the Critical Zone rocks

close to their outer edges, hence uplifting the ore hosting rocks closer to surface.

Cape Town

Durban


JohannesburgPROJECTAREA

TABLE OF CONTENTS





! Regional Geology

! Local Geology



Statement







PAGE 8



EXECUTIVE SUMMARY SHORT FORM SAMREC COMPLIANT TECHNO ECONOMIC VALUATION STATEMENT On The Cluster Of The Bauba Mineral Platinum Properties For Absolute HoldingsCentral





Steelpoort

Bothashoek

Nkwe Platinum

DILOKONG


Anooraq(Bokoni)

JubileePlatinum



Mooihoek

7.5kmScale:

0


B’ B

C D

E F

A’



DINGAANSKOP 435 KS

GENOKAKOP 285 KT


INDIE 474 KS

SCHOONOORD462 KS


MOOIHOEK


(Montrose)


Implats(Marula)


disputedportion

FIGURE 1: LOCATION MAP SHOWING THE BAUBA CENTRAL CLUSTER ON THE EASTERN BIC


Anglo Platinum Prospecting

Right/Option

Anooraq/Anglo Platinum

Operating Mine

Bauba Project Areas

(Absolute Holdings Ltd)



Operating Mine

Jubilee

Lesego

Nkwe Platinum

Anooraq

Chrome Mines

Smelters

MR

CR

UG2 Reef

Merensky Reef

Chromite Reef

Fault

Road

Railway

River

Limit

Town

Cross Section Lines



PROPERTIES

2. PHYSIOGRAPHY, ACCESS AND CLIMATE

The climate of the area is typical of sub-tropical Highveld with warm

moist summers and cool dry winters. The rainfall on escarpments is

The Bauba farms lie along the Leolo mountain range in the Limpopo higher at annual averages of 700mm compared to about 500mm in the

Province, approximately 40km north-northwest of the Limpopo valleys. Precipitation is usually in the form of thunderstorms during

Province town of Steelpoort and 245km northeast of Johannesburg. summer.

The farms are surrounded, by operating PGE mines and development

projects on the eastern side. The Central Cluster, in particular, lies due The sudden downpours pose some risk of flooding in low-lying areas.

west and down dip of Twickenham Platinum Mine and Tjate Project as Temperatures recorded at Steelpoort vary between 30° and 17.6°C in

seen in Figure 1. January and 21.6° to 3.8°C in July. Extremes of 40° and -2.3° C have

also been recorded. The mostly moderate climate means that

exploration and mining operations can be undertaken throughout the

The Central Cluster lies along the Leolo mountain range in the Limpopo year, with no extraordinary measures required.

Province, with elevations lying between 980m and 1,200m.

The elevation difference between Magneets Vlaakte 541KS and Field camps will be constructed for the drilling. Where necessary,

Dingaanskop 543KS is about a 220m. The areas visited were access roads into the properties will be cut with the aid of bulldozers.

accessible through dirt roads as seen in Figure 2. There were some flat Water for drilling will be transported to site.

areas that will be easily accessible for rigging up diamond drilling

machines. The picture illustrates part of the terrain visited during the site visit on

Dingaanskop farm in February 2010.

FIGURE 2 : PICTURE ILLUSTRATING THE ACCESSIBILITY OF THE CENTRAL CLUSTER



COUNTRY PROVINCE CLUSTER NAME No. (ha) NAME RIGHT No. ISSUED DATE

Magneetsvlaakte 541KS 1,129 248/2006PR

Dingaanskop 543KS 1,036 256/2006PR

South

AfricaLimpopo Central

Bauba A

Hlabirwa

Mining

Investments

(Pty) Limited

7-Jun-06 6-Jul-11

Northern ClusterProject AreaLesego

Platinum(Phosiri)


PAGE 9





A

ZWITZERLAND 473 KS

HOUTBOSCH323 KT

3. LEGAL TENURE AND AGREEMENTS The Main Zone

The Critical Zone

4. REGIONAL GEOLOGY


The Prospecting Rights, 248/2006PR and 256/2006PR were issued in The Main Zone is generally poorly layered and contains a monotonous

June 2006 to King Moruthane Ben Sekhukhune and Motubatse Ben sequence of norite and gabbro-norite, with only minor anorthosite

Bokgobela, as representatives of Sekhukhune Rhyne Thulare for and layers which allow for stratigraphic correlation.

on behalf of the Bapedi Nation. The two Prospecting Rights were ceded thto Bauba on the 9 of April 2007.

The Critical Zone, which lies below, contains well defined, and easy to th correlate, layers which can be broadly sub-divided into the rock types Both Rights are due to expire on the 6 of July 2011. Absolute has now

dunite, harzburgite, pyroxenite, norite, anorthosite and chromitite. entered into a binding agreement with Bauba where Absolute will hold a

These layers have both sharp and gradational contacts and progress 60% direct and indirect share in Bauba (Table 1).

through subtle variations to produce leucocratic and melanocratic

variations of medium grained rocks.

In places the rocks are pegmatoidal and can form pipes and

The Bauba prospects are located on the eastern limb of the BIC as segregations. Later dolerite dykes intruded into faults. The Critical Zone

shown Figure 3. The limb forms part of three layered mafic-ultramafic contains the main economic targets namely the Merensky Reef and the

bodies, defined as the northern, western and eastern limbs. These form UG2 chromitite layer.

an ellipse in plan, some 200km by 370km in extent with granites and

felsic volcanic in the central and southern regions. The Bushveld

Complex exhibits remarkably consistent layering that can be correlated The Merensky Cyclic Unit occurs close to the top of the Critical Zone. At

extensively throughout the geologic expression of the whole complex. Winnaarshoek this unit consists of a 2-5 meter thick feldspathic

Figure 3 portrays the plan view as well as the vertical representation of orthopyroxenite that is overlain by norite-leuconorite, spotted

the stratigraphy of the Bauba Project area in relation to the geology of anorthosite and then mottled anorthosite. A similar stratigraphic

the Eastern BIC. The units in Table 2 are the units as they have been sequence is described on Nkwe's Garatau and Maandagshoek. The

described by S. Gain. Merensky pyroxenite is typically medium-grained, brownish-gray, and

can be described as feldspathic orthopyroxenite.



Steelpoort

Bothashoek


Nkwe Platinum



Anooraq(Bokoni)

JubileePlatinum

Implats(Marula)

Mooihoek

7.5kmScale:

0

B

C D

E F

A’ A


DINGAANSKOP543 KS

GENOKAKOP 285 KT


SCHOONOORD462 KS

INDIE474 KS

ZWITZERLAND473 KS

FISANT LAAGTE506 KS

B’


(Montrose)


DILOKONG

MOOIHOEK







Alluvium

Upper Zone

Main Zone

Merensky Reef

UG2 Reef

Upper Critical Zone

Lower Critical Zone

Chromite Reef

Lower Zone


Marginal Zone

UG2 Reef

Merensky Reef

Cross Section Lines

MR

VMR

CR Chromite Reef

Vandiferous Reef

Fault

Road

Railway

River

Limit

Town

Chrome Mines

Smelters

FIGURE 3: CENTRAL CLUSTER GEOLOGY ALONG THE EASTERN BIC


PAGE 10





HOUTBOSCH323 KT


F

MERENSKY REEF

UG2UG1

Upper Group

MG4

MG3

MG2

MG1

MiddleGroup

LG7

LG6 & LG6A

LG5

Lower Group

MAIN ZONE

UPPER CRITICAL ZONE

LOWER CRITICAL ZONE

LOWER ZONE

PYROXENITE MARKER

LEGEND:

Chromitite

Anorthosite

Norite

Pyroxenite

MARGINAL ZONE

UPPER ZONE






magnetite layers.




minor pyroxenite.


not well developed.

Upper Critical

Zone


















Lower Zone

Varies ,

reaches a

maximum of

1,700m


hartzburgite.





units.

