DIRECTORS’ REPORT

The directors present their report and the audited financial statements of the Group for the year ended 31 December 2007.

PRINCIPAL ACTIVITIES

Noventa is a Jersey (Channel Islands) registered holding company, involved primarily in the mining and marketing of tantalum concentrate. Through its subsidiary, Highland African Mining Company Limitada, the Group holds title to a number of mining and exploration licences over various concession areas in Mozambique. The most advanced of which is the Marropino mine i.e. currently the only industrial scale tantalum mine in Mozambique. The next concession area to be developed is Morrua, some 25 km from Marropino. The Morrua project is at an advanced stage of planning. The other concession areas over which the Group has title are to be brought into production in a phased manner so as to provide the Group with a sustainable source of tantalum concentrate.

In addition to tantalum, the Marropino mine is believed to host the largest known deposit of a pink beryl gemstone commonly known as morganite. The morganite occurs in the same ore body as the tantalum and is extracted as and when encountered.