ALMA METALS LIMITED — Capital/Financing Update 2008

Oct 1, 2008

AFRICAN ENERGY RESOURCES (GUERNSEY) LTD ARBN 123 316 781 Australian Office: Ground Floor, 8 Colin Street, West Perth 6005 Telephone: +61 8 6465 5500 Facsimile: +61 8 6465 5599 www.africanenergyresources.com ASX Code: AFR

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2[nd] October 2008

Manager Announcements Company Announcements Office Australian Stock Exchange Limited 10th Floor, 20 Bond Street SYDNEY NSW 2000

Via electronic lodgement

Dear Sir/Madam,

BANKABLE FEASIBILITY STUDY UPDATE FOR THE CHIRUNDU URANIUM JV PROJECT

HIGHLIGHTS:

• Reverse circulation (RC) drilling at the Chirundu Uranium JV Project (the Chirundu Project) continues to deliver good assay results as part of the resource infill drilling programme.

• Recently received assay results from infill drilling at the Njame deposit continue to demonstrate ore grades and thicknesses of uranium mineralisation, and include:

16m @ 885 ppm U3O8 from 26m in drill hole NJN462 6m @ 664 ppm U3O8 from 23m in drill hole NJN458 9m @ 364 ppm U3O8 from 39m in drill hole NJN455 21m @ 214 ppm U3O8 from 18m in drill hole NJN415 10m @ 413 ppm U3O8 from 30m in drill hole NJN405 16m @ 451 ppm U3O8 from 24m in drill hole NJN404 8m @ 347 ppm U3O8 from 33m in drill hole NJN403 8m @ 506 ppm U3O8 from 22m in drill hole NJN389 11m @ 349 ppm U3O8 from 29m in drill hole NJN372

• The RC drilling component of the infill drilling programme has been completed ahead of schedule and on budget at both deposits.

• A large diameter core infill drilling programme will be completed in October, on time and on budget. The core samples will provide material for uranium assays, metallurgical testwork and for geotechnical logging.

• The infill drilling programme has been designed to collect assay data at a sample spacing which is sufficient to classify both deposits as Indicated Resources, with the first two years of production at Njame to be classified as a Measured Resource.

• A Measured and Indicated Resource statement will be prepared in Q4, 2008.

• GRDM Minproc (Johannesburg) has been appointed Study Manager of the Bankable Feasibility Study (BFS) and will lead a consortium of consulting companies who have been contracted to undertake mine design, process design, engineering design, geotechnical studies, leach pad design, hydrogeological studies and metallurgical testwork programmes.

• The BFS is scheduled for completion in Q2, 2009.

• African Energy owns a 70% interest in the Chirundu Project. Ongoing project costs are met pro rata by African Energy Resources Limited (African Energy) and joint venture partner Albidon Limited (Albidon) in accordance with their interests held (70% and 30%, respectively).

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INTRODUCTION

African Energy (ASX: AFR) commenced a BFS at the Chirundu Project in May 2008. The Chirundu Project comprises two uranium deposits, Njame and Gwabe, and is a joint venture between African Energy (the JV Manager and 70% equity holder) and Albidon (30% equity holder, ASX:ALB). The project is located 150km by road from the Zambian capital city, Lusaka (Diagram 1).

The Prefeasibility Study (PFS) completed in 2008 by African Energy demonstrated that commercially viable mining of uranium from the Chirundu Project is possible under the projected uranium price, capital cost and operating cost scenarios derived from the PFS, with mining operations to be by open pit methods and using an acid heap leach and ionexchange recovery process.

RESOURCE DRILLING UPDATE

Infill drilling programmes at Njame and Gwabe commenced in June 2008 with the following goals:

• Reverse circulation (RC) percussion drilling to decrease the spacing between sampling points to permit a higher confidence resource classification to be derived.

• Drill hole spacing has locally been reduced to a 25m x 25m grid at Njame to provide enough information to derive a Measured Resource for the first two years of planned production, with the remainder of both deposits drilled to a 100m x 50m or 50m x 50m grid suitable for an Indicated Resource (refer to Diagrams 2 and 3).

• A programme of large diameter core drilling (PQ core, 85mm diameter) at both deposits commenced in June to supplement the assay samples collected from RC drilling, to provide core for geotechnical logging and to provide up to 20 tonnes of mineralised sample for metallurgical testwork.

The RC drilling programme was completed in mid-September, ahead of schedule and on budget, and the core drilling programme is scheduled for completion in early October. Assays are not expected for all samples until late November, and these data will be used as the basis for a resource upgrade to Measured and Indicated Resources, as outlined above.

