Shareholder Letter about recent developments in the listing of Samba Minerals Limited

January 31, 2011

 

Dear Shareholder,

We would like to inform you about recent developments in the listing of Samba Minerals Limited on the TSX Venture Exchange (TSX-V).

During December 2010, all documents were lodged with our lawyers in Vancouver for their review and amendment as necessary prior to filing with the exchange. Three main documents were completed and submitted together with supporting documentation from our lawyers, Morton and Co. These included the Independent Geological, Accounting and Legal reports on the company and its assets. The listing of Samba is also being sponsored by Union Securities of Vancouver.

As with all listings, minor hurdles were encountered, but all were resolved and the documents were submitted to the TSX-V by late December for their initial review. This was later than expected due to third-party report writers being unavailable to finalise our reports.

The Board received comments back from the TSX-V geological staff that required some amendment of the independent geological report, causing a further, but minor, delay that has now been resolved. The report has been amended and submitted again with the TSX-V for their further review and comment. To-date no comment has been forthcoming.

A further and favourable amendment to the Sao Joao licence JV terms in Brazil is currently being negotiated with the vendor. This is expected to be completed within a few days and once formalised, the document will be included, as the last document required to enable listing of Samba on the TSX-V. We do not lose our place in the processing of our application to list because of this.

On a positive note, we have had confirmation from CDS Clearing and Depository Services Inc. that Samba is eligible for both an ISIN and CDS clearance. This was the major hurdle in Frankfurt for our listing attempt there. Samba now has eligibility for ISIN and CDS, which, in simple terms, means the shares of an Australian company can be traded on the Canadian TSX Venture Exchange. This is a major breakthrough.

The time frame involved for listing the Company will now depend on the backlog of listing applications currently at the TSX Venture Exchange, and how quickly our documents can be processed. It is our belief that we will be listed by March at the latest, given the delay caused by shear volume of applications at the Exchange. Normal turnaround time is approximately 6 to 8 weeks, so we are hopeful that we will have good news before the end of March.

Kind regards,

 

Nigel Ferguson
Managing Director

 

For further information, please contact:

Nigel Ferguson
30 Ledger Road
Balcatta
WA, 6021 Australia
Phone: +61-8-9240-283
www.sambaminerals.com
service @ sambaminerals.com

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