Tulu Kapi Gold Project, Ethiopia

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

.cdr

PAGE 1 of 12Tulu Kapi_Nyota Min Ltd_'09_Technical Statement_Investors_V1InterAction

Corporate Reporting & Identity Specialists,

Annual Reports, Graphics

Graphics By:

- Exploration- Mineralisation- Distribution of Mineralistation- Deposit Type- Sampling Method and Approach- Sample Preparation, Analysis and Security- Mineralogical Studies and Mineral Processing- Data Verification and QA/QC- Adjacent Properties and Competitor Companies- Modelling and Mineral Resource Estimation- Conclusions- References

- Exploration- Mineralisation- Distribution of Mineralistation- Deposit Type- Sampling Method and Approach- Sample Preparation, Analysis and Security- Mineralogical Studies and Mineral Processing- Data Verification and QA/QC- Adjacent Properties and Competitor Companies- Modelling and Mineral Resource Estimation- Conclusions- References

INT

HIS

DO

CU

ME

NT - Key Features

- Introduction- Project Description, General Infrastructure and Accessibility

- Topography, Climate and Vegetation- Legal Aspects and Tenure- Environmental Requirements- Country History- Country Profile and Economy- Mining Sector of the Economy- Historical Exploration and Operations in the Tulu Kapi Area- Regional Geological Setting- Local Geology

- Key Features- Introduction- Project Description, General Infrastructure and Accessibility

- Topography, Climate and Vegetation- Legal Aspects and Tenure- Environmental Requirements- Country History- Country Profile and Economy- Mining Sector of the Economy- Historical Exploration and Operations in the Tulu Kapi Area- Regional Geological Setting- Local Geology

Investors Report on the

Tulu Kapi Gold Project, Ethiopiath

as at 30 September 2009

KEY FEATURES

Venmyn utilises a comprehensive checklist incorporating all internationally required compliance requirements, in particular

the Canadian National Instrument 43-101 and SAMREC/SAMVAL Codes for public reporting of mineral assets. The

information quoted in this Prospectivity Review has been scrutinised in terms of this checklist and prepared for investors

according to the principles of open and transparent disclosure embodied in the underlying codes for mineral resources

reporting.

Mr.Andy Clay, M.Sc. (Geol), M.Sc. (Min. Eng.), Dip.Bus.M., Pr.Sci.Nat., MSAIMM, FAusIMM, FGSSA,AAPG, M.Inst.D.

Mr. Neil Mc Kenna, M.Sc. (Geol), Pr.Sci.Nat., MSAIMM, MGSSA, MIASSA, M.Inst.D.

Mr. Richard Tayelor, B.Sc. Hons (Geol). MGSSA.th

30 September 2009.

Nyota Minerals Limeted (Nyota), previously Dwyka Resources Limited (Dwyka).

Review of the prospectivity and technical merits of the Tulu Kapi Gold Project in Ethiopia.

Public domain information as listed in the reference list, Nyota, Dwyka and Minerva Resources PLC internal reports and,

presentations and Hellman & Schofield (Pty) Ltd.

Mr. Andy Clay and Mr Neil Mc Kenna visited the Tulu Kapi Gold Project in July 2009. All operating areas and infrastructure

were inspected.

Sulphide and gold mineralisation in albitised syenite.

Compliance:

Qualified Persons:

Effective Date:

Prepared For:

Purpose:

Sources of Information:

Personal Inspection:

Deposit Types:

Indian Ocean

Gulf of Aden

Red Sea

LakeTurkana

GONDERTIGRAY

Welo

GOJAM

WELEGA

SHEWA

HARERGE

BALE

Arsi

SIDAMO

ILUBABOR

KEFA

GAMO GOFA

Saudi Arabia

YEMEN

SUDAN

UGANDA

KENYA

SOMALIA

DJIBOUTI

ERITREA

Gonder

Mek'ele

Nek'emte

Dese

Debre Mark'os

Gore

Yirga 'Alem

Harer

Goba

Arba Minch'

Jima

Khartoum

Djibouti

Addis Ababa

Mogadishu

Sanaa

Asmara

44°36°

4°

12°

Bou

ndar

yno

tde

fined

and

inDispu

te

TULU-KAPI

LEGEND:

Main Road

River

Provincial Boundary

National Capital

Provincial CapitalSCALE:

0 200m

REGIONAL LOCALITY

ETHIOPIA

LOCALITY OF GPMC ADVANCED EXPLORATION ACTIVITIES

LEGEND:

Location of GPMC advanced exploration activities

Tulu Kapi & Ankori Exploration Licence Area

Yubdo Exploration Licence Area

Billa-Gulliso Exploration Licence Area

Town

Road

Muklemi

Dobe Kobi

Keley

Ingango

Genji

Homa

Gulliso

Yubdo

Hamus G.

Ayra

Kobera

Soyoma

Dina

ChagoGudeya-Guji

Guji

Tulu Kapi

Yubdo

To Assosa

To Addis Ababa

SCALE:0 5 km

10

30

00

01

02

00

00

10

10

00

01

00

00

00

99

00

00

770 000 780 000 790 000 800 000

InterActionCorporate Reporting & Identity Specialists,


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

Tulu Kapi_Nyota Min Ltd_'09_Technical Statement_Investors_V1.cdr

PAGE 2 of 12




INTRODUCTION

The route fromAddisAbaba (12-hours away by road) includes an asphalt road,

an all-weather gravel road and a dirt/gravel trail. A 4x4 vehicle is required on

the dirt/gravel trail to get to site. An airstrip is located 20km from the project

site.

Minerva management confirmed with Venmyn that no material agreements

have been entered into with contractors or land owners at this stage.

Compensation payments are routinely made to subsistence farmers whose

crops are disturbed by prospecting activities. Exploration licenses that have

been inspected by Venmyn for the various project areas have been presented.

