Summary of milestones along the lifecycle of prospecting rights as per the Mineral & Petroleum Resources Development Act of South Africa.

1. 3
1. TEST RATIONALE OF APPLICATION REQUEST
Is it clear?
Director
Yes
Geology
No
Legal
2
1
Check geological,
commercial
rationale, & strategy
for the project.
Request for
application
Mineral
Rights
4
5
5
Confirm required
shareholding of Applicant
Company & obtain shelf
company from Legal
Advisor.
Check availability on
SAMRAD.
7
Give Team feedback
via e-mail & terminate
process.
6
Farms
available?
No
Yes
7
Proceed with
APPLICATION
SUBMISSION PROCESS.
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2. 2. APPLICATION SUBMISSION PROCESS
3. FOLLOW UP ON ACCEPTANCE
1
No
1. Resolution
2. BEE credentials
3. BEE undertaking
4. Certificate of incorp. (certified
copy)
5. Certificate to commence
business (certified copy)
6. Share certificate (certified copy)
7. Shareholders' agreement
(certified copy)
8. Letter detailing existing rights
2
Mineral
Rights
Agree?
Yes
Legal
Nonavailability
and timing
issues.
No
Outstanding
documents?
Call Regulator
Yes
Regulator
delays
3
Agree?
Mineral
Rights
Yes
Director
Outstanding
documents
Signed documents
No
No
1
1. Technical ability letter
2. CVs of team
3. Applicant company profile
4. Service providers' profile(s)
5. Work programme
4
2
Agree?
Geology
Redo
Yes
Pipeline
No
1
1. Topographical & coordinate map
2. Geological map
APPLY ON SAMRAD
5
Sign up & fill in applicant
company particluars &
director contact details.
6
Fill in commodities applied
for, prospecting methods,
& name of operation.
Select land on map.
7
Upload prepared
documents.
Pay application fees
online via credit card.
Confirm director name & sign
undertaking by clicking 'Finish'.
8
Confirm applicant
company particluars.
Confirm land description.
Select HDSA participation
level.
Pipeline
Confirm director contact
details.
System failure at any
stage.
1. Resolution
2. BEE credentials
3. BEE undertaking
4. Certificate of incorp. (certified copy)
5. Certificate to commence business (certified
copy)
6. Share certificate (certified copy)
7. Shareholders' agreement (certified copy)
8. Letter detailing existing rights
9. Technical ability letter
10. Topographical & coordinate map
11. Geological map
12. CVs of team
13. Applicant company profile
14. Service providers' profile(s)
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Prepare & send
documents to Regulator
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Copying, downloading, broadcasting expressly forbidden.

3. 4. ACCEPTANCE OF APPLICATION
1
ACCEPTANCE
LETTER
Regulator
Mineral
Rights
2
Start Public Consultation
2
2
Contact EMP Consultants to
commence with Environmental Impact
Assessment
Prepare BEE documents
Send registered letters &
e-mails to notify IAPs of
application to invite IAPs
to register & attend public
meeting
EMP
Consultants
Letters & e-mails to
IAPs
No
5
Draft EIA & EMP
6
Mineral
Rights &
Satisfied?
3
IAPs
Yes
4
Responses,
objections, questions,
comments
BEE documents:
Shareholders'
agreements
Supplier details
Procurement strategy
7
Report on public
consultation
Final EMP & EIA
3
Submit in
60 days
Attend public meeting
Submit in
30 days
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Regulator
Submit in
30 days

4. 2
5. GRANTING OF APPLICATION (PART 1)
No
No
Mineral
Rights
1
6. GRANTING OF APPLICATION (PART 2)
Outstanding
documents?
Call Regulator
Yes
Finance
Book Notary Public for execution of
right.
Regulator
GRANT LETTER
Prepare & send
documents to Regulator
2
Geologist
Provide any other outtanding
documentation required, or request
this from the other internal team
members or from service providers.
Regulator
delays
Director
Outstanding
documents
Mineral
Rights
3
Outstanding
documents
2
Send e-mail to Finance Team
requesting financial guarantee to
provide for environmental
rehabilitation (provide farm names,
magisterial districts, provinces,
address of relevant Regulator's office,
amount of provision required).
2
5
Financial Guarantee
Finance
Send e-mail to Surveyors requesting
certified maps of granted licence area
(provide grant letter, farm names,
magisterial districts, provinces,
identify relevant Regulator's region, #
copies required).
4
Financial Guarantee
3
Application for
financial guarantee
3
Certified maps
Surveyor
Bank
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© Umbono Group of Companies. Copyright Reserved.
Copying, downloading, broadcasting expressly forbidden.
Legal

5. 7. EXECUTION & REGISTRATION OF LICENCE
1
Financial Guarantee
Certified maps
Mineral
Outstanding
Rights
documents
Regulator
2
Confirm execution date
3
Attend execution at
appropriate offices of the
Regulator together with
Notary.
4
Copies of:
Licence
Approved Work Programme
Approved Environmental
Management Plan
Notary
Public
5
Register documents at
Mining Titles Office.
6
Notary delivers registered
copies of:
Licence
Approved Work Programme
Approved Environmental
Management Plan
to Umbono.
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Copying, downloading, broadcasting expressly forbidden.

