BMO CAPITAL MARKETS 2008 GLOBAL METALS & MINING...

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24 – 27 February 2008

BMO CAPITAL MARKETS

2008 GLOBAL METALS & MINING CONFERENCE

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Cautionary Risk Factors and Forward Looking Statement Information

This presentation includes certain statements that may be deemed "forward-looking statements". Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the risks inherent in the Company's business, Investors should review the Company's annual Form 20-F filing with the United States Securities Commission and its home jurisdiction filings that are available at www.sedar.com. Mineral resources do not have demonstrated economic viability. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever achieve the status of ore reserves. A preliminary economic assessment is based on inferred resources that are geologically speculative, and as a result, there is no certainty that the economic considerations or results will be realized.All information contained relating to the Preliminary Assessment, including but not limited to statements of the project's potential and the other information under the headings "Production Parameters," "Capital Costs, Sustaining Capital Costs, and Operating Costs," "Production Summary," and "Financial Analyses," are "forward looking statements" within the definition of the United States Private Securities Litigation Reform Act of 1995. The Preliminary Assessment was prepared to broadly quantify the project's capital and operating cost parameters and to provide guidance on the type and scale of future project engineering and development work that will be needed to ultimately define the project's likelihood of feasibility and optimal production rate. It was not prepared to be used as a valuation of the project nor should it be considered to be a pre-feasibility study. The capital and operating cost estimates which were used have been developed only to an approximate order of magnitude based on generally understood capital cost to production level relationships and they are not based on any systematic engineering studies, so the ultimate costs may vary widely from the amounts set out in the Preliminary Assessment. These factors could materially and adversely impact the projected economics of the project. As is normal at this stage of a project, data is incomplete and estimates were developed based solely on the expertise of the individuals involved as well as the assessments of other persons who were involved with previous operators of the project. At this level of engineering, the criteria, methods and estimates are very preliminary and result in a high level of subjective judgment being employed.The following are the principal risk factors and uncertainties which, in management's opinion, are likely to most directly affect the conclusions of the Preliminary Assessment and the ultimate feasibility of the project. The mineralized material at the project is currently classified as inferred resources and do not constitute ore reserves. Considerable additional work, including in-fill drilling, additional process tests, and other engineering and geologic work will be required to determine if the mineralized material is an economically exploitable ore reserve. There can be no assurance that this mineralized material can become a reserve or that the amount may be converted to a reserve or what the ultimate grade thereof will be. Final feasibility work has not been done to confirm the pit design, mining methods, and processing methods assumed in the Preliminary Assessment. Final feasibility could determine that the assumed pit design, mining methods, and processing methods are not correct. Construction and operation of the mine and processing facilities depends on securing environmental and other permits on a timely basis. No permits have been applied for and there can be no assurance that required permits can be secured on a timely basis. Data is incomplete and cost estimates have been developed in part based on the expertise of the individuals participating in the preparation of the Preliminary Assessment and on costs derived from projects which are believed to be comparable, and they are not based on firm price quotes. Costs, including design, procurement, construction, and on-going operating costs and metal recoveries could be materially different from those contained in the Preliminary Assessment. There can be no assurance that mining can be conducted at the rates and grades assumed in the Preliminary Assessment. The Preliminary Assessment assumes specified, long-term prices levels for platinum, palladium, gold, copper and nickel. Prices for these commodities are historically volatile, and Anooraq has no control of or influence on those prices, all of which are determined in international markets. There can be no assurance that the prices of these commodities will continue at current levels or that they will not decline below the prices assumed in the Preliminary Assessment. Prices for platinum, palladium, gold, copper and nickel have been below the price ranges assumed in Preliminary Assessment at times during the past ten years, and for extended periods of time. The project will require major financing, probably a combination of debt and equity financing. Interest rates are at historically low levels. There can be no assurance that debt and/or equity financing will be available on acceptable terms. A significant increase in costs of capital could materially and adversely affect the value and feasibility of constructing the project. Other general risks include those ordinary to very large construction projects including the general uncertainties inherent in engineering and construction cost, the need to comply with generally increasing environmental obligations, and accommodation of local and community concerns.