Minerva holds a number of exploration licences in the Tulu Kapi area through

its subsidiary Golden Prospect Mining Company Limited (GPMC). In July

2009, Dwyka (now Nyota) aquired Minerva making it a wholly owned

subsidiary of Nyota. The acquisition has given Dwyka control of a number of

additional prospective gold and platinum exploration assets in Ethiopia,

including Tulu Kapi.

MATERIAL AGREEMENTS

CORPORATE STRUCTURE

Venmyn was requested to provide an independent opinion on the prospectivity of the Tulu Kapi Gold Project (Tulu Kapi) and surrounding gold exploration

occurrences for which Tulu Kapi is the most significant mineral asset of Minerva Resources Plc (Minerva) which was acquired by Nyota Minerals Limited (Nyota)

in July 2009.

LOCATION, AREA AND OTHER PROPERTIES

POPULATION

EXISTING INFRASTRUCTURE

Tulu Kapi is located in western Ethiopia, in Oromia Regional State, Ghimbi

zone and in the Ganji Wereda. Together with the Ankore area, the project area2

measures ~15km and is located between 9°4'10"N and 9°6'51"N and

35°32'32"E and 35°34'45"E. The project is located 28km east of the town of

Ayra-Gulliso and 510km from Addis Ababa, Ethiopia's capital. The journey

from Addis Ababa to Tulu Kapi takes approximately 12 hours on mostly good

roads until the last 20km which is dirt road.

A small population of subsistence farmers are resident within the project area.

The nearest towns are Keley, Gulliso and Ganji. The greater area has a2

population density of 25 persons/km , according to World Trade Press.

The infrastructure in the immediate surroundings is adequate for prospecting,

but may have to be upgraded in later phases of the project's life. At present,

water is pumped from a local river or trucked in from a nearby supply, and

electricity is generated at the project site by a diesel generator. Comfortable

accommodation, basic offices, sheds and stores are located on site. Cellular

phone telecommunication is available on site.

INTRODUCTION

PROJECT DESCRIPTION, GENERAL INFRASTRUCTURE AND ACCESSIBILITY

TOPOGRAPHY, CLIMATE AND VEGETATION

The exploration site is hilly with incised valleys. The maximum altitude varies

between 1,600m and 1,765m above sea level.

LOCAL TOPOGRAPHY

�

GPMC applied for an exploration licence for Tulu Kapi in January 2005 and the

licence was granted in May 2005 (Licence Number: 127-128/97). This is valid

for three years with two successive one year extensions (as stipulated in the

legislation). The original exploration licence was valid until May 2008 and was

extended to May 2010.

a small scale mining licence for 10 years, renewable for 5 years.

LICENCES

CORPORATE STRUCTURE

100%

Golden Prospect MiningCompany Ltd


100%

Ethiopian Gold Ltd

Ethiopian Resources Ltd

51-73%

100%

100%

Resources Securities Ltd

Lake Sonfon

York Platinum

100%

Golden Prospect Mining Company Ltd

Tulu Kapi, YubdoBilla Guliso

Yubdo Platinum Mine


Yubdo Platinum and GoldDevelopment Plc

100%

100%




Tulu Kapi_Nyota Min Ltd_'09_Technical Statement_Investors .cdr

PAGE 3 of 12_V1




Ethiopia has an immature economy based on agriculture, which accounts for half of the Gross Domestic Product (GDP), 60% of exports, and 80% of total

employment. The key GDP earning sector, agriculture, is under-utilised and is susceptible to frequent drought and poorly developed agricultural practices which

contribute to deforestation, top soil loss and poor water management.

�

�a 35% income tax on taxable income. Taxable income is computed by

subtracting from gross income for any accounting year all allowable

revenue expenditure, a four years straight line depreciation,

reinvestment deduction and permitted loses; and

�guarantees the opening and operation of a foreign currency account in

banks in Ethiopia, retention of portion of foreign currency earning and

remittances of profits, dividends, principal and interest on a foreign

loan etc. out of Ethiopia.

The Ethiopian Constitution (1994) states that the right to ownership of all land

and natural resources is vested in the State, which can ensure the right of

private investors to the use of the land.

Ethiopia is attempting a land tenure reform process in many areas, since there

provides for a 2% to 5% royalty at production site;

CLAIMS, SERVITUDES, PERMITS AND LICENCES

LEGISLATIVE FRAMEWORK

LICENCES

The Mining Proclamation and Mining Tax Proclamation of 1993 makes

provision for the granting of the following:-

�a prospecting licence for one year, permitting only surface exploration;

�an exploration licence for an initial period of three years, renewable twice

for one year each;

�a large scale (>75,000tpa) mining licence for 20 years, renewable for 10

years unlimitedly; and

�a small scale mining licence for 10 years, renewable for 5 years.

GPMC applied for an exploration licence for Tulu Kapi in January 2005 and the

licence was granted in May 2005 (Licence Number: 127-128/97). This is valid

for three years with two successive one year extensions (as stipulated in the

legislation). The original exploration licence was valid until May 2008 and was

extended to May 2010.

LEGAL ASPECTS AND TENURE

ROYALTIES, FEES AND TAXES

The new Mining Proclamation and Mining Tax Proclamation of June 1993 by

the Ethiopian Ministry of Mines and Energy (EMME) fully recognizes the high

risk nature of mining investment and is now firmly allied to private investment.

The preamble to the new mining law states that the significant role of private

investment in capital formation, technology acquisition and marketing of

minerals is recognised. This is markedly different from the previous

government policy of complete monopoly of the mining sector.

