Jarch to contest SPLM’s decision to award Block B to White Nile

To Whom It May Concern:

April 25, 2006 — This letter is to notify the new Government of Southern Sudan (GOSS) and the Sudan People’s Liberation Movement/Army (SPLM/A) that Jarch Management Group, Ltd. (Jarch) is reviewing all legal avenues with regard to the SPLM’s decision to award part of Block B in Jonglei to White Nile, Ltd., a listed company on the AIM board of the London Stock Exchange.

The reasons are as follows: Paulino Matip Nhial, the former Chief of Staff of the South Sudan Defence Force (SSDF) signed numerous agreements with Jarch. Specifically, two oil and gas agreements were signed by Paulino Matip dated March 1, 2004 and March 7, 2004. These agreements cover areas that were also given to other companies. Recently, Paulino Matip Nhial joined forces with the GOSS and the SPLM/A as their deputy Chief of Staff with the Juba Declaration. However, in the agreements that Paulino Matip signed with Jarch, Paulino Matip specifically initialed the page which states the following- “This contract shall remain in force and survive if the SSDF joins forces with other groups in Southern Sudan to form the GOSS.” The Juba Declaration of January 2006 did exactly this. However, Mr. Paulino and the GOSS have not enforced this clause contrary to assurances from Mr. Paulino that he would with the current President of the GOSS, Mr. Salva Kiir.

The SPLM signed contracts prior to the peace agreement using the “right of self-determination” clause in the Machakos Protocol. The SSDF signed contracts with Jarch with the exact same right of self-determination that was given them in the peace agreement with the Government of Sudan (GOS) in 1997 called the Khartoum Peace Agreement of 1997. As such, given the above and the Juba Declaration, it is our belief that the Jarch contracts have precedent over any other agreements.

Jarch Management Group reserves all its legal rights.

The Management Team of Jarch Management Group, Ltd.