6. 8. COMPLIANCE INSPECTIONS
Receive
inspection
request from
DMR
9. AMMENDMENT OF A RIGHT (SECTION 102 OF MPRDA)
Confirm with DMR official the following
1. Documents required on site
2. Date of time of inspection
3. Time & place to meet offical
4. Exchange mobile numbers with official
Write letter to DMR
detailing ammendment
request
Does ammendment
require change of
boundaries & extent?
Yes
Produce new
maps
No
Is there anything
about our site or our
documents that is a
liability?
No
Does ammendment
require change of
work program or
EMP?
Yes
Produce new
work program
or EMP
Yes
Immediately put in place
measures to either eliminate,
avoid or manage this
Meet DMR
official &
conduct
inspection
Note down &
respond to any
queries or
requests
No
Ammended work
program or EMP
Letter of
ammendment
Report back
to the team
Application
Submit to DMR
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New map(s)

7. 10. TRANSFER OF A RIGHT (SECTION 11 OF MPRDA)
12. HOW TO ALMOST LOSE A RIGHT (SECTION 47 OF MPRDA)
FAILURE TO:
1.Completed Application Template
2. Cession Agreement
3. Resolution
1
FROM FUTURE OWNER OF
LICENCE
1. Cession Agreement
2. BEE credentials
3. BEE undertaking
4. Certificate of incorp. (certified
copy)
5. Certificate to commence business
(certified copy)
6. Share certificate (certified copy)
7. Shareholders' agreement
(certified copy)
8. Letter detailing existing rights
9. Resolution
11. ABANDONMENT OF A RIGHT (SECTION 53 OF MPRDA)
1
FROM CURRENT OWNER OF
LICENCE (APPLICANT)
1. Submit an annual
report
OR
2. Pay annual fees in full
1. Complete Application For
Closure Certificate Form
2. Closure Plan
3. Final Performance Assessment
on EMP
4. Complete Transfer of
Environmental Liabilities Form
5. Environmental Risk Report
6. Letter of Abandonment
7. Signed affidavit testifying that no
environmental impact was caused,
if that is the case
Agree?
Legal
Yes
2
Mineral
Rights
Agree?
Yes
Director
Signed application
documents
OR
3. Commence
prospecting activities
within agreed timeframe
Regulator
OR
4. Comply with or assess
performance of EMP
OR
Site visit
conducted by
Applicant,
Regulator &
other Govt.
Departments.
No
5. Comply with Work
Programme
OR
6. Any other breach of
MPRDA, Regulations and
Licence Terms &
Conditions
No
Yes
1
Redo
FROM FUTURE OWNER OF
LICENCE
Agree?
1. Technical ability letter
2. CVs of team
3. Applicant company profile
4. Service providers' profile(s)
5. Work programme
Regulator
Geology
1. Closure certificate
2. Financial Guarantee
Delivered to Umbono.
Regulator
No
GRANT LETTER
GRANT LETTER
NOTICE OF IMPENDING
SUSPENSION OR
CANCELLATION OF
LICENCE
Mineral
Rights
Collaborate with
Team to
formulate an
adequate
response &
remedy for the
breach, within
30 days.
Regulator
approves of
response &
Yes
Proceed with
prospecting
activiities as
required.
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No
Licence is
suspended or
cancelled.

8. 13. RENEWAL OF A RIGHT
1
1. Completed Renewal Application Form
2. BEE credentials
3. BEE undertaking
4. Certificate of incorp. (certified copy)
5. Certificate to commence business
(certified copy)
6. Share certificate (certified copy)
7. Shareholders' agreement (certified copy)
8. Prospecting Activities Report
9. Environmental Performance Assessment
10. Review of Quantum of Financial
Provision
11. Resolution
Agree?
Legal
Yes
2
Mineral
Rights
No
Yes
1
Director
1. Technical ability letter
2. CVs of team
3. Applicant company profile
4. Service providers' profile(s)
5. Work programme
Agree?
Geology
No
Redo
Agree?
No
Yes
Regulator
GRANT LETTER
© Umbono Group of Companies. Copyright Reserved.
Copying, downloading, broadcasting expressly forbidden.
Signed application
documents