1.Introduction and background
The Miranda board is pleased to announce the release of its initial Competent Person`s Report ("CPR") on the Majestic exploration project in KwaZulu Natal Miranda Coal, a wholly-owned subsidiary of MMH, holds an interest of 65% in the Majestic project through its subsidiary Majestic Silver Trading 348 (Pty) Ltd ("Majestic"). Majestic is the owner of a coal prospecting right over seven farms covering 816 hectares in the Dannhauser district of KZN ("the Majestic Project"). The Majestic project is located approximately 8km south of Sesikhona, which will be Miranda Coal`s first mining project. A detailed Sesikhona project update for shareholders, incorporating mine plan and off-take information, is imminent. 

The CPR on Majestic was prepared by Mr PC Meyer (Pr.Sci.Nat. 400025/03), a SAMREC-registered Competent Person and the proprietor of PC Meyer  Consulting CC, an independent geological consultancy. Meyer has more than 20 years experience in the South African coal industry and is an active member of the GSSA and Fossil Fuel Foundation. He advises a number of coal companies in South Africa and abroad, acts as an independent contractor to Miranda and was paid a normal consulting fee for the generation of the CPR.  Meyer purchased 85,020 shares in Miranda in his personal capacity.  The purpose of the CPR was to report on the exploration work done in 2009 and to assess the reliability of the information available for the exploration area, assess the potential of the coal deposit and give guidance for future exploration.                   

2.Project location and overview
The nearest major town to the Majestic project is Newcastle, which hosts the Mittal Steelworks and was historically known for its coal mining activity and the Ingagane Power Station. A few smaller towns, namely Dannhauser, Glencoe and Dundee, are in close proximity to the Majestic Project. Dannhauser is traditionally a coal mining town which housed most of the employees of the nearby Durnacol Colliery (closed in early-2000s).  Similarly, both Glencoe and Dundee are known for their coal mining history.   There are existing railway sidings linking the area to the ports of Durban and Richards Bay. Tarred roads are easily accessible and link the area to all parts of South Africa.

A number of active coal mines are adjacent or close to the Majestic Project`s property, most of which are privately owned operations. The earliest recorded exploration over the project area was carried out by Natal Navigation Colliery in 1901, with Miranda Coal conducting the most recent exploration on the property. Miranda`s initial drilling programme commenced in mid-2009 with 18 cored boreholes. A total of 10 of these holes intersected coal seams, with the "no-coal holes" intersecting previously mined areas. The economic seams are the Top and Bottom Seams. The exploration programme results identified the Bottom Seam as showing the most potential with good, mineable seam widths and good product yields.

3.Resource classification criteria
The Project Area stretches 4.6 kilometers from West to East and 3.6 kilometers from North to South. Average depth of the Top Seam in the resource areas ranges from 94.4m to 104.6m below surface and that of the Bottom Seam from 97.6m to 105.8m below surface. Three resource blocks have been identified per seam, with the delineation based on the floor elevation  differences caused by underlying dolerite sills transgressing the coal seams. One of the blocks has bituminous coal only, whilst Block 1 has a mixture of bituminous and anthracitic coal of uncertain extent. For  purposes of the resource statement, the distribution of anthracitic to bituminous coal was taken at an equal 50:50 split.

4.Resource Statement
The in situ resource is in the "Inferred" category and amounts to approximately 5.37 million tons, of which the Top Seam holds approximately 1.93 million tons and the Bottom Seam approximately 3.44 million tons of  coal.

The resource summary for the two coal seams are summarised in Tables 1 and 2 below:                                     

TABLE 1

TABLE 1 (continue)

TABLE 2    

             
Coal volumes were calculated for each of the resource blocks by multiplying the average, gridded seam thickness with the resource block area. The volume was then multiplied by the average raw RD for each block.

The following assumptions and modifying factors were applied to the resources:   

• Quality cut-off parameters for resource calculation were not applied as it is assumed that both anthracite and bituminous coal occur on the property. 
• Areas where the seam thickness is below 0.6m were omitted.               
• Due to the nature of the deposit, a geological discount of 30% was applied to derive the in situ tonnage for each resource block. This discount was allocated as follows:                              
• 15% for unknown geological structure,             
• 10% for seam thickness variations, and                                     
• 5% for modelling error.                           
• All tonnages and qualities are quoted air dry.    

For both seams, and in all the blocks of those seams, the resource was drilled to a density sufficient to classify the resources as "Inferred" for the current SAMREC classification for multiple coal seam deposits. 
Full was hability analyses of both coal seams were used in the quality evaluation and all those boreholes contributed to the resource classification.    

5.Coal Qualities
Washed qualities were simulated for the different seams and blocks in the Majestic Project. Table 3 provides the average raw coal qualities and Table 4 summarises the coal qualities for a 10.5% ash product. The low ash product exhibits qualities that are consistent with coal required by the metallurgical industry for steel making. The raw coal and the selected seam qualities of the individual samples were aggregated to calculate the average coal quality parameters for the total coal seam width and the selected horizons.                                                         

TABLE 3

Table 4
10.5% Ash Product Coal Qualities                                                                   

Table 4 (continue)
10.5% Ash Product Coal Qualities   

6.Further exploration
In-fill drilling with analytical data is required on the Majestic Project`s property to upgrade all the resource blocks to an "Indicated" category.    
Further drilling is continuing with the overall aim of extending the resource area, improving the resource classification and increasing coal quality information.                         

Ron Nel, CEO of Miranda Minerals commented, "These results of our initial drilling conducted on the project area are promising, particularly on the Bottom Seam with its average seam width of around 1.5m to 1.6m. We intend to conduct further exploration, aiming to take the resource to "indicated" status and giving us a better sense of the potential viability of the Majestic project."             

Sponsor:                                                                        
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                             
Corporate Adviser:                                                              
Touchstone Capital (Pty) Ltd