Mr. David Moore reports

LOAN TRANSACTION

Serengeti Resources Inc. is proposing to arrange a loan with arm's-length investors and three directors/officers (David W. Moore, Lewis Lawrick and Sheri Rempel), whereby the company will borrow up to $100,000 for a term of one year, repayable in cash at the expiry of the term. Under the terms of the loan arrangement, lenders will be paid 10-per-cent interest, compounded semi-annually, and receive a 20-per-cent bonus payable in shares of the company at a deemed price of five cents per share in recognition of the unsecured nature of the loan.

Loan proceeds will be used for general and administrative expenses of the company. Management considers the loan to be advantageous, as it provides additional liquidity and financial flexibility to the company, and considers the terms of the loan to be reasonable in the context of the market. The loan was reviewed and approved by the disinterested members of the company's board of directors.

The transaction is subject to the approval of the TSX Venture Exchange.

We seek Safe Harbor.