03 | AFRICA » PROJECTS » UGANDA

In Uganda, a former British colony where English is the official national language, mining once contributed one-third of this East African country’s foreign earning revenue from the export of copper, gold and industrial minerals.

East Africa contains major regional gold trends that connect the largest gold deposits in the region, and these trends extend through Uganda. The Kibaran Belt has recently yielded discoveries of multimillion-ounce deposits of gold, and is believed to extend from east central Democratic Republic of Congo (“DRC”) into southwest Uganda.

^ The Kilo Moto Goldfields in northeast DRC are thought to extend into northwest Uganda. It is reported that by the early 1960’s, Kilo Moto had produced more than 8.8 million ounces of gold. In Tanzania, the Lake Victoria Goldfields plays host to world class deposits such as Geita, Bulyanhulu and Golden Ridge, all in excess of one million ounces of gold.

In comparison with neighboring Tanzania and DRC, Uganda has been highly under-explored in recent years, despite the favorable geological setting. A new mineral development program launched in 2004 is supported by legislation that increased the area and tenure for licenses and established a single licensing authority and an appeal mechanism.

^ Uganda, showing the major gold deposits in neighboring countries, and locations of the Magnus 100% owned projects: Lugazi, Mubende, Mitoma, Mwerusandu, Rubindi, Kidera, Kagumba and Nyanga. Also shown are Mashonga, in which Magnus has the right to earn a 60% interest, and Ibanda, in which Magnus has the right to earn a 80% interest.

Magnus now controls a portfolio of excellent gold properties along prospective regional structures where reconnaissance exploration has established the presence of gold in drainage and soil / rock surveys, and is one of the largest mineral exploration license holders in Uganda. Several of the properties held by Magnus are drill ready, with drilling at the Lugazi project completed during February 2008 and at Mashonga during August 2008. Further exploration targets at Mashonga and Mwerusandu are currently being drilled, and are expected to be completed during the fourth quarter of this year.