Wits Basin Precious Minerals Inc. will attempt to answer all relevant questions to the best of its ability that are submitted in writing to info@witsbasin.com concerning our news of February 11, 2013. The Company is in the process of building a new website which when completed will contain detailed information on all aspects of Wits Basin and it's operations. We have had many online inquiries and are attempting to answer them in an organized fashion. We will continue to update this section on a regular basis. Thank you for your patience and understanding.

February 15, 2013

1. Question from Wayne
What is the breakdown of the ownership of CGMR and when will Wits Basin get the remaining 49.9% of shares used for costs of litigation?

CGMR BVI has 200 total shares outstanding: 100 "B" shares, all owned by Wits Basin and 100 "A" shares: Wits Basin owning 50.1 "A" shares and 49.9 “A” shares used for the costs of litigation. This is the ownership structure and represents full payment of all costs of litigation in exchange for these shares.

2. Question from Bill
Is the end game in China an IPO? If so do you see Shanghai or Toronto exchanges?

Currently, the company is focused on one task which is to "open the mine". All matters of locality will be managed by the Anhui Zhonghai Mining and Trading Company [“AZHM&T Co]. This company is based in Maanshan in the Anhui province and owns and operates two mines in Anhui. One of these mines is an iron ore mine. They will be paid 35% of net cash flows as a management fee. IPO goal will be examined in detail once the company has demonstrated sustainability of operations and cash flow.

3. Question from Wayne
How soon will it take for AZHM&T to get the mine up and running?

Mine opening includes all permit verifications and inspections. AZHM&T Co indicates an expectation of 4 to 5 months. This would allow opening before the end of Q2 or early in Q3 2013. The resource base of this deposit is in excess of 200mm tons based on a 3rd party drilled report from SRK.

4. Question from Wayne
What are the projections for revenue/profit for the Xiaonanshan Mine once up and running?

The company does not make projections; however, past production during the last 30 days of operation were more than 34,000 tons of concentrate at 62% fe. Past costs were less than $50/t and current prices well exceed $140. An open mine means a profitable business. The macro environment for iron ore is therefore good today.

5. Question from Wayne
When will WITS update their financials?

As announced in the press on February 11, 2013, currently, all of the company resources are dedicated to reopening the mine; all other matters become quite manageable with cash flows. This includes updates to all filings and financials.

6. Question from Robert
What are potential risks associated with this strategy and who is bridging the language barrier between management in the US with the people / employees in China?

All risks should be evaluated in terms of “acceptable” or “unacceptable". The company believes it is an acceptable risk to re-open the mine and work with a local iron ore company from Anhui Provence. We have a total of 8 people we employ or have employed for translation including our current legal team as well as current employees. Our last operation experience with this mine was 16 months of positive cash flow on much lower selling prices than now in the market.

February 18, 2013

7. Question from Bill
Will Wits be getting a steady stream of profits while it pays off creditors?

Wits Basin will collect 50% of all dividends from CGMR BVI until it has collected approximately $30,000,000 USD. Thereafter, it will collect 75.1%. These dividends are profit. Profits are used to pay off creditors.

8. Question from Robert
Who will be running the day to day operations in China?

Daily operations are under contract to the Anhui Zhonghai Mining and Trading Co. [AZHM&T Co]. This is the company “running” day to day operations. These operations include recovery of ore from an open pit mine and trucking them approximately 3 miles to a processing plant where the ore is crushed and iron ore concentrate is extracted using a magnetic separation process. AZHM&T Co operate their own iron ore operation already in Anhui. There are several past employees of CGMR willing to be reactivated on the project as the company feels it will be of benefit.

February 19, 2013

9. Question from William, Wayne & Bill
Are the other mines in the relative area up for sale still? Are the neighbouring property owners still receptive to a deal?

While other deposits and mines exist we will only focus, for now, on opening our mine. Once that occurs, the company intends to access other iron ore opportunities in the immediate area.

10. Question from Wayne & William
How much is the estimated cost to mine, AZHM&T? costs, WITS profit based on a ton?

Please see question #4 on the web site for our answer to this question.

11. Question from Bill & William
Do we need permits to get going? Can we get this to 1m tonnes / year? Is selling price still around 2/3 of spot?

Permits are already in place but require annual renewal and verification. AZHM&T Co. has already begun this process. Past production, for the last 30 days of operation, in 2010 was 34,000 tonnes. Once we are open, then we will determine the feasibility of exact amounts of increased production above these past amounts that can be achieved and the time frames for additional production. We intend to sell as near to spot as sales contracts allow.

12. Question from Jeremy & Bill
What is the current Outstanding Share count? How many shares are authorized and what is the public float?

The Current Shares outstanding [and in the float] total 194,587,153; there are 300,000,000 authorized shares; the majority of capital needed is for start up costs at the mine. Those costs are being provided by AZHM&T Co.

