UNTAPPED UGANDAS MINERAL POTENTIAL UGANDAS MINERAL SECTOR LEGAL

UNTAPPED UGANDA’S MINERAL POTENTIAL UGANDA’S MINERAL SECTOR – LEGAL AND REGULATORY FRAMEWORK, MINERAL PROSPECTS AND OPPORTUNITIES FOR INVESTMENT ENG. MAYANJA JACKSON LUSABUNGA mayanjajackson@gmail. com +256788833067/751975639

Legal framework • • Mining Act, 2003 Mining Regulations, 2004 Mining Policy, 2001 Under review to benchmark with best international practices in the mineral sector • Licenses granted include prospecting, Exploration, retention, location licernses and well as Mining lease

OVERVIEW OF GEOLOGICAL POTENTIAL • 75% of the geology of Uganda is dominated mainly by Precambrian rocks ranging from Archean (>2, 500 Ma) and Lower Proterozoic to Middle Proterozoic (2, 500 -1, 000 Ma). • Uganda has favourable geology for discovery of world class deposits due to the country’s location at crossroads of major regional structural trends. • National Geological Mapping and Airborne Geophysical Surveys coverage is at 80% of the country. • Geological maps at scales of 1: 50, 000; 1: 100, 000 and 1: 250, 000 are available.

OVERVIEW OF MINERAL POTENTIAL • Minerals mined in Uganda include: gold, copper, cobalt, tin, beryllium, tungsten, vermiculite, tantalitecolumbite, phosphate, limestone/marble and silica sand. • Mineral occurrences with potential include: PGM, REE, nickel, zinc, lead, precious stones including diamond and dimension stone.

General Geology and Mineral Occurrence Map of Uganda

STRATEGIES FOR MINERAL SECTOR DEVELOPMENT • Uganda has acquired extensive geoscientific data: airborne surveys, & mineral resources assessment and this has resulted into new mineral prospects. • Review of current Mining Code with benchmarking from international practices enshrined in the AMV and other mining codes like A

MINERAL TARGETS IDENTIFIED DUE TO THE INTEGRATION OF NEW ACQUIRED GEOPHYSICAL AND GEOLOGICAL DATA 7 1. Iganga gabbro intrusion -Nickel – PGE potential. 2. Zeu (Zombo District)- gold potential. 3. Moroto area -Chromite–PGE-Marble potential 4. Kidera (southeast Uganda)-Kimberlite Potential 5. Naigobya Geophysical Anomaly (Ni, Cr, Cu and Co and Rare Earth Elements) 6. Bukusu carbonatite (Limestone, Phosphate, Iron ore, Titanium, Vermiculite and REE potential) 7. Masindi–Karuma Falls area (Ni, Cr, PGE, Fe potential) 8. Kitaka–Buhweju Area (gold potential) 9. Packwach area -Diatomite prospects 10. Kaiso-Tonya-Kaolin-Bentonite clays 11. Mayuge area- Iron ores 12. Kafunzo area -Nickel potential 13. Makuutu area - radiometric Anomaly (Rare Earth and Uranium potential) 14. Hoima-Kafu area -gold potential 15. Kaliro-Ivukula area -gold potential 16. Aboke-Alo area - gold potential 17. Buhara- Kabale -Iron Ore 18. Butogota –Kanungu-Rutenga-Iron Ore

INVESTMENT OPPORTUNITIES IN THE MINERAL SECTOR Precious Metals • Gold and other precious metals occur in districts of: Bushenyi, Mbarara, Kabale, Kisoro, Rukungiri, Kanungu, Busia, Mubende, Karamonja region Hoima, & in many streams of West Nile.

Cross roads of major regional trends (Courtesy of AMF) - Major regional structures.

Regional Gold deposits M (Courtesy of AMF).

