Sunridge Gold Corp. (CA:SGC 0.44, -0.02, -3.30%) announces that PEG Mining Consultants Inc. (“PEG”) have been commissioned to conduct a Strategic Production Study (the “Study”) of mining and processing options for the four known 100% owned mineral deposits on the Company’s Asmara Project in Eritrea.

The Study will serve as a roadmap for future engineering studies and will initially focus on the possibility of fast-tracking mining and direct shipping of a small, high-grade copper section of the Debarwa copper supergene zone where grades average between 15% to 20%. (See table below under Debarwa). This scenario may represent a low capital cost production opportunity which could generate near-term cash-flow for Sunridge.

The Strategic Production Study:

Sunridge has three mineral deposits on the Asmara Project that together contain Indicated resources of 1.28 billion pounds (580,000 tonnes) of copper, 2.5 billion pounds (1,130,000 tonnes) of zinc, 1.05 million ounces of gold and 31.8 million ounces of silver. In addition the Gupo Gold deposit contains 189,000 ounces of gold in the Inferred category (see resource details below). Given recent improvements in the understanding of the metallurgy at Debarwa, the Study will initially focus on fast-tracking part of the supergene copper zone at Debarwa into production and will then lead into further levels of engineering studies at Debarwa and the other three deposits in the form of scoping/pre-feasiblity/feasibility studies. Blue Coast Metallurgy Ltd. (“BCM”) are working with PEG to determine the metallurgical compatibility of mineralization from each deposit and options for combining ore processing with the development of flowsheets.

Debarwa Copper-Gold-Zinc VMS Deposit:

The Debarwa deposit already has a shaft, headfame and two levels of underground working that were constructed by a previous company in the 1970s.

In order to minimize initial capital costs the Study will examine the potential of using some or all of these facilities to fast-track operations at Debarwa by mining and direct shipping the high-grade copper material from a portion of the supergene zone.

This zone contains 15% to 20% copper material (see below) within the larger overall supergene copper zone. The enriched copper zone is located approximately 40 meters below surface over a strike length of approximately 120 meters.

(i) Highlights of copper-gold intercepts in the copper supergene zone. Results from all these drill holes have been previously announced:

– DEBD-005 20.36 % Cu, 2.18 g/t Au, and 103.73 g/t Ag over 13.00 meters.

– DEBD-019 21.27 % Cu, 2.29 g/t Au, and 90.51 g/t Ag over 9.80 meters.

– DEBR-008-D 20.18 % Cu, 3.43 g/t Au, and 67.10 g/t Ag over 6.00 meters.

– DEBR-021-D 20.59 % Cu, 1.96 g/t Au, and 97.81 g/t Ag over 11.30 meters.

– DEBR-022-D 19.31 % Cu, 5.80 g/t Au, and 85.27 g/t Ag over 7.0 meters.

– DEBR-024-D 21.13 % Cu, 6.88 g/t Au, and 110.41 g/t Ag over 6.00 meters.

– DEBR-036-D 20.87 % Cu, 1.99 g/t Au, and 92.63 g/t Ag over 11.00 meters.

– DEBR-044-D 20.19 % Cu, 2.18 g/t Au, and 85.41 g/t Ag over 6.05 meters.

(i) These represent some of the best drill intercepts of the supergene zone at Debarwa and demonstrate the potential for direct shipment copper material. In total, approximately 120 drill holes have intercepted the supergene copper zone and of these approximately 38 intercepts have average copper intervals grades over 5%.

The January 21, 2008 MSA Geoservices (Pty) Ltd. (“MSA”) Indicated resource estimates for Debarwa are summarized as follows:

———————————————————————–

Debarwa – Indicated Resources

———————————————————————–

Zone Cut Off K-tonnes Au g/t Ag g/t Cu% Zn%

———————————————————————–

Oxide+Transition 0.5 g/t Au 2,442 1.71 13.79 0.12 0.09

———————————————————————–

Supergene 1% Cu 1,336 1.54 33.87 5.36 0.08

———————————————————————–

Primary 1% Cu 699 0.87 22.31 2.53 3.23

———————————————————————–

Totals 4,478

———————————————————————–

Emba Derho

An independent Preliminary Economic Assessment (the “PEA”) study was completed by Wardrop, a Tetra Tech Company on the Emba Derho deposit in June 2009 (see NR 2009-04) which demonstrated the strong economics of the deposit. The base case IRR is 21.6% with 4 years payback on an estimated capital cost of US$331.8 million with sustaining capital of US$67.3 million. The base case NPV is estimated to be US$203.9 million at a 10% discount rate. The base case economics were based on five-year moving average metal prices which are considerably lower than current metal prices.

The October 2008 Wardrop Indicated resource estimates for Emba Derho are summarized as follows:

———————————————————————-

Cut-off Million Copper Zinc Gold Silver

Zone grade Tonnes % % g/t g/t

———————————————————————-

Gold Oxide 0.2 g/t Au 3.51 0.06 0.04 0.84 5.14

———————————————————————-

Copper-rich Primary 0.5% Cu 38.425 1.02 0.99 0.18 9.31

———————————————————————-

Zinc-rich Primary 1.0% Zn 20.545 0.28 2.35 0.39 12.13

———————————————————————-

The PEG study will examine the economics of a stand alone operation at Emba Derho but will also examine scenarios that include Adi Nefas and Gupo Gold and a separate scenario including Debarwa. Inclusion of material from the other deposits could have a positive impact on mining operations at Emba Derho through the addition of more material and or higher grade material.

Adi Nefas

The January 21, 2008 MSA resource estimates for Adi Nefas are summarized as follows:

———————————————————–

Adi Nefas – Indicated Resources

———————————————————–

Zone Cut Off K-tonnes Au g/t Ag g/t Cu% Zn%

———————————————————–

Primary 2% Zn 2,727 2.85 99.30 1.39 8.38

———————————————————–

The Adi Nefas high grade zinc-copper-gold deposit is located approximately 6 km east of Emba Derho.

Gupo Gold

————————————————————-

Gupo Gold – Inferred Resources

————————————————————-

Tonnes Average Gold Grade g/t Ounces of Gold

————————————————————-

1,965,000 2.99 189,000

————————————————————-

The Gupo gold deposit is located 6 kilometers east of Emba Derho and could potentially be a low cost operation mined in conjunction with the Emba Derho gold cap.

