Community Issues,

Nachingwea’s District Safety and Security Committee Site Tour

Nachingwea’s District Safety and Security Committee visited Ntaka Hill Nickel Project on
the 9th November 2011 as part of the committee patrol in the district. The Nachingwea
DC was the leader of the group.

Talks and presentation of the project update were given to the team by Ngwena
representatives (Christopher Airo, Peter Malley and Stanslaus William).
The team intended to know how safe and secure Ngwena is in the project area, where
the company sources it security personnel, if there is any conflict with the local
community (referring to local artisan miners – Kizota and Maringo).

All the concerns were answered by running through what exploration is and its stages.
However, a full story of the illeagal malachite mining at J and Chilalo was discussed and
the key leader mentioned to the committee.

The committee was toured around the exploration facilities and various deposit zones.
The team was also shown how samples are processed prior to shipment to the lab. It
was clarified that the samples are shipped to Mwanza for preparation prior to lab
analysis in Canada laboratories. We had lunch with them and after lunch we toured
around J, H and finally took them to the drill.

The DC suggested to continue good relationship with the local community around the
project area and his office especially the disctrict Council. It was also stressed that we
work closely with the council through every stage of exploration to a mining stage avoid
any unnecessary conflicts and problems with the local community around us. Working
together with the DC’s office will result into coming up with good ideas and resolutions
that will minimize future problems with the local community and the company as well.
In order to work together as a ream it was proposed that we have series of meeting s
with the council before the operation is in place. Community engagement was another
point raised in the meeting.

The community engagement is one of the tool for the success of the company work
programs. This will involve engaging the local community from the beginning in regular
communication, RAP, security system etc.

Meeting with Various Authorities

Nditi Village Community Meeting

A meeting was held in Nditi village between Nditi community and Ngwena/CNI. The
meeting was attended by Christopher Airo from Ngwena Ltf and Stewart Watkins from
CNI. The local community needed to know if they will get employed by the company
when the company goes to a mining stage, the outcome of those who will be impacted
by the mine (those people living within the proposed project area) and if the company
will be able to help drill water wells for the local community. Reacting to the
employment, the representatives said that it is the intention of the company to employ
people from the local community and other sources, but the employment will depend
on skill levels and availability of the vacancies. However, the company aims at
developing its employees through training. On regards to water for local communities it
was answered that when it comes to a stage where the company has identified good
and potential portable water that can suffice the needs of the mine and surplus can be
provided to the community. Moreover, this will have to be included in the community
development plan. Those who maybe impacted by the mining activities will not lose
their benefits. A good Relocation Action Plan is being prepared and this plan will be used
to identify all the local communities living within the project area and fair compensation
will be done to everybody making sure no one loses his property or benefits.

Nachingwea’s DC meeting and Lindi Mtwara Regional Commissioner

The Nachingwea DC’s office was visited in the forth week of November 2011. The
company representatives were Patricia, Stewart and Christopher where the Regional
Commissioner was visited in the last week of November 2011. The aim of these
meetings was to introduce Ngwena/CNI to the DC and Lindi Regional Commissioner and
giving them an overview of the project and the future plans. Corporate Social
Responsibility issues were discussed in the meeting.

Lindi Tanroads and Tansesco

Lindi Tanroads and Tanesco were also visited in the last week of November 2011. The
aim of the visit was to notify them about the company future work plans and as the
stakeholders they need to be involved from the beginning of the project. Ngwena will
need to use Mtwara – Liwale road which is managed and developed by Tanroads. As
stakeholders they needed to know about the project. With Tanesco power supply was
the main theme of visiting them. CNI/Ngwena will need a reliable power source and
therefore Tanesco is the right organ to liaise to.

Zonal Mines Office (Assistant Mineral Commissioner of for Southern Zone)

ZMO was visited in late November 2011. The aim was introduce Ngwena and CNI to the
new ZMO and giving the ZMO the project update and future work plans. Corporate
Social Responsibility issues were also discussed in the meeting. However, the ZMO
required the technical reports and quarterly reports to be given to his office in regular
basis. However, quarterly reports were already been submitted in his office but looks
like there was a problem of communication between him and his staff.
Water for Camp Use
The company continued hauling water from the Ruponda Water board in the November
month.

Drilling

Water Bore Holes Drilling (MTL/VICTORIA)

Water bore holes drilling for environmental purposes was initiated in the fourth week of
November by Victoria Drilling Company under the supervision of MTL Consulting
Engineering. 4-water bore holes totaling 450m were completed to end of November
2011. The deepest of these four holes was 120m drilled at Nyambi Kisimani near the
local community water source/well which was nearly dry at the time of drilling. The
Shallowest was 60m deep. This was drilled along the Mbwemkuru River plain. However,
two of these 4 water bore holes were drilled to 100m deep each. One water borehole
turned a potential aquifer.

Metallurgical Drilling

Metalurgical drilling was initiated in mid November on the Ntaka Hill Nickel Project. 5
drill holes totaling 576.2m were completed on NAD13, H, M, L and Sleeping Giant zones
where 2 holes were initiated at G and Sleeping Giant zones but were not completed to
end of November month. These drill holes were twin holes for the previous drilling
which aimed at intersecting the previous mineralization in the previous drilling for
metallurgical test work. A total of 342 samples were collected for metallurgical testing.

MED11-005 was drilled at NAD13 as a twin hole for NAD07-060. This hole was drilled to
124.6m and mineralized from a depth of 24.1m down the hole with variable amount of
sulphide mineralization as disseminations, patchy, semi-massive and Massive sulphides.
Of significance are two zones of Massive Sulphide at 87.1-89.45m (2.35m) and 89.9-
92.65m (2.75m) associated with eutectic texture. 102 drill core samples were collected
for metallurgical test work. 102 metallurgical drill core samples were collected for lab
testing.

MED11-006 at H zone was drilled as a twin hole for NAD08-152 to a depth of 159.05m.
Two zones (83.0 – 116.4m and 127.15 – 159.05m) of mineralization were intersected in
the hole. Mineralization intersected included disseminations and Massive sulphide.
Massive sulphide was intersected from 127.15 – 127.85m (0.7m). Total of 90 core
samples were collected for metallurgical test.

MED11-007 a twin hole for NAD07-039 was drilled at L zone to a depth of 90.1m. The
hole intersected a few zones of mineralization. Massive sulphide was intersected from
65.6 – 66.5 (0.9m). A total of 28 drill core samples were collected for metallurgical test
work.

MED11-010 was drilled at M zone as a twin hole for NAD08-164 to 90.1m. Four distinct
zones of disseminated, patchy and bleby including massive sulphide mineralization were
intersected between 26.1 and 65m. 0.2m massive sulphde was intersected at 48.35m.
37 drill core samples were collected for lab metallurgical testing.

MED11-011 was drilled as a twin hole for NAD11-239 at the Sleeping Giant zone. The
hole was drilled to a depth of 120.25m. Numerous disseminated sulphide
mineralized zones of variable widths were intersected in the hole. 85 drill core samples
were collected for metallurgical lab test work.

MED11-008 and MED11-009 drilling was initiated in the month but but continued
through to December 2011. MED11-008 was drilled as a twin hole for NAD07-050 at G
zone and MED11-009 as a twin hole for NAD10-211.

Heath and Safety

Medical Supplies Donation to Mnero Mission Hospital

Medical supplies worth TZS 1,650,000 was donated to Mnero Mission Hospital as part of
the CSR for the local community health support. By doing so the company is creating a
strong and good relationship with the local communities around the project area.