The proclamation guarantees and provides for:-

�the licence owners right to sell all the minerals locally or abroad;

�exemptions from custom duties and taxes on equipment, machinery,

vehicles and spare parts;

�provides security of tenure;

has been a long history of forced displacements and an

acknowledgement that lack of access to, and control

over, land by the poor may be among the reasons for

rural poverty and food insecurity. The project area is

inhabited by subsistence farmers, and these may

conceivably have land tenure rights, since

intergenerational transfer of land was confirmed, and

the registration and certification of land holdings was

provided for, in Federal Proclamation 456/2005.

There may be the possibility that the resettlement of the subsistence farmers

may be required in later project stages. The Ethiopian Environmental

ProtectionAgency recommends:-

�minimising resettlement as much as possible;

�carrying out detailed plans for compensation and resettlement; and

�developing a long-term support programme for the resettled.

A 'Socio-EconomicAssessment Report' has been completed on the Tulu Kapi,

Guji and Yubdo Exploration drilling areas by Mid-Day International Consulting

Engineers in March of 2008. This document has been examined by Venmyn

and highlights affected parties and their opinions and concerns in the license

area.

ENVIRONMENTAL REQUIREMENTS

The EPA recommends that an Environmental Impact Assessment (EIA) be carried out for a large scale gold mining operation, in which the annual run of mine ore3

exceeds 100,000m for a placer operation and 75,000 tons for primary deposit mining. To date no formal environmental requirements are contracted under an

exploration licence agreement in Ethiopia, however, this will be required when applying for a mining right.

COUNTRY HISTORY

The Ethiopian monarchy maintained its freedom from colonial rule with the exception of a short-lived Italian occupation from 1936-1941. In 1974, a military junta

(the Derg) deposed Emperor Haile Selassie (who had ruled since 1930) and established a socialist state. Torn by bloody coups, uprisings, wide-scale drought,

and massive refugee problems, the regime was finally toppled in 1991 by a coalition of rebel forces, the Ethiopian People's Revolutionary Democratic Front

(EPRDF).

Aconstitution was adopted in 1994, and Ethiopia's first multiparty elections were held in 1995.Aborder war with Eritrea late in the 1990s ended with a peace treaty

in December 2000. The Eritrea-Ethiopia Border Commission in April 2002 remotely demarcated the border by geographical coordinates, but final demarcation of

the boundary on the ground is currently on hold because of Ethiopian objections to an international commission's finding requiring it to surrender territory

considered sensitive to Ethiopia.

COUNTRY PROFILE AND ECONOMY

LICENCE GRANTED EXTENSION AREA OWNERSHIP

Tulu Kapi and Ankore 05-Apr May 2008 1st extension 20

2km 100% GPMC

Yubdo 04-Jun June 2008 2nd

extension 2

300km 100% GPMC

Yubdo Extension 06-Dec 3rd

Year Exploration 2742

km 100% GPMC

Tulu-Dimtu Extension 06-Nov 3rd

Year Exploration 702

km 100% GPMC

Yubdo Mining Licence

A1, A2, A3, A4Jul-99 Mining 27

2km

51% earning to

72%

SCHEDULE OF EXPLORATION AND MINING TENEMENTS HELD BY GMC





PAGE 4 of 12_V1




In November 2001, Ethiopia qualified for debt relief from the Highly Indebted Poor Countries (HIPC) initiative, and in December 2005 the IMF cancelled Ethiopia's

debt.According to the Ethiopian constitution, the state owns all land and provides long-term leases to the tenants.

MINING SECTOR OF THE ECONOMY

Ethiopia's mineral industry is not a significant contributor to GDP, with mining

and quarrying contributing only ~0.4% to GDP. Ethiopia does play a significant

role in the world's production of tantalum, with the country's share of global

tantalum production amounting to 5% in 2007. The petroleum and natural gas

industries are being developed and other key minerals produced in Ethiopia

include:-

HISTORICAL EXPLORATION AND OPERATIONS IN THE TULU KAPI AREA

�

�gold;

�platinum;

�iron ore;

�cement;

�salt and gypsum;

�clay and shale; and

�soda ash.

niobium;

While there is no evidence of either historical or recent artisanal mining by the local population, the Tulu Kapi area has been mined (using very basic techniques)

by various Italian firms during the 1930's. All subsequent activity has been limited to prospectivity assessments and early stage-exploration by various

companies, most significantly by the current operator ,GPMC.

REGIONAL GEOLOGICAL SETTING

�

�

�

metadiorites;

metagranites; and

syenites.

The project covers a 1.5km long mineralised trend that runs northwest along

the flanks and centre of a large hill that rises from an elevation of 1,640m at its

base to 1,770m at its peak. GPMC mapped eleven lithological units in the

Yubdo exploration license which surrounds the Tuli Kapi and Ankore licence

areas which are illustrated in the following figure. Tulu Kapi, Ankore, Guji and

Yubdo all fall within the vicinity of a regional north-northwest striking shear

zone that has associations with various other deposits along its length. Indeed

soil sampling has highlighted that the Tulu Kapi deposit and surrounds are but

a single complex in a larger mineralisation trend.

A number of historical exploration efforts have been illustrated in the table

“Historical Exploration and Operations”. Most importantly are the soil

geochemical work and drilling undertaken by the UNDP (United Nations

Development Programme) and the detailed geological mapping, geophysical

LOCAL GEOLOGY

EXPLORATION

DATE ACTIVITY BY FINDINGS

1930's Gold mining took place largely by hydraulicking. Various Italian Firms.

1939 Assumed mining and sampling. SAPIE.Estimated 1,155kg Gold 'Reserve' at a grade of

0.9 - 2.23 g/m3.

1947 Study. Dahlstrom. 4.3 g/t from adit samples.

1966 Study. Jelenc.0.1 - 0.25 g/t contained in elluvial cover of

Ankore.

