Company Information for Baobab Resources Plc

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Company Statement

Baobab was established in 2005 to acquire the Mozambican company Capitol Resources, which the Directors consider has a balanced portfolio of projects in Mozambique ranging from advanced resource definition drill targets to brownfield exploration, and greenfield prospects boasting an array of commodities.

Baobab Resources plc (BAO:AIM) is an AIM-listed company exploring for a variety of commodities in Mozambique. The company has a large land-holding covering six discrete project areas in the northern part of the country.

    * Mundonguara copper mine
    * Tete iron ore
    * Changara base metals
    * Bandire/Sussendenga gold
    * Senga Senga gold
    * Furancungo/Angonia base and precious metals

The two principal projects are the Mundonguara copper mine, where an initial resource has been declared, and the Tete iron ore project.

Mozambique is a country of abundant mineral wealth which has been hitherto under-exploited, good infrastructure and investor-friendly legislation which make it an attractive destination for mining companies.

Corporate Strategy
Baobab aims to discover and develop quality mineral deposits within Mozambique which the Directors believe will have potential to deliver shareholder value. Targeted commodities include base and precious metals and iron ore.

Corporate objectives include the advancement of the decommissioned Mundonguara copper/gold mine towards BFS and beyond. Concurrently the Company is rapidly assessing its portfolio of brownfields and greenfields prospects to ensure a pipeline of medium to longer term resource development projects and mining possibilities.

Where appropriate, the Company will seek to develop strategic alliances with suitably qualified partners to ensure maximum realization of the mineral wealth within its portfolio.

Fundamental to the Company’s strategy is its commitment to incorporate sustainable development practice and initiatives in all aspects of its operations in line with internationally accepted environmental and social guidelines.

Current Operations

Mundonguara Project  - copper/gold/silver
The Manica Licence 1022L, is the company's most advanced exploration project area and includes the Mundonguara copper-gold mine (closed since 1989).  A prime focus of the Company will be to define high grade copper resources, quantify the copper/gold oxide cap and determine the tenor and extent of potential lower grade haloes at Mundonguara, with the intention to return the mine to production in the near term.

The Company’s on-going exploration programme has included surface trenching and RC drilling at the Seymour prospect. Over the intrusive, trenching returned intersections of up to 20m grading 3.7% copper and 0.82 g/t gold from MTR001. These grades were confirmed by the RC drilling which returned best intercepts of 17m grading 2.1% copper from 13m in MRC032 and 3m grading 9.59 g/t gold from 103m in MRC031. For further details on the Company’s exploration successes in the Seymour area, please refer to previous AIM releases (22 October 2007, 10 December 2007 and 18 March 2008).

Bandire Project - gold
The Bandire gold workings are located to the south of Prospecting Licence 1021L, immediately outside the eastern boundary, but trending into Prospecting Licence 581L The gold mineralisation at Bandire, where an original small mine operated (in relation to which the Company has been unable to obtain any production data), has been opened up in extensive, shallow diggings by artisanal miners. This recent digging was stimulated by the results of exploration during 1997-1999 by Ashanti Exploration Ltd, whose programme culminated in the drilling of 11 reverse-circulation percussion holes.  Perhaps the most important outcome of Ashanti’s extensive (12.5 kilometres by 8 kilometres) soil geochemical sampling (on a 200 metres by 800 metres grid) programme, was the identification of four gold anomalies outside the immediate Bandire area of workings. These anomalies are all located on Baobab’s Prospecting Licences.

Changara Project - base metals
The Changara Project Area has been identified as a potential host to Broken Hill-style base metal mineralisation.

The Changara Prospecting Licences cover an area of 525 square kilometres and predominantly contain lithologies of the Rushinga group.  Rocks within the area are dominated by felsic gneisses and migmatites, however local marble and meta-arkose units offer opportunities for replacement mineralisation where fault structures provide access for hydrothermal solutions.  In the northern third of the project area, there are some younger Cretaceous deposits which overlie Permian-aged Karoo sediments and volcanics.  A small inlier of Chidue Formation carbonates occurs in this area and could be more extensive beneath the superficial cover providing further exploration targets for replacement style deposits.

