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US Jarch Capital accuses SPLM of violating oil deal on Block B


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March 6, 2006


Dear Ladies and Gentlemen:

In February 2003, the SPLM signed a contract with Jarch Capital, LLC and its partners to explore and exploit oil in an area called Block B. In addition, this contract gave Jarch Capital, exclusive rights to all commodity contracts until 2009. Furthermore, the SPLM was required to contact Jarch Capital prior to any commodity deals.

Eighteen months after the signing of our agreement, the SPLM signed a contract with a public company called White Nile, Ltd. Jarch Capital considers the signing of this new deal a violation of the representations and warranties given by the SPLM and a violation of the agreement as a whole.

The following people were directly involved in the Jarch deal or were made aware of this deal prior to an agreement with White Nile, Ltd.- Dr John Garang (late leader of SPLM), Rebecca Garang (current Minister of Transport and Roads of GOSS), Dr. Riek Machar (Vice- President of the Government of South Sudan), Kuol Mangyang Juuk (current Minister of Transport GONU and board member of White Nile, Ltd.), Arthur Akuien Chol (current Minister of Finance and Economic Planning of GOSS), Dr. Lual A. Deng (State Minister of State for Finance of GONU and non-executive board member of White Nile, Ltd.), Steven Wondu (North-American representative).

This contract was approved and we have supporting documents including pictures and emails to prove this. Since the SPLM and now the GOSS have violated our agreement, Jarch is exploring legal options.

It is our belief that the damages could exceed US$ 10 billion. Though it is heartbreaking to see the people of South Sudan continue to suffer, the leadership cannot be allowed to operate outside international law. Jarch will donate 10% of its proceeds of any legal action back to the people of South Sudan.


Phil Heilberg, Chairman

Email: pheilberg@jarchcapital.com

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