1969 Soil sampling study. Kochamasov. Arsenic anomalies reaching 2655 ppm.

1969 Geological mapping study. Kazim from Ethiopian Mineral Survey.

1969 -1972Various work including: geological mapping, soil

sampling, geophysical survey and drilling.United Nations Mineral Survey.

Drillholes intersected gold and silver

mineralisation; stream sediment sampling

yielded 0.02 - 0.1 g/m3.

1970's Exploration activities and resource estimation.United Nations Development

Programme (UNDP).

1996 - 1998

Various work including: detailed geological

mapping, geophysical and geochemical survey,

trenching, Mobile Metal Ion (MMI) sampling and

drilling.

Tan Range Exploration Corporation

(TREC).

Soil sampling campaign mapped with ranges of

200 - 3200 ppb; drilling intersected numerous

hydrothermal altered syenite mineralisations;

MMI samples delineated various anomalous

zones.

2000 Geological mapping study. Alemu and Abebe.

2000 -Preliminary Due Diligence, sampling, drilling etc

sampling.

Golden Prospect Mining Company

Limited (GPMC) - Current Operator.Cause for further work.

The region lies within the Arabian-Nubian Shield which consists of Archaean

gneiss and is best described as a granite-greenstone terrain. Additional

weakly metamorphosed volcano-sedimentary successions of late Proterozoic

age occur within the terrain. The area has been extensively folded, faulted and

intruded by Pan-African aged granites and lesser mafic to ultramafic intrusives

and hosts a number of gold occurrences/deposits. A major north-northeast

striking shear zone is a dominant feature in the region.

The geology of the area, in which the Tulu Kapi exploration licence is situated,

consists of rocks ranging from Precambrian to Tertiary in age. The

Precambrian rocks consist of various gneisses, low-grade volcano-

sedimentary rocks with associated mafic to ultramafic intrusions as well as

meta-intrusive rocks ranging from metagabros to granites. From oldest to

youngest these are represented by the following identified units:-

a basement granitic gneiss;

various meta-sedimentary units;

the Birbir Group basement rock;

quartzites;

ultramafics;

mafics and intruded metagabbro intrusives;

�

�

�

�

�

�





PAGE 5 of 12_V1




LEGEND:

Rivers

Roads

Towns

Placer Working Area

Old Mine

Fault

Mica Schist & Phylites

with Kyanite & Staurolite

Felsites & Siliceous

Rocks

Schist

Chlorite, Actinolite,

Talc Schist

Chlorite-actinolite

Schist, Amphibolite

Biotite Porphyry Granite

(Massive, Coarse

Grained)

Syenite

Fine Grained Biotitic

Granite

Orthoclase Porphyry

Serpentinite, Dunite,

Peridotite, Talc

Serpentinite Chlorite

Quartzites

Quartz Vein

LEGEND:

CENOZOIC

Recent - Pleistocene

Alluvials

Quarternary - Neogene

Rhyolitic & basaltic lavas

Neogene (-Paleogene)

Limestones

Basalts

MESOZOIC

Mesozoic

Sandstones

PALEOZOIC

Lower Jurassic - Upper

Carboniferous

Sandstones, dolerites

Neoproterozoic

Low grade metamorphic rocks

High grade metamorphic rocks

and geochemical survey, trenching,

Mobile Metal Ion (MMI) sampling and

drilling completed by Tan Range

Exploration Corporation (TREC) for

which the results are available to GPMC.

The UNDP work from the 1970's

demonstrated that anomalous gold

grades continue for 1.2km along the

shear structure. This was confirmed by

an UNDP drillhole (UN10) which

intersected 0.7m of mineralisation at a

grade of 27.0g/t some 570m north of the

current drilling area. All historical

exploration data was acquired from the

Geological Survey of Ethiopia (GSE)

library and other sources.

The GPMC geologists consider that, in

the case of both UNDP and TREC, the

respective exploration teams were

misled by the regional foliation of

exposed rocks and the orientation of

mineralised quartz veins in the area, and

REGIONAL GEOLOGY AND BASIC INFRASTRUCTURE

LEGEND:

Rivers

Roads

Towns

Project Area

Regional Shear / Fault

Fault

Lower Basalt

Gabbro

Metagabbro

Guliso Formation

Schist

Granite

Pyroxenite

Syenite

Meta-Ultramafics

Meta-Ultramafics

Granodiorite

Granitoid

35°30’

Birbir River

AYARA

GULISODaleti

INANANGO

Anchore

SCALE:0 10 km

ff

ff

ff

ff

ff

ff

ff

ff

ff

ff

ff

ff

Tulu Kapi

Axum

Addis Ababa

Lake Tana

Lake Shala

TULU KAPI

ETHIOPIA

LOCAL GEOLOGY AND BASIC INFRASTRUCTURE

GUJI

Anko

riR

iver

Fako

cha

Riv

er

9°0

3’5

1”N

ff

ff

ff

ff

ff

ff

ff

ff

ff

ff

ff

Tulu Kapi

Ankori

SCALE:0 2.4 km





PAGE 6 of 12_V1




“discovery” hole. Initially, the drilling was oriented in the same direction

as that done by TREC and the UNDP. Drill hole TKBH04, however was

oriented ~90° to this direction and intersected significant gold grades

and confirmed the true orientation of the mineralisation. Subsequent

boreholes were oriented to intersect the mineralisation;

Phase 2 drilling consisted of 7 holes which returned intersections of

several zones of significant mineralisation from at least two of the

boreholes TKBH05 and TKBH07;

Phase 3 of the drilling programme consisted of 12 in-fill and scout

holes totalling ~3,000m. The placement objective was to extend the

strike length and further delineate the structure; and

Phase 4 drilling commenced in 2008 consisting of another 3,000m of

drillcore, the majority of which was dedicated to further Tulu Kapi

mineralisation delineation. The rest was split between the nearby gold

prospects of Guji and Gudeya Guji in the Yubdo Exploration licence. A

total of 34 holes have been drilled to-date by GPMC.

