MINBOS RESOURCES LIMITED — Capital/Financing Update 2013

Feb 24, 2013

ASX ANNOUNCEMENT/MEDIA RELEASE

ASX ANNOUNCEMENT/MEDIA RELEASE
		ASX Code: MNB
MARKET UPDATE
		PERTH OFFICE
	~~Lev~~el 1, 278 Stirling Highway
		Claremont WA 6010
HIGHLIGHTS:		Australia
		T: +61 8 9476 4500
 Kanzi joint venture discrepancy identified and resolution being progressed		E: info@minbos.com W:www.minbos.com
 Resource upgrade to Kanzi project underway	SOUTH AFRICAN OFFICE
		Ground Floor, Unit 1,
 Strategic partner process is progressing		Ferndale Mews 15 Dover Street
		Randburg,
 Short term financing offers available to the Company to ensure the strategic	partner	Johannesburg 2194
process can run its course		South Africa

• Angolan potash withdrawal

Minbos Resources Limited (“Minbos” or “the Company”) (ASX: MNB) is undertaking this release to update the market on recent events.

Kanzi Joint Venture

On 1 August 2012, Minbos announced the signing of a Joint Venture (“JV”) agreement with Allamanda Trading BVI (“Allamanda”), for the exploration and development of the Kanzi project and surrounding exploration areas in the Democratic Republic of the Congo (DRC).

The JV entity, Phosphalux SPRL (“Phosphalux JV”), was incorporated with a 65% interest being held by Minbos through its wholly owned subsidiary Agrim SPRL (“Agrim”) and the remaining 35% interest held by Allamanda. Minbos has recently been presented with a side agreement by Allamanda that was purportedly entered into concurrently with the signing of the original JV agreement by Agrim, without the knowledge or consent of the Board of Directors of the Company, which seeks to apportion Minbos a 49% interest in the economic benefit of the Licences which form the Kanzi project, with a 51% economic interest held by Allamanda.

Minbos has obtained preliminary legal advice in relation to the validity of this side agreement because it was executed without proper authority from the board of Minbos. The advice has confirmed that the side agreement is open to legal challenge.

ASX ANNOUNCEMENT/MEDIA RELEASE

Minbos is however, as a priority, actively engaging with Allamanda to resolve this issue in a positive manner.

Minbos will continue to focus on developing the Kanzi project and the Cabinda project in Angola, both of which have a clear path to production and compelling economics. Kanzi has a project NPV of US$626M (pre-tax at 10% discount) and an IRR of 58%; while Cacata has a project NPV of US$311 (pre-tax at 10% discount) and an IRR of 40.2%.

Resource Upgrade - Kanzi

As reported by ASX announcement dated 10 December 2012, Minbos completed a positive drilling program on the Kanzi project in late 2012. Minbos is pleased to report that the samples from the drilling program have now been received in Johannesburg. It is expected that analysis of these samples will occur over the coming weeks, with a resource upgrade for the Kanzi project expected in March 2013.

Long Term Funding - Strategic Partner

Site visits have now been completed by two parties and negotiations for investment are in progress.

Minbos believes that with its holding in two outstanding phosphate projects located in Central Africa, it is well positioned to tap into the expanding fertiliser market as highlighted by the research reports posted on the Company’s website and the recent value achieved by Minemakers in its sale of 50% of its Namibian phosphate operation.

Short Term Funding

In order to ensure that the process with strategic partners can run its course, Minbos has been presented with several short term funding options. The board is consdering these options and will decide upon the most appropriate for the company’s current needs in the very near future.

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ASX ANNOUNCEMENT/MEDIA RELEASE

Withdrawal from Angolan Potash

Minbos wishes to advise that following due dilligence, it has discontinued further investigation of its Dinge Potash Licence program to focus the Company’s future activities and resources on the development of its phosphate assets.

Minbos Managing Director Scott Sullivan said: “ Both of our phosphate projects have a clear path to production. The board of Minbos considers it prudent to focus our efforts on developing these nearer term projects rather than long lead time projects in order to meet the expanding global demand for fertilisers. ”

For further information please contact:

Scott Sullivan

Managing Director scott@minbos.com +61 (0) 8 9476 4500

For media enquiries contact:

David Ikin – Professional Public Relations email: david.ikin@ppr.com.au +61 (0) 8 9388 0944

About Minbos

Minbos Resources Limited (ASX:MNB) is an ASX-listed exploration and development company focused on phosphate 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 ore.

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ASX ANNOUNCEMENT/MEDIA RELEASE

Minbos is focussing on the development of the high grade Cacata project in Cabinda and the high grade Kanzi project in the far western DRC whilst growing its current resource base in incremental stages on the remaining deposits in both areas.

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 is 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

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