Following the release of the results of nine Chimbala drill holes last month (see our note dated 17 August 2010), Baobab has gone on to release the results of three of six scout diamond drill holes at its South Zone prospect. On the basis of the August round of drill results, we estimated a potential additional resource at Chimbala of the order of 225.7Mt at 26.8% Fe to add to its existing, officially declared, JORC-compliant resource of 47.7Mt at 25.3% at Chitongue Grande. Considering the results of the three holes reported upon from the South Zone prospect, our estimate of Baobab's potential total resource increases to 390.0Mt at 27.6% Fe (±38.9Mt).

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