Marginal Zone

Several

metres to

hundreds of

metres







1,400m

TABLE 2: STRATIGRAPHIC ZONES OF THE RUSTENBURG LAYERED SUITE

A detailed aeromagnetic survey, under the

supervision of GAP Geophysics, was

conducted on the Garatau during 2007. Line

spacing was 50m and the ground clearance

was 20-30m. This work, together with diamond

drilling, has allowed for the production of a map

in which the general structural setting is

defined. S. Gain outlines that this work has

determined the following:-

! both the Merensky Reef and the UG2 dip

constantly at angles varying from 6-8°W.

Indications are that dip reduces with depth

as the measurements on Maandagshoek

showed an average dip of 9-10°W;

! the airborne magnetic information,

combined with SPOT and conventional

airborne photography and ground

mapping, show the strike of the layering to

be NNW-SSE;

! dykes of a Karoo to post-Karoo age occur

in the region. Two prominent dykes on

Garatau trend N-S and show a positive

Detailed microscopic studies have shown the feldspathic pyroxenite to magnetic polarity. The dykes are commonly

consist of medium-grained (1-30mm) orthopyroxene with intercumulus vertical to sub-vertical. If there is a dip, it is towards the east;

plagioclase. This rock can exhibit both poikilitic and porphyritic textures ! the dolerite dykes intrude along fault lines and structural zones of

due the presence of variably distributed, oikocrysts (10-20mm) of weakness. Displacements (faulting) are generally minimal,

clinopyroxene. Two thin chromitite layers occur to the top of the although one dyke on Garatau shows a 65m normal throw; and

orthopyroxenite. At Garatau the lower stringer is defined as the bottom ! various ultramafic pipes occur on Maandagshoek and Garatau.

reef contact or (“BRC”) and the top reef contact (“TRC”). The TRC There is no information on their composition and whether they have

occurs some 1,8m above the BRC (Winnaarshoek). The BRC is 1- been tested for their PGE content.

25mm thick and is generally less persistent than the 1-25mm thick TRC

which is commonly present and laterally persistent. Sulphide

mineralization is associated with both chromitite layers and can The origin of the PGE mineralisation in the BIC has been investigated

comprise up to 2% of the mode. The best combination of sulphide and for 100 years and remains a matter of debate. A possibility exists that

associated PGE mineralization occurs for about a metre below the PGE's are concentrated in primary basaltic to komatiitic composition

TRC. Diffuse segregations and selvages of pegmatoidal pyroxenite magma when a high degree of partial melting (30%) of the upper mantle

occur above the TRC and sometimes below the BRC. occurs. Within this primary melt, some mechanism to induce sulphide

saturation was active to produce a sulphide liquid which segregates

from the primary magma. Magma mixing, crustal contamination and

The UG2 chromitite layer (“UG2”) is located some 350-360m below the fractional crystallisation are the most important processes known to

Merensky Reef (Gain, 1995). The following description of the UG2 induce sulphide saturation in magma during intrusion.

pertains to work conducted on Garatau by Nkwe Platinum, but is typical

for this part of the Bushveld Complex. The UG2 is a composite layer Once sulphide saturation of magma was reached, a sulphide liquid

commonly, but not always, underlain by a basal pegmatoid. This is segregated from the primary magma and strong partitioning of PGE's,

overlain, through a dimpled contact, by a massive chromitite layer Ni and Cu into this segregated liquid took place. It is has been

which is 0,5 to 0,8m thick. This massive chromitite layer consists of fine suggested that these sulphide droplets act as a scavenging medium for

grained chromite grains with intercumulus orthopyroxene and the PGE's and the droplets collect on the floor of the magma chamber

plagioclase and commonly has a sharp and planar upper contact. The where the ore-bearing layers form (Eales, 2001).

silicate minerals, found in the chromitite layer, form irregularly

distributed crystals which poikilitically enclose the chromite and form

“mottles” up to 15mm in diameter. Reconnaissance mapping carried out has revealed that the farms lie in

the Main and Upper Zones of the BIC. The Critical Zone which is known

The UG2 has up to 3 chromitite stringers above which are enclosed to host both PGE targets, the Merensky Reef and the UG2, lies directly

within a fine- to medium-grained feldspathic orthopyroxenite forming a below the Main Zone.

composite package, 0,10-0,15m thick. PGE mineralization is

associated with very meager sulphide (<1% of the mode) and increases Throughout the BIC the PGE and other mineral layers are tabular

towards the top and bottom of the chromitite layer. It can also occur bodies extending laterally over hundreds of square kilometres, resulting

within the overlying chromitite stringers and the basal pegmatoid. in extensive mineral resources whose continuity has been established

over years of exploration and mining.


The Genesis of the PGE sulphide Mineralisation


5. LOCAL GEOLOGY


PAGE 11







Using exploration information from public domain of companies Merensky and UG2 mines in the area and the extent to which Absolute's

surrounding the Bauba properties a series of reef contours were strategy to explore the deeper extension of the existing operation is

constructed by S. Gain and used to predict the behaviour of the technically feasible.

mineralisation on the Central Cluster. These showed that the reefs

should have shallowed to dips of about 11° to 12°to the west compared

to the Northern Cluster. Surrounding properties and projects were studied and used to predict

the resource parameters for the Central Cluster target area. Information

The Central Cluster area is traversed by faults and dykes and has a was obtained from reports by S. Gain, Qinisele internal reports,

known presence of unconformable pegmatoids on adjacent properties. Snowden as well as projects' and mines' reports posted on the public

Destructive intrusions in the form of IRUP (iron rich replacement domain. The summary of these is shown in Table 3.

pegmatites) are recorded on the adjacent Marula Platinum property.

These together with potholes have been known to disturb the Critical The parameters were then used to estimate a reconnaissance estimate

Zone on the Eastern limb. for the Central Cluster in. The areas used are as given through the

Deeds' office website. Table 4 below.

However in the Northern to Central Clusters, two diapiric structures, the

Paradys and the Phoshiri domes are thought to have deformed the

Critical, Main and Upper Zone rocks close to their outer edges, Desk top studies have already been carried out by S. Gain and

providing an uplift of the ore host rocks closer to surface than the norm Snowden of the Clusters and surrounding properties. Due to the

for the area. S. Gain predicts that this could influence the continuity of remoteness of the area under review, a base camp will have to be

the mineralization through structural influences, especially closer to the constructed and access roads to some of the drill sites be constructed

western sides of the Central Cluster. Absolute will assess this area by bulldozers. The 1:10,000 topographic map has been used to lay

through their exploration program. boreholes and roads for the Central Cluster.

Reconnaissance mapping will be carried out in conjunction with the

The mineralised Merensky Reef and UG2 are magmatic and layered diamond drilling. S. Gain suggests that field traverses using a portable

segregation deposits containing economic quantities of PGE's and magnetometer be conducted to better define the positions of dykes,

base metals. The PGE's are associated with chromite and base metal faults and ultra-mafic pegmatoids. The results obtained will be plotted

sulphides. onto a 1:10,000 maps.

S. Gain proposes a vibroseis survey to the eastern edge of the Paradys

structure along well established roads in Dingaanskop farm to

The first intersections of the Merensky are expected to be between determine the depth of the target layers.

1,400m and 2,400m below surface under the Central Cluster and the

parting between the Merensky and UG2 is expected to be 400m. A phased diamond drilling programme for four boreholes, MT-001 to

MT-004 was designed by S. Gain. Wire-line logging and relative density

Figure 4 illustrates a schematic cross sectional vertical view of the analyses will be included. The mother holes are to be deflected into four

Eastern BIC including the Bauba Central Cluster PGE prospects. The short deflections from 6, 12, 15 and 24m above reef intersections.

section through line C-D is important to illustrate the disposition of the These holes should go at least 1m into the footwall of the reef. The plan

chrome, view is shown in Figure 5.