Moyo Loyoro-Kotido Kitgum Arua Abim GOLD OCCURENCES IN UGANDA Moroto Kapchorwa Fortportal Mubende Iganga Busia Bushenyi Rukungiri Mbarara Kabale Kisoro

GEOTHERMAL RESOURCES • Geothermal energy, can contribute in many important ways to resolving one of the fundamental challenges faced by Uganda - that is how to acquire energy to assure the health, prosperity, and security of Ugandans. • Geothermal energy resources is a perpetual, self-replenishing, costcompetitive and inexhaustible energy resource. • Currently, there is an on going project aimed at developing the country’s geothermal resource. • Also a number of companies have been granted exploration licenses to develop this resource.

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Some of the geophysical equipment used in geothermal exploration

MINERAL CONCESSIONS MAP OF UGANDA

Uganda Mining Cadastre map showing active mining areas Anglo Ugandan Corporation. Gold Kisita Mining company limited-gold Ataco services Ltd. Gypsum Kilembe Mines. Limestone Hima cement Limited. Limestone Jan Mangal (u) Ltd. Gold Tororo Cement. Limestone Gulf resources Vermiculite Greenstone resources Ltd. gold Building Majesties-Granite (Dimenson stone)

A FEW NORTABLE PROJECTS WORTH INVESTMENT • There are quite a number of projects that have been started but lack the required financial push to reach their optimum capacity and profitability. • These projects have gone through the initial exploration phase with initial prefeasibility completed. These include: 18 11/24/2020

LUBALI MINE – KANYEMERA HILL MINING PROJECT UNDER OPTIMA MINES AND MINERALS LIMITED • Underground mining operation under development to 100 t/d with average grade of 5 g/t • Small to medium scale Mineral processing operations with two (2) 60 t/d (total 120 t/d) CIP gold processing plant. • Mining License over an area of 48 Ha • Exploration License measuring 140 SKm 30 km away from the operation • An inferred resource of over 791, 700 tonnes of Ore at an average grade of 5. 89 g/t ( total insitu gold value of 4, 663 Kg of gold) • An initial Investment of 5 Million dollars invested • Need for additional investment to uplift project to medium scale and increase gold production to over 50 kg per month 19 11/24/2020

NAMAYINGO GOLD PROJECT – ALJOUDA MINING COMPANY LIMITED • Two high potential exploration properties covering an area of 200 square kilometers. • Mining concession measuring 16 ha in size with a 100 t/d CIP gold processing operation • Eight (8) parallel reefs with an inferred resource of 624, 000 Tonnes at an average grade of 2 g/t • An initial investment of $4 m USD already injected in the project • Need for additional investment to increase mine production. 20 11/24/2020

OROM Graphite Project – Consolidated African Resources Limited • 3 Contiguous Exploration Licenses covering 525 Square Kilometers • Measured resource of 120 mt at 8% graphite 40% to 80% in large (+180µm) to Jumbo (+300µm) size fraction. • Graphite grade good for production of lithium batteries and graphine. 21 11/24/2020

Dao Marble Limited • Mining Concession measuring 4 square kilometers • Measured resource of 23 MT white marble suitable for Dimension stone and Calicium Carbonate/lime (Ca 2 CO 3) production • Assets include Micro-Mill for lime, Mining Pit and Equipment for productions of Marble blocks and a marble cutting and polishing plant with a capacity of 5000 t/month • An initial $10 m. USD investment already 22 11/24/2020 completed

Other Projects under Development • African Minerals Limited marble Mining and Lime production operation • Auranda Minerals Ltd Tantalite prospects in Western and Central Uganda. • Mulin Mines and Minerals Limited over 100 m tonnes Limestone Prospect in western Uganda • Iron ore Mining and processing in kabale 23 11/24/2020

CONCLUSION. • Uganda possesses good potential for variety of minerals: Precious metals & stones, base metals, industrial minerals and geothermal. • The on-going further exploration by companies using the new acquired geo-scientific data has generated more reserves, e. g. , a new target at Kamalenge-Kyasampawo identified by the airborne geophysical surveys was recently followed by AUC Mining Company with detailed mapping and numerous gold bearing rocks (quartz veins) which bear an estimated five (5) million troy ounces of gold on the surface have been estimated; and Gulf Resources Ltd using the new data increased reserves of vermiculite from 5 MT to 49. 9 MT. • Uganda has put in place investor friendly policies and legal regimes for good returns on investment opportunities in the mineral Sector.