14.

RELATED PARTY TRANSACTIONS

The amount outstanding relates to services provided in terms of the shared services and office lease agreements and is stated at its carrying value. The amount is due on a 30 day account.

Shared Services Agreement

The Company entered into a shared services agreement with ARM on November 15, 2005. In terms of this agreement ARM will provide to TEAL and its subsidiaries risk management advice, cash management and investment services, accounting and financial services, human resources and other staffing services.

Office Lease Agreement

TEAL has an office lease agreement with an ARM subsidiary, Venture Building Trust.

Corporate Opportunity Agreement

On November 15, 2005, TEAL entered into a corporate opportunity agreement with ARM whereby it was agreed that all opportunities available to TEAL with respect to the acquisition of an interest in a project located within the Republic of South Africa shall be referred to ARM and all opportunities available to ARM with respect to the acquisition of an interest in a project located within the continent of Africa, excluding the Republic of South Africa and large scale projects, shall be referred to TEAL except for ferrous metal projects, coal and platinum group metals (PGM) projects.

Should TEAL determine that a project held by it is a ferrous metal project, coal or a PGM project as a result of exploration work, then where TEAL has not incurred expenditures in excess of US$1,000,000, the project shall be offered to ARM in consideration of two times such expenditures, and where TEAL has incurred expenditure in excess of US$1,000,000, ARM shall be offered a Joint Venture Agreement with respect to the project. Should ARM fail to give notice of its acceptance of such offer within 30 days, then TEAL may further explore, develop, produce minerals from, sell and otherwise deal with the project without further reference to this agreement.

Maintenance Agreement

TEAL and ARM entered into a maintenance agreement dated November 15, 2005 (the Maintenance Agreement) pursuant to which ARM was granted the right (the Maintenance Right), subject to applicable law, to participate in future offerings and other issuances of common shares or securities convertible into common shares (subject to certain exceptions, including the issue of common shares pursuant to the Offering or on the exercise, conversion or exchange of any previously issued securities convertible into common shares or rights issued in a rights offering) by purchasing that number of securities in the offering necessary for ARM to maintain its relative percentage beneficial ownership of common shares (on a fully-diluted basis in the case of an offering of convertible securities). The Maintenance Right is exercisable by ARM, from time to time, at any time during a period of ten business days following receipt of a triggering event notice until the date ARM ceases to beneficially own at least 35% of TEAL’s outstanding common shares.

In exercising its Maintenance Right, ARM must acquire its securities on the same terms and conditions as third party subscribers, subject to any applicable stock exchange or securities regulatory authority requirements. ARM must exercise the Maintenance Right to maintain its percentage beneficial holding of common shares at the level established, from time to time, by the South African Reserve Bank (SARB), currently 50% plus one of the issued and outstanding common shares, in order not to trigger the SARB requirement for ARM to sell all of its common shares.

Bridging loan facility

TEAL and ARM entered into an interim loan agreement on May 14, 2007 in terms of which ARM will advance to TEAL funds on an ad hoc basis. A total of US$2,600,000m in South African Rands equivalent was advanced during May and June 2007 and the full amount inclusive of interest (which amounted to US$22,000) at South Africa prime (12.5%) was repaid to ARM on June 12, 2007, with funds raised on the Standard Chartered loan facility.

Guarantee

In terms of the loan facility between TEAL and Standard Chartered Bank (refer note 7), ARM provided an irrevocable and unconditional guarantee to Standard Chartered Bank for the punctual payment and performance to Standard Chartered Bank of all monies, obligations and liabilities owing by TEAL to Standard Chartered Bank.