Business overview and strategy

Weatherly (WTI) is an AIM listed mining, exploration and development Company. The copper portfolio includes the following Namibian assets, two mines at Otjihase and Matchless in production, three development projects and an exploration licence. The company has resources (JORC) containing 712,000t of copper. The immediate strategy is to develop a copper mining business capable of sustaining 20,000 tpa of copper at average industry cost of production for the next ten years.

In keeping with the above, we have brought the best of the underground mines, Otjihase and Matchless (Central Operations), back into production in Q1 2011. Production is expected to average approximately 7,000t of copper per annum.

We will be following this up with the development of a new open pit mine at Tschudi. We are in the process of undertaking a detailed feasibility study which is expected to be completed in the first half of 2012. Detailed plans for this project will be announced as the feasibility study progresses. At this point in time the favoured processing route is to heap leach the entire orebody, then produce copper cathodes in a solvent extraction - electrowinning (SX-EW) plant on site at Tschudi. Studies will also examine the incorporation of the reworking of the Tsumeb Tailings in order add value the Tschudi project.

Together with our Chinese partners, ECE, we have listed on AIM a joint venture company; China Africa Resources Plc. Weatherly holds a 25% shareholding in the Company. The transaction raised £4.8m for China Africa Resources, and its first objective is to complete a feasibility study into the development of the old Lead Zinc mine at Berg Aukas, near Groonfontein in Northern Namibia.

We will also be accelerating the planned extension drilling of the Tschudi syncline. Exploratory drilling of Tsumeb West is also scheduled for 2012.