TABLE 3: EXPLORATION TARGETS FOR THE CENTRAL CLUSTER AS DEDUCED FROM THE EASTERN NEIGHBOURS

REEF DEPTH (m) MR-UG2 WIDTH GEO GRADE


MR 120WSW 722 900 1.01 2.93 25 4.00

UG2 0.98 3.85 30 6.00

MR 160W 1.00 5.04

UG2 5.77

MR 110 to 120W 1,400 2,400 1.01 2.93 25 4.52

UG2 0.98 3.85 30 5.89

EXPECTED

DIPS

Tjate Project 400

Twickenham Mine

Central Cluster

TABLE 4: EXPLORATION TARGET ESTIMATE FOR THE CENTRAL CLUSTER

AREA WIDTH GRADE GEO MR WIDTH GRADE GEO UG2 TOTAL

FARM NAME (ha) RD (m) (Mt) 4E (g/t) LOSS (%) (Moz) RD (m) (Mt) 4E (g/t) LOSS (%) (Moz) (Moz)

Central Cluster*

Magnetsvlakte 1,129 3.39 1.01 38.5 4.52 25 5.5 3.85 0.98 42.6 5.89 30 8.0 13.5

Dingaanskop 1,036 3.39 1.01 35.3 4.52 25 5.1 3.85 0.98 39.1 5.89 30 7.3 12.4

TOTAL 2,164 73.7 10.6 3.85 81.7 15.3 25.9

MERENSKY UG2

W EC

Implats(Marula)TwickenhamTjate

Fe

rnkl

oo

f

Qu

art

zhill

CentralCluster

20

00

m

0m

-20

00

m

ma

msl

4,8km

D

0 5kmScale:

1:100 000

FIGURE 4 : SCHEMATIC E-W CROSS SECTION OF THE EASTERN BIC INCLUDING THE CENTRAL CLUSTER

Main Zone



Chromitite Layer

Lower Zone

Marginal Zone

LEGEND:


PAGE 12





*The potential quantity, quality and

content as expressed above are

conceptual in nature and there has

been insufficient exploration to

define Mineral Resources and it is

unclear if further exploration will

result in the determination of a

Mineral Resource.



The borehole, MT003, will be sited on an accessible and flat area as

shown in Figure 6. The picture was taken looking north from The project area lies down-dip between Twickenham and the Central

Dingaanskop farm. The borehole depths for the Central Cluster are Cluster and is owned by Jubilee. It consists of these farms; Tjate 249,

expected to be between 1,800 and 2,200m each in length. Hence a total Fernkloof 539 and Quartzhill 542. Diamond drilling to date has

of 8,800m is budgeted for in the Central Cluster holes. intersected both reefs. Snowden reports that the Merensky has been

intersected at depths between 722 to 900m and the UG2 between

All the reef drilling, sampling, core storage and logging will be carried 1,076 and 1,290m. The average separation in the area is about 400m.

out in accordance with the accepted industrial QA/QC normal practices The two reefs are reported to be similar to the Twickenham ones. The

as defined in Table 1 of the SAMREC Code. entire sequence of rocks at Tjate strikes south-southeast and dips at

12° south-westerly.

S. Gain could provide the cost to drill the four holes on the Central Destructive intrusions in the form of IRUP (iron rich replacement

Cluster. The cost amounted to ZAR18.08m. The costs for the vibroseis pegmatites) are recorded on the adjacent Marula Platinum property.

surveys are not included. These are pipe like bodies that take up any shape across or concordant

to the layers and cause dramatic displacement in the dips and strike of

the ore bodies. Sometimes they cause partial to total replacement of the

reefs, mineral alterations in the UG2 from chromites to magnetites and

sulphidic PGE minerals to ferro-platinum PGE's. The destructive nature

of these bodies is such that they have influences up to 300m away from

their location. Geological losses in this area have been estimated to be

25% because of these bodies. Apparent thicknesses recorded on

exploration results range between 0.91 and 1.07m for the Merensky

and 0.88 to 1.12m for the UG2.

A study was carried out to show the shaft depths of existing mines and

expected shaft depths of future mines. The Bauba Clusters lie in the

middle range as shown in Figure 7.The 100% Anglo Platinum owned underground mine lies due west of

the Central Cluster. The mine is classified as a project in execution,

producing only about 10,000 tonnes a month. The local geology is very

typical as that described for the Eastern Limb. The average recorded °true dip of the orebody is about 16 SW and stoping widths of about

0.90m. Table 6 and Table 7 summarise the Reserve and Resource

figures for Twickenham as at the end of year 2009.

Tjate Project

9. ESTIMATED EXPLORATION COSTS


Twickenham Platinum Mine

DINGAANSKOP543 KS

JubileePlatinum

Nkwe Platinum

FIGURE 5: PROPOSED BOREHOLE POSITIONS FOR THE CENTRAL CLUSTER

LEGEND

3kmScale: 0

Project Area

Chromitite Reef

UG2 Reef

Merensky Reef

Farm Boundary

BoreholesMT - 004

MT - 001

MT - 002

MT - 003



FIGURE 6: PROPOSED BOREHOLE SITE FOR MT003 ON DINGAANSKOP FARM


Proved 1.0 4.99 0.2

Probable 73.5 4.96 11.7

TOTAL 74.5 4.96 11.9


Measured 23.5 5.02 3.80 5.9 6.34 1.2

Indicated 29.9 5.20 5.00 25.8 6.21 5.1

Inferred 108.0 5.00 17.40 133.8 5.66 24.3

TOTAL 161.4 5.04 26.20 165.5 5.77 30.7

100% Anglo Platinum

MERENSKY UG2

MERENSKY UG2

Twickenham Platinum Mine 100% Anglo Platinum

Twickenham Platinum Mine




PAGE 13





TABLE 5: APPROXIMATE COSTS FOR DRILLING FOUR HOLES IN THE CENTRAL CLUSTER.

CENTRAL CLUSTER No. OF DEPTH PERTOTAL COST ZARm COST ZARm






other 0.65 0.74

TOTAL 15.86 18.08

4 2,200 8,800



11. EFFECT OF MINERALISATION DEPTH ON SHAFT DEPTHS




The reefs have partings in excess of 350m and this may have advantages in

A study was carried out by Snowden to show the shaft depths of existing that the two reefs can be co-extracted with minimum effect on mining

mines and expected shaft depths of future mines. The Central Cluster sequences and geotechnical properties between the reefs. as part of the

lies in the middle range as shown in Figure 7. second generation group of mines, the Central Cluster would be considered

an averagely deep mine when the second generation mines come into

production in the future.

Though collectively the Clusters are considered potentially deep mines,

South Africa has the capabilities and the technology to mine beyond

2,000m to 4,000m below surface as evidenced by the current deep mining

in the Witwatersrand gold mines.

As of the effective date, Venmyn is not aware of any significant risk that

could affect Absolute's business plan and production plans other than the

normal risks associated with a mining of the PGE's, construction and

operation of a PGE processing plant as detailed in Section 18 of the CPR.

Venmyn is an independent advisory company. Its consultants, have

extensive experience in preparing competent persons', technical advisors'

and valuation reports for mining and exploration companies. Venmyn's

advisors have, collectively, more than 75 years of experience in the

assessment and evaluation of mining projects and are members in good

standing of appropriate professional institutions. The signatories, advisors

and associates to this report are qualified to express their professional

opinions on the values of the mineral assets described. To this end, The Central Cluster is situated within a prime segment of the Eastern Limb Competent Persons and Competent Valuators Certificates are presented in of the BIC, where numerous neighbouring companies are prospecting and the full CPR.successfully mining PGE's from the Merensky Reef and UG2. The

proximity of the Central Cluster to the Tjate, well drilled and explored Neither Venmyn, its staff, nor associates have or have had any interest in

this project capable of affecting their ability to give an unbiased opinion and properties, would expedite the understanding of the geology and have not and will not, receive any pecuniary or other benefits in connection mineralisation in this area.with this assignment, other than normal consulting fees. Absolute Holdings

Limited has warranted in writing that it has openly provided all material The exploration approach for the project is systematic and appropriate for information to Venmyn, which, to the best of its knowledge and

the style of mineralisation; and the estimated target is of a sufficient quantity understanding, is complete, accurate and true.

to support the exploration programme being suggested. Prospecting rights

are still valid and the company should initiate exploration. Absolute has Venmyn have prepared this Section 12 Executive Summary from the

already got plans in place to explore the target fully. Independent Competent Persons' Report on the Northern Cluster of the

Bauba Mineral Platinum Properties for Absolute Holdings Limited and state

that the Executive Summary is a true reflection of the full CPR.