13. Question from Robert
Could you please provide background on Al McLellan and his firm? Who are some companies / clients they have represented?

Al McLellan is a Managing Partner at RM Communications Inc. which specializes in websites and communications services for resources companies. RMC built the original Wits Basin website and have maintained it since the fall of 2006. A full list of client companies is listed on their website at www.RMC.mobi.

14. Question from Philip
Now that the cloud of litigation has been removed, what is being done to increase awareness of this stock and to the value of a working iron ore mine in China?
Regardless of revenue sharing, the current value (average $0.05/share) seems much lower than the stock should be trading. All of the long term shareholders (myself included) will benefit simply from increased market interest and a higher traded share value.

Opening the mine [OTM] and creating positive cash flow is the most important thing we can do at this time. Once operating it will provide awareness and recognized value in the marketplace. While we will continue to answer questions via the temporary website, a new website which will contain detailed information about all aspects of Wits Basin's operations, is under construction and scheduled to be completed in 2nd quarter 2013. We will look at an Investor Relations program to assist awareness once the primary goal of OTM is completed.

February 22, 2013

15. Question from Robert
How often can we expect an update on progress, both good and bad, from management?

The company intends to provide information from time to time as important events develop. This will be done through our website in the news section. We would expect several milestones to be reported as "news" as we work to "Open The Mine" [OTM] over the coming months.

16. Question from Terry
How easy or difficult is it to move money in or out of China?

Moving money into China is the same wire process as here in the US. Moving money out of China involves one extra step and that is to obtain consent from the currency exchange authorities. This added step is to insure the company has paid all taxes due, especially the local taxes in the jurisdiction where the business operates. Properly filed forms are met with approvals sometimes in as little as 72 hours. Therefore, any business which maintains local records properly has little to no difficulty in the export of funds.

February 28, 2013

17. Question from Rod
What is the schedule / timeline of milestones that must be met to get the mine open? How do we understand if the activity is on schedule / behind schedule / ahead of schedule?

The Company has selected a Mining Contractor, "The Anhui Zhonghai Mining and Trading Company" to obtain the required inspections and permit verifications to open the mine. Wits Basin was responsible for 3 years to obtain these verifications and successfully did so. We therefore are monitoring their progress. Timeline estimates are required for various items include advertisements for legal purposes, application submissions, governmental reviews and expected approvals. Each step is estimated to take 30 days with an extra 30 days for unknowns. Thus, we are targeting between June of 2013, {or end of Q2} and July 2013, {the start of Q3} as a planned "launch date" or "re-opening" date.

March 4, 2013

18. Question from Philip
Now that the cloud of litigation has been removed, what is being done to increase awareness of this stock and to the value of a working iron ore mine in China? Regardless of revenue sharing, the current value (average $0.05/share) seems much lower than the stock should be trading. All of the long term shareholders (myself included) will benefit simply from increased market interest and a higher traded share value.

The company has embarked on a very focused strategy to open the mine and is devoting all available resources to that endeavour. Revenues on a recurring basis in a sector that is of such a high profit margin as iron ore will bring tangible, long-lasting value to all parties including shareholders. The company intends to maximize this asset and all "China-based" opportunities related to this asset. The more revenue and cash flow the company can develop the more shareholders will benefit. In addition to that, please take a look at the FAQs and note Q&A # 13 and see the background of RM Communications. This Toronto based firms' background speaks for itself.  

19. Question from Barbara
With the past track record, or lack thereof, why are we to expect anything different as far as these opportunities are concerned? While it seems that the settlement was a step in the right direction, prior to London Mining being involved nothing was really accomplished. When London Mining was a partner, nothing was accomplished and now we are back to where we started.

Wits Basin was one of the first western companies to mine in China and maybe the first Western iron ore miner. More than $50mm of investment capital has flowed into this project; there were 16 months of operation with 465 employees and more than 400,000 tonnes of concentrate produced. All of this is quite noteworthy. As we progress today toward operations re-commencement, there has been a dramatic rise in price since last operational results. We have already retained a local iron ore contractor to re-commission operations. Finally, due to the favourable nature of the settlement, Wits Basin will receive 50% of the first $63mm of cash flows and then 75% of cash flows thereafter. The Company believes it will be cash flow positive during the first year of the mine opening. The company believes it is significantly "better off" today than at any time previously.

March 6, 2013

20. Question from Ed
Is AZHM&T paying the cost of production of iron ore concentrate out of it's 35% of profits?

Yes, all costs of productions are calculated first then 35% of net cash flow is paid to AZHM&T.

March 22, 2013

21. Question from Bill
What is the implication and effect of a 25% tax rate in China on local mining companies?

The mining sector tax of 25% is what we paid during our first 16 months of operation and is the known and expected tax. We expect no impact on us as this is the planned amount.