The ~9,370 km² Kaoko property is located in the Kaokoland region of northwestern Namibia. INV Metals believes the Kaoko property has significant potential to host sedimentary copper deposits similar to those in the African and Kalahari Copperbelts, demonstrated by the discovery of the Okohongo deposit and significant copper mineralization at the Omatapati and Okozonduno targets. The African Copperbelt in Zambia and the DRC is one of the greatest sediment-hosted stratiform copper-cobalt provinces in the world and includes a number of world-class deposits that contain greater than 10 million tonnes of copper. The Kaoko property covers an area as large as the entire Zambian Copperbelt. Given the multitude of targets and mineralized environments present, the potential to make a discovery of a world-class, low cost, open pit copper deposit in a stable political environment is high. INV Metals believes that there is also the potential to identify multiple smaller deposits that may be processed in a central plant.

The classic sediment hosted copper deposit model consists of hot fluids circulating through a sedimentary basin, deriving copper from underlying red bed sediments and then, as the fluids rise, precipitating the copper out of solution where they encounter the first reducing (typically carbonaceous) horizon. On the Kaoko property, the first reducing horizon which is part of the Lower Omao Formation, has been informally named the "Okohongo Horizon". This horizon is the prime exploration target as it hosts not only the Okohongo deposit but numerous other copper showings and prospects. Although there are more than 150 copper showings hosted within the Okohongo Horizon, mineralization also occurs within other geological units including the underlying "basement" granites (the Oruwanye target), the underlying red bed sandstones of the Nosib Formation (the Oruvandjai target), and the overlying Upper Omao dolostones (the Omatapati target).

INV Metals Exploration

To-date INV Metals has drilled 15 separate targets. In 2010, 56 holes were drilled totalling 8,459 metres. The 2011 drill program as of October 2011 encompasses 91 holes totalling 11,857 metres.

The majority of the drilling has been along the Okohongo horizon, which extends for a total of about 200 kilometres on the property. To explore the Okohongo horizon INV Metals is carrying out an extensive soil sampling survey, totalling approximately 18,000 samples. It is anticipated that the discovery of new soil geochemical copper anomalies will lead to the identification of further drill targets.

Highlights

Drilling to date has identified three significant copper-silver targets; the Okohongo deposit and the Omatapati and Okozonduno targets.

Okohongo Deposit

At a 0.3% copper cut-off, the Okohongo deposit has an inferred resource of 10.2 million tonnes grading 1.12% copper and 17.75 g/t silver. The deposit is comprised of two stacked lenses with a thick, high-grade central core. Including the lower grade flanks, the deposit has been traced along strike for approximately one kilometre and down dip ~700 metres (approximately 20°), which equates to ~220 metres vertically below surface.

The mineralization at Okohongo is variably oxidized to a depth of at least 200 metres. Chrysocolla and malachite are the principal oxide copper minerals, along with minor amounts of azurite, shattuckite and cuprite. Minor, variable amounts of remnant chalcocite and bornite occur as unoxidized kernels within dominantly oxidized mineralization.

INV Metals has engaged a consulting metallurgist to assist in carrying out some preliminary metallurgical test work.

Omatapati Target

The Omatapati target is comprised of a north-south trending breccia zone containing stockwork veins and disseminations of chalcopyrite, bornite and chalcocite within Upper Omao Formation dolomites and siltstones, exposed over approximately 400 metres of strike and up to 130 metres in width. Diamond drill hole INVD-14 intersected 19.0 metres grading 2.0% copper and 119.8 g/t silver, including 5.0 metres grading 6.4% copper and 410.3 g/t silver.

The high-grade mineralization intersected in hole INVD-14 appears to be open down dip and along strike in both directions. A follow-up drill program consisting of approximately 1,000 metres is planned to commence during Q4/2011 to test the extent of mineralization along strike and down dip.

Okozonduno Target

The Okozonduno target area is located approximately 40 kilometres southwest of the Okohongo deposit. The target consists of copper and silver mineralization in either Omivero Formation chlorite schist or Lower Omao (Okohongo Horizon) just above the Nosib sandstone contact. The schist hosts copper oxide over a minimum width of five to ten metres that is largely covered with calcrete. The showing is associated with a large 50 metre by 70 metre system of cross cutting quartz veins developed in the hinge of a fold. Quartz veins carry secondary copper minerals including malachite, chrysocolla, plancheite and dioptase. Reverse circulation hole INVR-109 intersected 20.0 metres grading 1.2% copper and 24.4 g/t silver, including 7.0 metres grading 2.8% copper and 59.6 g/t silver.

A follow-up drill program of approximately 500 metres is planned at the Okozonduno target to commence in Q4/2011.