Introduction

3

• Overview of Anooraq

• Lebowa acquisition

• Lebowa Platinum Mines

• Safety

• Expansion

• Community initiatives

• Conclusion


Anooraq | In Brief

• Black Economic Empowerment, Canadian incorporated, SA managed, PGM focused

• Listings- Primary: TSX Venture Exchange (TSXV:ARQ) - Secondary: American Stock Exchange (AMEX:ANO)- Secondary: JSE Limited (JSE:ARQ)

• Majority BEE owned by Pelawan Investments (65%)

• Market Capitalization of C$ 710 million (19 Feb 2008)

• Total Shares Outstanding: 185 million

First North American listed BEE PGM company


History

2002 Pelawan established. Successful in tender for Avoca and De Kamp as a basis for JV with Anglo Platinum to form Ga Phasha PGM project

2004Pelawan concludes Reverse Takeover of ARQ bringing in the Ga Phasha PGM project.

Announces ARQ’s intention to become a significant & sustainable BEE controlled PGM producer

2005 ARQ concludes JV agreement with Anglo Platinum on Ga Phasha PGM project

2006 ARQ lists on JSE and finalizes its capital structure through issue of BEE warrants to Pelawan

2007ARQ concludes Transaction Framework Agreement to acquire a controlling interest in Lebowa Platinum Mines & Ga Phasha PGM Project

Pelawan exercises all BEE warrants


Management Team | South Africa

Tumelo (Tumi) Motsisi - Acting President and CEOTumi is a qualified lawyer and seasoned business executive with substantial experience in the South African business and mining sectors. He is a director of several SA companies and was responsible for the establishment of Kopano Ke Matla, the investment arm of South Africa’s largest trade union, COSATU

Joel Kesler - Corporate Finance and Business DevelopmentJoel is a South African qualified lawyer with significant experience in mining finance and business development. He currently heads up Anooraq’s corporate finance and business development team

Iemrahn Hassen - CFOIemrahn is a Chartered Accountant and has held various senior financial positions with a number of South African listed companies, including Gold Fields and Samancor. He is the newly appointed Chief Financial officer of Anooraq

Harold Motaung – Chief Operating Officer: Technical & Business DevelopmentHarold is an mining engineer by profession including 6 years with Anglo American and former Chief Director in the DME’s Mining Inspectorate. He also holds board seats at the South African National Nuclear Regulator and Mintek

Nick James - MD OperationsNick is a Mining Engineer with 25 years operational experience, including Wits and Archean Gold deposits, Massive Copper and Pyrite deposits and, more recently, narrow tabular platinum ore bodies on the Eastern Limb of the Bushveld Complex. Nick commenced his mining career with Anglo American on the Free State Gold fields (Freegold operations 1986-1992), was mine manager at Anglo American’s Konkola Copper mine (Zambia) for 6 years (1993-1999) and, more recently was business leader at Modikwa Platinum mine, a joint venture between Anglo Platinum and ARM (2004-2007)


Anooraq | Mines and Projects Location


Boikgantsho | PGM Project

• Located in the Northern Limb of the Bushveld Complex

- Adjacent to Anglo Platinum’s PPRust Mine

• Resources

- Indicated Resources 7.7 M oz 3 E & 230,000 t of Ni

- Inferred Resources 4.1 M oz 3 E & 75,000 t of Ni

• Boikgantsho PGM Project prelim assessment released in March 2005

- Low grade 1.25g/t 3E bulk mining project with high base metal credits (0.15% Ni)

- Pre feasibility being progressed


Ga Phasha | PGM Project

• Significant Resources: Measured & Indicated 24 M oz 4E, Inferred 60 M oz 4E

• Located adjacent to Anglo Platinum’s Twickenham Project

• Originally envisaged as UG2 project with potential production of approx 270,000 oz

4E per annum via twin decline shafts- High in situ grade of approx 6.5 g/t 4E

- UG2 & Merensky reef horizons outcrop on or close to surface

• Project to be reviewed in light of Lebowa acquisition - potential synergies between

contiguous properties

• 2008: Anglo Platinum announces go – ahead for Twickenham expansion project

(ZAR 5,9 billion)


Lebowa & Ga Phasha | PGM Project


Lebowa | Transaction Overview

2007: ARQ announced major transaction with Anglo Platinum

• ARQ will acquire from Anglo Platinum an effective 51% of Lebowa Platinum Mines including an additional 1% of the JV projects

• ARQ and Anglo Platinum to combine assets under a “Lebowa Holdco”