Total Contained Metals

The total contained metal in NI43-101 “Indicated” category is as follows.

Asmara Project – Total Contained Metal in Indicated Resources

—————————————————-

Deposit M lbs Cu M lbs Zn K oz Au M oz Ag

—————————————————-

Emba Derho 993 1902 580 20.1

—————————————————-

Debarwa 203.6 57.0 219.8 3.0

—————————————————-

Adi Nefas 83.7 503.6 250.0 8.7

—————————————————-

Totals 1,280.3 2,462.6 1,049.8 31.8

—————————————————-

Note: Contained metal estimates are rounded and remain subject to factors such as mining dilution and process recovery losses.

Qualified Person

Michael J. Hopley, President and Chief Executive Officer of Sunridge is the Qualified Person for Sunridge and the person responsible for preparation of the technical information contained in this news release.

ABOUT SUNRIDGE:

Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea and exploration properties in Madagascar.

Sunridge has approximately 76 million shares outstanding and approximately $6.5 million in cash. Sunridge trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at www.sunridgegold.com or call Don Halliday or Greg Davis at the numbers listed below.

SUNRIDGE GOLD CORP.

Michael Hopley, President and Chief Executive Officer

This press release contains forward-looking statements about the Company and its business. Forward looking statements are statements that are not historical facts and include resource estimates. The forward-looking statements in this press release are subject to various risks, uncertainties and other factors that could cause the Company’s actual results or achievements to differ materially from those expressed in or implied by forward looking statements. These risks, uncertainties and other factors include, without limitation risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company’s properties; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; and other factors identified in the Company’s filings with Canadian securities regulatory authorities. Forward-looking statements are based on the beliefs, opinions and expectations of the Company’s management at the time they are made, and other than as required by applicable securities laws, the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:

Sunridge Gold Corp.

Don Halliday

Executive Vice President

604-899-1505 (direct)

donh@sunridgegold.com

Sunridge Gold Corp.

Greg Davis

VP Business Development

604-688-1263 (direct)

greg@sunridgegold.com

www.sunridgegold.com

Brussels, 30 March 2010 - The European Commission has adopted today the thirteenth update of the Community’s list of airlines banned in the European Union to include all air carriers of two additional countries: Sudan and the Philippines, on the basis of safety assessments by the International Civil Aviation Organization (ICAO).

With this update, restrictions placed on Air Koryo from the Democratic People’s Republic of Korea and TAAG from Angola are partially lifted under certain conditions, while the operations of Iran Air will be restricted.

Commission Vice-President Siim Kallas, responsible for Transport, said: “Safety comes first. We are ready to support countries that need to build up technical and administrative capacity to guarantee the necessary standards in civil aviation. But we cannot accept that airlines fly into the EU if they do not fully comply with international safety standards.”

With this update, the Air Koryo licensed in the Democratic People’s Republic of Korea, subject to an operating ban since March 2006, is allowed to resume operations into the EU with two aircraft which are fitted with the necessary equipment to comply with mandatory international standards and following appropriate oversight by its authority. The rest of its fleet remains barred from operating into the EU.

The Commission recognises the improvements in the operations of TAAG Angola Airlines by allowing the air carrier to operate under certain strict conditions with specific aircraft to all destinations in the EU, not only to Lisbon.

The civil aviation authority of Angola is urged to intensify its oversight in relation to all carriers and continue the recertification of the other Angolan air carriers which remain banned from operating into the EU.

The Commission imposes an operating ban on all operations of Sudanese air carriers, due to a poor safety performance of the civil aviation authority of Sudan resulting from persistent non-compliance with international standards in the area of oversight.

The Commission acknowledges the recent efforts launched by the competent authorities to reform the civil aviation system in the Philippines and steps taken to address safety deficiencies reported by the FAA and ICAO and measures taken by two carriers – Philippines Airlines and Cebu Airlines – to ensure safety of operations. It is ready to support the Philippines to overcome serious safety deficiencies.

In view of the significant safety concerns identified by ICAO in relation to the authorities, the Commission with the unanimous support of the Air Safety Committee is forced to follow the principle of precaution and impose an operating ban on all air carriers licensed in the Philippines. The Commission is ready to support the Philippine authorities and conduct a visit to the country.

Following an examination of the safety of Iran Air’s operations into the EU through ramp checks of its aircraft in the Community, evidence of serious incidents and accidents suffered by the carrier and insufficient oversight from the authority over the past year, the Air Safety Committee concluded unanimously that the operations of Iran Air to the EU should be restricted. The carrier will only be allowed to use certain aircraft for flights to Europe. The Commission will visit Iran over the next months to verify the oversight of the Iranian civil aviation organisation and the safety situation of Iran Air.

The results of a recent visit by the European Aviation Safety Agency to Albania indicate that the competent authority needs to strengthen its capabilities to ensure the oversight of the air carriers it licences. The authorities have been urged by the Commission to take prompt action to address these issues. The Commission will closely monitor the situation.

The Commission follows closely the performance of Egyptian air carriers. A visit to Egypt to verify the oversight functions of the civil aviation authority and the performance of certain air carriers showed that this authority is carrying out its responsibilities correctly. The Commission will continue to cooperate closely with this authority to ensure that proposed improvements can be implemented.

Today, the Community’s list has three carriers whose operations are fully banned in the European Union – Ariana Afghan Airlines from Afghanistan, Siem reap Airways International from Cambodia and Silverback Cargo Freighters from Rwanda.

All carriers from 17 countries – 278 companies in total – are banned: Angola, Benin, the Democratic Republic of Congo, Djibouti, Equatorial Guinea, Gabon, (with the exception of three carriers which operate under restrictions and conditions), Indonesia, Kazakhstan (with the exception of one carrier which operates under restrictions and conditions), the Kyrgyz Republic, Liberia, Philippines, Republic of Congo, Sierra Leone, Sao Tome and Principe, Sudan, Swaziland and Zambia. 10 air carriers are allowed to operate under restrictions and conditions – Air Koryo from the Democratic People Republic of Korea, TAAG Angola Airlines, Air Astana from Kazakhstan, Iran Air from Iran Gabon Airlines, Afrijet and SN2AG from Gabon, Air Bangladesh, Air Service Comores and Ukrainian Mediterranean Airlines from Ukraine.

Find list of banned airlines here: EU list of banned airlines

Chalice Gold Eritrea

Chalice Gold Mines Limited (ASX: CHN) is pleased to advise that a resource upgrade at the Koka deposit at its Zara Gold Project in Eritrea is imminent following the receipt of more high-grade infill drilling results.

