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Dear Shareholders,
The 2007 fiscal year marked the transformation of our Company from a junior explorer to a near-term producer of copper. Very few companies make this quantum leap in viability in the mineral exploration industry. This achievement is a tribute to the dedication and hard work of the talented employees at African Copper who continue to work tirelessly to achieve the aggressive goals that were set for them at the end of 2006.
African Copper was incorporated in early 2004 and admitted for trading on AIM in mid-November of that year. We're very proud of what we have achieved in three short years. In 2004, the Mowana mineralization totalled about 6 million tonnes of indicated mineralization. By the end of 2007, the Company had confirmed about 87 million tonnes of measured and indicated resources at 0.71% copper of which approximately 14 million tonnes had been converted into proven and probable reserves at 1.1% copper. In addition, African Copper had completed sufficient engineering to determine the best processing route for the mineralization, raised sufficient capital to enable construction to commence production, entered into EPCM contracts, obtained all required permits, commenced mining at the operations, signed a five-year offtake agreement and successfully recruited all senior Section Managers for the eventual mine. I believe that these achievements are unique in the industry.
While the open pit mineralization is the immediate source of revenue for the Company, the Board remains excited about the possibility of an underground mine at Mowana. Engineering studies for this important expansion are well advanced and I look forward to sharing the results of these studies with our shareholders in the second quarter of 2008. The extraction of deeper mineralization provides longevity for the operations beyond the 7 years represented by the open pit, and should place Mowana firmly on the path to becoming one of Botswana's new mines.
The Board is delighted with the support that we have received from Botswana based shareholders and investors throughout 2007 and into early 2008. The response and the financial support shown by Botswana institutions and the Botswana Stock Exchange have been unequalled. The Board remains confident that the Company development objectives are achievable in 2008 and believes that the share price will respond positively as we meet our corporate goals throughout the balance of 2008.
As African Copper moves into production the Board will continue to grow shareholder value and to sensibly leverage the resources that shareholders have entrusted to us. The Company will be aggressive in pursuing both exploration and acquisition opportunities while remaining cognizant of market conditions and shareholder interests. As a shareholder, you can be assured that the Board will protect your interests, will push management to achieve ever greater goals, will require the Company to develop projects in a sensible and environmentally sustainable manner, and will ensure the engagement of communities and stakeholders at all stages.
On behalf of the Board, I would like to thank the shareholders and employees of African Copper for their support and loyalty in 2007. I would also like to thank my fellow Directors for their active participation and contributions to the Company in its transition year. I expect that 2008 will be an exciting year for the Company, and for our shareholders.
ROY CORRANS
Chairman,
30 March 2008
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