Dear Friends,

I recently sat down with ContraryInvestorsCafe to discuss our Kigosi project. A complete transcript of the interview is presented below for your interest.

Sincerely,

Jim Sinclair

Radix Malum:

Hello Jim.

I received TRE's recent release on the Kigosi property. As always there is a fair amount of Geology-speak, but I understand that to be a product of the regulations governing these types of announcements.

I do have some questions. I would appreciate you taking me through this document.

I see you speak of IP and soil samples as if this was something important.

Why is this important enough to report on it?

Jim Sinclair

IP (Induced Polarization) surveys are best used for mineral deposits that either outcrop (occur right on surface) or extend relatively close to surface. These type surveys can detect disseminated (finely dispersed) sulphides that are frequently associated with gold deposits. Having an IP anomaly is no guarantee of finding gold but these surveys can identify favorable environments in which gold and other commercial metals occur. In the case of Kigosi, some of the gold appears to occur in native form, with the remainder likely occurring in association with common minerals such as pyrite or chalcopyrite which are readily detectable with an IP survey. We have very large IP anomalies at Kigosi that extend for several miles, increasing the potential to discover a gold deposit along these features(s).

Soil sampling usually precedes IP work. Geologists take samples on a predetermined grid and if they contain anomalous gold values they will sometimes elect to follow up with an IP survey.

Having anomalous gold values in soils above the IP anomaly is extremely positive. Even better is to have a good soil anomaly, followed by a good IP anomaly, followed by good drill results. If you have a good IP anomaly along a significant strike length and drilling shows a relationship between gold and sulphides, you stand a good chance of attracting serious industry interest.

We have our own IP equipment plus Riaan our in-house geophysicist. We need no outside contractors. We do IP as a constant protocol for exploration.

We have prepared seven kilometers of IP lines on our first reef and 1.8 kilometers on our second reef. As the soil samples and/or drill reports are received from the labs they will be released.

Google Earth shows active and historical workings all the way into the Ushirombo area which is 14 kilometers away.

Early on, I contracted a satellite photo imaging system, arranging to have it turned towards coordinates we wanted to look at. Google Earth is much cheaper, I can assure you of that. (Top image shows reef #2; bottom image, Ushirombo claims).

The most successful mines I know with surface enrichment started as open pit operations (which are much cheaper to mine than underground) and typically produce a rapid payback. Then with everything paid off, you can mine the more expensive underground ore.

Radix Malum:

The grades speak for themselves but I am drawn to the very high grade numbers in your previous press release and in this latest report. Can you comments on this?

Jim Sinclair:

High-grade gold shoots (which was have reported) add to the economic potential of any project. In many cases, these values can upgrade economic material into highly profitable material.

Industry professionals have been trained to assume that any variance in grade should be considered a "nugget effect." There are methods to determine grades where a nugget effect is assumed. This is why you see John Deane, who is in charge of exploration in Tanzania, sending these samples repeatedly to labs for more analysis. What you read then is the grade reported AFTER the check assays have been completed to eliminate nugget effect.

Variance does not automatically confirm nugget effect but it is reasonable to assume that is the case and do all the reduction procedures to give a good and accurate grade report.

The high grade item we reported publicly in a previous release was over 150 grams per tonne which equates to 4.0 ounces per ton. (See News Release) .

The high grade intervals reported in this release ranged from 0.64 to 2.0 ounces. (See News Release) . Continuity of the high-grade shoots is very important - maybe even more so than comparing one assay to another at this time. The values in between the high grade sections are considered economically attractive by the industry. The final number is an average of all assays across a reported intercept width.

Radix Malum:

I see that you have issued RFP for bringing in a drill contractor in order to go significantly deeper for the next round. Can you comment on this?

Jim Sinclair:

When you encounter at shallow depths what we have reported so far, going to depth as well as moving out along strike is required to expand exploration of the system. The contractor will go to depth with an extremely powerful RC drill which is much cheaper than diamond drilling and will serve to conserve costs. Our own RC drill will test the shallow potential along strike on both reefs. This program will be followed up in the future with a deeper penetrating diamond drill. Deeper RC drilling provides information about the geometry of the reefs which is extremely useful for targeting purposes in the diamond drilling phase.

Radix Malum:

I can't think of anything more right now. I wanted to thank you very much for the opportunity to have this interview.