Dala, Angola

Background - In March 2005, Moydow announced that it had signed an agreement to conduct exploration for diamonds in Angola.

Moydow, together with its strategic partner Concord Minerals LLC, a Nevada company, agreed terms with Endiama, the Angolan state diamond mining company and Cimader EP, a local Angolan company, to explore for diamonds on the Dala diamond concession which is located immediately south of the town of Saurimo and is bordered to the east and west by the Muriege and the Alto Cuilo/Luangue diamond concessions respectively.

- Under the terms of the agreement, Moydow and Concord have a combined 33% interest in the concession, with the remaining percentage owned by Endiama and Cimader. Moydow and Concord will be responsible for conducting exploration and any development on the property.

- The Dala concession comprises some 3000 square kilometres of ground in the well known diamond producing region of Saurimo in north eastern Angola. Alluvial diamonds have already been identified on the concession and evidence of kimberlites on the licence was reported by a Diamang and Condiama survey of the area in the 1970s.

In January 2006, Moydow announced that it had signed an agreement with the Angolan state diamond company, Endiama, to explore for kimberlitic or primary diamonds on the Dala Licence.

Under the terms of the agreement, Moydow and its strategic partner, Concord Minerals LLC will hold a combined 40% interest in the kimberlite licence. Endiama will have a 51% interest and the balance will be held by the local Angolan partner.

Exploration Program - Moydow personnel established a base camp centrally on the licence in 2005 and recently completed an airborne geophysics survey over the property. This survey was done by the Council for Geoscience (formerly the Geological Survey of South Africa) and identified about 70 targets on the property which warrant follow-up work.

Following completion of the airborne work, a ground geophysical survey comprising magnetics and gravity was initiated in mid January 2006.

An extensive ground magnetic survey was carried out in 2006-07 to evaluate the airborne geophysical targets. This has isolated an initial 21 priority targets for the drill program.

The company continues to evaluate the alluvial potential of the concession and a washing plant has been operational since January 2008.

Moydow has mobilized a drill rig to Angola for a drilling campaign on the Dala project. A contract for 5,000 metres has been signed with an option to drill an additional 5,000 metres. The programme envisages core drilling to an average depth of 120 metres using both HQ and NQ size core. These large core sizes will yield a sample sufficient enough to assess the diamond potential.

Dala Camp

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