0

SHAFT DEPTH


No

rth

am

#2 No

rth

am

#1

Am

an

de

bu

lt

Imp

ala

#1

7

Ba

ub

a (

No

rth

ern

Clu

ste

r)

Am

an

de

bu

lt #

3

Un

ion

Ric

ha

rd

Ma

rika

na

Jub

ilee

(Fe

asi

bili

ty)

Ba

ub

a (

Ce

ntr

al C

lus

ter)

Ba

ub

a (

So

uth

ern

Clu

ste

r)

Nkw

e

(In

ferr

ed

)

DE

PT

H (

m)

25

00

50

01

00

01

50

02

00

0


PAGE 14





KEY FEATURES



Northern Limb

Eastern Limb

Western Limb

Pretoria Middelburg

Mokopane

Steelpoort

0 100kmSCALE:

PROJECTAREA


Rustenburg

Cape Town

Durban

JohannesburgPROJECTAREA

TABLE OF CONTENTS





! Regional Geology

! Local Geology



Statement






Competent Persons and Competent Valuators: Mr. Andy Clay, M.Sc. (Geol), M.Sc. (Min. Eng.), Dip.Bus.M. Pr.Sci.Nat., MSAIMM, FAusIMM, FGSSA, IOD,

AAPG, CIMMP.

Mrs. Carol Taylor, B.Sc. Hons (Geol.), Pr. Sci. Nat., MGSSA, MGASA

Compiled by: Mrs. Carol Taylor, B.Sc. Hons (Geol.), Pr. Sci. Nat., MGSSA, MGASAthEffective Date : 14 April 2010.


Purpose: This is an Independent assessment and verification of Bauba's PGE prospective properties on behalf of

Absolute Holdings. Absolute's strategic objective is to initially build a 0.35Moz p.a. PGE mine within the next

10 years and ramp it up to 1 Moz p.a. within 20 years. The Company has entered into a binding agreement

with Bauba A Hlabirwa Mining Investments (Pty) Limited (“Bauba”) whereby Absolute will acquire a 60%

share in the PGE explorer. thSources of Information : Technical Reports as supplied by Qinisele Resources including Press releases of 16 February 2010

Business Day article, “Absolute takes 60% stake in the PGE explorer Bauba”, as well as reports from the

public domain of adjacent mineral properties. Property areas were obtained from Win Deed, a Deeds and

Office Enquiry website.thPersonal Inspection : A site inspection was carried out on 25 February by Venmyn, S. Gain from Gain Consulting cc and Qinisele

Resources personnel. The Southern and Central Clusters were visited at the time.


Property Description and Location: Bauba holds prospecting rights, in the North Eastern Bushveld Igneous Complex (BIC), over nine farms

extending over an area of approximately 56km in length and 6km in width (approximating 14,480ha). The

farms have been grouped into three areas namely the Northern, Central and Southern Clusters. The

Southern Cluster is being dealt with in this report. It consists of Groot Vygenboom 284 KT, Genokakop

285KT and Houtbosch 323 T.The total area covers just over 4,626ha. All the Bauba farms lie along the Leolo

mountain range in the Limpopo Province approximately 40km northwest of the Limpopo Province town of

Steelpoort and 245km northeast of Johannesburg. To the east and up-dip, the Bauba mineral assets are

surrounded by several current operating mines and development projects. thLicense Status: Prospecting Right No. 256/2006PR due to expire on the 6 July 2011.

thOwnership Details: Bauba owns the prospecting rights. These were ceded to Bauba, on 9 April 2007, by King Moruthane Ben

Sekhukhune and Motubatse Ben Bokgobela representing Sekhukhune Rhyne Thulare for and on behalf of

the Bapedi Nation. Absolute Holdings is in the process of acquiring 60% of the PGE explorer, Bauba.

Topography and Climate: The Southern Cluster lies in rugged terrain inter-spaced with flat valleys. Elevations lie between 1,487m in

the valleys and 1,886m on the peaks. The elevation difference between the three farms forming the Southern

Cluster is about 400m. The climate of the area is typical of sub-tropical Highveld with warm moist summers

and cool dry winters. The rainfall on the escarpments is higher at 700mm compared to about 500mm in the 0 0 0 0valleys. Temperatures recorded at Steelpoort vary between 30 C and 17.6 C in January and 21.6 C to 3.8 C

0 0in July. Extremes of 40 C and -2.3 C have also been recorded.

Infrastructure and Accessibility: The farms are relatively easy to access but field camps will have to be constructed. Access roads will be cut

with the aid of bulldozers and water for drilling will have to be taken to site using bowsers.

Geological Setting and Deposit Type: The Bauba prospects are located on the North Eastern Limb of the BIC, which lies on the eastern portion of

the world's largest layered igneous intrusion and known to host more that 80% of the world's PGE's and

associated base and precious metal deposits. The farms lie down dip of existing mines and exploration

projects. Reconnaissance mapping carried out to-date shows that the farms lie in the Main and Upper Zones

of the BIC. The Critical Zone which is known to host both PGE targets, the Merensky Reef and the UG-2

Chromitite, lies directly below the Main Zone. These two layers are expected to be at least a 1,050m below o 0surface and between 350 to 365m apart, with dips ranging between 7 W and 8 W in the Southern Cluster.


PAGE 15



EXECUTIVE SUMMARY SHORT FORM SAMREC COMPLIANT TECHNO ECONOMIC VALUATION STATEMENT On The Cluster Of The Bauba Mineral Platinum Properties For Absolute HoldingsSouthern




disputedportion




PAGE 16




PROPERTIES

2. PHYSIOGRAPHY, ACCESS AND CLIMATE

The photograph in Figure 2, taken in February 2010 during a site visit,

serves to illustrate how some parts of the Southern Cluster can easily

The Bauba farms lie along the Leolo mountain range in the Limpopo be accessed using dirt roads that are already in place.

Province, approximately 40km north-northwest of the Limpopo

Province town of Steelpoort and 245km northeast of Johannesburg. The climate of the area is typical of sub-tropical Highveld with warm

The farms are surrounded, by operating PGE mines and development moist summers and cool dry winters. The rainfall on escarpments is

projects on the eastern side. The Southern Cluster, in particular, lies higher at annual averages of 700mm compared to about 500mm in the

due west and down dip of Nkwe PGE prospects and Modikwa valleys. Precipitation is usually in the form of thunderstorms during

Platinum Mine, which is owned by Anglo Platinum and ARM. The summer. The sudden downpours pose some risk of flooding in low-0location of these properties is shown in Figure 1. lying areas. Temperatures recorded at Steelpoort vary between 30

0 0 0 0and 17.6 C in January and 21.6 to 3.8 C in July. Extremes of 40 and -02.3 C have also been recorded.

The Southern Cluster lies along the Leolo mountain range in the

Limpopo Province, with elevations lying between 1,487m and The mostly moderate climate means that exploration and mining

1,886m. The elevation difference between Groot Vygenboom 284 KT, operations can be undertaken throughout the year, with no

Genokakop 285KT and Houtbosch 323KT is about 400m. There are extraordinary measures required. Field camps will be constructed for

some inter-mountain flat lying valleys where dirt roads are used by the drilling.

vehicles and the local people to access the villages and will be used to

access some of the drilling sites. Accessibility to some of the drilling Where necessary, access roads into the properties will be cut with the

sites could be a problem. Road building will be necessary. aid of bulldozers. Water for drilling will be transported to site.

