COPPER PROJECTS

• Cheowa CC2 Resource more than doubled to 6.5 million tonnes

* Indicated Resource of 3.5mt @ 1.1% copper and 0.23g/t gold
* Inferred Resource of 2.9mt @ 1.1% copper and 0.38 g/t gold

• Deep Diamond Drilling at CC2 demonstrates mineralisation continues to depths of at least 500m. Drilling now 95% complete and scheduled to complete in July 2008.

• New results include:

4.4m at 2.73% copper from the 200m – 400m panel
2.0m at 3.63% copper from the 200m – 400m panel
2.6m at 3.97% copper from the 400m – 600m panel

• Kangaluwi RC drilling returns substantial mineralised widths in multiple zones including: 18m at 1.42% copper, 17m at 1.24% copper, 10m at 1.97% copper, and 15m at 0.86% copper.

• Kangaluwi Diamond drilling confirms down dip continuity of mineralisation, returning significant results including: 19.2m at 1.14% copper, 8.07m at 2.98% copper, 7.32m at 1.40% copper and 6.14m at 1.29% copper.

• Mineralisation remains open along strike and at depth.

URANIUM PROJECTS

• Regional Helimagnetic, Radiometric and VTEM Surveys completed

• Zambezi and Rio Tinto agree to expand JV area to incorporate newly identified prospective area

• Lithic Uranium JV identifies first in-situ uranium bearing mineral davidite at several trench locations and in drilling at Oryx

OPERATIONS

During the Quarter ended 30 June 2008, further significant progress was made on the Company's priority Zambian projects. Drilling continued at Cheowa with two diamond drilling rigs, and recommenced at Kangaluwi after the conclusion of the wet season, with up to six RC and diamond rigs. Encouraging assay results were received for both Cheowa and Kangaluwi. Further regional helimagnetic and radiometric geophysical surveys were completed on the Mpande project, and regional VTEM surveys were completed on the Mulofwe project (including the Rio Tinto Uranium JV area) and the Kangaluwi Copper Project.

Approximately 95% of results for 2007-2008 drilling were received and reported to 30 June. Assay turnarounds on priority samples have improved significantly from 110 days in April 2008 to approximately 30 days at present, following concerted efforts by the Company and its analytical laboratory contractors to streamline sample preparation and analytical procedures. To ensure that the improved sample turnaround times are maintained, the Company previously announced that it had entered into a Memorandum of Understanding with a world-leading analytical services company to install and manage a dedicated sample preparation facility in Lusaka. Installation of this facility is underway and it is expected to be operational in Q3 2008.

COPPER PROJECTS

At the Cheowa Copper-Gold Project, where Glencore International AG ('Glencore') is earning an initial 51% interest by spending US$10 million, the Company continued drilling with between 2 and 4 diamond drilling rigs. To date, approximately 18,500m of the deep drilling program testing the 200-400m and 400-800m vertical depth panels at the CC2 prospect has been completed, with 8,950m completed during the Quarter, as part of the objective of building the Cheowa resource inventory towards 10 million tonnes.

Approximately 95% of the planned holes are now completed. This drilling includes a suite of holes to provide samples for further metallurgical testwork. Assays are awaited, but visible mineralisation intersected to date is consistent with that previously reported throughout this panel.

The Company has recently focussed its attention on CC2 which is perceived to be the most highly mineralised zone within an overall corridor of up to 14km. The rationale behind this was that should sufficient ore grade material be defined at CC2, the Company, together with its joint venture partner Glencore, would embark on a Prefeasibility Study with the aim of putting the deposit into production.

Subsequent to the Quarter, a revised Mineral Resource estimate has been completed in accordance with the 2004 JORC Code for CC2, with an Indicated Resource of 3.5mt @ 1.1% copper and 0.23g/t gold and an Inferred Resource of 2.9mt @ 1.1% copper and 0.38 g/t gold (Table 1).

The total contained resource at CC2 has more than doubled from 2.9mt to 6.5mt. The new estimate was calculated over a strike length of 1,700m and incorporates for the first time an inferred category for the 200m-400m vertical panel below surface at CC2 where diamond drilling is ongoing.

Table1: Mineral Resource Estimate, Cheowa Copper Gold Project1

            Tonnes2   Cu3 %   Au4 (g/t)   Copper (t)   Gold (oz)

Indicated

Resource

CC2       3,545,000   1.14     0.23       40,000         26,000

Inferred

Resource

CC2       2,961,000   1.12     0.38       33,000         36,000

TOTAL     6,506,000   1.13     0.30       73,000         62,000

1 Glencore earning 51%; 2 SG 2.35 for oxide zone, 2.71 for transition zone, 2.81 for fresh rock; 3At a lower cut of 0.3% copper, and a top cut of 7.3% copper; 4Reported within the comparable copper volume, top cut of 2.3 g/t gold.