• Purchase price = ZAR3.6bn, payable in cash

• US$8.9/oz of Measured Indicated & Inferred Resources

• ARQ acquires control over diversified PGM portfolio

• Anglo Platinum retained as a strategic 49% minority shareholder

• Potential ability to exploit synergies between Lebowa & Ga Phasha

• New stand-alone “Lebowa Holdco” may fast-track growth projects at Lebowa & Ga Phasha


Lebowa Holdco | Resultant Transaction Structure

Pelawan Minorities

Anooraq

>52%

Anglo Platinum

51% 49%

“Lebowa Holdco”

Boikgantsho Kwanda Ga-Phasha Lebowa

100% 100% 100%100%


Lebowa | Transaction Highlights

• ARQ will control reserves & resources of 199.4 million 4E oz (105 million 4E oz attrib.)

• Resources support LOM exceeding 100 years at Lebowa

• Immediate access to existing production and cash flows from Lebowa

• 26km of combined strike length over both the Merensky & UG2 reefs - one of the largest

strike lengths on the Bushveld Complex

• Existing infrastructure (incl. water & power) positions Lebowa for expansion

Transforms Anooraq into an independent and significant PGM producer


Pre transaction

Post transaction

Comparative | Attributable 4E Resources Oz

Attributable Oz (m) 4E

49.0 43.0 17.0262.8

997.2

178.0 105.9 61.0 44.00

400

800

1,200

AngloPlats

Implats Lonmin Lebowa Eastern Anooraq Aquarius Elands Northam

Attributable Oz (m) 4E

105.0 44.0 43.0262.8

884.2

201.7 178.0 129.0 61.00

400

800

1,200

AngloPlats

Implats LebowaHoldCo

Lonmin Northam Anooraq Eastern Aquarius Elands


Comparative | EV / Resource Oz

1. Market capitalization as of January 24, 2007 using basic shares outstanding, inclusive of market value of listed warrants; converted at spot exchange rates 2. Enterprise value equals market capitalization plus debt less cash balances3. Attributable 4 PGE resources calculated including any earn-in, out arrangements4. Aquarius market capitalization and attributable resources assumes BEE group Savannah Consortium converts its interests in AQPSE (54% held by Aquarius

Platinum Limited) into 65.1 million shares of Aquarius; Inferred Resources exclude Chieftans Plain and Walhalla5 UG2 resources only at Eastern Platinum's Spitzkop/Kennedy's Vale project 6. Anooraq shown current (including the Pelawan warrant exercise) and Proforrma (PF) Lebowa acquisition; excludes Avoca and De Kamp UG2 and Merensky inferred resources7. Resources based upon WBJV Assets only, excludes Northern Limb

164

83 8170

59 6048 47 45 40 35 33

1711

4$0

$50

$100

$150

$200

$250

Aquari

us P

latinu

m

Platinu

m Austra

lia

Northa

m Plat

inum

Eland P

latinu

mLo

nmin

Impa

la

Wesizw

e Plat

inum

Platmin

Platinu

m Grou

p Meta

ls

Anglo

Platinu

m

Easter

n Plat

inum

Anoora

qAno

oraq P

FRidg

e

Jubil

ee P

latinu

m

EV /

M&I

(US$

/oz)

230

193

158

115 112103

94 9281

61 59 52

33

11

$0

$50

$100

$150

$200

$250

Aquari

usElan

d

Platinu

m Austra

liaLo

nmin

Anglo

Impa

la

Wesizw

e Plat

inum

Platmin

Northa

m

Platinum

Grou

p Meta

lsAno

oraq

Easter

nAno

oraq P

FRidg

e

EV

/ M

&I (

US

$/oz

)

EV /

MI&

I (U

S$/O

z)

EV /

M&

I (U

S$/O

z)

Source: RBCCM 24 Jan 2008


Lebowa Platinum Mines

16

• Safety

• Expansion

• Community initiatives


Lebowa | Safety – Lost Time Injuries & Injury Frequency Rates

17

0.87

3

0.87

2.482.39

2.04

1.84

2.29

4.71

0.87

0

2

4

6

8

10

12

14

16

18

20

22

2420

02

2003

2004

2005

2006

2007

2008

Jan-

08

J - 0

8

Numb

er O

f Inj

uries

-0.5

0.5

1.5

2.5

3.5

4.5

5.5

Inju

ry F

requ

enac

y Rat

es

Injuries Objective IFR Actual IFR Year on Year IFR

1.38

Year on Year LTI Injury Frequency Rates

2008 Monthly LTI Injury Frequency

Rates

2008 Monthly Number of LTI

Injuries


Lebowa | Safety - Achievements

• Demonstrates commitment by mine management to Anglo Platinum’s principle of ZERO HARM