Initial assay results from the RC drilling programme at Njame continue to confirm the presence of ore grades and thicknesses of uranium mineralisation (refer to Table below and to Diagram 2):

Hole ID	From(m)		To(m)	Interval(m)	**Assay, U3O8ppm **
NJN338		36	39	3	327
NJN341		30	34	4	154
NJN343		51	60	9	140
NJN344		45	54	9	184
NJN347		50	58	8	194
NJN351		38	46	8	237
NJN360		13	20	7	203
NJN362		13	19	6	197
NJN372		29	40	11	349
NJN380		26	29	3	430
NJN389		22	30	8	506
NJN398		29	33	4	353
NJN399		29	34	5	338
NJN401		30	37	7	154
NJN403		33	41	8	347
NJN404		24	40	16	451
NJN405		30	40	10	413
NJN413		22	29	7	214
NJN415		18	39	21	214
NJN416		37	41	4	285
NJN421		38	51	13	112
NJN422		2	12	10	138

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Hole ID	From (m)		To (m)	Interval (m)	Assay, U3O8 ppm
NJN426		34	41	7	245
NJN431		30	36	6	221
NJN432		39	42	3	551
NJN433		27	31	4	317
NJN434		14	20	6	206
NJN435		18	27	9	180
NJN436		16	27	11	169
NJN444		40	48	8	255
NJN454		27	31	4	656
NJN455		39	48	9	364
NJN458		23	29	6	664
NJN461		41	44	3	537
NJN462		26	42	16	885
NJN464		17	19	2	437

BANKABLE FEASIBILITY STUDIES UPDATE

In May 2008, African Energy and Albidon committed to a BFS on the Njame and Gwabe uranium deposits, based on the results of the previously completed PFS. After a detailed design and scoping phase, the following consultants have been appointed to undertake the various aspects of the BFS:

• GRD Minproc (Johannesburg) have been appointed as Study Manager

• GRD Minproc (Johannesburg) have been appointed to undertake the detailed engineering and process design

• Mintek have been appointed to perform the metallurgical testwork

• Sound Mining Solutions Central Africa have been appointed to undertake the Mining Study

• Sound Mining Solutions Central Africa have been appointed to undertake the Geotechnical Study

• Knight-Piesold have been appointed to undertake the Heap Leach Pad design

• Knight-Piesold have been appointed to undertake the Hydrogeological Study

• Added Value Engineering Consultants (AVEC) have been appointed as Owner’s Representative

African Energy’s in-house consultants will undertake all aspects of permitting required for the Chirundu Project, including the Mining Licence Application (submitted in June 2008), the Environmental Impact Statement (first draft submitted in June 2008) and the negotiations for an Investment Protection and Promotion Agreement.

All aspects of the BFS have commenced, and is scheduled for completion in the second quarter of 2009, at a total cost of USD $7.5 million (including drilling costs).

BACKGROUND

African Energy now holds a 70% interest in the Chirundu Project having completed a Pre-Feasibility Study Report and an Indicated Resource Report, with Albidon Limited (ASX: ALB) holding the remaining 30% interest.

Energy Ventures Ltd (ASX: EVE) holds a 61% interest in African Energy.

The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The information contained in this announcement has been presented in accordance with the JORC Code and references to “Measured and Indicated Resources” are to those terms as defined in the JORC Code.

Information in this report relating to Exploration results, Mineral Resources or Ore Reserves is based on information compiled by Dr Frazer Tabeart (an employee and the Managing Director of African Energy Resources Limited) who is a member of The Australian Institute of Geoscientists. Dr Tabeart has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Tabeart consents to the inclusion of the data in the form and context in which it appears.

For any further information, please refer to the Company’s website www.africanenergyresources.com or contact the Company directly on +61 8 6465 5500.

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For and on behalf of the board

For further information please contact: AFRICAN ENERGY RESOURCES LTD ABN 34 115 065 640 Ground Floor, 8 Colin Street, West Perth 6005 Telephone: +61 8 6465 5500 Facsimile: +61 8 6465 5599 www.africanenergyresources.com ASX Code: AFR

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Diagram 1 Location of the Chirundu Uranium JV Project and the prospects referred to in the text

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Diagram 2 Drill location plan for Njame showing the locations of all drill holes completed for resource delineation drilling

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Diagram 3 Drill location plan for Gwabe showing the locations of all drill holes completed for resource delineation drilling