Clarification (November 24, 1997)

Further to our report on AfriOre’s (AFO-V) Umgen coal project in South Africa (T.N.M., Nov. 12-23/97), The Northern Miner has learned the following:

* A preliminary estimate of AfriOre’s annual cash flow from the project is 20 to 25 million rand (not US$20 million), with a payback expected in 2001.

* Resources at Umgen stand at 20 million tonnes of coal in all categories (anthracite, coking coal and lean coal). It has yet to be decided whether all three components or only anthracite will be mined, should the project go ahead.

* The neighboring Springlake Colliery has a monthly production rate of 40,000 tonnes.

* Management and Malaysian interests in AfriOre total 24%.