Afri-Can Marine Minerals Corporation V.AFA

RE: Question

[arpagon29]

Hi Mark,

Thank you very much for your vote of confidence, but I will have to answer your questions in two parts.

First let me say that I totally agree with your statement; “looking at the latest press release of the company, I understand that AfriCan have a 15% interest in the Haib project, which will be reflected for us (AfriCan shareholders) by a 50% interest in Deep-South company, through a share dividend payment.”

But coming with a value, that is harder. Now when I look at the Haib copper project, the only factual information I have to make my analysis of the haib copper project comes from the 43-101 report prepared by AFA.

From that document, I take out the following information:

Behre Dolbear (1996), on behalf of Namibian Copper Joint Venture (NCJV) , produced an Indicated Resource Estimate for the Haib deposit. Using the Nearest Neighbour method, Behre Dolbear estimates a resource of 630 million Tonnes @ 0.34% Cu at a cut off grade of 0.2% Cu equivalent to 4 billion lbs of Cu in situ.,

Furthermore, from what I understand from the press release on the work done by Teck since 2008, is seem that Teck does believe that the deposit continues had depth, with higher grades, so the chance that the Haib copper deposit is greater then 4 billion lbs of copper are there...

So what I know then is that AFA 15% interest in the Haib = 600 Millions pounds of Copper in the ground, and that is big, heck that means that we are talking about a value in the ground of 2,4 billions of dollars for the 600 M lbs of copper (600 M * 4 per lbs = 2,4 billions)...

Do not get me wrong, I am fully aware that at this stage the value of the haib cannot be calculated that way, I just look at that and see a massive blue sky valuation potential, but I have no idea what is the present market price given to lbs of Cu in ground for a project as advance.

I have sent a letter to AFA to see if they have any valuations numbers that we can use to give a value to the project, As soon as I have a reply, I will post it.

Regards,

Arp