The diamond recovery process at Mothae involves separating heavy mineral concentrate into various size fractions and then passing this material over a continuous grease belt recovery system. All tailings from the grease belt are retained on site in a secure area. Hand sorting of a limited number of audit samples of grease belt tailings has demonstrated that a number of diamonds are not being recovered in this process. As a result, all grease belt tailings is reprocessed using an alternative technique in order to complete the recovery process and more reliably establish diamond grades.

The information in this section which is of a scientific or technical nature has been derived in part from the technical report entitled "Mothae Kimberlite Project, Lesotho, Independent Technical Report" dated February 12, 2007 prepared by Dr. Norman Lock (BSc, PhD, CGeol FGS, MGSSA, PrSciNat) of MSA Geoservices (Pty) Ltd., who is a "qualified person" within the meaning of this term in National Instrument 43-101. A copy of the report is available on SEDAR at www.sedar.com.