Introduction

The international financial crisis influenced the execution of the mining projects of Empresa Minera (Bergbau)
AG in the first half of the business period 2009. Consequently the field work has been rescheduled
for the second half of the year. Meanwhile, the construction of the bridge for vehicular traffic over the río
Grande has concluded (Picture 01). The access to the project areas is now easier and comfortable.

Project Johannes-Colonia

Two scientists of the Senckenberg Museum of Frankfurt at April 29 2009 visited the project site in order to carry out the first inventory of the local flora and fauna. This activity was conducted in connection with the planned environmental impact study and the scientific ecotourism project. The two scientists will reassume the investigation next September after returning from Germany. The inventory will be used as part of scientific dissertations.

As previously mentioned the company intends to operate the tantalite mine in conjunction with a scientific ecotourism project. The construction of a “Science Center” close to the mine site is planned. The purpose is to stimulate the public interest in the company’s mining activities. I prepared in April a report which explains the scope and execution of the project in general terms. A meeting was held with Mr. Victor Tufiño
Banzer, who owns the terrain in which the pegmatite mineralization is located (Figure 01). He showed a lot of enthusiasm and reassured his support and collaboration.
The review of field data and setting up of a database has been concluded. The detailed planning of the tantalite washing plant operation was initiated.

Other Projects

The Administrative Board of EMAG gave the instruction for suspending the revision of all projects outside of Bolivia. The respective project promoters in Brazil, China, Angola and Peru have been informed of that. An eventual resumption of these activities was postponed for 2010.

Planning

Provided that the necessary funds are available, the following activities should be carried out in the next months:

• Negotiation with land owner
• Elaboration of an environmental impact study
• Detailed planning of a tantalite washing plant operation at Johannes-Colonia
• Chemical analysis of the rock samples taken in 2008
• Inspection of the terrain of the concessions Hamburgo, Berlin and Bremen.
• Continuation of the field work in the Johannes-Colonia concession.

The company has also got the opportunity to sign a joint venture contract with Golden Eagle and COMIBOL to exploit a gold-rich coluvial deposit. It is recommended to follow up this opportunity.

Economical & Political Development

The political situation of the country is stable. The inflation was 2.0 % in the last twelve months. The banking system remains robust in spite of the international financial crisis. Bolivia holds currently US$ 8.0 billion of foreign reserves. This is the highest level in the history of the country. The exchange rate stays at 7,07 Bs for one US$.

Price of tantalite concentrate

The price for tantalite concentrate averaged in the second quarter of 2009 US$ 81.57 pro kg Ta2O5, CIF Europe (25/40% Basis 30% Ta2O5, max. 0.5% U3O8+ThO2. (http://www.bgr.bund.de)

Santa Cruz de la Sierra, July 10th, 2009

Dr. Michael Biste
Beratender Geologe
BDG-Germany No. Reg. 0-1016
Colegió de Geólogos de Bolivia, No. Reg. 0127
SMI Nº. Reg. 4141755  
12.10.2008