Property

The phosphate project consists of four tenements covering 214 hectares of a carbonatite in close proximity to the Municipality of Araxá in Minas Gerais State, and contains Rare Earth Elements (REE) and Niobium mineralization (see map below). Phosphate occurrences in the carbonatite were first discovered in the early 1950’s and the tenement areas optioned to MBAC have been explored in the past by companies such as Companhia Brasileira de Metalurgia e Mineração (“CBMM”) and Rhodia Group. The area in which the project is situated hosts excellent infrastructure and is home to one of the largest phosphate fertilizer producers in Brazil. Numerous blenders and fertilizer distributors are also established in the region, which is commonly referred to in the industry as the “fertilizer cluster” in Brazil.

For many years Vale and its predecessors as well as CBMM have been large scale producers of Niobium and phosphate from carbonatite mines located in the same region. REE and Niobium occurrences have been identified in the course of exploring the carbonatite for phosphate and found to be concentrated to a greater extent in 70 to 80 hectares that are centrally positioned in the Araxá Project area.

Summary of the Mineral Resource Estimate

The Araxá inferred mineral resource estimate is based on 35 diamond holes (3,485m), 68 auger holes (381m) and 43 pits (436m) drilled at a spacing of approximately 40m by 40m. Only data received as at December 1, 2011 has been used in this estimate. MBAC has an ongoing 3,000m infill and extensional diamond drill hole program underway but no results are available from this phase of drilling.

The mineral resource estimate is focussed on an area of 480m by 240m which hosts the majority of the 40m spaced drilling. Other wide spaced drilling has not been included as the 200m spacing is too wide to allow sufficient geological confidence. The majority of sample data was completed in mineralization at between 10m to 50m in depth although there are limited diamond holes deeper than 40m vertical depth and as such the footwall limit to the mineralization is poorly defined. All mineralization is contained within saprolitic material and has been interpolated as a single mineralized horizontal domain. The REO mineralization remains open in all directions.

The historical exploration data was assessed for its precision and accuracy where possible. Only the Extramil series of diamond core holes was available to resample but these holes had no immediate influence on the current inferred resource area. The majority of the historical samples have hard copy assay certificates available and have been analyzed in respected international laboratories. In addition, MBAC completed 36 auger holes which were analyzed at SGS Geosol laboratory. The results to these auger holes were compared to historical holes drilled within 15 metres and moderate precision was found. The MBAC auger holes were submitted with two (2) Geostats Pty Ltd certified REO standards and were returned acceptable accuracy.

The mineral resource has been classified by qualified person Beau Nicholls (BSc (Geo) MAIG) principal consulting geologist for Amazon Geoservices Ltda (“Amazon Geoservices”) in accordance with NI 43-101 effective as of December 2, 2011. The inferred mineral resource estimate comprises of 2.7M tonnes with an average TREO content of 8.39% (using a 6% TREO cut-off) and an average of 1.41% Nb₂O₅ and 9.91% P₂O₅

Future Exploration Target

An exploration target has been defined by existing 200m to 400m wide spaced diamond drill holes with between 28Mt and 34Mt at between 4% TREO and 6% TREO. It is important to point out that the potential quantity and grade of the exploration target is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.

MBAC is currently drilling the deposit at 40 metre spacing in the REO mineralized area aiming to define measured and indicated resources. The samples are being analyzed via ICP-MS at SGS Geosol laboratory located in Belo Horizonte, Brazil. Current MBAC drilling will analyze the full suite of rare earth elements.