Steelpoort

Bothashoek

Nkwe Platinum

DILOKONG


Anooraq(Bokoni)

JubileePlatinum



Mooihoek

7.5kmScale:

0

B’ B

C D

E F

A’ A

ZWITZERLAND 473 KS



DINGAANSKOP 435 KS

GENOKAKOP 285 KT


INDIE 474 KS

SCHOONOORD462 KS

MOOIHOEK


(Montrose)


Implats(Marula)



Anglo Platinum Prospecting

Right/Option

Anooraq/Anglo Platinum

Operating Mine

Bauba Project Areas

(Absolute Holdings Ltd)



Operating Mine

Jubilee

Lesego

Nkwe Platinum

Anooraq

Chrome Mines

Smelters

MR

CR

UG2 Reef

Merensky Reef

Chromite Reef

Fault

Road

Railway

River

Limit

Town

Cross Section Lines



Northern ClusterProject AreaLesego

Platinum(Phosiri)

FIGURE 2. PICTURE TAKEN ON GENOKOP FARM

SHOWING THE ROAD THAT WILL BE USED TO

ACCESS THE SOUTHERN CLUSTER

EASTERN CHROME INES

(Clapham)

FIGURE 1: LOCATION MAP SHOWING THE BAUBA SOUTHERN CLUSTER ON THE EASTERN BIC



HOUTBOSCH323 KT


COUNTRY PROVINCE CLUSTER NAME No. (ha) NAME RIGHT No. ISSUED DATE

Grootvygenboom 284KT 1,610

Genokakop 285KT 1,304 6-Jul-11South

AfricaLimpopo Southern 7-Jun-06

Bauba A

Hlabirwa

Mining

Investments

(Pty) Limited

256/2006PR

Houtbosch 323KT 1,712




The Prospecting Right 256/2006PR was issued in June 2006 to King

Moruthane Ben Sekhukhune and Motubatse Ben Bokgobela, as The Critical Zone, which lies below, contains well defined, and easy to

representatives of Sekhukhune Rhyne Thulare for and on behalf of the correlate, layers which can be broadly sub-divided into the rock types th dunite, harzburgite, pyroxenite, norite, anorthosite and chromitite. Bapedi Nation. The Prospecting Right was ceded to Bauba on the 9

th These layers have both sharp and gradational contacts and progress April 2007. This is due to expire on the 6 July 2011. Absolute has now

through subtle variations to produce leucocratic and melanocratic entered into a binding agreement with Bauba where Absolute will hold

variations of medium grained rocks. In places the rocks are a 60% direct and indirect share in Bauba.

pegmatoidal and can form pipes and segregations. Later dolerite

dykes intruded into faults. The Critical Zone contains the main

economic targets namely the Merensky Reef and the UG2 chromitite The Bauba prospects are located on the eastern limb of the BIC as

layer.shown in Figure 3. The limb forms part of three layered mafic-

ultramafic bodies, defined as the northern, western and eastern limbs.

These form an ellipse in plan, some 200km by 370km in extent with

The Merensky Cyclic Unit occurs close to the top of the Critical Zone. granites and felsic volcanic in the central and southern regions.

At Winnaarshoek this unit consists of a 2-5 meter thick feldspathic The BIC exhibits remarkably consistent layering that can be

orthopyroxenite that is overlain by norite-leuconorite, spotted correlated extensively throughout the geologic expression of the

anorthosite and then mottled anorthosite. A similar stratigraphic whole complex. Figure 3 portrays the plan view as well as the vertical

sequence is described on Nkwe's Garatau and Maandagshoek. The representation of the stratigraphy of the Bauba Project area in relation

Merensky pyroxenite is typically medium-grained, brownish-gray, and to the geology of the Eastern BIC. The units in Table 2 are the units as

can be described as feldspathic orthopyroxenite. Detailed they have been described by S. Gain.

microscopic studies have shown the feldspathic pyroxenite to consist

of medium-grained (1-30mm) orthopyroxene with intercumulus

plagioclase. The Main Zone is generally poorly layered and contains a monotonous

sequence of norite and gabbro-norite, with only minor anorthosite

layers which allow for stratigraphic correlation.

The Critical Zone

3. REGIONAL GEOLOGY


The Main Zone


PAGE 17



Steelpoort

Bothashoek

Nkwe Platinum



Anooraq(Bokoni)

JubileePlatinum

Implats(Marula)

Mooihoek

7.5kmScale:

0

B

C D

E F

A’ A


DINGAANSKOP543 KS

GENOKAKOP 285 KT


SCHOONOORD462 KS

INDIE474 KS

ZWITZERLAND473 KS

FISANT LAAGTE506 KS

B’


(Montrose)


DILOKONG

MOOIHOEK






Alluvium

Upper Zone

Main Zone

Merensky Reef

UG2 Reef

Upper Critical Zone

Lower Critical Zone

Chromite Reef

Lower Zone


Marginal Zone

UG2 Reef

Merensky Reef

Cross Section Lines

MR

VMR

CR Chromite Reef

Vandiferous Reef

Fault

Road

Railway

River

Limit

Town

Chrome Mines

Smelters

FIGURE 3: SOUTHERN CLUSTER GEOLOGY ALONG THE EASTERN BIC



HOUTBOSCH323 KT



F

MERENSKY REEF

UG2UG1

Upper Group

MG4

MG3

MG2

MG1

MiddleGroup

LG7

LG6 & LG6A

LG5

Lower Group

MAIN ZONE

UPPER CRITICAL ZONE

LOWER CRITICAL ZONE

LOWER ZONE

PYROXENITE MARKER

LEGEND:

Chromitite

Anorthosite

Norite

Pyroxenite

MARGINAL ZONE

UPPER ZONE







magnetite layers.




minor pyroxenite.


not well developed.

Upper Critical

Zone


















Lower Zone

Varies ,

reaches a

maximum of

1,700m


hartzburgite.





units.

Marginal Zone

Several

metres to

hundreds of

metres







1,400m

TABLE 2: STRATIGRAPHIC ZONES OF THE RUSTENBURG LAYERED SUITE This work, together with diamond drilling, has

allowed for the production of a map in which the

general structural setting is defined. S. Gain

outlines that this work has determined the

following:-

! both the Merensky Reef and the UG2 dip

constantly at angles varying from 6-8ºW.

Indications are that dip reduces with depth as the

measurements on Maandagshoek showed an

average dip of 9-10ºW;

! the airborne magnetic information, combined

with SPOT and conventional airborne

photography and ground mapping, show the

strike of the layering to be NNW-SSE;

! dykes of a Karoo to post-Karoo age occur in the

region. Two prominent dykes on Garatau trend

N-S and show a positive magnetic polarity. The

dykes are commonly vertical to sub-vertical. If

there is a dip, it is towards the east;

! the dolerite dykes intrude along fault lines and

structural zones of weakness. Displacements

(faulting) are generally minimal, although one

dyke on Garatau shows a 65m normal throw; andThis rock can exhibit both poikilitic and porphyritic textures due the ! various ultramafic pipes occur on Maandagshoek and Garatau. presence of variably distributed, oikocrysts (10-20mm) of There is no information on their composition and whether they have clinopyroxene. Two thin chromitite layers occur to the top of the been tested for their PGE content.orthopyroxenite. At Garatau the lower stringer is defined as the bottom

reef contact or (“BRC”) and the top reef contact (“TRC”). The TRC

occurs some 1,8m above the BRC (Winnaarshoek). The BRC is 1- The origin of the PGE mineralisation in the BIC has been investigated 25mm thick and is generally less persistent than the 1-25mm thick for 100 years and remains a matter of debate. A possibility exists that TRC which is commonly present and laterally persistent. Sulphide PGE's are concentrated in primary basaltic to komatiitic composition mineralization is associated with both chromitite layers and can magma when a high degree of partial melting (30%) of the upper comprise up to 2% of the mode. The best combination of sulphide and mantle occurs. Within this primary melt, some mechanism to induce associated PGE mineralization occurs for about a metre below the sulphide saturation was active to produce a sulphide liquid which TRC. Diffuse segregations and selvages of pegmatoidal pyroxenite segregates from the primary magma. Magma mixing, crustal occur above the TRC and sometimes below the BRC. contamination and fractional crystallisation are the most important

