INTERVIEW WITH JULIAN FORD, MANAGING DIRECTOR OF ZAMBEZI RESOURCES LIMITED (ZRL)

“ZRL - Chisawa RC Results- Mr Julian Ford, MD”

http://www.brr.com.au/event/49723

THURSDAY, AUGUST 21, 2008, 1:00 PM.

            BRR    Today on Boardroom Radio we’re joined by Mr. Julian Ford, the Managing Director of Zambezi Resources. Julian, glad to have you back on Boardroom

10                    Radio.

            ZRL     Good morning, Joel.

            BRR    Julian, there was an announcement out to the market yesterday evening. It’s another good result from the Kangaluwi Copper Project. What does that

15                    mean overall for the project?

            ZRL     Joel, this is good news. We’ve drilled about 3.5km of strike length at Chisawa. These forms part of 2km which we now have results on, still waiting for the results from the other one (inaudible) (0:00:28) strike. And basically, what we’ve got of the 2km that we’ve got results from is a consistent mineralisation

20                    across the entire 2km and really about 60cm wide and probably averaging close to 14m at about 1% copper. We think this is close to true width. And in our opinion, this is an economically (inaudible) (0:00:50) pit top mineralisation. Obviously, we got to wait for those JORC results and convert that into resource and then reserve. We think we are pretty close to achieving

25                    our target of 40 million tons at about 1% copper from our 55,000 meters drill already. So, you know, that’s a lot better than we expected. We didn’t expect to get there probably for another, you know, a year which is very good news for us.

30        BRR    Now, Julian, Zambezi recently announced a strategic redirection and you’ve retained one drill rig at Kangaluwi, what does this mean? What sort of impact does this had for the program and the schedule of Kangaluwi going forward?

            ZRL     Joel, the good news is that, you know, what we’ve drilled to date to the limbs of what’s the model synform. Two of this synforms is modelled out there. This

35                    is much easy drilling the limbs where you likely get much wider mineralisation and to make the world-class project is on the (inaudible) (0:01:43). However, (inaudible) (0:01:44) is structurally more complex and so from the exploration point of view, this is high risk, high reward, so we’ve gone for the low-risk option initially. That single rig has now completed drilling at Chisawa and

40                    Kangaluwi all be that readily wide sections. That’s now mobilised and will drill about two and a half thousand meters of RC into each of (inaudible) (0:02:04) Imbo. These are the noses. And, you know, given that, we’ve probably reached our 40 million tons already. The next three months will really indicate whether we achieve, you know, next hurdle of probably 100 or 200 million

45                    tons. We really have to wait until we get in and drill. I think if we achieve that, then we really have a world-class project and I think we got a real chance of getting there, which is remarkable given that we’ve only now got one drill rig there. But I think that’s a testament to the quality of this project.

            BRR    And Julian, finally, shifting away from the exploration sort of things and looking at some geopolitical factors. The president of Zambia passed away recently after a long illness. In fact, I think it was yesterday he passed away. How does this change in your operating environment in Zambia, especially in

5                      the context of your approach that?

            ZRL     Well, firstly Joel, President Mwanawasa has been an excellent president for the Zambian people. You know, he successfully tackled both corruption inflation and got inflation down to below 10%. Zambia is being one of the standout economies in Africa, not only from a mining perspective, but both

10                    agriculture and tourism has been averaging double digit compound annual gross rates. And so he leaves behind a positive legacy, fully functioning democracy and the country’s great prospect. I think from a Zambezi perspective, I’m confident that the next few months, the government and the stakeholders will address some of the controversial issues, the mining

15                    windfall taxes from the new mining act that came in April. We are very confident about that. We’re making great progress in the country. And I’m confident that with the new president elected in the new year, we will re-establish a good operating regime, the fiscal regime in Zambia. And assuming this has achieved, will give us an investment community, you know,

20                    the ability to re-establish what has been one of Africa’s most aggressive and successful exploration programs. You know, we’ve got Rio in there with the major Uranium Joint Venture. We’ve also got Lithic in there who are drilling uranium targets at the moment. And we have a whole lot of this other Kangaluwi look a likes. So we’re pretty confident getting forward. Obviously,

25                    the strategic redirection had to take account of the current capital markets and the current political environment in Zambia and view was a sensible thing was to put things on hold. However, the fact that there will be a president election in the next 90 days, gives us confidence that come 2009, we can tackle our projects with a renewed vigour and confidence.

30

            BRR    Julian, thanks a lot for those comments and thanks for your time today.

            ZRL     No worries. Good to talk to you again.

INTERVIEW CONCLUDED

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