| Mozambique Tenements |
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The combined tenement size now held by Riversdale in Mozambique is in excess of 290,000 hectares. This positions the Company as the largest tenement holder in Tete-Moatize area, with an extensive area capable of supporting long life operations. During October 2006 the Company acquired 16 coal bearing tenements covering an area of 203,460 hectares located in the Lower Zambezi Coal Basin. Consideration for the acquisition comprised $3.0 million in cash, 10 million ordinary shares, 10 million $1.50 options and 5 million $2.50 options in Riversdale. During August 2007 the Company acquired an additional 7 tenements covering an area of 86,620 hectares located in the Tete province. Consideration for the acquisition was $59.2 million, comprised of $26.0 million in cash and 10 million ordinary shares in Riversdale. These tenements are contiguous with tenements already held by Riversdale and those held by one of the world’s largest mining groups, Companhia Vale do Rio Doce (CVRD). CVRD is undertaking development of a US$1.2 billion coal project. The Mozambique government approved CVRD’s mining contract on 28 June 2007. The contract is a renewable 25 year concessionary licence and specifies the tax, international trade and foreign exchange regimes to which the project will be subject. During November 2007 Riversdale announced a major Coal Resource in its Mozambique coal project. This follows several months of exploration and drilling programs at the Company’s highly prospective Benga License in the Moatize district of Mozambique. Based on the drilling results undertaken by Riversdale, the total Coal Resource is estimated at 1.225 billion tonnes categorized as Inferred Resources and is in accordance with the JORC Code 2004. Of this, a total of 720 million tonnes is considered to have the potential to be extracted by open-cut methods. Based on the initial washability analysis results, the potential coal products, after beneficiation, which could be produced from Benga include: - An export hard coking coal at 10% ash - A secondary thermal coal product, consisting of an export thermal coal (approximately 20% ash) and/or a domestic thermal coal (approximately 35% ash). The Company has also confirmed two distinct areas in the northern part of the licence area as having open-pit potential. The Benga Licence covers an area of 4,560 hectares and represents less than 2% of the Company’s total tenement areas. The stated resource refers only to the northern section of the Benga Licence. Location of Mozambique Coal tenements  Portfolio of Exploration Tenements held by Riversdale  |