Musoshi Tailings

On September 6 th 2006 ICS Copper Systems Ltd entered into an option agreement (the “Musoshi Option Agreement”) with Miniere de Musoshi & Kinsenda, (“MMK”) of the DRC, whereby the Company was granted an option to acquire a total 76% interest in a joint venture company to be established by MMK which will hold title to the Musoshi Tailings located in the Katanga province of the DRC (the “Musoshi Tailings Project”). In order to exercise the option, the Company must pay an aggregate of $US2,000,000 to MMK. The payments are subject to completion of various conditions precedent, including completion of a technical report on the Musoshi Tailings Project in compliance with NI 43-101, and receipt of a positive bankable feasibility study. Due to various delays related to the property, including a dispute over the rights of MMK to title to the Musoshi Tailings Project raised by Sodimico, a shareholder of MMK, the Company has been unable to proceed with preparing a NI 43-101 report or to advance the project as required by the Musoshi Option Agreement.

In due course the Company will undertake a new mineral resources estimate to conform with NI 43-101 using using CIMM standards. The Company intends to confirm through due diligence the tonnage and grade by statistical trenching of the tailings pond and sequential sampling of the entire depth of each pit. A drill may also be used to assist in sampling the tailings pond. All data will be incorporated into a digitally model and a recognized geostatistically correct mineral resource estimate will be developed.

Recovery Process

Previous work by metallurgical professionals demonstrates that a combination of established leaching and electrolyte purification methods followed by EMEW electrowinning technology will be capable of good copper recoveries. Material would be excavated from the tailings pond and trucked to the plant site for leaching and electrowinning.

The Musoshi Tailings Project will provide ICS Copper Systems Ltd the opportunity to rapidly develop a low risk and low development cost copper operation that will provide the company a major presence in the DRC.