The new results, which are the last from the infill drilling program at Koka, come from diamond drill holes ZARD 143 and ZARD145 to 157 from within the Koka Main Zone.

Assays have now been received from all 30 holes of a ~5,000 metre infill diamond drilling programme designed to bring further confidence to the high grade mineralisation of the Koka Main Zone and to be used as part of the final resource estimate for the Koka Bankable Feasibility Study.

All data is now undergoing validation as part of the revised resource estimate, which will be released during the next quarter (Figure 2).

Two diamond drill rigs are now drilling on double shift at the Koka East Zone, which lies 80-100 metres into the hanging wall of Koka Main Zone, with results pending from the seven holes completed to date. Site preparation for drilling of the Koka South Zone is in progress with drilling expected to commence there shortly.

Koka Main is the flagship gold deposit at Chalice’s 80 per cent-owned Zara Project, which has a JORC compliant Indicated and Inferred resources of 944,000 ounces.

Significant intersections include:

• 7 metres grading 18.71 grams of gold per tonne in ZARD143;

• 5 metres grading 40.28 grams of gold per tonne in ZARD146;

• 23 metres grading 5.58 grams of gold per tonne in ZARD147B;

• 21 metres grading 9.30 grams of gold per tonne in ZARD147B;

• 16 metres grading 11.07 grams of gold per tonne in ZARD149, and;

• 9 metres grading 6.28 grams gold per tonne in ZARD153B.

A complete tabulation of significant results is provided in Table 1.

About the Zara Gold Project

The Zara Joint Venture comprises four Exploration Licenses and two Prospecting Licenses covering an area of 615 km2 situated in northern Eritrea, approximately 160 km northwest of Asmara city (Figure 1).

Chalice holds an 80% interest in the project and has an option to acquire the remaining 20% held by Dragon Mining (ASX: DRA). At a decision to mine the Government of Eritrea has a statutory right to a 10% free carried interest and a further right, at its election, to purchase a further 30% based on an independently assessed NPV.

The Koka Gold Deposit within the Zara Joint Venture contains an estimated resource of 5 million tonnes of ore containing 944,000ozs gold, grading 5.8 grams of gold per tonne. Metallurgical test work indicates overall recoveries exceeding 95% with ~60% recovered by gravity.

DR DOUG JONES

Managing Director

31 March 2010

Competent Persons’ Statement

The information in this report that relates to Exploration Results is based on information compiled by Dr Doug Jones, a full-time employee and Director of Chalice Gold Mines Limited, who is a Member of the Australasian Institute of Mining and Metallurgy and is a Chartered Professional Geologist. Dr Jones has sufficient experience in the field of activity being reported to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and consents to the release of information in the form and context in which it appears here. The Independent Resource Estimate for the Koka deposit was prepared by Mr Brian Wolfe, whilst employed as a Specialist Resource Geologist for Coffey Mining Pty Ltd. Mr Wolfe, who is a Member of the Australasian Institute of Mining and Metallurgy, has sufficient experience in the field of Resource Estimation to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and consents to the release of information in the form and context in which it appears here.

For more information please see document: Results

WASHINGTON, March 30 /PRNewswire-USNewswire/ — Samuel Abrahaley Fessahazion, 23, an Eritrean national, has pleaded guilty to helping smuggle illegal aliens to the United States for private financial gain, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Jose Angel Moreno of the Southern District of Texas and U.S. Immigration and Customs Enforcement (ICE) Assistant Secretary John Morton.

Fessahazion, aka “Sami,” aka “Sammy,” aka “Alex” and aka “Alex Williams” pleaded guilty yesterday in Houston before U.S. District Court Judge Nancy A. Atlas to one count of conspiracy, and two counts of encouraging and inducing aliens to come to, enter or reside in the United States in violation of law for the purpose of private financial gain.

“By bringing this smuggler to justice, we have broken a chain that runs from Africa to South and Central America, directly into the United States,” said Assistant Attorney General Lanny A. Breuer. “We will not allow these dangerous smuggling organizations to profit from bringing people illegally into the United States.”

“This prosecution strikes a significant blow to a criminal organization engaged in a sophisticated international alien smuggling operation,” said U.S. Attorney Jose Angel Moreno of the Southern District of Texas, “and highlights the continuing cooperation and success of multiple law enforcement agencies in interdicting such activities.”

“Breaking this global alien smuggling network puts smugglers on notice that we are coming after them and we will shut them down,” said ICE Assistant Secretary John Morton. “ICE will continue to identify the most dangerous international human smuggling organizations for investigation and prosecution.”

According to plea documents, from at least June 2007 until approximately January 2008, Fessahazion was the Guatemalan link of an alien smuggling network that spans East Africa, Central and South America. Specifically, according to the court documents, Fessahazion illegally entered the United States at McAllen, Texas, on March 20, 2008. He applied for asylum on Sept. 30, 2008, claiming in his application that he was traveling across Africa in 2007 and 2008, fleeing persecution in Eritrea. However, according to court documents, Fessahazion was actually in Guatemala during that period facilitating the smuggling of East African aliens to the United States. Fessahazion was granted asylum by the United States on Nov. 13, 2008.

Fessahazion admitted that for profit, he encouraged or induced at least six and up to 24 illegal aliens, primarily East Africans, to come to, enter, or reside in the United States knowing that they were not authorized to do so. Fessahazion admitted he moved aliens from Honduras through Guatemala and into Mexico illegally, at which point he referred aliens to a smuggler who brought the aliens into the United States.

In one instance, according to court documents, Fessahazion and his co-conspirators moved two illegal aliens from South Africa to Sao Paulo, Brazil, then through Venezuela to Honduras where they were instructed to contact Fessahazion. Once in contact, Fessahazion sent a driver to pick up the two aliens and bring them to Guatemala City, Guatemala. In exchange for $800, Fessahazion took the two aliens by bus to a house bordering Guatemala and Mexico. There, working with a co-conspirator, Fessahazion provided information to the couple on how to cross the border into Mexico illegally and how to proceed once in Mexico to the United States border. Fessahazion and the co-conspirator provided the couple with a guide who physically took them into Mexico and provided contact information for an unidentified smuggler known only by the alias “Matamoros,” who would in turn take the two aliens to the United States from Reynosa, Mexico. In February 2008, the couple was illegally brought to the United States by guides working for “Matamoros.” According to court documents, the guides carried guns and ferried the couple across the river on the Mexico/U.S. border in inner tubes.

