The ALEL is valid for three years, effective March 2005. It covers 485 sq km and is located at the center of the known Adola Gold Belt, situated in one of the greenstone belts of the southern part of the country. There are currently two potentially economic projects within MIDROC Gold’s portfolio of ALEL, namely East Sakaro and Werseti Projects. Exploration carried out at East Sakaro has outlined an inferred resource of about 2 million tonnes of ore grading at 9.8g/t, giving a gold content of about 20,000kg (645,000 ounces). Early stage exploration works at Werseti delineated both high and low grade zones of gold mineralization. The low-grade intersections vary from average gold grades of 0.8g/t over 12m to 2.6g/t over 25m. The high-grade intersections are in the order of 5g/t to 49g/t of gold.

Both projects lie on the newly identified Tibiro-Sakaro-Ulaulo mineralized prominent shear zone, which extends for more than 20km, and are considered to have considerable upside potential. A 5-Year Strategic Exploration Plan (2005 to 2010) is in place to advance the East Sakaro and Werseti Projects to feasibility within the next five years. Intensive trenching, geophysical surveys and prospecting drilling are also planned to test other targets already identified, with the aim of generating further drill-ready targets.

The MEL covers 1964 sq km and is also valid for three years, effective March 2005. It is situated within the Tulu-Dimtu-Baruda Shear Belt of the western Ethiopia greenstone belt, known for numerous occurrences of gold and poly metallic minerals. Four key exploration gold targets of significant potential have been identified to date, namely Egambo, Aware-Doshe, Epar and Aydot-Fiti. Two other targets, namely West Tangoy and Meb-Anjakoya, have also been identified for copper (Cu 1.6% to 15%) and rare metals (Nb 31213ppm and Ta 7185ppm, in concentrates), respectively.

At Egambo gold mineralization outlined on surface over a strike length of 600m, trenches returned 1.6g/t over 9m up to 1g/t over 59m; mineralization open to the north. At Aware-Doshe five gold-in-soil anomalies outlined over a strike of 3.4km, trenches returned 1.7g/t over 10m, 6.8g/t over 3m and 10g/t over 1m; mineralization open at both ends. At Epar grid-based soil survey outlined gold-in-soil anomaly 500m in length and 40m to 80m in width, eight chip samples returned from 1.4g/t to 11.5g/t gold; mineralization open at both ends. At Aydot-Fiti skarn-type gold-copper mineralization identified over a 4km strike, chip rock samples returned up to 6.3g/t gold; mineralization open at both ends. All these gold targets have potentials for moderate to large tonnage, low to medium grade, open pittable gold deposits.