�

�

�

that both parties placed diamond drill holes perpendicular to the foliation and

parallel to mineralised zones hence failing to achieve good intersections

(occasionally catching the edge of veins when drilling down dip). This may

explain why these parties abandoned the project prematurely despite very

good soil geochemical anomalies.

The historical soil sampling data has been useful to GPMC to the extent that it

has helped identify and confirm additional exploration targets. Confirmatory

testwork has been carried out on these historical data, but no mineral

resources defined.

GPMC has undertaken recent exploration activities, the most significant of

which has been the four drilling campaigns at Tulu Kapi:-

Phase 1 consisted of 4 drillholes (TKHB01 – TKBH04) situated at the

southern end of the initial target zone. All drill holes intersected

significant gold mineralisation but TKBH04 is considered the

�

MINERALISATION

The Tulu Kapi mineralization is hosted in Proterozoic syenites. It appears to

be strongly associated with zones of highly albitised, hydrolytic hydrothermal

alteration centred on a local north-northeast shear. These albitised zones

show complete replacement of all mafic minerals to sulphide. Narrow quartz

veins and overprinting sulphide veins slice through the syenite as a late stage

event. Mineralisation does occur in these quartz veins, but it may be

remobilisation of gold from the albitised sections. Gold occurs predominantly

in pyrite, or near the contact between pyrite and silicate gangue with free gold

visible in hand sample and thin section.

The syenite intrusion in which the gold mineralisation is hosted includes

coarse- and fine-grained phases as well, mainly crosscutting sills of

metadolerite and some dykes.

The degree of alteration through albitisation appears to be the key

concentrator of mineralisation. The earliest alteration observed is veins and

alteration of biotite-magnetite within the syenite. The alteration is evident by

syenite being affected in numerous zones of intense albitisation which appear

to convert all feldspars to albite and replace the mafic minerals with sulphides.

These zones range up to several metres wide and are prominent in the core

due to their white colour. The albitised zones contain quartz veins which range

from approximately 1 to 20cm wide, making mineralisation easy to identify

visually.

COMPLETELY ALBITISED SYENITE WITH A SULPHIDE REPLACEMENT

2 cm

ZONE OF SYENITE ALBITISATION WITH CROSS CUTTING QUARTZ VEINS

ALBITISED SYENITE CUT BY A VEIN WITH QUARTZ, CARBONATEAND PYRITE

2 cm





PAGE 7 of 12_V1




EXPLORATION

SECTION: 00

16

00

17

00

-200 -100 0 100 200

TKBH-28

TKBH-09

TKBH-04 TKBH-05

TKBH-08 TKBH-20

136.83

157.57

261.70200.60

251.33

249.60SCALE:0 50m

SECTION - 80S

16

00

17

00

-200 -100 0 100 200

223.85

98.34

249.50

201.85

200.00

TKBH-24TKBH-27

TKBH-12

TKBH-10

TKBH-34TKBH-29

SCALE:0 50m

BOREHOLE LOCATIONS AT THE CENTRAL PART OF TULU KAPI DETAIL AREA

780 200 780 400 780 600 780 800

10

04

80

01

00

46

00

10

04

40

01

00

42

00

10

04

00

0

Pl-320N

Pl-240N

Pl-160N

Pl-80N

Pl-00

Pl-80S

Pl-160S

Pl-240S

Pl-320S

TKBH-21

TKBH-17

TKBH-34

TKBH-20

TKBH-19TKBH-19TKBH-31TKBH-31

TKBH-16TKBH-16 TKBH-06TKBH-06

TKBH-33TKBH-33

TKBH-07TKBH-07 TKBH-05TKBH-05TKBH-15TKBH-15

TKBH-11TKBH-11

TKBH-13TKBH-13


TKBH-04TKBH-04


TKBH-10TKBH-10

TKBH-12TKBH-12

TKBH-02TKBH-02TKBH-28TKBH-28TKBH-27TKBH-27 TKBH-14TKBH-14

TKBH-26TKBH-26 TKBH-18TKBH-18


TKBH-32TKBH-32TKBH-23TKBH-23TKBH-25TKBH-25


SCALE:0 200m

Borehole Location

Old Mine Area

Adit / Drive

Old Workings

Roads

Plan view

LEGEND:

CORE TRAY OF EXPLORATION DRILLING

PLAN VIEW

251.33

200.00

|

|

|

|

780 500 780 600 780 700

10

04

50

01

00

46

00

10

04

30

01

00

44

00

TKBH_20

TKBH_34

TKBH_17

TKBH_21SCALE:0 50m

Mineralisation\

Albitisation

LEGEND:

SECTION - 80N

16

00

17

00

-200 -100 0 100 200

157.70

211.05217.00

220.00

TKBH-13 TKBH-11TKBH-07

TKBH-33

SCALE:0 50m

Mineralisation\

Albitisation

LEGEND:





PAGE 8 of 12_V1




The early albitisation stage is cut by a second stage of quartz veining that

commonly also contains carbonate, pyrite and minor biotite, sericite and

epidote. Sericite alteration is present in the albitised syenite and especially in

the metadolerites and is possibly associated with this stage. A pyrite-rich

sulphide stage which occurs as cm-scale veins as well as in discontinuous

cracks within the albitised syenite appears to be closely associated with high

gold grades.

DISTRIBUTION OF MINERALISATION

The drill results to-date suggests that the Tulu Kapi deposit is a mineralised system with numerous

mineralised zones for which preliminary cross sectional interpretation and correlation between boreholes

has been undertaken to estimate an Inferred Mineral Resource.

