North River Resources holds 100% of the Namib Lead Zinc Project (EPL 2902), which is centred on the previously producing underground Namib Lead Mine, which was in operation from 1965-1992.

The Namib Lead project is located 25km from the town of Swakopmund and 55km from the port of Walvis Bay.

Three ore bodies were mined previously, namely South, Junction and North ore bodies. The bulk of production was from the South and Junction ore bodies which were developed to 7.5 and 7 Level respectively (each Level being approximately 30m). The North ore body was developed to 2 Level.

Additional occurrences of mineralisation are known at the N20 prospect and at numerous other surface gossan occurrences within the Project Area.

The lead-zinc mineralisation at the Namib Lead Mine and related prospects is thought to have been a primary stratabound sulphide deposit which has subsequently been metamorphosed and deformed. The intense metamorphism and deformation of the area has remobilised and re-deposited the primary sulphide mineralisation in structural traps which are however still largely stratabound. The mineralised bodies or shoots have extensive down-plunge extents (>300m), but limited strike and thickness extents (tens of metres at most).

Previous work by the Company in the period 2006-2009 focussed on assessing the near surface potential of the North ore body and N20 Prospect as well as the tailings dumps from previous mining activities.

A Diamond and RC drilling programme (3,057m and 15,929m respectively) assessed the mineralisation at the North Ore Body and N20 Prospect and included the following results:

• NLDD016, 8.5m @ 1.5% Pb, 11.9% Zn, 19g/t Ag (North ore body)
• NLDD007, 5.0m @ 2.2% Pb, 8.8% Zn, 49g/t Ag (N20 Prospect)

Surface and down-hole geophysics was useful in helping to delineate the down-plunge extensions of the mineralised shoots.

RC drilling of the Tailings dump (1,450m) indicated that there are significant grades of Zn in particular (2% Zn on average). Grab samples were collected for preliminary metallurgical test work assaying 5% Pb, 10% Zn and 119g/t Ag. From this, first flotation testing on grab sample material yielded recoveries of over 96% Pb, over 94% Zn and over 80% Ag. Lead flotation concentrate grades were over 50% Pb, zinc flotation concentrate grades were over 56% Zn and silver recoveries were approximately 80%.

In-house (non-compliant) resource calculations indicate the following inferred resources:
• North + N20: 611,903 tonnes @ 6.45% Zn, 2.27% Pb42.1g/t Ag, 31ppm In (1% Pb+Zn cut-off, down to approximately 180m below surface).
• Tailings: 398,604 tonnes @ 2.09% Zn, 0.26% Pb, 28.5g/t Ag, 9.3ppm In (no cut-off).

Current Work Programme

Work in 2010-2011 focussed on the ongoing cleanup and making safe of the surface and underground mine areas to facilitate ongoing exploration, specifically an underground diamond drilling programme which has recently been completed.

A total of 1,291m were drilled in 15 completed drill-holes, all drilled from essentially the same collar position at 6.5 Level (about 180m below surface). The aim of the drill programme was to prove the continuation of the two main ore shoots in the Junction ore body down-plunge and at depth below previously mined Levels. The drill programme was very successful and grades were encouraging, e.g.

• NLDD022:
  • 2.16m @ 6.39% Zn, 5.96% Pb, 150g/t Ag, 31ppm In (41.43 to 43.59m)
  • 2.00m @ 12.16% Zn, 2.24% Pb, 99g/t Ag, 106ppm In (88.76 to 90.76m
• NLDD023:
  • 8.11m @ 8.09% Zn, 1.06% Pb, 25g/t Ag, 36ppm In (40.12 to 48.23m)
• NLDD025B
  • 8.93m @ 5.77% Zn, 7.83% Pb, 134g/t Ag, 36ppm In (47.40 to 56.33m)
  • 5.00m @ 19.64% Zn, 14.3% Pb, 317g/t Ag, 144ppm In (62.05 to 67.05m)
• NLDD028
  • 7.38m @ 2.08% Zn, 2.05% Pb, 39g/t Ag, 12ppm In (25.15 to 32.53m)
• NLDD029
  • 6.81m @ 16.86% Zn, 0.4% Pb, 45g/t Ag, 114ppm In (62.34 to 69.15m)
• NLDD031
  • 5.05m @ 5.06% Zn, 8.16% Pb, 78g/t Ag, 45ppm In (31.47 to 36.52m)
• NLDD032
  • 7.25m @ 1.85% Zn, 3.99% Pb, 53g/t Ag, 3ppm In (17.21 to 24.46m)
  • 10.98m @ 13.49% Zn, 7.28% Pb, 86g/t Ag, 16ppm In (54.63 to 65.61m)

These grades and thicknesses compare favourably with unverified mineralised intersections from old mine plans, e.g.

• N56 1.0m @ 3.1% Zn, 3.7% Pb, 40g/t Ag Approx 8 Level
• N66 4.2m @ 10.5% Zn, 1.2% Pb, 46g/t Ag Approx 10 Level
• N35 3.2m @ 1.2% Zn, 5.6% Pb, 88g/t Ag Approx 10 Level
• N57 0.8m @ 8.9% Zn, 0.5% Pb, 10g/t Ag Approx 10 Level
• N36 2.0m @ 4.2% Zn, 0.8% Pb, 25g/t Ag Approx 10.5 Level

Silver (Ag) and Indium (In) are considered potentially significant by products to the main ore metals of lead (Pb) and zinc (Zn).

Pumping equipment was installed in Q4 2011 and the dewatering was completed in April 2012 with a total of 14.3 million litres of water pumped from the mine. All newly accessible development areas are in good condition and support the view that the mine was closed for reasons other than ore depletion.

An underground survey was completed as far as the standing water level in 2011 and 3D scanning of all accessible underground voids was carried out. The survey of the newly dewatered areas is to commence shortly. The main underground roadway was partially rebuilt allowing straightforward vehicle access to the bottom of the mine.

On the basis of the very high grade drill intersections achieved in the period, the Board decided to commission an airborne electromagnetic survey of a significant portion of the licence area. The airborne survey will be flown at a 25m line spacing and it is expected that such a high resolution survey will detect any additional ore bodies in the licence area. It is hoped that the survey will indicate continuation of mineralisation at depth as well as identifying any surface targets on the EPL. The survey will be flown as soon as all local authorisations are obtained.

Planning

Work in 2012 will include:

• Conceptual scoping studies to determine the best approach for future exploration work either surface based drilling or further underground drilling
• Mapping of mineralisation remaining underground
• Re-assessment of surface gossans and historical work done; identification of targets for follow up