In another example, an alien was moved from Dubai to Brazil, then to Honduras via Colombia and Costa Rica. According to court documents, a co-conspirator told the alien he could get him from Dubai to Brazil, at which point others would assist the alien each step of the way to the United States in a “chain like” fashion.

According to court documents, once the alien arrived in Honduras, Fessahazion sent a driver to retrieve him and bring him to Guatemala City. In exchange for $700, Fessahazion took the alien to the Guatemala/Mexico border and, along with a co-conspirator, gave the alien information on how to cross the border into Mexico illegally and how to proceed once in Mexico to the United States border, including contact information for “Matamoros.” The alien then traveled into Mexico, contacted “Matamoros” and traveled to Reynosa as “Matamoros” instructed. In December 2007, according to court documents, guides working for “Matamoros” took the alien and others to the United States illegally by ferrying them across the river on the Mexican/U.S. border in inner tubes. Shortly after crossing the border into the United States, the alien and others were apprehended.

At sentencing, scheduled for June 14, 2010, Fessahazion faces a maximum penalty of 10 years in prison and a $250,000 fine.

The case was prosecuted by Trial Attorney Pragna Soni of the Criminal Division’s Domestic Security Section, with the assistance of Assistant U.S. Attorneys Edward Gallagher and Douglas Davis of the Southern District of Texas.

The investigation was conducted by the ICE Special Agent in Charge (SAC) Washington, with the assistance of SAC San Francisco, the ICE Human Smuggling and Trafficking Unit, ICE Office of Intelligence, ICE Office of International Affairs and U.S. Custom and Border Protection’s Office of Alien Smuggling Interdiction.

A high-level meeting in London of political and business leaders will consider this week ways of raising 100 billion dollars to fight climate change. And yet another one in Washington will search for ways of finding, and funding, more three-dollar stoves around the world.

The second one is more ambitious than it sounds; it aims to get more than half a billion clean stoves around the world. But working with the little and the tangible, it might just be more effective than the London meet. And, it brings simultaneous health benefits.

The Britain-based Ashden Awards for Sustainable Energy is pushing strongly for cleaner stoves around the world. “Fighting climate change and improving the health of the world’s poorest people are often seen as competing priorities,” says a report from the Ashden Awards. “Yet some technologies address both tasks at the same time.” For example, the cooking stove.

“Almost half the world’s households, some three billion, eat food cooked on fires and stoves burning wood, dung, coal, straw, husks and charcoal,” says the report released in London Sunday evening. “Pollution levels from smoke and gases such as carbon monoxide are typically hundreds of times those that would be tolerated in the streets or a factory.

“An estimated 1.6 million people die annually as a result, including around a million children under five, mostly victims of childhood pneumonia.”

Getting half a billion stoves to these households will begin to address the problem substantially. But that’s a lot of stoves, and it’s not clear how these households will get them.

“That’s the big question which the United Nations Foundation/Shell Foundation meeting in Washington DC will be looking at next week, so we may have some detailed strategies after that,” Dr Anne Wheldon, technical director of the Ashden Awards, tells IPS in an interview.

The clean stoves certainly exist, and at that price. “For instance, in Cambodia traditional stove-makers have been trained to produce an improved version which sells for only three dollars,” says Wheldon.

“We are also starting to see the factory-scale production that can make cheap stoves available more readily on a global basis. A very basic stove produced by the Shengzhou Stove Manufacturer has an ex-factory price of 3.50 dollars, with other models at eight to 12 dollars. Envirofit has also started mass manufacture, with some higher price range models with more features to them.”

Success on scale has been achieved in China. An estimated 180 million improved stoves were introduced from 1983 to 1995, and cook for most of the population, the Ashden report says. China has recently renewed efforts to provide a new generation of yet more efficient stoves.

But scaling up is now feasible elsewhere too, says Wheldon. “Provided that a stove is developed that people really like to use, it is quite feasible to get to the 100,000s scale, and there are a range of ways of doing this that work well in different circumstances – for instance, a government-led programme in Eritrea, an NGO-led programme in Bangladesh, upgrading of existing commercial production in Cambodia. Such programmes could probably grow to the 1-10 million scale.”

The Ashden calculations suggest that a global programme to manufacture the half-billion improved stoves needed to convert the world’s poor to safer cooking could save hundreds of thousands of young lives a year – and at the same time cut global greenhouse gas emissions by the equivalent of up to one billion tonnes of CO2 a year.

“Such investments ought to attract large sums through the carbon market,” the report says. “We calculate that improved cooking stoves can keep a tonne of CO2 out of the atmosphere for as little as one to three dollars – an exceedingly good deal in a market where offsets can be sold for 20-30 dollars a tonne.”

The carbon market could fund cleaner stoves in a number of ways, says Wheldon, such as “directly subsidising a government or NGO programme that provides stoves at low cost or sometimes zero cost as with the Eritrea stove programme, directly subsidising commercial sales, or supporting an umbrella organisation that coordinates independent producers, and takes responsibility for quality control and monitoring, as with the Cambodia stove programme coordination.”

Since 2001, 18 stove projects in Africa, Asia and Latin America have won Ashden awards, most of which have gone on to expand and develop, the Ashden report says. Time now, it says, for a scaling up of these successes. Source: (IPS)

Haile Menkerios

The new head of the United Nations peacekeeping mission in Sudan (UNMIS) reiterated today his call for the national elections to be carried out next month as scheduled, but stressed that any decision to delay should be made entirely by Government officials and the electoral institution.

“Elections need to take place according to timelines subscribed by the CPA [Comprehensive Peace Agreement], and they have to be conducted in a conducive atmosphere to ensure a free and fair process,” said Haile Menkerios today in Khartoum, in his first press conference since becoming the Special Representative of the Secretary-General (SRSG) and head of UNMIS.

“The CPA, however, is an agreement by the two Parties. And should the two Parties decide whether to have the elections on time or should they want to postpone them for a time, it is up to them,” the Special Representative added.

He also told reporters that it was his understanding that the presidency would meet on Tuesday to review a request by political parties for postponement of the elections currently scheduled to take place from 11 to 13 April.