Planned in-fill drilling is expected to confirm the nature of the continuity between the mineralised zones and

to classify an Indicated Mineral Resource. The current interpretation favors a shallowly dipping, 'zonal' style

of mineralisation.

Mineralisation with significant grade values has been established over a strike length of some 600m to a

depth of 200m along with indications of further extension by historical drilling. The southern end of the main

Tulu Kapi drill area contains a large shear zone with a strike of approximately 040° with a sub-vertical

GPMC suggests that there is ample evidence to advocate that mineralisation

is bound by a northeast shear zone which is possibly disrupted by smaller

scale northwest conjugate structures.

EXPLORATION - TULU KAPI SOUTH EXTENSION

Borehole Location

Old Mine Area

Fault

LEGEND:

ff ff

ff

ff

BH11

BH28

BH23

BH25BH26

BH12

BH27

BH07

BH29

BH14

BH08

BH10

BH17

BH21

SIGNIFICANT GOLD INTERSECTIONS PER BOREHOLE

QUARTZ VEIN IN SYENITE

QUARTZ VEIN WITH POSSIBLE LATE STAGEMINERALISATION CROSS CUTTING

attitude. Significant displacement along

the shear has been observed, possibly

forming a southern mineralisation

boundary.

The regional geological map indicates

the presence of northwest oriented fault

zones and it is possible that these also

play a role in controlling the distribution of

mineralization.

Borehole

Number

Lengths

(m)

Au

g/t

3.40 3.9

2.60 21.2

11.90 1.3

3.20 6.9

1.80 6.1

4.30 20.0

3.40 3.7

28

10.10 4.1

5.70 10.0

33

31

29

Assays Pending

27

Borehole

Number

Lengths

(m)

Au

g/t

2.40 4.5

6.60 4.9

1.00 14.4

2.70 4.3

23

2.50 3.0

15.30 7.3

2.20 4.0

4.20 2.5

3.00 4.9

Drilled into Fault

21

17

26

Borehole

Number

Lengths

(m)

Au

g/t

4.00 10.2

3.40 3.5

2.70 7.4

18.00 4.4

11.80 4.6

16.00 1.6

1.00 17.5

3.30 2.6

1.70 4.5

11

14

12

Borehole

Number

Lengths

(m)

Au

g/t

17.70 5.2

11.40 2.0

16.00 1.6

1.00 17.5

1.70 4.5

15.70 2.5

11.00 2.0

2.20 10.5

5.50 5.0

10

8





PAGE 9 of 12_V1




The geological data was acquired by taking geological traverses, trenching

and core sample logging activities. GPMC have gathered geological data from

seven profile lines on 80m by 40m grid in an area of 560m strike, 250m width

Syenite hosted gold deposits are unusual in the ore deposits of the world albeit

that there are a few examples (Kirkland Lake in Ontario), and a definitive

deposit type for the Tulu Kapi deposit is at this stage undecided.

The mineralisation is strongly associated with the hydrothermally albitised

syenites primarily and secondly with the quartz and sulphide veinlets through

possible later remobilisation. What is also known is that the main shearing and

faulting appears to post date the mineralisation.

Primary magmatic layering may be shown to be a broad control on the

distribution of alteration and mineralisation within the Syenite.

Early potassic alteration in the form of microfracture controlled biotite-

magnetite seen in mafic syenite may be a key control on gold precipitation.

Desulphidation of hydrothermal bisulphide gold complexes is a common mode

of gold deposition at many gold deposits.

and up to 250m depth. In total

34 boreholes have been drilled

by GPMC in the Tulu Kapi area.

Most of the holes were drilled at

50 degrees and a few at 60

degrees, in order to intersect the

interpreted southwest dipping

mineralised zones at high angle.

All drilling and sampling activities

have been overseen by trained

SAMPLING METHODOLOGY AND APPROACH

DISCOVERY BOREHOLE

GPMC personal and/or geologists. All core is stored in dedicated core sheds

and under lock and key with a guard present at all times.

Logging is qualitative and based on descriptions of both rock forming and ore

minerals. It describes the different lithologies intersected in boreholes and

should be sufficient to support a mineral resource statement.

The geological and geochemical sample points have been captured using

hand held GPS units with accuracies of between 10m - 20m error. The

borehole collar readings were taken by differential GPS and Total Station units,

with accuracies of between 0.5m – 2.0m error.

Venmyn conducted inspections on a number of boreholes and are satisfied

that the drilling, logging and sampling has been carried out to a high standard

and that the data has been appropriately captured.

The sampling has been governed by detailed geological logging of alteration

zones and geology. It has been aimed at collecting representative samples

from mineralized zones and rock units. The minimum sampling length in

mineralized zones is 0.4m, the normal sampling range is 1m and the maximum

length is 1.2m. The sampling length in barren sections is 2m. Split, half core

samples were collected from the sampling range in plastic bags. Unique

printed sample numbers are given to each core sample and a duplicate sample

number is posted in the core box. Sample size varies in weight between 4kg to

8kg.

DEPOSIT TYPE

SAMPLE PREPARATION, ANALYSES AND SECURITY

Most of the core samples have been assayed at ALS-Chemex laboratory in

SouthAfrica and only two boreholes' samples were assayed at SGS laboratory

in South Africa. Standard preparation procedures have been followed: whole

split core is dried and crushed to 6mm size and half kilogram split 6mm size

material is pulverized. The assays on the pulversised sample were done by

standard FireAssay methods withAAS finish.

MINERALOGICAL STUDIES AND MINERAL PROCESSING

No detailed mineral processing or intense metallurgical testing has yet been

performed. Two preliminary mineralogical studies have been conducted on

certain mineralized sections. These preliminary studies have demonstrated

that gold occurs predominantly in pyrite, or as free gold near the contact

between pyrite and silicate gangue, and testwork has shown that it is

recoverable up to 96% by normal cynide leaching processes.

