Gold

The Tulu Kapi Exploration Licence comprises an area of approximately 20 square kilometres centred on the old Tulu Kapi gold mine. Tulu Kapi is 9km south of Keley, a small village on the main Gimbi to Dembi Dolo road, 500km west of Addis Ababa. There is abundant water in the region, and good road acces and a high power transmission at Keley. The area is surrounded by the Yubdo Exploration Licence Area.

Tulu Kapi, was mined by an Italian company in the 1930s, and later explored by the UN in the 1970s and by Tan Range Exploration in the 1990s. Following a re-interpretation of the structural controls of mineralisation in 2006, drilling by Minerva Resources intersected significant gold mineralisation in four holes with a best intersection of 37.9m at 4.61 g/t gold (1.58 g/t when a top-cut of 31.1g/t gold is applied). Mineralisation is hosted in proterozoic syenites and associated with zones of hydrolytic hydrothermal alteration centred on a NNE shear.

The UNDP work demonstrated anomalous gold grades continue for 1.2km along the shear structure, but Minerva Resources is focusing on a 600m section that is oriented northwest-southeast. Seven Phase 1 drill holes have to date delineated two dominant hydrothermally altered zones that dip to the southwest. The upper zone is over 20m thick, and the lower zone is over 10m thick. Phase 2 drilling is designed to test the grade, and the depth and strike continuity of these altered zones.

Guji is a greenfield evaluation target within the Yubdo Exploration licence area discovered by the Minerva Resources geological team. Guji is only seven kilometres west of Tulu Kapi, enabling significant sharing of logistics and infrastructure.

Discovered through regional spur soil sampling, follow-up rock chip sampling and soil geochemistry, Guji is hosted in a suite of proterozoic metasediments and metavolcanics. Guji lies on a major NNE shear and the heavily deformed rocks have permitted an extremely deep (40-50m) weathering profile to develop.

The principal target is a 1.2km x 200m soil geochemistry anomaly and assays from trenching and three 100m boreholes are awaited. Encouraging alteration features in the core have prompted Minerva Resources to plan a 3,000m Phase 2 drill programme for Q3 2007.

The following exploration properties are held 100% by Golden Prospect Mining Company Limited (GPMC) which is registered in Ethiopia and which is a wholly owned subsidiary of Minerva Resources plc. The licences are approximately

Minerva Resources has a team of 9 Ethiopian geologists and 1 British geologist and is building a portfolio of assets at various stages of evaluation. Systematic reconnaissance and follow-up exploration is carried out on the licence areas. In addition to the Guji prospect area, the Dina, Chago and Keley targets are subject to follow-up investigation within the Yubdo Exploration Licence area.

The Minerva Resources Exploration Licences are located in western Ethiopia in Wellega Province, Oromiya Regional State, in Western Ethiopia, approximately 360 kilometres west of the capital Addis Ababa. The Yubdo Mining Licences are centred on Latitude 9° 10’ 00” South and Longitude 35° 35’ 00” East.

Under Ethiopian Mining Law, a Prospecting Licence is valid for a one year period after which further exploration requires an Exploration Licence, valid for a three year period with a possible two year extension. Small Scale Mining Licences are valid for 10 years, with a possible additional 5 year extension. Large Scale Mining Licences are valid for 20 years, with a possible additional 10 year extension. Royalties for precious metals are 5%. Corporation tax is 35% of profits.

The licence areas are situated on the western side of the Ethiopian plateau, an undulating hilly area varying in elevation from about 1500 metres to 2000 metres, cut by a reticulate drainage system feeding a number of larger perennial rivers such as the Birbir which is a tributary of the Baro and the White Nile.

The climate of the area is semi-arid with total annual precipitation ranging from 1400 to 1550 mm, falling mostly in the wet season between May and October, when smaller roads become impassable, hampering exploration activity. Daytime temperatures range from 25-35°C in the dry season. Night time temperatures fall to 11–16°C during the rainy season.

The vegetation on the flatter ground is dominated by arable crops with occasional stands of trees, predominantly eucalyptus and acacia. Valley bottoms are normally wooded and are used for coffee and fruit plantations. Some of the higher and steeper ground is covered by low scrub.

The economy of the region is based on subsistence agriculture, with coffee as the main cash crop. There are no significant industries.

In Sierra Leone Minerva Resources retains a minority interests in the Lake Sonfon Gold Project, operated by Golden Star Resources Inc. The Lake Sonfon Gold Project is centred on an area of significant artisanal production where exploration has outlined stockwork vein mineralisation with trench intercepts with up to 7.3m @ 7.4g/t gold. Regolith geochemistry has demonstrated more widespread untested targets concealed by laterite.

Minerva Resources holds two licence areas in the Kyrgyz Republic. The Aksur licence area is located 120km northeast of the city of Osh and is valid until 31 December 2009. The Karakala licence area is located 140km southeast of the city of Osh and is valid until 31 December 2009.

The Company has carried out extensive exploration in the licence areas, with a focus on drill definition at Aksur, resulting in a JORC inferred resource at the Aksur East target of 480,000 tonnes at a grade of 6.2g/t gold, 190g/t silver and 5.4% arsenic.

The Board reluctantly concluded in September 2006 that further exploration is likely to delineate a JORC-compliant commercial resource capable of generating shareholder value within a reasonable time frame. The Company is conducting a search for possible joint venture partners or purchasers for the Kyrgyz Exploration Licences. It is anticipated that the sale of the Kyrgyz Exploration Licences, if included, will be effected by the sale of the entire issued share capital of Palladex KR (a wholly owned subsidiary of Minerva Resources).