The national elections, the first of their kind in 24 years, are seen as a benchmark in the implementation of the peace agreement, which was signed in 2005 to end the long-running north-south civil war in Sudan.

Voters will be able to choose a national president, a southern president, local and national assemblies, and governors.

The next major benchmark in implementation of the CPA would be a referendum next year on southern secession.

Speaking to reporters, Mr. Menkerios stressed that the elections are a Sudanese process led by the governments and the National Elections Commission (NEC), with the UN providing only technical assistance and limited logistical support – as mandated by the Security Council – to the authorities staging the ballot.

“The election in all its aspects is a totally nationally owned process,” he said.

UNMIS, in cooperation with the UN Development Programme (UNDP) and donors, has provided technical assistance in voter registration through its Electoral Assistance Division, and advice on operational planning.

The UN mission has also been involved in intensive election security training, instructing almost 24,000 police officers, close to 17,000 in the north and over 7,000 in the south.

“While the responsibility to provide security during elections lies with the Governments of National Unity, and the Government of Southern Sudan in its area, our peacekeeping forces will also assist in enhancing security in areas where threats of armed confrontation may exist,” Mr. Menkerios said.

Mr. Menkerios also stressed that the UN does not have a monitoring role in the elections. That role will be filled by various independent observer groups, both international and national, accredited by the NEC that will perform monitoring functions and report accordingly.

When asked what he thought of the decision to print electoral ballots at the National Printing Press in Khartoum, which is being criticized by some opposition activists, Mr. Menkerios said that decision rests solely with the NEC.

As well as UNMIS, the UN is involved in another peacekeeping operation in the country. (UNAMID) is a joint operation with the African Union in Darfur, the western region of Sudan.

Stratex International (AIM: STI) has doubled its Ethiopian portfolio to 3,142 sq km (square kilometres) while reporting encouraging geochemistry results from its Megenta gold discovery in the Afar region of the country, with chip sampling returning grades of up to 3 g/t (grammes per tonne) gold.

Shares in the company jumped 7.4% on the news.

The new exclusive exploration licenses (EELs) spanning over 1,562 sq km are located in the Afar region and in the Tigray area in northern Ethiopia, east of Stratex’ Shehagne gold project. The current EEL in the Afar epithermal district was extended by 666 sq km to take the total land package in the region to 2,245 sq km. The Tigray EEL covers 897 sq km of what the company said was “favorable ground.”

Stratex has commenced geological mapping and rock sampling over the Tigray concession with regional minus 200 mesh stream sediment sampling planned for Q2/Q3 2010.

The company said that recent results from its Shehagne project and the interest shown by other companies including Sunridge Resources and Antofagasta Minerals in Eritrea highlighted the potential of the large tract of ground for early discovery.

Meanwhile, the samples from Megenta returned a high of 3g/t Au at only 20 metres below the paleosurface from a zone of chalcedonic silica veins; other results included values of 0.667 g/t gold and 0.525 g/t gold, which Stratex called “highly encouraging values for this high level of the system,” saying they indicated potential for a high grade system at depth.

“Having received encouraging geochemistry results from our Ethiopian gold discovery, Megenta, in the Afar region, we are delighted to further consolidate our ground position and utilise our early-mover advantage, in what we believe is an emerging gold region,” said executive chairman of Stratex David Hall.

The Megenta hot spring gold prospect will now be the focus of a six week detailed mapping and sampling programme aimed at defining drill targets for Q3 2010.

Stratex has increased its portfolio of gold assets in Turkey and Ethiopia to 1.17 Moz (million ounces) across all categories of JORC standard during 2009. Source: (Proactiveinvestors)

National emotional baggage has handicapped African carriers, making the continent a lucrative target for foreign attacks. But now Africa’s airlines are ready to fight back, using partnerships to reclaim their territory

African countries are like proud parents towards their airlines. They want them to succeed. They want them to be all they can be. They want to bask in the glory of their offspring. But over-protective parenting can be harmful.

While Africa has focussed on wrapping its airlines in cotton wool, it has taken its eye off the predators lurking nearby. Instead of being protected, Africa’s airlines have been left dangerously exposed. Meanwhile, the wider economy has been neglected. “We have to move past the time when paint on the tail is the heaviest part of an aircraft, even an old aircraft,” says Lance Brogden, IATA regional vice-president for Africa.

Africa is home to 30% of the world’s land surface and 14.2% of the world population, but accounted for only 3% of world traffic in 2008 despite the lack of alternative transport and harsh terrain. Over the past decade, African air transport has increased by 6.6%, making it the most rapid growth region after the Middle East, albeit from a low base. African GDP is expected to rise by 4.5% in 2011, compared with the world average of 3.7%. The potential is undeniable, but the reality is challenging.

One aviation executive likens travelling across Africa to a game of pool, where you have to rebound off the cushion – in this analogy, Europe or the Middle East – to get to your planned destination. Point-to-point services are limited. Long-haul services are the Holy Grail to aspiring nations, but regional services are what the continent really needs. The rub is that successful long-haul operations need feed, and regional services need liberal markets. Partnerships are also important, but Africa’s carriers have historically been blinkered by their own agenda.

“Instead of building small, regional carriers, everyone has made the same mistake, of wanting long-haul and large widebody aircraft, without developing the vital infrastructure and the hub needed to support it,” says Royal Air Maroc head of industry affairs Souad Meziane. Airlines Association of Southern Africachief executive Chris Zweigenthal agrees: “This is one reason that the grand plans for long haul don’t work: you need a regional base to feed it. The Middle East carriers are using a feed strategy into Africa, and it is working for them.”

Africa’s cash economy has weathered the financial storm better than most, and it remains a premium market, attracting foreign airlines. “Of course Africa is being attacked by international carriers,” says Embraer sales director Patrice Candaten. “Today, Africa is one of the only positive markets. You don’t expect Emirates to attack Europe. They are going to attack you. This is only the beginning.” And it is not just on long-haul. Emirates is involved in the new Senegal Airlines, and Air Arabia has Air Arabia Maroc.

But, as the cake gets divided and eaten, African carriers continue to bicker among themselves. “We have failed as a continent to unite ourselves and exploit our own resources: whose fault is that?” says Air Seychelles chairman David Savy. “The boat has sailed by, and we have missed it.”

The assault continues. Virgin Atlantic has just announced a new service to Ghana from London, and Brussels Airlines will launch four new West African routes in July, swelling its African network to 18 destinations. “Africa is our second home, and this new investment perfectly reflects that,” says Brussels Airlines co-chief executive Bernard Gustin.