The 200m-400m panel at CC2 has now been tested with 51 diamond holes, of which results have been received for only 14 holes. Further increases are anticipated from an additional 37 diamond drill holes drilled during the March quarter that intersected visible mineralisation consistent in width and copper sulphide percentages with those intersected within the 0-400m Mineral Resource. Samples have been dispatched for these holes and all assays are expected by end September, when a new global resource will be calculated and used for the Prefeasibility Study. These holes have primarily been drilled at depth below CC2 and the interpreted plunging higher grade copper zone (>1.5%), and have been targeted to intercept mineralisation between 400m and 600m below surface. Recent results received from the deep diamond drilling at CC2 include 4.4m at 2.73% copper and 0.25 g/t gold (CHEDD0083, 261.6-266m), 2m at 3.63 % copper and 0.50 g/t gold (CHEDD0074, 290-292m) and 2.6m at 3.97% copper and 0.23 g/t gold (CHEDD0080, 486.4-489m) These results suggest that mineralisation may be increasing with depth. Any further drilling at these depths may be best carried out from underground if an underground mining operation is established at the project going forward.

A diamond drill rig is now testing the 600m-800m panel, although the drill density in this panel will not be sufficient at this stage for estimation of a JORC resource. Rather, drilling of the deeper panel is designed to test for mineralisation for the last few years of a conceptual 10 year Life of Mine 'LOM' plan.

Elsewhere at Cheowa, scout drilling at the CC3-CC6 envelope to the east of CC2 has returned a copper grade in the order of 0.5% in a mineralised wireframe over a strike length of approximately 400m to a vertical depth of 100m. Scout diamond and RC drilling carried out on the eastern conductors at CC12 has also returned a copper grade in the order of 0.5% in a mineralised wireframe over a strike length of approximately 830m to a vertical depth of 150m. In both these zones, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The Prefeasibility is expected to be based on the CC2 target only and not include any resources from the other conductors which have also been tested in the 2007/08 drill campaign. These other areas may be brought to account if a mining operation is successfully established at CC2.

Joint Venture partners Glencore and Zambezi have agreed to combine the Cheowa and Chongwe Copper Belt ('CCB') joint ventures into a single joint venture. To earn a 51% interest in the original Cheowa and CCB joint ventures, Glencore had to spend US$10 million and US$6 million respectively, for a total of US$16 million. In the period to 30 June 2008, Glencore have collectively spent US$14.7m and are expected to reach the 51% threshold on both projects in the September 2008 quarter.

At the 100% owned Kangaluwi Copper Project, RC drilling carried out in 2007 has returned significant copper mineralisation over substantial widths in multiple zones (Table 3). Results include 18m at 1.42% copper from 114m, 17m at 1.24% copper from 49m, 10m at 1.97% copper from 30m, 15m at 0.86% copper from 39m, 10m at 0.86% copper from 112m, 10m at 0.83% copper from 6m, and 18m at 0.63% copper from surface. Diamond drilling carried out in 2007 has confirmed down dip continuity of mineralisation (Table 3). Results include 19.2m at 1.14% copper from 92m, 8.07m at 2.98% copper from 145.34m, 6.14m at 1.29% copper from 157.68m, 7.32m at 1.40% copper from 161m, 5.46m at 1.66% copper from 108.54m, and 6.43m at 1.02% copper from 125.98m.

Two other prospects at Chisawa and Kalulu have been tested to date by limited drilling in 2006 and 2007, respectively. Initial results suggest that mineralisation at these prospects is similar to that encountered at Kangaluwi. These will be tested in 2008 along with the currently untested Imboo prospect and two newly identified soil geochemical copper anomalies, which are all of equivalent tenor to the initial Kangaluwi soil geochemical anomaly, and are considered highly prospective.

Re-establishment of road access to the project after the wet season was completed and drilling re-commenced during mid May. The 2007 drilling campaign initially focused on 3km of strike length at Kangaluwi, which was later narrowed down to an 800m section drilled to a 50m by 50m pattern. The Company chose to intensively drill a small area in order to evaluate the possible economic potential of the mineralisation. Due to the encouraging results from this drilling, the Company has decided that the mineralisation has sufficient potential to justify a much more extensive drilling program at Kangaluwi and on the remaining five zones identified. The 2008 RC and diamond drilling program utilising up to six drilling rigs is designed to test the strike and down dip extensions of copper mineralisation at the Kangaluwi prospect, and to follow up encouraging preliminary results from Kalulu and Chisawa. To 30 June, 67 RC and diamond holes were completed for a total of 12,155m at Kangaluwi, and 28 RC holes were completed for a total of 4,641m at Chisawa. Further encouragement has been received from recent drilling with excellent continuity both down dip and along strike. Assay results are awaited. – Edited Press Release