Kariba Minerals Limited 30/06/2013

[Laf1986]

Kariba is the world’s single largest operating amethyst mine. During the year, the Government of Zambia elected
to transfer its 50% stake in Kariba (with Gemfields owning the remaining 50%) to the state-owned resources
holding company, ZCCM-IH. While the transfer of these shares has yet to be completed, Gemfields and ZCCMIH agreed to recapitalise the Kariba operations with US$2.5 million (with each party contributing their US$1.25
million during the year). This is the largest single cash injection that Kariba has received to date. Mining and
processing equipment has been purchased with a view to doubling monthly revenue during 2014.
As at 1 September 2013, all rehabilitation and construction projects were 95% complete and within budget
including:
- Rehabilitation of the sort-house;
- Construction of the new workshop; and
- Improvements to the washing plant, water management and low grade stock management areas.
Mining development includes plans to connect the Francis pits (Main Francis, Lower Francis, Top Francis west
and Sinamaani pits) and to operate the Basil and Curlew pits over the coming months.

With its recent recapitalisation, new equipment and processing
plant, Kariba’s fortunes should improve markedly.