Meanwhile, US carriers are returning to Africa, putting huge pressure on local carriers. But sympathy is not on the agenda. IATA’s Brogden delivered a hard-hitting message at the African Airlines Association general assembly, staged in Maputo last November.

“You need to rise to the challenge, otherwise you don’t deserve this continent and you don’t have the right to moan and whine like girls, complaining and crying when someone else takes it away,” says Brogden. “You can’t afford to lose this opportunity. You are already on the back foot. Congratulations to the guys outside this conference [non-African airlines]. They got it right. But it has to stop. Now.”

Nick Fadugba, the new AFRAA secretary general, says 70% of Africa’s long-haul traffic is carried by non-African airlines. “This is damaging to the African airline industry and to the economies of Africa. We welcome non-African airlines in Africa, but we would like to see our member airlines enjoying a greater slice of the pie.”

But in Africa the status quo is plenty of talk and only limited action. And the entry of foreign carriers proves that if you do not seize an opportunity, someone else will. Fadugba is therefore urging African carriers to take concrete action, to communicate with one another and to form true partnerships. “InAfrica we talk a lot about co-operation,” he says. “We talk more than any other country in the world about co-operation, but – in terms of tangible action – we have not got very far.”

PARTNERSHIPS

To help the process along, AFRAA has hinted that it might be looking to set up a partnership scheme, similar to the Arabesk co-operation among Arab airlines. Fadugba says: “Why can’t we have, in Africa, an African airline alliance with an à la carte menu? I’m not talking about equity. I’m talking about a concrete, tangible strategy to move airlines forward, with co-operation in areas such as simulator training, maintenance and spares pooling. You can compete for traffic on one hand but also co-operate to gain benefits.”

Dapo Olumide is chief executive at newly renamed Nigerian Eagle, which was formerly known as Virgin Nigeria. Olumide agrees with Fadugba, but he is quick to note: “We don’t want to create Air Afrique, some monster which is not going to survive. The world is changing and we don’t have the resources to do it on our own. Even British Airways is not capable of creating the network it would like, so it has to go to partners.”

AFRAA is also urging the continent’s largest players to work with smaller carriers to create codeshares, joint ventures, cross-border and equity partnerships. Ethiopian Airlines is already fulfilling this mission, as a part-owner of Togolese start-up ASKY. But chief executive Girma Wake is keen to see more action. “Have we done enough as airlines? I don’t think our governments would tell us to only maintain aircraft from airline X, Y or Z. If we train staff at one another’s facilities, I don’t think the governments would interfere. But we feel more honoured to work with a big European carrier than to form partnerships among ourselves. This has to be washed out of our systems. Let’s knock on one another’s doors and work together, rather than just working with somebody, somewhere.”

Another example of a big carrier teaming up with a smaller sibling is Tanzania’s Precision Air, which is 49%-owned by Kenya Airways. “I think the message of co-operation is not a fancy, trendy word, but an absolute necessity for Africa,” says Kenya Airways chief operating officer Bram Steller.

And others are looking to join the throng. Gidon Novick, joint chief executive of South Africa’s Comair, says: “We are certainly looking to see how we can help other African carriers, in terms of partnering with them and helping them to become sustainable, reliable airlines.” Comair is looking at several partnership opportunities across southern Africa.

SURVIVAL INSTINCT

But while African airlines recognise the need to consolidate their resources and work together, there is a huge amount of fear and mistrust that larger players will take advantage of their smaller brothers. Zweigenthal says: “Many carriers think that, if they co-operate, they will get dominated and blown out of market, but the sooner we co-operate together, the better.”

“It is a question of building up the confidence of both partners,” says LAM Mozambique commercial director Aderito Macaba. “When the sun rises, both lions and gazelles run: one to eat, the other not to be eaten. We would like to be a small lion and not a gazelle. If we want to succeed we must work hand-in-hand. It is time to wake up and run, for all of us.” Acting as one pride, he believes, is the key for survival.

Mind-set and a lack of communication are still huge obstacles for African aviation. “Sometimes the big players think they are big and that the others are nothing,” says LAM chief executive Jose Viegas. “All they seem to do is complain about their bigger brothers. How are we supposed to ask for their support if they would like to kill us?”

On the flip side, the bigger players are keen to shed their bully-boy image. “The problem is, we are small on the world stage and too big on the African market,” says Kenya Airways’ Steller. “We don’t want to be seen to overwhelm smaller players: co-operation is our goal, not ownership. Our philosophy is to develop a joint market, not to rob someone else.” Wake from Ethiopian is also keen to put things in context. “There is no big carrier in Africa. The largest big carrier in Africa is the same size as the smallest European carrier.”

Wake accepts that, at least in the short term, partnerships can involve sacrifice, but he believes co-operation and idea sharing will lay “proper foundations” for the difficult times. “If all want to win, it just doesn’t work. We have to start to change our mentality,” he says. “I believe, without co-operation, African carriers will find it very, very difficult in the short-term, let alone the next five years.”

POLITICAL BICKERING

Fadugba is also calling for co-operation at national level and he has struck out at a lack of progress towards liberalisation, saying: “The African economy will only start to thrive once political bickering is eliminated.”

Based on the 1988 Yamoussoukro Declaration, the legally-binding 1999 Yamoussoukro Decision set the scene for gradual African air transport liberalisation, through bilateral and multilateral agreements.

“For many people, Yamoussoukro has been on paper gathering dust for 20 years,” says Fadugba. “This is no credit to Africa. We must realise that the real competition is not between ourselves, but betweenAfrica and the rest of the world. Ghana must not look at Equatorial Guinea as a competitor. We have to work together to move forward.”

Some African carriers are still denied market access within their own continent, and Fadugba describes this situation as extraordinary and unacceptable. “Some African states, which have ratified these legally binding documents, have done nothing. This means many airlines are hamstrung when it comes to developing their networks within Africa.” But he also criticises markets that have liberalised their international markets too rapidly, creating an influx of foreign competition, undermining Africa’s airlines and economies.

The African Civil Aviation Commission has been tasked with overseeing progress towards Yamoussoukro and Fadugba intends to work closely with the commission to move things forward. But while progress towards Yamoussoukro’s heady ambitions is widely criticised, very little research has been done, prompting World Bank principal air transport specialist Charles Schlumberger’s doctoral thesis.