Tete Mafic Complex

• Highly prospective, yet under explored, terrain for Bushveld Type iron ore, base metal and PGE mineralisation.
• Licences cover two known areas of titano-magnetite mineralisation: the Singore Prospect and the Massamba Group.
• Rock chip sampling from Massamba Group and Singore returned average grades of 49% Fe, 21% TiO2 and 0.3% V.
• Bulk density analyses of titano-magnetite rock samples from the Massamba area have returned an average specific gravity (g/cm3) of 4.3.
• The Massamba Group vanadiferous titano-magnetite prospects are co-incident with significant magnetic anomalies. Geophysical modeling of these magnetic anomalies indicates that the magnetite bodies are sub-vertical, varying in width from 50m to 450m and continuous over strike lengths of up to 3.5km, with a combined strike length in excess of 8km.
• Consultants have been commissioned to determine the metallurgical characteristics of the deposits and the economics and potential processes for recovering either a vanadium product or a combination of pig iron, vanadium and titanium products.
• The geophysical data supports the interpretation of a large potential tonnage of titano-magnetite in the Massamba area.
• Tete is fast becoming a major investment centre with mining majors Vale and Riversdale in the process of opening up the Moatize and Benga coal fields. The railway connecting Tete to the deep water port of Beira is being refurbished, as is the port. Power is readily available from the Cahora Bassa hydroelectric scheme with additional schemes on the Zambezi in advanced planning stages. A coal fired power plant has also been proposed for Benga and Moatize.

Furancungo and Angonia Project Details
The Furancungo and Angonia Project Area lies in the northern part of the Neoproterozoic Mozambique Mobile Belt.  From west to east, the geology is dominated by Post-Fingoe granitoids, followed by the Angonia Group of paragneiss and granulites. These rock types offer contrasts in competency and chemical reactivity and therefore can be expected to host mineralisation.

In 1982, the United Nations Development Program undertook a regional geochemical survey in conjunction with preliminary geological mapping at 1:50,000 scale of an area of 5,500 square kilometres in the Angonia-Macanga region. This survey outlined several multi-elemental base metal and uranium anomalies, some of which lie on Baobab’s Prospecting Licences.

Board of Directors and Key Management

Director
Mr Jeremy Dowler	Non-executive Chairman
Mr Brett Townsend	Acting Managing Director
Mr Ben James	Technical Director
Mr Jonathan Beardsworth	Non-executive Director
Senior Management
Ms. Susan Hunter	Joint Company Secretary
Mr Jon Crowe	Market Relations Consultant

Company Address 49 Phillimore Street Fremantle, Australia 6160 Telephone: (+618) 9430 7151 Facsimile: (+618) 9430 7664 Email: info[at]baobabresources.com Website: http://www.baobabresources.com

Additional Address/Key Contact Postal Address PO Box 1229 Fremantle Western Australia 6959 Australia

Capital Issued ordinary shares; 85,078,502 Shares held in Treasury; nil Warrants; 1,100,095 Options; 4,735,000 Fully diluted; 90,913,597

Nominated Brokers Westwind Partners (UK) Limited

Nominated Advisors Grant Thornton Corporate Finance

Major Shareholders

African Minerals Limited	11,425,000	13.43%
Pershing Nominees Limited	9,282,728	10.91%
Robyn Jean Broadhurst + Alexander Irwin Crowe	5,250,000	6.17%
Jeremy Bewick Dowler	5,015,169	5.89%
Mineral Securities Ltd	5,000,000	5.88%
Jim Nominees Limited	4,253,195	5.00%
The Bank of New York (Nominees) Limited	4,252,000	5.00%
Mr Robert Brown	4,000,000	4.70%
Pershing Nominees Limited	3,047,820	3.58%
10 holders with 1% to 3%	15,927,928	18.72%
156 holders with less than 1%	17,624,662	20.72%
This information was updated on 5 January 2009.

Related News

03/03/09 - Baobab Resources Has Forged A Long Term Relationship With The IFC On Its Iron Ore Project In Mozambique
04/08/08 - Baobab Plants The Seeds Of Growth With A JORC Resource At Mundonguara
12/03/08 - Life’s On The Up In Mozambique, And Baobab Resources Looks Well Positioned To Keep The Good Times Going

Most Recent Statement

15/05/09 - Tete Project - Diamond Drilling Update
21/04/09 - TETE PROJECT - DIAMOND DRILLING COMMENCES
06/02/09 - Issue of Shares and Substantial Shareholder
05/02/09 - Tete Project - Encouraging Metallurgical Results
27/11/08 - Placing, Strategic Investment and Proposed Tete JV
18/06/08 - TETE PROJECT - MASSAMBA AREA AIRBORNE GEOPHYSICAL