processes known to induce sulphide saturation in magma during

intrusion.The UG2 chromitite layer (“UG2”) is located some 350-360m below

the Merensky Reef (Gain, 1995). The following description of the UG2 Once sulphide saturation of magma was reached, a sulphide liquid pertains to work conducted on Garatau by Nkwe Platinum, but is segregated from the primary magma and strong partitioning of PGE's, typical for this part of the Bushveld Complex. The UG2 is a composite Ni and Cu into this segregated liquid took place. It is has been layer commonly, but not always, underlain by a basal pegmatoid. This suggested that these sulphide droplets act as a scavenging medium is overlain, through a dimpled contact, by a massive chromitite layer for the PGE's and the droplets collect on the floor of the magma which is 0,5 to 0,8m thick. This massive chromitite layer consists of chamber where the ore-bearing layers form (Eales, 2001).fine grained chromite grains with intercumulus orthopyroxene and

plagioclase and commonly has a sharp and planar upper contact. The

silicate minerals, found in the chromitite layer, form irregularly Reconnaissance mapping carried out has revealed that the farms lie in distributed crystals which poikilitically enclose the chromite and form the Main and Upper Zones of the BIC. The Critical Zone which is “mottles” up to 15mm in diameter. The UG2 has up to 3 chromitite known to host both PGE targets, the Merensky Reef and the UG2, lies stringers above which are enclosed within a fine- to medium-grained directly below the Main Zone. feldspathic orthopyroxenite forming a composite package, 0,10-

0,15m thick. PGE mineralization is associated with very meager Throughout the BIC the PGE and other mineral layers are tabular sulphide (<1% of the mode) and increases towards the top and bottom bodies extending laterally over hundreds of square kilometres, of the chromitite layer. It can also occur within the overlying chromitite resulting in extensive mineral resources whose continuity has been stringers and the basal pegmatoid. established over years of exploration and mining. Using exploration

information from public domain of companies surrounding the

Southern Cluster, a series of reef contours was constructed by S. Gain A detailed aeromagnetic survey, under the supervision of GAP and used to predict the behaviour of the mineralisation on the farms. Geophysics, was conducted on the Garatau during 2007. Line These showed that both the MR and the UG2 reefs should have

0 0spacing was 50m and the ground clearance was 20-30m. shallowed to dips of about 7 to 8 west under the Southern Cluster

farms.

The Genesis of the PGE sulphide Mineralisation


4. LOCAL GEOLOGY



PAGE 18







The southern area of the Eastern BIC is traversed by faults and dykes

and has a known presence of unconformable pegmatoids on adjacent Surrounding properties and projects were studied and used to predict

properties. These together with potholes have been known to disturb the resource parameters for the Southern Cluster target area.

the Critical Zone on the Eastern Limb. The precise extent of the Information was obtained from reports by S. Gain, Qinisele internal

structural complexity of the area will be a focus of the technical reports, Snowden as well as projects and mines on the public domain.

assessment of the area by Absolute. The summary of these is shown in Table 3.

The parameters were then used to estimate a reconnaissance

The mineralised Merensky Reef and UG2 are magmatic and layered, estimate for the Southern Cluster in table 4. The areas used are as

segregation deposits containing economic quantities of PGE's and given through the Deeds' office website.

base metals. The PGE's are associated with chromite and base metal

sulphides.

Desk top studies have already been carried out by S. Gain and

Snowden of the Clusters and surrounding properties. Due to the

The Merensky layer is expected to be at least 1,050m to 2,150m below remoteness of the area under review, a base camp will have to be built

surface in the Southern Cluster and the parting between the Merensky and access roads to some of the drill sites be constructed by

and UG2 is expected to be between 350 and 365m. Of the three bulldozers. The 1:10,000 topographic map has been used to lay

Clusters, mineralisation should be closest to surface under the boreholes and roads for the Southern Cluster.

Southern Cluster.

Reconnaissance mapping will be carried out in conjunction with the

Figure 4 illustrates a schematic cross sectional view of the Eastern BIC diamond drilling. S. Gain suggests that field traverses using a portable

including the Southern Cluster PGE prospect. The section is important magnetometer be conducted to better define the positions of dykes,

to illustrate the disposition of the chrome, Merensky and UG2 mines in faults and ultra-mafic pegmatoids. The results obtained will be plotted

the area and the extent to which Absolute's strategy to explore the onto a 1:10,000 maps. A phased diamond drilling programme was

deeper extension of the existing operation is technically feasible. The designed by Snowden and reviewed by S. Gain. Wire-line logging and

figure also illustrates how the reefs outcrop on surface on the adjacent relative density analyses of the holes will be included. The mother

Nkwe and Modikwa properties. holes are to be deflected into four short deflections from 6, 12, 15 and

24m above reef intersections.





W E

E F

0 5kmScale:

1:100 0003,9km

Gro

ot

Vyg

en

bo

om

Ge

no

kako

p

28

5 k

t

Nkwe Angloplats(Modikwa)

ASA Metals(Dilo Kong Chrome)

20

00

m

0m

-20

00

m

ma

msl

Main Zone



Chromitite Layer

LEGEND:

Lower Zone

Marginal Zone

FIGURE 4: SCHEMATIC E-W CROSS SECTION OF THE SOUTHERN CLUSTER ILLUSTRATING THE MR, UG2 AND CHROMITITE LAYERS IN THE EASTERN BIC

TABLE 3: EXPLORATION TARGETS FOR THE SOUTHERN CLUSTER AS DEDUCED FROM THE EASTERN NEIGHBOURS

MR-UG2 WIDTH GEO GRADE


MR 100W 1.00 4.43

UG2 0.58 3.72 30 5.97

MR 0 to 350 700 1.00 3.35 17 4.74

UG2 0 to 700 1,100 1.20 3.75 17 5.44

MR 70 to 80W 1,050 2,150 1.00 3.35 17 4.59

UG2 70 to 80W 0.89 3.75 24 5.71

REEF DEPTH (m)

Modikwa

Nkwe 350-365

Southern Cluster 400

EXPECTED

DIPS


PAGE 19





TABLE 4: EXPLORATION TARGET ESTIMATE FOR THE SOUTHERN CLUSTER

*The potential quantity, quality and content as expressed above are conceptual in nature and there has been insufficient exploration to define Mineral Resources and it is unclear if further

exploration will result in the determination of a Mineral Resource.

Groot Vygenboom 1,610 3.35 1.00 53.9 4.59 17% 7.89 3.74 0.89 53.5 5.71 24% 9.8 17.7

Genokakop 1,304 3.35 1.00 43.7 4.59 17% 6.39 3.74 0.89 43.4 5.71 24% 7.9 14.3

Houtbosch 1,712

3.35 1.00 57.4 4.59 17% 8.39 3.74 0.89 56.9 5.71 24% R 10 18.77

Total 4,626 3.35 1.00 155.0 4.59 17% 22.67 3.74 0.89 153.8 5.71 24% 28.05 50.7

TOTALMoz

RD WIDTH

(m)

(Mt) MR(Moz)

RD WIDTH

(m)

(Mt) GRADE4E (g/t)

GEO LOSS (%) (Moz)Southern Cluster*

FARM NAME

AREA(ha)

Merensky UG2GEO

LOSS (%)GRADE4E (g/t)

UG2

Upper Zone



The cost amounted to ZAR31.64m for drilling 14,000m.

Qinisele Resources and S. Gain provided the cost to drill the first 2 BQ

size holes down to a depth of 2,000m on the Southern Cluster.

These holes should go at least 1m into the footwall of the reef. S. Gain Venmyn then used the cost to estimate the cost of drilling the first

has reviewed the Snowden work and has proposed starting with seven holes on the Southern Cluster. The cost amounted to

seven exploration boreholes (BAUBA-001 to BAUBA-007) in the ZAR31.64m. The cost breakdown is shown in Table 5.