Implementation of the Yamoussoukro Decision is being handled by regional organisations, and Schlumberger’s research shows that these bodies are making headway. Several African carriers are already benefiting from Yamoussoukro Decision-conforming bilaterals. He also found that the number of seats offered typically fell in Africa’s liberalised markets. Schlumberger proposes that this is caused by the right-sizing of capacity and the system being cleansed of non-viable airlines.

Looking forward, Schlumberger’s report observes that a “clear majority” of African countries favour full application and countries which have dominating state-owned carriers, such as Egypt, Ethiopia, Kenya, Morocco and South Africa, are pressing ahead. But 20 countries with weak or small state-owned carriers are still dragging their heels. “Where there is very little air transport, there is not a problem. Where airlines are privately owned, there’s not a problem,” says Schlumberger. “The issue lies with ailing flag carriers.”

Although some policy work still needs to be processed by the regional bodies,Schlumberger believes that states forming bilateral deals “may set the motivating example to set up these missing elements”. Royal Air Maroc’s Meziane agrees with the professor: “If things progress, it will only be thanks to the carriers themselves.”

Her views are seconded by Nigerian Eagle’s Olumide: “Governments talk the talk, but they don’t walk the walk. But huge steps have been taken. We’ve now recognised that we shouldn’t leave it to the government. Airlines have to do it themselves.” The liberalisation research supports this. “Royal Air Maroc and Ethiopian have developed strongly, based on bilateral relationships and that is the way forward,” says Schlumberger. “This is how we move forward, not through another two-week conference. Yamoussoukro is alive. People like [Ethiopian's] Girma Wake and Royal Air Maroc are going out to other countries and asking them if they want to come. This is how you implement Yamoussoukro.”

A further issue looming on the horizon is Africa’s inability to negotiate as a block when faced with the might of Europe. Tunisair manager for international affairs and alliances Koussai Mrabet says: “This is difficult, but it is important. The impact of not doing this will be that a lot of African carriers will disappear. The will of the group is better than the will of an individual: 20 are obviously stronger than one. EU carriers can gain the right to fly every route in Europe to Tunis. This is a big danger, especially with low-cost carriers.”

LOW-COST CHALLENGE

Morocco has actively liberalised its market, attracting a deluge of low-cost operators. Since signing key deals with Europe and the USA, tourism figures have leap from 2.2 million to 8.5 million, creating 200,000 new jobs. New private operators such as Jet4you have sprung up and Royal Air Maroc doubled its fleet to 52 aircraft. “Liberalisation has clearly been a success in Morocco,” says Royal Air Maroc chief executive Driss Benhima. “In the first phase Royal Air Maroc did very well, expanding its passengers and doubling its fleet. Now I think the rules are changing.”

Benhima, who is a former transport minister, insists that “development of the national carrier should take second place to liberalisation”, even if this means “losing some ground”. Indeed, Royal Air Maroc has had to refocus on its home market since liberalisation, abandoning its other African airline ventures – many of which were separately hampered by political pressures.

“Transport ministers are not here to protect the national flag carrier; they are here to increase air transport. If it gives tourists increased frequencies and cheaper fares, liberalisation can address national interests. You don’t have to have a national carrier and I don’t think national policy should be to protect the flag carrier at any cost.”

Benhima says states fear losing their national carrier because international routes subsidise vital domestic and regional operations. But Morocco is addressing this issue by using taxes from its newly expanded traffic base to support its fully liberalised domestic market, where operators do not have to pay taxes.

Regional routes are fundamental to Africa’s economic growth. Embraer’s Candaten says Africa’s 70% load factor sits at the bottom of the world league table, while 600 routes lack a daily frequency, showing overcapacity. Only 16% of Africa’s routes are daily. “If you want to go from A to B you have to go via E, F and G,” says Candaten. “Consumers want to fly the shortest way, the fastest way.”

Bombardier statistics show that 75% of Africa’s scheduled operations are domestic, whereas in a mature market the majority are regional. Bombardier Commercial Aircraft marketing and airline analysis manager Frederic Morais says today there are 751 non-stop markets served in Africa, but there is potential to add a further 386 regional routes, including 70 from the continent’s major hubs.

“On domestic and regional services, there are no excuses. We have nobody to blame apart from ourselves,” argues Fadugba. “There are too many excuses for not developing domestic air transport and nobody takes the blame. In reality, there are no excuses for not developing regional air transport.”

But the challenges are clear. Benhima states that he has 4,500 staff and neatly sums up the problem. “This means I have 4,500 chief executives and, in the country as a whole, I have about 30,000 consultants. The relationship between the public and their national carrier is same as the relationship between the public and their national soccer team.”

Brogden from IATA concludes: “We have made a lot of progress. My commitment is ‘no more meetings, only action’. The foundations have been laid. Returns will come from liberalisation, but we must be careful not to blame the governments for being slow. We are accountable. We are the ones to make the changes. It’s far too easy to say, ‘Let’s just look after our own airline.’ There’s no way we can do this unless we throw away our arrogance and work together.” Source: (ATI)

Dimdex

Eritrean Defence Minister Gen. Sebhat Ephrem arrived for a several day-visit in Qatar according to Qatar News Agency (QNA).

During his visit he will attend the Predatory Falcon Exercise and the Doha International Maritime Defence II (DIMDEX 2010) which will be held as of the beginning of the next week.

The Defence Minister of Eritrea was received upon arrival at Doha International Airport by Director of the Protocol and Public Relations Department Brig.

Mohammed Ahmed al Sulaiti and Ambassador of Eritrea to Qatar H.E. Ali Ibrahim and a number of senior officers of the Armed Forces.

DIMDEX is the only specialized maritime defence exhibition in the Middle East and North Africa bringing together companies presenting their latest high-end technologies to meet the maritime challenges of the 21st century.

The regional naval defence exhibition and conference features surface, undersea and coastal defense systems, patrol aircraft, equipment and electronic solutions. It is the only fully integrated naval show in the Mid-East & North Africa, and provides a platform for introductions and business development to proceed.

Kallman Worldwide Inc., the offical organizer of the U.S. International Pavilion, has projected for the 2010 event 100 exhibitors from 20 countries, 7,000 buyers, 60 official delegations from 42 countries and about 16 warships and submarines from 9 countries to attend.

