Overview of the current status

Currently, the Group has a combined strategy of firstly, seeking new business opportunities and strengthening the asset base through the acquisition of further resource assets in Africa and secondly, reviewing the property at Elandslaagte to establish its value and to establish what further action may be appropriate.

The Group has made good progress with the first part of the strategy and hope to make a detailed announcement regarding progress when appropriate. The diamond sector is beginning to show strong signs of recovery and that opportunities to acquire undervalued assets still remain available to us in this sector.

Interest is being shown again in a number of other resource sectors including coal and with our wide network of local contacts within Africa we should be able to identify strong additional opportunities to bring into the Group. Accordingly, the Company changed its name to Cape Resources Plc.

The Elandslaagte Mine remains under care and maintenance mainly because of significant cash constraints under which the Group operated and also due to uncertainty relating to the economic feasibility of the resource. During the period to 30 June 2009 the Group processed 104,400 run of mine tonnes from Elandslaagte using the pan plant system and recovered 522 carats with an average value of USD422. This was below expectations for the Mine and due to the fact that it was unclear from which part of the Mine this material was extracted, it is not possible to draw an informed conclusion from this result.

Ownership of Mine

ownership diagram