DIRECTORS’ REPORT

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

SUBSEQUENT EVENTS

Zero coupon convertible loan note

On 7 March 2008 the Company raised $3 million from Highland African Ventures Limited ("HAVL"), an existing substantial shareholder, in the form of a zero coupon convertible unsecured loan note ("Convertibles"). The proceeds from the Convertibles were used to fund additional working capital and operational costs as a consequence of the delays experienced in ramping-up production to targeted levels.

The terms of the Convertibles are set out in note 28 of the financial statements.

Pre-shipment finance facility

In April 2008 the Group concluded negotiations with FirstRand (Ireland) PLC ("FirstRand") regarding a "rolling" pre-shipment finance facility of $6.7 million. Certain risk exposure limits have been agreed regarding on the amount of funding that will be made available at various stages of the warehousing and logistics pipeline. These limits are unlikely to have a significant impact on the Group being able to access the funding being made available in terms of this arrangement.

The terms of the pre-shipment finance facility are set out in note 28 of the financial statements.

Private placement of shares

In May 2008, in accordance with the terms of the Company's Articles of Association, the Board decided to undertake a private placement of ordinary shares with institutional and high net worth shareholders to raise $6 million to fund working capital required as a result of the delay in ramping up production to targeted levels.

A total of 3,045,685 ordinary shares of £0.0004 each were placed at £1.00 each. This resulted in the total number of ordinary shares in issue increasing to 37,924,261 ordinary shares of £0.0004 (par value) each as at the date of this report.

_________________________ C Wood Executive Chairman 27 June 2008	________________________ M Hinxman Chief Financial Officer 27 June 2008