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Company Information for Baobab Resources Plc

AIM-BAO

www.baobabresources.com

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AIM; BAO

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Company Statement

Baobab Resources plc (BAO:AIM) is a Mozambique focused iron ore, base and precious metal exploreer. The company has a largeland-holding covering five discrete project areas. The Tete iron ore asset is emerging as Baobab's flagship project.

Baobab Resources plc (Company No. 5590467) was incorporated by the Registrar of Companies for England and Wales on 12 October 2005 and in 2006 indirectly acquired the entire issued share capital of Capitol Resources, a Mozambican company which has assembled a portfolio of 16 Exploration Licences. Projects range from advanced resource definition drill targets through mature brownfields prospects to greenfields exploration.

Baobab was established in 2005 to acquire the Mozambican company Capitol Resources, which the Directors considered had 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 listed on the AIM in February 2007.

Backed by a strong technical & financial management team with working experience in Mozambique & other Southern African countries, Baobab has implemented a focused strategy, with proposed & current exploration programmes designed to rapidly assess and advance its projects.

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 iron ore, base and precious metals.

Corporate objectives include the advancement of the Tete magnetite/ilmenite and Mundonguara copper/gold projects 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

Baobab Resources, through its wholly owned subsidiary Capitol Resources, holds 16 Prospecting Licences in Mozambique. The portfolio comprises projects ranging from advanced resource definition drill targets to brownfield exploration, and greenfield prospects boasting an array of commodities.

Tete Project - Highlights

Magnetite-ilmenite deposits in two discrete areas: The Massamba Group Area and the Singore Area.
3,000m diamond drilling programme completed at Chitongue Grande prospect.
47.7Mt maiden Inferred Mineral Resource estimated in accordance with the JORC code.
Independent interpretation indicates an exploration target potential of 400 to 700Mt to a depth of 250m in the Massamba Group area.
Postive scoping study results indicate significant project upside.
Close to critical infrastructure and complementary resources including hydro-electric power, metallurgical coal and rail/port.
Strategic partnership with International Finance Corporation (IFC): 15% direct project participation.

Mundonguara/Manica Project - Highlights

A Stage 1 JORC Inferred Mineral Resource on the 1km long Mine portion of the Mundonguara Project of 3.1Mt @ 1.4% copper, 0.11g/t gold and 2.1g/t silver using a 0.3% Cu lower cutoff grade extending to a maximum depth of 200m below existing development.
Mineralisation remains open at depth and along strike.
Significant potential outside resource area along strike in the Seymour
Project area where on-going exploration is developing a +3km long corridor of copper/gold mineralisation.
Less than US$90 per copper tonne discovery cost.
IP survey covering 6km of strike commenced.
Aggressive drilling campaigns to prove additional resources at depth and along strike have been designed and tender process commenced.
Metallurgical scoping study commissioned.
Close to critical infrastructure.

CHANGARA PROJECT
The Changara Project covers an area of 525km2 and is underlain by lower Proterozic rocks of the Rushinga Group which flank the northeastern margin of the Zimbabwe Craton.

The Project is considered highly prospective for SedEx / Broken Hill Type polymetallic base and precious metal mineralisation and hosts numerous occurrences of zinc, lead, manganese, iron ore, fluorite, copper and silver.

The area has experienced limited historical exploration.

BANDIRE / SUSSUNDENGA PROJECT
The Bandire/Sussundenga Project covers an area of 900km2 and is underlain by lower Proterozic rocks flanking the eastern margin of the Zimbabwe Craton. Gold has been won from the Bandire artisanal workings (located immediately adjacent to 581L) since pre-colonial times.

Exploration by Ashanti in the 1990’s defined four discrete gold-in-soil anomalies, three of which lie within the Project area. 11 RC holes drilled by Ashanti into the Bandire workings indicated that gold mineralisation is associated with shallowly west dipping mafic schist intercalations within a highly weathered package of felsic gneiss saprolite. Intercepts included 8m@1.15g/t Au (BRC02) and 2m@3.45g/t Au (BRC07). Mineralisation remains open, with down dip and northern strike continuations persisting into Baobab’s 581L license.

Exploration is targeting low grade, shallow supergene gold mineralisation suitable for low-cost open-pit, heap-leach operation.

Board of Directors and Key Management

Directors

Mr Jeremy Dowler	Non-executive Chairman
Mr Brett Townsend B.Sc	Managing Director
Mr Ben James B.Sc	Technical Director
Mr Jonathan Beardsworth	Non-executive Director
Mr Jon Crowe	Non-executive Director

Management

Mr Graham Anderson (GDA Corporate)	Joint Company Secretary & CFO Services

Company Address

Suite 25
South Terrace Piazza
26-36 South Terrace
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: 158,931,836
Shares held in Treasury: nil
Warrants: 1,100,095
Options: 15,104,500
Fully diluted: 175,136,431
Authorised ordinary shares: 1,000,000,000

Nominated Brokers

Astaire Securities

Nominated Advisors