USA Mason County, West Virginia, USA (50% Interest) Molopo’s interests in the USA target shale gas, conventional gas and CBM. To date, Molopo’s focus has been on acquiring leases and conducting drilling activities principally in the Appalachian Basin. The major drilling targets in the Appalachian Basin include the deep Ordovician (Trenton-Black River) and Silurian carbonate and sandstone reservoirs (Oriskany), Devonian shales, Mississippian sandstones (Berea) and the shallower sandstone and CBM potential of the Pennsylvanian, in addition to other regional targets. Molopo identified shale, conventional and CBM potential in a trend encompassing areas of West Virginia, Pennsylvania and New York, and has successfully acquired and retained leases in Mason County, West Virginia. Opportunities are being continually evaluated elsewhere on this trend to meet Molopo’s acquisition criteria. In the Mason County lease areas, Molopo and JV participants hold a gross 6,700 acres under lease. Molopo and Republic (Operator) each own 50% of the “deep rights” which include the potential gas shales in the Devonian. Republic Energy is a US based gas shale production company which has drilled over 300 gas shale wells in the Barnett Shale. Molopo owns interests of 66% and 50% in the shallow Pennsylvanian conventional and CBM rights. Molopo’s Mason County leases are situated in an area where scattered wells are presently producing gas from Devonian (Ohio) shales, albeit at low rates. The gas zones are mainly completed in vertical wellbores. Devonian shale thickness varies from around 400-600m in thickness containing approximately 100m of the highly prospective black shales at depths to 1,000m. Molopo and its partner, Republic Energy, are considering drilling one well during the current year. Figure L USA Prospects Drilling operations at Mason County, West Virginia Top