Southern Cluster. A total of about 14,000m is expected to be drilled

initially. The approximate drilling positions are shown in Figure 5.

The first borehole site, BAUBA-001, will be sited on an accessible and Modikwa Platinum is an underground mine that lies up-dip of the

flat inter-mountain area as shown in . The picture in Figure 6 was taken Southern Cluster. Exploration started in the 1920s and by the 1980s

looking east from Genokakop farm. The flat lying areas require the both the Merensky and the UG2 had been explored. The mine was

minimum amount of site preparation and clearing in terms of drilling established in 1999. In 2001 a 50:50 joint Venture was entered into

sites. between Anglo Platinum and ARM Mining Consortium Limited. The

igneous layering at Modikwa strikes north-northwest and dips at about 010 to the west. The UG2 gently undulates with amplitudes of less than

2m. This phenomenon is pervasive throughout the mine. Snowden

records a UG2 seam width of 0.60m.

Potholes are recorded to be abundant in their North shaft area

decreasing southwards towards the South shaft area which has more

prevalence of faults compared to the North shaft area. There are also

records of large ultra-mafic pegmatoids intrusions that have disturbed

and replaced the UG2 around the Onverwacht Hill which lies south of

the South shaft. A mineral Reserve and Resource statement has been The exact positions of the rest of the boreholes will be determined after collated from Anglo Platinum's website.geologic mapping and ground magnetometer surveys. The depth per

hole is expected not to exceed 2,000m.

Nkwe properties lie due east and up-dip of the Southern Cluster. All the reef drilling, sampling, core storage, logging and database Diamond drilling has been carried out and over 37km worth of drilling management will be carried out in accordance with the accepted has been recorded. Both reefs outcrop to the east and have been industrial QA/QC normal practices as defined in Table 1 of the intersected at depths of no more than 700m for the Merensky and no SAMREC Code.more than 1,100m for the UG2.

8. ESTIMATED EXPLORATION COSTS


Modikwa Platinum Mine

Nkwe Platinum

TABLE 5: APPROXIMATE COSTS FOR DRILLING SEVEN HOLES IN THE SOUTHERN CLUSTER

SOUTHERN CLUSTERNo. OF DEPTH PERTOTAL COST ZAR (m) COST ZAR (m)






other 1.13 1.29

TOTAL 27.75 31.64

7 2,000 14,000


Measured 18.0 2.94 1.6 54.2 5.84 10.2

Indicated 54.0 2.73 4.8 94.8 5.88 17.8

Inferred 136.8 2.65 11.6 75.6 6.19 15.0

TOTAL 208.8 2.70 18.0 224.6 5.97 43.0

50% Anglo Platinum, 50% ARMModikwa Platinum Mine

MERENSKY UG2



Proved 21.4 5.02 3.4

Probable 26.8 4.87 4.2

TOTAL 48.2 4.94 7.6

MERENSKY UG2

Modikwa Platinum Mine 50% Anglo Platinum, 50% ARM


LEGEND

3kmScale: 0

Project Area

Chromitite Reef

UG2 Reef

Merensky Reef

Farm Boundary

Boreholes

BAUBA-001

FIGURE 6: PROPOSED BOREHOLE POSITION FOR BAUBA-001 ON GENOKAKOP FARM,

SOUTHERM CLUSTER


PAGE 20





GENOKAKOP 285 KT

HOUTBOSCH 323 KT

BAUBA - 003

BAUBA - 004

BAUBA - 002

BAUBA - 006

BAUBA - 007

BAUBA - 005

BAUBA - 001

3kmScale: 0

FIGURE 5: PLAN VIEW OF THE SOUTHERN CLUSTER'S PROPOSED EXPLORATION

BOREHOLE POSITIONS






On the Garatau reef widths have been recorded by Snowden as 2.42m The proximity of the well drilled Nkwe properties to the Southern Cluster will

up to a depth of 350m for the Merensky and 0.79m to a depth 700m for expedite the understanding of the geology and mineralisation. In this area,

the UG2. On the Eerste Geluk farm the Merensky outcrops and the mineral intersections are expected to be closest to surface compared to

averages about 2.18m and the UG2 0.77m at a depth of about 300m. the other two Clusters.

Though collectively the Clusters are considered potentially deep mines,

South Africa has the capabilities and the technology to mine down to

4,000m below surface as evidenced by the current deep mining in the

Witwatersrand gold mines.

As of the effective date, Venmyn is not aware of any significant risk that

could affect Absolute's business plan and production plans other than the

normal risks associated with a mining of the PGE's, construction and

operation of a PGE processing plant as detailed in Section 18 of the CPR.

Venmyn is an independent advisory company. Its consultants, have

extensive experience in preparing competent persons', technical advisors'

and valuation reports for mining and exploration companies. Venmyn's

advisors have, collectively, more than 75 years of experience in the

assessment and evaluation of mining projects and are members in good

standing of appropriate professional institutions. The signatories, advisors

and associates to this report are qualified to express their professional

opinions on the values of the mineral assets described. To this end,

Competent Persons and Competent Valuators Certificates are presented in

the full CPR.A study was carried out by Snowden to show the shaft depths of

existing mines and expected shaft depths of future mines. The Neither Venmyn, its staff, nor associates have or have had any interest in

Southern Cluster lies in the middle range as shown in Figure 7. this project capable of affecting their ability to give an unbiased opinion and

have not and will not, receive any pecuniary or other benefits in connection

with this assignment, other than normal consulting fees. Absolute Holdings

Limited has warranted in writing that it has openly provided all material

information to Venmyn, which, to the best of its knowledge and The Southern Cluster is situated within a prime segment of the Eastern understanding, is complete, accurate and true.

Limb of the BIC, where numerous neighbouring companies are prospecting

and successfully mining PGE's from the Merensky Reef and UG2. The Venmyn have prepared this Section 12 Executive Summary from the

expected target resource would be of a sufficient quantity to support the Independent Competent Persons' Report on the Northern Cluster of the

exploration programme being suggested. The exploration approach for the Bauba Mineral Platinum Properties for Absolute Holdings Limited and state project is systematic and appropriate for the style of mineralisation. that the Executive Summary is a true reflection of the full CPR.

The Southern Cluster has some relatively flat and easily accessible areas

that require the least amount of preparation in comparison to the other

Clusters.



10. EFFECT OF MINERALISATION DEPTH ON SHAFT DEPTHS


0

SHAFT DEPTH


No

rth

am

#2 No

rth

am

#1

Am

an

de

bu

lt

Imp

ala

#1

7

Ba

ub

a (

No

rth

ern

Clu

ste

r)

Am

an

de

bu

lt #

3

Un

ion

Ric

ha

rd

Ma

rika

na

Jub

ilee

(Fe

asi

bili

ty)

Ba

ub

a (

Ce

ntr

al C

lus

ter)

Ba

ub

a (

So

uth

ern

Clu

ste

r)

Nkw

e

(In

ferr

ed

)

DE

PT

H (

m)

25

00

50

01

00

01

50

02

00

0


PAGE 21









D795M_AbsoluteBauba'10FigNorthernCentralSouthern_ValuationPAGE 22

MINERAL ASSET VALUATION FOR THE BAUBA PROJECT

Venmyn was commissioned by Absolute to perform an independent valuation of the Bauba Projects. The valuation was compiled in accordance with the reporting

and assessment criteria stipulated for Mineral Asset Valuations in the SAMVAL Code (2009). The valuation results are reported as the full project values

attributable to the individual Cluster projects.

The valuation approaches and methodologies adopted by Venmyn are based upon the principle of determining market-related values for the mineral asset held

by Bauba and to be incorporated into Absolute. For the full details of the approach refer to the full CPR.

This report has valued the Bauba mineral assets using industry-standard methods, selected according to the development stage of the mineral asset. Each of the

Bauba Clusters are at an early exploration phase and require significant exploration drilling and geological evaluation work going forward. Therefore, each Cluster

has been valued using the cost and market approach. The selection of an appropriate valuation approach is dependent on the availability of information on the

property. The SAMVAL Code (item 24) prescribes the competent valuator to use at least two valuation approaches.