Specific gravity measurements have been taken from 10cm length quarter

core samples at Water Works laboratory inAddisAbaba and SGS laboratory in

South Africa. These samples were collected from both the mineralized zones

and barren rock units. Measurements were taken without sealing the voids and

fractures with resin/wax and also after sealing the samples.

DATA VERIFICATION AND QA/QC

All historical data is kept mainly in hard copies at GSE library. Handwritten and

copied originals are stored in the Addis Ababa office, a set of originals is also

stored at the Tulu Kapi camp and a third set is being prepared for storage in the

London office. No data verification or QA/QC has been conducted on the

primary data and Venmyn consequently consider the confidence with respect

to the historical data to be moderate, subject to a validation check.

All GPMC data is captured into an electronic database. Only the surface

geological and historical geochemical data has been integrated with the

SURFACE OUTCROP





PAGE 10 of 12_V1




ADJACENT PROPERTIES AND COMPETITOR COMPANIES

A Chinese firm is currently undertaking exploration work near the Yubdo license area with funding of BIRR10.0m committed to the program. Venmyn is informed

that no other operations are present on adjacent properties to the client's knowledge.

current GPMC database. Dr. Kebede, of GPMC, is responsible for managing

the logging process and verifying data and is responsible for checking the

transfer of handwritten logs to the electronic, Micromine database.All borehole

data including collar coordinates have been resurveyed and plotted in

Micromine. The database is audited, generally every three months, by

independent consultants. The last audit was done in December 2008, and as

of that date no material risk had been identified. With respect to QA/QC on

core samples, GPMC make use of blanks, standards and duplicates. Within

one batch of 20 samples, one internal blank, one standard, one crushed

duplicate and one pulp duplicate samples are included. Blanks are generally

inserted behind expected high grade samples and duplicate samples are

collected from expected mineralized samples. The laboratory also uses their

own QA/QC samples.

The database has most recently been validated by Mr. Craske (of Minerva)

and Mr. Churchouse (of Nyota). All data has been transferred to sections, has

been cross-checked against original borehole logs and all sections redrawn to

validate. On this basis, Venmyn consider the confidence with respect to the

recent data to be high, but would recommend that an independent audit is

conducted before Mineral Resource Modelling is performed.

MODELLING AND MINERAL RESOURCE ESTIMATION

No previous resources have been estimated for the Tulu Kapi Project. Hellman & Schofield Pty. Limited (Hellman & Schofield) was commissioned to undertake an

initial, independent estimate of the gold resources of the Tulu Kapi Gold Project.

Of particular significance is the observation that the albitised sections of the mafic rich syenite unit showed more than 95% overlap with significant assay results.

This concurs with Venmyn's on-site observations.

Since the varying scales and geometric irregularity of albitic alteration preclude the development of meaningful enclosing envelopes (wireframes) of

mineralisation given the current density of drilling, resource estimation was conducted using a multiple indicator kriging (MIK) methodology. This methodology

estimates the locally recoverable

resources in the primary mineralisation.

Ordinary kriging was used separately to

estimate the small amount of resource in

t h e s a p r o l i t e a b o v e p r i m a r y

mineralisation due to the relative sparsity

of data within the saprolite.

The MIK recoverable resource model for

Tulu Kapi assumes that mining will be by

open pit with detailed grade control using

5m x 5m x 2m sampling densities. A

similar selectivity and required grades

may be available using a visual selection

based on the distinct albite alteration.

Whether this can be achieved without

significant grade dilution and increase in

waste tonnage with grade based

selectivity requires more detailed

examination.

BLOCK MODEL COLOURED BY REOVERABLE GRADE ABOVE A 0.5g/t GOLD CUT-OFF

Diorite Shear Contact

Geology

Saprolite

Syenite

Basic Dyke

Diorite

Gold g/t

0.5 - 1

1 - 2

2 - 5

>/= 5

LEGEND:

BLOCK MODEL SECTION 80S

TKBH-04

TKBH-02

TKBH-27

TKBH-02

TKBH-20TKBH-34

TKBH-10

TKBH-01

Ground Surface

Projected Shear Contact

Base of completeOxidation

TKBH-12

BLOCK MODEL SECTION 00 LOOKING NORTH

TKBH-28

TKBH-08

Ground Surface

TKBH-05TKBH-20TKBH-09

Base of completeOxidation

TKBH-04





PAGE 11 of 12_V1




CONCLUSIONS

Venmyn's review demonstrates that the Tulu Kapi Project represents a highly prospective gold project within Ethiopia. An initial, Inferred Mineral Resource of 13

million tonnes of ore grading 1.6g/t above a cut-off grade of 0.5g/t for a contained metal content of 0.7 million ounces has been estimated by Hellman & Schofield,

which represents a relatively small area of the greater licence area.Anumber of other prospective targets may add to this mineral resource over time.

The general disposition of the Tulu Kapi mineralization on a favourable hill location, with some borehole and trench intersections of many meters with grades in

excess of 5g/t, makes this an attractive proposition. In addition, no deleterious minerals like arsenopyrite appear to be present and gold occurs predominantly in

pyrite, or as free gold near the contact between pyrite and silicate gangue, and testwork has shown that gold is recoverable up to 96% by normal cynide leaching

processes.

