MUKULELA

1. MUKULELA This new residential development falls within the formal part of Katima Mulilo in the area known as Boma. The site is located along the banks of the Zambezi River approximately 500 meters west of the well known Zambezi River Lodge which had recently been sold to the Protea Hotel Group. The area is characterised by an abundance of fauna and flora, some of which are endemic to the area. These include approximately 450 bird species; several fish species, the notorious Tiger Fish, 300 species of Woodland Savannah and a wealth of large mammals (elephants, buffalo and hippo’s). This is the Caprivi lifestyle! To ensure exclusivity, only 5 properties have been made available. Three of these have direct access to the river such that the northern boundary beacons are under water for 4 to 5 months of the year. The natural environment makes this area unique. It is expected that the new properties will be highly sought after, especially considering the scarcity of river bank plots. To retain exclusivity of the development, suggestions will be made to promote a homogenous and prestigious development character.

2. MUKULELA DEVELOPMENT CHARACTER The design of the erven was dictated by the overall shape of the parent property. Three large riverfront erven were created with each having a 27 meter wide river frontage. Furthermore, a good opportunity exists to enlarge Portions 3 and/or 4 through the acquisition of Erf 17. To the east of the site is a formal road providing access to boat launching facilities, thus affording future residents easy access to the river. A detailed contour survey was carried out to determine the locality of the 941m contour and flood line. In order to safely develop above this line minor fill would be required on some sites. To build on the unique character of the river front, purchasers will be encouraged to implement collective landscaping next to the water and to erect palisade fences or boundary walls to ensure privacy and to emphasize the special character of Mukulela.

3. MUKULELA The land has not been previously developed, probably due to the current lack of reticulated municipal services. This is now about to change. Negotiations and designs for the installment of full water borne sewer and water reticulation are in a final stage. Construction of these networks will commence after signing of a suitable number of “Agreements of Sale”. It is anticipated that all infrastructure would be completed by the end of September 2006. According to Nampower, the new Zambia/ Namibia electrification link will be finalised in approximately 2-3 months. Written confirmation was received from Nored confirming the expansion of the local grid electrification network to the new properties once the Nampower link has been finalised. Final transfer of the new properties will take effect once all services are completed and the statutory procedures have been finalised. Expected date: October 2006. INFRASTRUCTURE

4. MUKULELA PURCHASE PRICES AND SIZES The purchase prices were determined by a conservative estimation of the land value as well as the cost for construction of the service infrastructure. In addition to the above, unique site features such as river view, size and development potential, were used to correct and amend the final purchase price of each site. . Due to the high interest shown, erven will be sold on a “first-come, first-serve” basis. As specified in the Agreement of Sale, a 10% deposit will be required on signing of the contract. Payments will be made to the trust account of PF Koep and Co. Should, for any reason, the development be cancelled, the intended purchasers would receive a full re-payment.

5. MUKULELA SUPPORTING DOCUMENTATION The following are attached for perusal: • Agreement of Sale; • Locality map; • Subdivision layout; • Detailed contour survey; • River water level records; • Sewer reticulation; • Water reticulation; • Electrical layout; • Development guidelines.