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Northern DRC (Equateur and Oriental Provinces) and the Central African Republic (the "CAR") are known for their high quality alluvial diamonds. Geological studies suggest that the diamonds in the CAR have been derived from the northern DRC and since there are no known kimberlites in the northern DRC, it makes this area one of the last highly prospective regions in the world for diamond exploration. The Company took out an area of almost 28,000 km² either through its own applications or through option contracts with several partners.

Since this part of the Congo Basin is covered by tropical forests, the region has never been subjected to modern exploration. Hence the strategy of turning ground over fast and retaining the best parts applies. Work in the form of regional stream sampling for heavy minerals started in November 2007. All reconnaissance stream samples were collected on a loose grid of roughly one sample per 25km², with the best trap sites identified by one of the local field geologists. Some 30 litres of material was collected from stream sediment screened between 0.7 and 0.4mm and to date some 17,000 km² have been covered. Those areas that returned positive results from the reconnaissance stream sampling program have been retained and presently the Company has 7,623.8 km² under licence mainly in the Bafwasende region. Some of this ground is held by the Company under its own name and some of it is retained under the Company's joint venture partner Coexco. This land package now forms part of an agreement with Rio Tinto which is funding the exploration program in order to earn into any diamond discoveries. The Company is the operator in this project.

A program of detailed follow-up stream sampling was conducted during 2011 over an area which had returned positive results from the initial reconnaissance sampling program. During the follow up work a total of 490 stream samples were collected over a period of 4 months, equating to 1 stream sample per 5km² compared to one sample per 25km² during the reconnaissance phase. Each stream sample was screened to minus 0.71 mm and plus 0.43 mm size-fraction and concentrated on site. All concentrates samples were further jigged in a mechanical jig in Kinshasa. These concentrates were subsequently dispatched to the Rio Tinto heavy mineral laboratory in Perth, Australia. The results of these samples are expected to be completed by the end of 2011.

The Company further holds 4,550 km² of ground between Isiro and Bafwasende for which Rio Tinto has an option agreement with the Company exclusively for iron ore. In this project Rio is the operator and is presently evaluating the iron ore in the form of haematite over this ground.

To date, a total of 1,117.1 metres of diamond drill holes have been drilled and all the drill cores have been analysed revealing average grades from the mineralised intercepts ranging from 62.5% to 68.5% iron. The weighted average grade is 66.6%.

Rio Tinto, as the operator, has commenced the helicopter supported reconnaissance over the remainder of the Bomokandi permit area. It is expected that the first phase of this reconnaissance work will be completed during the first half of 2012.

Delrand owns 25% of the joint venture company that holds exploration permits. Under the agreement with Rio Tinto, all iron ore exploration up to and including the completion of any feasibility study will be funded by Rio Tinto. Delrand will not suffer any dilution during this period, such that the Delrand's 25% interest in the properties will be maintained during this period. The exploration for iron ore is being carried out by Rio Tinto (or one of its affiliates) as operator. After the completion of any feasibility study, funding for the project is to be provided by Rio Tinto and Delrand pro rata based on their respective interests in the joint venture company.