TYPICAL ALBITISED MINERALISATION

RE-INTERPRETED GOLD VALUES IN GRID SOIL SAMPLES OF THE TULU KAPI AREA

AREA 2

AREA 3

AREA 1AREA 4

MAIN TULU KAPI DRILL ZONEMAIN TULU KAPI DRILL ZONE

AU IN SOIL PPB:

0 - 100

100 - 400

400 - 700

700 - 1,000

1,000 - 1,800

>1,800

Off Map*

Source: M. Churchouse (Dwyka, June 2009)

AREA 5* Area

1Tulu Kapi

Extension

- South Strike Extension

- Drill Ready

2UNDP

Target

- UNDP Borehole

- Quarts Veins

3Tulu Kapi

East

- New Quartz vein swarm identified on strike of 1930's Gold Mine

- 5.5km of strike length to target

4Tulu Kapi

West

- Soil Anomaly never previously tested

Guji

- 1,200m strike proven

- 9.6 g/t Au over 68.5m in trench intersection

Guji

Extension

- 3,000m strike

- Evidence of suitable geology

- No evidence of faulting

- A potentially significant extension to Tulu Kapi

5

POTENTIAL NEW TARGETS

An in-fill drilling and surface trenching programme which

is planned for the upcoming 'dry' season is aimed at

further improving the understanding and distribution of

the mineralisation and providing the basis for an

Indicated Mineral Resource to be estimated. The

potential to add to the mineral resources to the project is

emphasised by the numerous positive indications of

mineralisation beyond the immediate area of Tulu Kapi.

The accompanying figure and table summarise this

additional potential within the licence area.

The table below summarises the initial resource estimation conducted by Hellman & Schofield in

September 2009. This resource has been estimated using fire assays from 34 diamond drill holes

in an area of 500m x 400m to a depth of 200m.

The MIK recoverable resource model estimates approximately 13 million tonnes of ore grading

1.6g/t above a cut-off grade of 0.5g/t for a contained metal content of 0.7 million ounces. Hellman &

Schofield consider that the total resources estimated at Tulu Kapi tabled here can be publicly

reported as Inferred Resource estimates according to the JORC Code (2004).

Mafic

Syanite

Alb

itis

ed

Syanite

Mafic

Syanite

VOLUME

(Mt)

GOLD

GRADE

(g/t)

VOLUME

(Mt)

GOLD

GRADE

(g/t)

0.5 13.15 1.59 0.37 1.38 0.69

1 6.58 2.46 0.12 2.84 0.53

1.5 3.94 3.3 0.09 3.34 0.43

TOTAL

GOLD

CONTENT

(Moz)

Inferred

THTULU KAPI MINERAL RESOURCES AS AT 30 SEPTEMBER 2009

CUT-OFF

GRADE

(g/t)

RESOURCE

CLASSIFICATION

PRIMARY SUPERGENE





PAGE 12 of 12_V1




Additional, regional potential around the Tulu Kapi occurrence is evident in the thick, shallow dipping quartz veins at Guji and other properties readily available for

detailed trench sampling and possibly bulk sampling. The geology of the area is only mapped at a regional level and the potential for the syenite body to be of a

substantial size may be proven if the identified “pods” of syenite outcrop are shown to be regionally connected, perhaps as a batholiths.

In conclusion, this Technical Statement seeks to identify in compliant format the issues required to create a framework within which to identify and quantify future

work requirements, the potential success and the alternatives available for Nyota to generate significant upside value potential.

REFERENCES

AUTHOR DATE TITLE SOURCE

Adams, M., and Palmer, R. 2007Independent Review of Land Issues, Volume

III, 2006-2007, Eastern and Southern Africa

http://www.oxfam.org.uk/resources/learning/landrights/

downloads/independent_review_land_issues_eastern_

and_southern_africa_2006_07.pdf

Federal Democratic Republic of

Ethiopia, Environmental Protection

Authority

2000 Environmental Impact Assessment Guidelinehttp://www.epa.gov.et/epa/departments/eia_services/fil

es/pdf/eia_guidline.pdf

Mid-Day International Consulting

Engineers2008

Land Resource Survey for Yubdo Platinum

Test Pilot Area and Tulu Kapi and Guji Detail

Gold Exploration Drilling Areas in Western

Welega Zone, Oromiya, Ethiopia

0671_0001.pdf

2006 Bila-Gulliso Exploration Licence Bila-Gulliso Exploration Licence.pdf

2005 Tuli Kapi and Ankore Exploration Licence Tuli Kapi and Ankore Exploration Licence.pdf

2004 Yubdo Locality Exploration Licence Yubdo Locality Exploration Licence.pdf

2006 2006 Tulu Kapi Summary Report 2006 Tulu Kapi Summary Report.pdf



2007Minerva Resources PLC Annual Report and

Accounts 20072007 Annual Rpt MDs Rpt.pdf

2009 Tulu Kapi Gold Project, Ethiopia January 2009 Tulu Kapi Update January 2009 with cover (3).pdf

Notes on alteration and mineralization at the

Guji, Gudeya Guji and Dina gold prospects,

western Ethiopia

P Pollard Other_prospects.pdf

Gold mineralization and associated alteration

at the Tulu Kapi Prospect, Ethiopia:

Recommendations for future work

P Pollard Tulu_Kapi.pdf

Wardell Armstrong International

Limited2009

Cyanide Leach testing of Two samples of

Mineralisation from Tulu Kapi Tulu Kapi Report.pdf

Minerva Resources PLC 2009 Tulu Kapi Gold Project, Ethiopia January 2009

World Trade Press 2009 Population Density Map of Ethiopiahttp://www.bestcountryreports.com/zoomify.asp?name

=Z_Ethiop_Pop

Hellman & Schofield 2009Inferred Gold Resources, Tulu Kapi Project,

Ethiopia.Inferred Gold Resources, Tulu Kapi Project, Ethiopia.

Minerva Resources PLC

Dr. Peter J. Pollard 2008

Federal Democratic Republic of

Ethiopia, Ministry of Mines and Energy

Golden Prospects Mining Company

Limited

Documents

Tulu Kapi Gold Project, Ethiopia