The Board of Directors are responsible for the overall strategy, governance and performance of the Nkwe Group. The Company is an exploration company whose strategy is to add substantial shareholder value through the acquisition, exploration, development and commercialisation of platinum group and associated base metal projects in the Republic of South Africa. The Board has adopted a corporate governance framework which it considers to be suitable given the size, history and strategy of the Company.

Principles of Best Practice Recommendations

In accordance with ASX Listing Rule 4.10, Nkwe is required to disclose in its Annual Report the extent to which it has followed the Principles of Best Practice Recommendations during the financial year.

Nkwe has not complied with all of the best practice recommendations throughout the reporting period ending 30 June 2004, as Nkwe was only admitted to the official list of the ASX on 22 September 2003. Where Nkwe has not followed a recommendation, this has been identified and an explanation for the departure has been given. Notwithstanding that some recommendations were not followed, the Board has recently reviewed Nkwe’s corporate governance policies and expects to comply with most of the recommendations over future reporting periods.