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.

Baobab's board and management has extensive technical and administrative operating experience in Africa and is confident of creating shareholder value from its assets.

aobab Resources, through its wholly owned subsidiary Capitol Resources, holds 23 Prospecting Licences in Mocambique. The portfolio comprises projects ranging from advanced resource definition drill targets to brownfield exploration, and greenfield prospects boasting an array of commodities.

Baobab has implemented a focused exploration strategy, with proposed and current exploration programmes designed to lead to staged feasibility studies of its lead projects over the next 12 to 24 months, while significantly advancing its brownfields and greenfields projects.

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.

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

• Tete Mafic Complex highly prospective for hydrothermal replacement deposits of gold, copper, uranium, titanium, iron & tungsten
• Baobab licences contain the Chitongue titaniferous magnetite deposits of +1Mt combined content & the Chiculambo uranium occurrence where davidite mineralisation has been recognised
• Neighbouring companies actively exploring include CVRD, Falconbridge & Omega Corp

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

Directors
Mr Jeremy Dowler	Non-executive Chairman
Mr Brett Townsend	Acting Managing Director
Mr Ben James	Technical Director
Mr Jonathan Beardsworth	Non-executive Director
Mr Tony Walsh	Non-executive Director
Management
Jack Penkin	Chief Financial Officer
Ms. Susan Hunter	Joint Company Secretary
Rosendo Puig	Exploration Manager - Mozambique
Mr Jon Crowe	Market Relations Consultant

Company Address 27/28 Eastcastle Street London, W1W 8DH Email: info[at]baobabresources.com Website: http://www.baobabresources.com

Additional Address/Key Contact Baobab Mining Services Pty Ltd 49 Phillimore Street Fremantle Western Australia 6160 Australia Telephone: +61 8 9430 7151 Facsimille: +61 8 9430 7664 Postal Address PO Box 1229 Fremantle Western Australia 6959 Australia

Capital Issued ordinary shares: 48,819,502 Warrants: 11,000,000 Options: 5,035,000 Fully diluted: 64,854,502

Nominated Brokers Westwind Partners (UK) Limited

Nominated Advisors Grant Thornton Corporate Finance

Major Shareholders

Credit Suisse Client Nominees (UK) Limited	12,300,000	25.19%
Robyn Jean Broadhurst + Alexander Irwin Crowe	5,250,000	10.75%
Mineral Securities Ltd	5,000,000	10.24%
The Bank of New York (Nominees) Limited	4,252,000
Mr Robert Brown	4,000,000	8.19%
Mr Jeremy Bewick Dowler	2,915,169	5.97%
HSBC Global Custody Nominee (UK) Limited	2,267,500	4.64%
Mr Alexander Irwin Crowe	2,000,001	4.10%
HSBC Global Custody Nominee (UK) Limited	2,000,000	4.10%

Related News

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
30/08/07 - Baobab Resources Has One Mine And Plenty Of Potential
01/02/07 - Baobab Resources Brings An Interesting Selection Of Exploration Projects In Mozambique To AIM

Most Recent Statement

27/11/08 - Placing, Strategic Investment and Proposed Tete JV
18/06/08 - TETE PROJECT - MASSAMBA AREA AIRBORNE GEOPHYSICAL
14/04/08 - Directorate Changes
11/03/08 - Grant of Two Prospecting Licences in Mozambique
25/01/08 - Placing raises £0.72 M for ongoing exploration and evaluation
19/12/07 - Final Results for the 12 Months ended 30 June 2007