Chairman's Letter

It is with great pleasure that the Board of Directors of Takoradi Limited announces the Company’s return to trading on the Australian Securities Exchange. It has been relaunched with significant uplift in asset value and with a very positive future outlook.

The Company has, during the 2010 - 2011 financial year, continued the expansion of its mineral resource portfolio which is now focused on Namibia and Ghana in Africa along with indirect interests in Chile and Peru in South America. Each of these countries has well established mining industries with a long history of successfully developed mineral resource projects.

In Namibia, at the Kuiseb copper gold project, the Company has significantly expanded its resources at the principle target, the Hope Deposit, which from diamond drilling has identified a resource of 3,600,000 tonnes grading 2.5%Cu, 0.64g/tAu and 8.7g/tAg along a strike length of 2.6 kilometres. Additional drilling further along strike has confirmed that the resources continue at a similar grade and the geophysics shows that the mineralisation could continue for  well over 3 kilometres. Other targets are now also being evaluated within the Kuiseb project area where it is anticipated additional mineralised resources will be identified. Over 106 holes for 34,000 metres of diamond drilling has now been completed at the Kuiseb project by Takoradi  in addition to previous drilling by other companies. This gives a high level of confidence in the project where it is targeting a potential, early open-pit, shallow underground mining operation.

The company's copper, gold and molybdenum exploration activities in Chile and Peru are now held through Metminco Limited in which Takoradi holds an 11% interest. Takoradi invested approximately $7million into Hampton Mining Limited (now 100% owned by Metminco).  Based on the closing price for Metminco as at 1 July 2011, Takoradi's investment in Metminco is valued at approximately $50million. Full details on Metminco and its projects can be seen at www.metminco.com.au

The gold interests held in Ghana, primarily through its 80% owned subsidiary Northern Goldfields Limited continue to be systematically evaluated. The principle project located at Bole in the Northern region of Ghana has identified mineralisation of Proven and Probable Reserves of 145,000ozs of gold and Inferred Resources of 17,000 ozs at the Dokrupe Deposit along with additional potential mineralisation containing another 140,000 ozs of gold within the nearby Baju prospect. A joint venture is being considered from interested parties as being an alternative way forward to enhance the value of this exploration asset.

Takoradi has achieved significant exploration success in the last few years as well as enhancing the value of its asset base through the investment in Metminco. The Company has diversified its mineral resources portfolio with interests in very stable, highly regarded countries of mineral resource history. This has positioned the Company extremely well for the future in which you're Directors, who have contributed greatly to the company's activities, will continue to seek the best way forward to enhance shareholder value.

Yours Sincerely

RODNEY T HUDSPETH
Chairman