MELBOURNE MINING CLUB

Mark Calderwood

6 December 2012

West Africa: A 3000-year-old gold region

DISCLAIMER

The factual information provided in this presentation has been sourced from various public

sources. That information together with the presenter’s personal judgement and experience

has been used in preparing this presentation and to express various opinions for the sole

purpose of this presentation and in the context of the circumstances in which this Presentation

is provided. No reliance should be placed on the presentation and its contents and nothing

said in it constitutes advice of any nature. The presenter accepts no liability for the content of

this presentation or for the consequences of any actions taken on the basis of the information

provided in the presentation.

WEST AFRICA, WHY WE’RE THERE

WEST AFRICA

Mali Mauritania

Niger

Burkina Faso

Ghana

Guinea

Senegal

Sierra Leone

Benin

Togo

Nigeria

Liberia

2010 Produced

2011 Produced

2013 Forecast

2015 Forecast

6.7Moz 7.3Moz 8.5Moz 11Moz

Côte d’Ivoire

Region’s top 5 gold producers in 2011:

47% Ghana

16% Mali

15% Burkina Faso

9% Guinea

5% Côte d’Ivoire

Mali Mauritania

Niger

Burkina Faso

Côte d’Ivoire Ghana

Guinea

Senegal

Sierra Leone

Benin

Togo

Nigeria

Liberia WEST AFRICA

Gold 7.3 million ounces (Up 65% in 5 years)

Mali Mauritania

Niger

Burkina Faso

Côte d’Ivoire Ghana

Guinea

Senegal

Sierra Leone

Benin

Togo

Nigeria

Liberia WEST AFRICA

Loulo

Wassa CIL

Chirano

317

184

170

Ahafo

Guelb

540

85

2005 2006 2007 2008 2009 2010 2012 2011

Taparko

Tasiast

128

230

Mana

Bonikro

Youga

Hwini-Butre

130

120

85

80

Syama

Tabakoto

Kalsaka

Sabadola

200

90

75

170

Tongon

Essakane

Inata

260

320

138

Gounkoto

Edikan

Nzema

320

250

100

(Kozs pa)

17 Potential new mines

21 New gold mines since 2005

VIC

WEST AFRICA

Top 10 gold deposits

Top 20 gold deposits

Top 30 gold deposits

Mali

Niger

Burkina Faso

Côte d’Ivoire Ghana

Guinea

Senegal

Sierra Leone

Liberia

Total ~200Moz

Total ~275Moz

Total ~345Moz

NEGATIVE HEADLINES

Cote d'Ivoire Plans 19% Windfall Tax on Gold Miners' Profits

Reuters

RISKS & OBSTACLES

Technical Risks

(Predictable)

Geology

Metallurgy

Mining

Capital & engineering

Workforce (skills & team)

Maintenance & supply

Environmental & OHS

3rd Party Risks

(Unpredictable)

Government take*

Social licence

Red & green tape

Security

Gold price, fuel price etc.

Electricity cost & supply

*Government take = tax & duties, royalty, equity

GOVERNMENT TAKE

Ghana Mali Burkina

Faso

Guinea Côte

d’Ivoire

Liberia Senegal Sierra

Leone

Tax Equivalent Basis (%)

50 49

38

60

38 42

47 52

Source: Country data

THE BIG 4

Mali Mauritania

Niger

Burkina Faso

Ghana

Guinea

Senegal

Sierra Leone

Benin

Togo

Nigeria

Liberia

Côte d’Ivoire

Ghana Africa for beginners

English speaking, English law

Good mining infrastructure

Ghana 12 significant gold mines

7th largest gold producer in the world

2nd largest in Africa

Four tier-one companies

Ghana 10% Government equity

5% Royalty

35% Corporate tax

Mali

Good geology high grade gold deposits

Poor infrastructure

Current political issues likely to pass

Mali

6 significant gold mines

3rd largest producer in Africa

Mali

6% Royalty

35% Tax

7-10% Dividend tax

10-20% Government equity

5 Year tax holiday

Burkina

Faso

French-speaking West Africa for beginners

Easy place to operate

Lots of gold mineralisation

Landlocked country

Burkina

Faso

6 gold mines

20 ASX listed companies

Burkina

Faso

Royalty

5%

Corporate tax rate cut

17.5%→25%

Government equity

10%

Dividend taxes

6.25%

Côte d’Ivoire

Least explored of the four

Untapped potential

French speaking, French law

Very good infrastructure

Côte d’Ivoire

2 large gold mines

2 on the way

Recovering after 10 years of civil unrest

Côte d’Ivoire

Total tax take of about 38%

under review

OTHER COUNTRIES

Guinea Poor infrastructure & poor Government focus

Least stable but good geology

Niger Very tough

Liberia Very poor infrastructure

High rainfall

Geology not yet convincing

Senegal Continuation of geology from Mali

Politics and law working well

Small geological footprint

Sierra Leone One decent gold deposit

Country rebuilding after long war

THE FUTURE

EXPLORATION NOT OVER BY A LONG SHOT

Significant discoveries in the past 3 years

Gounkoto (5Moz) Mali

Tasiast Deeps (+10Moz) Mauritania

Fekola (+3Moz) Mali

Massawa (+3Moz) Senegal

Batie West (3Moz) Burkina

Kiaka (+3Moz) Burkina

Dugbe (+3Moz) Liberia

Esaase (+3Moz) Ghana

5 KEY ELEMENTS

Know your country and community

Laws, infrastructure, social customs

Know your partner

A license application is only an application

Don’t get caught in overheads spiral

A good geochem anomaly or early drill hit does not mean a mine

Exploration, capital costs & operating costs will be more than you think

Video of Perseus Operation

MELBOURNE MINING CLUB

Mark Calderwood

6 December 2012

West Africa: A 3000-year-old gold region