The market approach relies on the principle of “willing buyer, willing seller” and requires that the amount obtainable from the sale of the asset is determined as if in

an arm's length transaction. The conclusion of the Bauba agreement with Absolute transaction entails that a deemed amount for the mineral resources translated

into a straight equity paper swap. The basis of this was the Exploration Target Resources follows: -

MARKET APPROACH

The Absolute transaction results in the following share payments amounting to a total of ZAR445.57m expressed as follows: -

The Exploration Target Resources were used to determine the transaction value and Venmyn provided the following market related value per PGE comparison

values resulting in a total of ZAR573.23m: -

For comparison the following table outlines six relevant transactions used by Venmyn to value the Bauba properties that occurred in the platinum industry,

obtained from public domain documentation, between August 2007 and October 2009:-

VALUE MEASURED INDICATED INFERRED(USDm) (Moz) (Moz) (Moz)

Afriore Limited (Akani project) Jan-08 432.00 33.70 12.82

19.885% in Aquarius by Kofir Sep-09 388.12 25.76 9.72 1.53 10.49

Jubilee Platinum get 63% of Tjate Project Oct-09 119.46 22.33 5.35

15% in Garatau/Tubatse project Jun-09 47.67 0.40 5.30 8.36

51% in Bokoni Platinum Mine Jun-09 328.67 27.74 20.02 48.35 3.42

Northam Bought 100% of Booysendal Aug-07 928.48 94.00 9.88

TRANSACTION DATE UNIT VALUE

(USD/oz)

COMPARABLE ARM'S LENGTH PLATINUM INDUSTRY TRANSACTIONS

Venmyn maintains a comprehensive database of platinum transactions and unit market capitalisations of platinum companies, which is continually updated. This

information is collated to produce a Platinum Valuation Curve and is illustrated in the platinum curve. The curve which demonstrates the range of indicative

market-related values of in situ USD/oz attributed to the different categories of Mineral Resource and Mineral Reserve.

The Comparative Value per resource ounce was calculated upon the basis of Venmyn's database of historical PGE transactions within the southern African

context. Therefore, at this stage the value of the Bauba properties is ZAR573.23m or USD0.50/oz.

REEF Moz

3 PGE+Au

Northern Cluster Merensky 35.70

UG2 44.69

Central Cluster Merensky 10.61

UG2 15.33

Southern Cluster Merensky 22.67

UG2 28.05

157.05GRAND TOTAL

EXPLORATION TARGET*

PRE-SPEND PRE-SPEND UPSIDE

3 PGE+Au (USD/oz) RAISE RAISE POTENTIAL

PROJECT Moz LOWER UPPER MID (USDm) * (ZARm) * (ZARm)

Northern Cluster 80.39 0.50 1.00 0.75 40.19 293.41 586.81

Central Cluster 25.94 0.50 1.00 0.75 12.97 94.68 189.36

Southern Cluster 50.72 0.50 1.00 0.75 25.36 185.14 370.28

Exchange Rate (ZAR/USD) 7.3 Total 78.52 573.23 1,146.45

* Low value used for current value estimate.

UNIT VALUE

SHARES ZAR ZAR/SHARE CURRENT PRICE

Payment Shares 68,124,600 340,623,000 5.00 5.20

Additional 21,189,600 105,948,000 5.00 5.20

Total 89,314,200 446,571,000Current Value 464,433,840

EXECUTIVE SUMMARY SHORT FORM SAMREC COMPLIANT TECHNO ECONOMIC VALUATION STATEMENT On The Project Of The Bauba Mineral Platinum Properties For Absolute HoldingsBauba


*The potential quantity, quality and content as

expressed above are conceptual in nature and

there has been insufficient exploration to define

Mineral Resources and it is unclear if further

exploration will result in the determination of a

Mineral Resource.

Venmyn is an independent advisory company. Its consultants, have extensive experience in preparing competent persons', technical advisors' and valuation

reports for mining and exploration companies. Venmyn's advisors have, collectively, more than 75 years of experience in the assessment and evaluation of mining

projects and are members in good standing of appropriate professional institutions. The signatories, advisors and associates to this report are qualified to express

their professional opinions on the values of the mineral assets described. To this end, Competent Persons and Competent Valuators Certificates are presented in

the full CPR.

Neither Venmyn, its staff, nor associates have or have had any interest in this project capable of affecting their ability to give an unbiased opinion and have not and

will not, receive any pecuniary or other benefits in connection with this assignment, other than normal consulting fees. Absolute Holdings Limited has warranted in

writing that it has openly provided all material information to Venmyn, which, to the best of its knowledge and understanding, is complete, accurate and true.

Venmyn have prepared this Section 12 Executive Summary from the Independent Competent Persons' Report on the Northern Cluster of the Bauba Mineral

Platinum Properties for Absolute Holdings Limited and state that the Executive Summary is a true reflection of the full CPR.

As of the effective date, Venmyn is not aware of any significant risk that could affect Absolute's business plan and production plans other than the normal risks

associated with a mining of the PGE's, construction and operation of a PGE processing plant as detailed in Section 18 of the CPR.

REFERENCE TO RISK IN THE FULL CPR

COMPETENT PERSON’S DECLARATION



COST APPROACH

VALUATION SUMMARY AND CONCLUDING OPINION

CONCLUSIONS

The SAMVAL Code definition states that the cost approach relies on historical and/or future expenditure on the Mineral Asset. Unfortunately, the cost approach

cannot be applied at this stage as no cash has transacted.

The Absolute Bauba transaction is essentially a straight paper deal reflecting in an underlying market cap per ounce method and the equity purchase method

which are both part of the market approach. Absolute has managed to prepare the basis of the new PGE business on a relatively low USD0.50oz basis. Providing

the company exploration spend is systematically successful in moving Exploration Target resources into properly quantified SAMREC compliant mineral

resources the resources value should move up the value curve as shown in the valuation graph. Where the upside will settle will be dependent on demonstrating

the true value of the company's strategic drivers in the BIC

The global mineral resources market is experiencing unusual and exceptional circumstances, with commodity prices reaching record levels. This is particularly

relevant for PGE's and this has led to a significant revival of interest in the exploration of deeper mineral resource in the BIC. Absolute has acquired deeper level

PGE mineral resources in the Eastern BIC and needs to spend exploration monies to move the value proposition up the value curve. Venmyn will assist in the

future to assess the levels of statistical confidence that new borehole results generate for both the Merensky Reef and the UG2 so that the move towards

generating Indicated Resources and then Probable Reserves for commercial exploitation can be achieved.

C. A. TAYLOR

B.Sc.Hons (Geol),

Pr Sci Nat, MGSSA, MGASA,

MINERAL PROJECT ADVISOR



D795M_AbsoluteBauba'10FigNorthernCentralSouthern_ValuationPAGE 23

EXECUTIVE SUMMARY SHORT FORM SAMREC COMPLIANT TECHNO ECONOMIC VALUATION STATEMENT On The Project Of The Bauba Mineral Platinum Properties For Absolute HoldingsBauba


0.10

1.00

10.00

100.00

1,000.00

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

Classification

2000 - 2006 Transaction Values 2007 - 2009 Transactions Dec 2007 Market Cap

June 2008 Market Cap June 2009 Market Cap Dec 2008 Market Cap Feb 2010 Market Cap

Un

it V

alu

e (

US

D/o

z)

3

2

1USD/oz

1 0.50

2 1.00

3 0.75

LOW COMPARATIVE

HIGH COMPARATIVE

PREFERRED VALUE

MR. ANDY CLAY

M.Sc.(Geol), M.Sc.(Min. Eng.), Dip.Bus.M.,

Pr.Sci.Nat., MSAIMM, FAusIMM, FGSSA,

IOD, AAPG, CIMMP.

MANAGING DIRECTOR

executive summary short form samrec compliant …€¦ · the world's largest layered igneous...

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