Nevsun Eritrea

Nevsun ownership interest in the Bisha Project

On October 26, 2007 the Company and the State-owned Eritrean National Mining Corporation (ENAMCO) entered into an agreement to increase the State’s participation in the Bisha project. ENAMCO agreed to purchase at fair value a 30% paid participating interest to add to its 10% free participating interest provided by Eritrean mining legislation, resulting in a total State participation of 40% (30% contributing; 10% free carried).

The final amount to be paid by the State will be determined by an independent valuator and will be based on the net present value of 30% of the project, as evaluated upon the first shipment of gold from the mine. As a first provisional payment, ENAMCO paid the Company $25,000,000 during Q1 2008.

Liquidity and Capital Resources

The Company’s cash at December 31, 2009 was $29.1 million (December 31, 2008 – $40.7 million).

In January 2008 the Company received $25 million related to the provisional payment on acquisition by ENAMCO of its contributing interest in Bisha. ENAMCO continues to fund its share of all costs of the Bisha project and advanced $21.9 million to Bisha during 2009. The advances incurred $1,413,850 of interest, which was capitalized to property, plant and equipment. The interest and advances will be repaid out of operating cash flow, are not callable and have no specified repayment terms.

In May 2008 the Company received $20 million from the sale of its Mali assets. In July 2008 the Company also collected $3 million from PMI Gold Corporation related to the 2007 sale of its Ghana assets.

In September 2009 the Company received a $20 million loan from ENAMCO. In October 2009 it then raised $30.1 million by way of a non-brokered private placement of 11,500,000 common shares.

From these cash resources the Company used $83.8 million in its operating and investing activities during 2009 (2008 – $45.1 million). The Company has spent $122.4 million on the Bisha capital project and based on current estimates, as at December 31, 2009 required approximately $137.6 million to complete the project.

Subsequent to December 31, 2009 the Company raised a further $111.5 million by way of a non-brokered private placement of 52,000,000 common shares. The Company is confident the funds from this private placement, together with its existing cash and the ongoing one-third contribution by ENAMCO to Bisha will be sufficient to see the Bisha project through to cash positive operations.

In July 2009 the Company’s subsidiary, Bisha Mining Share Company (BMSC) had arranged debt facilities totalling $235 million for the Bisha project. The debt package was a mix of senior and subordinated facilities from a lending group comprised of seven institutions from Europe and South Africa.

In February 2010 the Company changed its approach to funding the Bisha project to ensure the project continued on schedule. While Bisha had already completed project debt agreements with European and South African lenders, these debt facilities had not yet been drawn and it became apparent that access to the debt in the required time frame was uncertain. The Company and ENAMCO concluded that the debt facilities were unreliable and inconclusive for the Bisha project.

As a result of the change in approach to funding the Bisha project, during Q1 2010 the Company expensed approximately $8 million of costs related to securing the debt financing that at December 31, 2009 were treated as deferred finance costs and were included in property, plant and equipment.

Contractual Obligations

As of December 31, 2009 the Company had the following contractual obligations:

-

The Company also has an environmental bond to cover remediation liabilities for Bisha in the amount of $2,000,000 at a cost of 1% per annum.

The Company has not entered into any specialized financial agreements to minimize its commodity risk, investment risk or currency risk. There are no off-balance sheet arrangements, except for the purchase price adjustment on the disposition of the 30% contributing interest in Bisha, acquired by ENAMCO (the Eritrean State mining company). Refer to note 10(a) of the annual consolidated financial statements for a description of the purchase price adjustment with ENAMCO.

Also refer to note 4 of the annual consolidated financial statements for a description of the Company’s financial instruments and risk management.

Financial Report 2009: http://www.nevsun.com/docs/financials/1209_NSU_MD&A_Final.pdf

Nevsun Resources

Nevsun Resources Ltd. (TSX:NSU / NYSE Amex:NSU) is pleased to announce its recent financial position and its annual results for 2009. All amounts are expressed in United States dollars.

The Company’s cash position at the end of March 2010 is approximately $118 million.

For the year ended December 31, 2009 the Company has reported a loss of $5.5 million. The results compare to 2008 when the Company reported a loss of $5.7 million, including $2.0 million of income from discontinued operations.

Included in the Company’s MD&A are management’s report on the Company’s Bisha Project construction progress, as well as economics and cash flows for the project. The project is now over 50% complete and commissioning is expected to commence in late 2010. Photographs of the construction progress can be found at www.nevsun.com/properties/photo_gallery.

Complete details of the 2009 financial statements and management’s discussion and analysis can be found on the Nevsun website at www.nevsun.com as well as on Sedar at www.sedar.com and EDGAR at http://www.sec.gov/edgar/searchedgar/webusers.htm.

Forward Looking Statements:

The above contains forward-looking statements concerning cash position, construction progress and project economics. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those described in the Management Discussion and Analysis of the Company. The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

NEVSUN RESOURCES LTD.

Cliff T. Davis

President & Chief Executive Officer

Oil Rig

Saudi state-owned Aramco has been administering a tender for a seismic survey of Saudi territorial waters in the Red Sea. Industry sources said European companies have submitted bids to survey 14,000 square kilometers in a project worth up to $200 million.

Some of the bidders were identified as Norway’s Petroleum Geo-Services, the Netherlands’s Fugro and Britain’s WesternGeco. Aramco has been preparing to begin drilling for energy reserves in the Red Sea in 2012.

The sources said Aramco has deemed the Red Sea the next major source for crude oil and natural gas for the Saudi kingdom. Saudi Arabia has reached a capacity to produce 12.5 million barrels of oil per day.

Exploration activities are taking place across the red sea region. Sudan has recently started drilling its first overseas offshore exploration well in the Red Sea Basin off Sudan with the help of the state China National Petroleum Corporation (CNPC).

The well falls in Area 15 under the franchise of the Red Sea Petroleum Operating Co., a consortium of five firms including the CNPC, Malaysia’s state oil firm Petronas, Sudan’s state oil firm Sudapet, Nigeria’s Express Petroleum and Sudanese firm High Tech Group. Petronas and CNPC each have a 35 percent interest in the block 15.

According to the Sudanese minister of Energy and Mining the results from prospecting for oil and gas in the Red Sea are positive.

Tokar-1 is one of two exploration wells in Block 15, located some 130 kilometers southeast of Port Sudan. The CNPC and its partners plan to complete drilling in six months. The wells have a designed drilling depth of 3,700 meters, and water depths of 38 meters and 52 meters respectively.