MINBOS RESOURCES LIMITED — Capital/Financing Update 2011

Oct 19, 2011

Perth Office South African Office Suite 2, Level 3 42 Kyalami Boulevard 1292 Hay Street Kyalami Business Park, West Perth, WA, 6005 Kyalami, Johannesburg PO Box 1974 West Perth WA 6872 T: +61 (08) 6140 2449 T: +27 11 466-8516/7 F: +61 (08) 6314 1587 F: +27 11 466-8523 E: info@minbos.com W: www.minbos.com

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Thursday, 20th October 2011

ASX ANNOUNCEMENT

REVIEW BY CRU STRATEGIES CONFIRMS EXCELLENT ECONOMICS FOR THE CACATA ROCK PHOSPHATE PROJECT

Highlights

• A Scoping Study undertaken on the Cacata rock phosphate project (“ Cacata ” or the “ Project ”) has confirmed that the resource will be able to support a large scale phosphate rock complex of circa 1.5 million tonnes per annum (“tpa”) to operate in excess of 10 years.

• The Cacata deposit is likely to be mined using open-pit mining and a conventional beneficiated process to produce a relatively high grade of 35% P2O5.

• The 35% P2O5 product will be considered premium product, with relatively low levels of the more problematic impurities. This will essentially open the Project up to the entire world market for traded phosphate rock.

• The Cacata high grade rock phosphate could be expected to trade at a ~9% premium to benchmark 72% BPL Moroccan product (33% P2O5), primarily on the basis of Cacata’s higher phosphate content. This would equate to $220/t based on October 2011 prices.

• Operating costs are expected to be of the order of US$46 per tonne (with a range of US$35 to US$58 per tonne), considered to be at the mid to low end of the industry cost curve and may even place the operation in the first quartile of the industry cost curve.

• Capital expenditure is expected to be of the order of US$102 million (with a range of US$72 to US$132 million) and considered to be at the low end of the industry range.

Emerging Phosphate developer Minbos Resources Limited (“ Minbos ” or “ Company ”) (ASX code: MNB) is pleased to announce the results of the CRU Strategies (“ CRU ”) scoping study undertaken on the Cacata project located within the company’s Cabinda project area in the Republic of Angola.

Minbos Executive Chairman, Peter Richards, commented:

“The completion of the Scoping Study on Cacata is an important milestone in the ongoing development of the project. The scoping study highlights that the required capital expenditure and operating costs remain at the low end of the industry range for comparable scale projects and has the potential to produce a premium product which all make for potentially very robust economics.”

“Going forward Minbos now has this high grade project in the development stage, supported by additional significant tonnages within its Cabinda licences, the potential of a similarly robust project at its 100% owned Kanzi prospect in the DRC, and now complemented by our potential potash project located

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immediately adjacent and under our Cabinda licence. Minbos is very well positioned to capitalise on the increasing demand for fertilisers as it aims to be a supplier to the world fertiliser market.”

CRU Strategies - Background

CRU is a specialist management consultancy providing independent, exclusive and proprietary advice to the world’s leading metals and mining companies, financial institutions and governments. For almost 40 years, CRU have developed a global reputation for providing independent, robust and evidence-based advice. The CRU fertiliser team are considered the world leaders in the analysis and monitoring of the phosphates market.

Summary of the CRU Cacata Scoping Study

The Project is located in the northeast of the Cabinda Province in the Republic of Angola, and bound to the north by the Republic of Congo.

Cacata contains an indicated resource of 33.9 million tonnes with average phosphate content of 15.75% including 22.5 million tonnes resource at 21.4% P2O5.

There remains the potential to supplement this resource from the nearby Chivovo deposit which contains relatively high grades of between 28-34% P2O5. In addition, the mineralogy at Chivovo is similar to Cacata and therefore should be amendable to limited beneficiation as has been shown for Cacata.

Cacata is expected to be mined using open pit mining methods and a conventional beneficiated process including size classification / attrition scrubbing, wet screening and desliming at 106 microns. Metallurgical testwork has demonstrated that the rock phosphate product will be relatively high grade of 35% P2O5 and would be marketable as a direct shipping ore (“ DSO ”). CRU has indicated that the Cacata phosphate rock product is likely to trade at a premium to the Moroccan benchmark price.

The rock phosphate product is most likely to be transported on a newly-constructed fully tarred road to the coastal port town of Cacongo, 80km from the Cacata deposit. Utilising this port would require the construction of a new jetty to load low draught 5,000t barges, which in turn could load larger bulk vessels (e.g. Panamax) which would be anchored approximately 1km offshore. Whilst transloading barges to move product a short distance to larger ocean-going vessels will add time and cost to the loading process, it is practiced elsewhere in the world for a variety of bulk commodities.

The Scoping Study has assumed a target production rate of 1.5 million tpa of marketable phosphate rock which provides for an operation life in excess of 10 years, a meaningful scale of operations to realize significant economies of scale and be of sufficient size to enable marketing the requisite volume level that certain potential large scale buyers would require.

CRU has indicated that as a general rule, a phosphate rock project will require a US$100-250 capital expenditure per tonne of annual capacity (i.e. US$100-250 million for 1 million tpa capacity of rock concentrate). The Cacata project is expected to be at the lower end or in fact below this range due to the fact that it is foregoing the purchase of mining and haulage equipment by using contractors, the deposit is relatively high grade, it will not require a complex beneficiation process and is close to infrastructure.

A cash operating cost midpoint estimate of US$46/t has been projected (with a low and high range of US$35 to US$58 per tonne). CRU expects that the Cacata project would ultimately be a mid-tier producer and remain in the middle of the industry cost curve. However, it must be noted that the Project will be marketed as a high-grade product, and as such, the competitive cost position of the project is expected to be a solid second-quartile producer when the cost curve is normalised to a 32% P2O5 baseline. In addition, a more

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positive reading of the operating cost estimates could result in the project being a low-cost, first quartile producer (i.e. circa $35/t fob).

CRU has developed a model for estimating the likely pricing of a new phosphate rock product entering the market which has taken into consideration the phosphate rock grade, chemical characteristics, as well as CRU's knowledge of actual phosphate rock contract provisions. This analysis has determined that the Cacata rock phosphate is likely to trade at an approximately 9% premium to the Moroccan benchmark price. In October 2011, Moroccan 33% P2O5 rock was trading at around $200/t fob, suggesting that Cacata product would garner approximately US$220/t fob.

Competent Persons Statement

The information in this report has been reviewed and approved for release by Mr Tom Evers, MSc, Pr.Sci.Nat, who has over 20 years’ experience in mineral exploration, and who is the companies Chief Geologist and fulltime employee and has sufficient experience in relation to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined by the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (The JORC Code 2004 Edition). Mr Evers has consented to inclusion of this information in the form and context in which it appears.

About Minbos

Minbos Resources Limited is an exploration company focused on the development of phosphate and potash bearing ore within the Cabinda Province of Angola and the adjoining areas of the far western DRC. Through its subsidiaries and joint ventures, the Company is exploring over 400,000ha of highly prospective ground hosting phosphate and potash bearing ore. Minbos is growing its current Resource base in incremental stages as it drills out the known deposits during 2011.

The Company’s strategy is to specifically target the exploration and development of low cost fertiliser-based commodities in order to tap into the growing global demand for fertilisers. Phosphate and potash are an essential component in certain agricultural fertilisers, with the market supported by the increasing global demand for food and bio-fuel products. For more information, visit www.minbos.com

For more information:

Peter Richards Minbos Resources Executive Chairman peter@minbos.com (+61) 08 6140 2449

Robbie McCrae Minbos Resources Chief Executive Officer robbie@minbos.com (+27) 82 319 2690

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