• Mine management implementing enhanced safety systems , programmes & culture change

• Lebowa Platinum Mines obtained 1 000 000 Fatality Free Shift milestone in November 2007


• Current production• MER @ 85ktpm• UG2 @ 45ktpm

• Expanded operations will optimise the mine’s value

• Scale of mining at Lebowa will increase to reflect the true quality of the large Lebowa resource

• Technical studies indicate that Lebowa value is maximised at: • Steady state MER @ 120ktpm• Steady state UG2 @ 255ktpm

• Stage 1 - expand MER & UG2 output to 220ktpm by 2012• MER @ 120ktpm• UG2 @ 100ktpm

• Stage 2 – further expand MER & UG2 output up to 375ktpm

Lebowa | Expansion Strategy

202,500 4E oz per annum

~380,000 4E oz per annum


Lebowa | Topographical map

MIDDELPUNT

UMKOANESTADBRAKFONTEIN

KLIPFONTEIN

PASCHASKRAAL

TWICKENHAM

HACKNEY

SURBITON

AVOCA

DE KAMP

BALMORAL

ZEEKOEGAT

DIAMAND LPM Vertical Shaft

Brakfontein Decline

UM2 Incline

Middel Punt Hill

Total Strike Length 26kmTotal Strike Length 26km

N


Sub

Shaft

Loading Trolley stationline loco

Vertical

MR Surface

- 1300 m

- 650 m

UG2 Vent Shaft

9 Level

18 Level

Trolley line loco from sub-vertical Shaft to Main

- 1950 m

Loading station

Lebowa | Mining Sequence Schematic

Trolley Line Loco Loading

Station

Main VerticalShaft

8 Level

0-35 yrs35-70 yrs

70-105yrs


Lebowa | MER depletion strategy

N

650mMER Brakfontein Vert # P1 [email protected]/t@92cm

MER Brakfontein # [email protected]/t@99cm70%Meas. 29%Ind. 1%Inf.

MER Middelpunt Vert # P2 [email protected]/t@90cm

MER Diamand Vert # P2 [email protected]/t@92cm

MER Brakfontein Vert # P2 [email protected]/t@92cm

MER Middelpunt Vert # P1 [email protected]/t@90

MER Diamand Vert # P1 [email protected]/t@91cm

MR sub-outcrop

MER Zeekoegat [email protected]/t@89cm94%Meas. 6%Ind. 0%Inf.

MER Vertical # [email protected]/t@93cm100%Meas. 0%Ind. 0%Inf.

MER UM2 # [email protected]/[email protected]%Meas. 0.5%Ind. 0%Inf.

L1 = Current Operations & Approved projects

L2b = Pre Feasability

L2c = Scoping Study

L3 = Conceptual Study


N

650m

Lebowa | UG2 depletion strategy

UG2 MPHDelta 55 - 80 [email protected]/t@101cm72%Meas. 28%Ind. 0%Inf

UG2 Middelpunt Vert # P1 [email protected]/t@97cmUG2 Diamand Vert # P1 L3

[email protected]/t@96cm

UG2 Diamand Vert # P2 [email protected]/t@96cm

UG2 Middelpunt Vert # P2 [email protected]/t@97cm

UG2 Brakfontein Vert # P2 [email protected]/t@104cm

UG2 MPH 45 [email protected]/t@102cm68%Meas. 32%Ind. 0%Inf

BifurcatedUG2 Reef UG2 Outcrop

UG2 Brakfontein Vert # P1 [email protected]/t@101cm

UG2 Brakfontein [email protected]/t@98cm70%Meas. 23%Ind. 7%Inf.

UG2 Zeekoegat [email protected]/t@104cm58% Meas. 28%Ind. 0%Inf

L1 = Current Operations & Approved Projects

L2b = Pre Feasability

L2c = Scoping Study

L3 = Conceptual Study


Lebowa | MER and UG2 Mix

Tons to Concentrator Stockpiles

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

tons

(000

's)

UG2MER

255 ktpm steady state

120 ktpm steady state

UG2

MERENSKY


Merensky Expansion | Brakfontein


Middelpunt Hill | UG2 Expansions


Lebowa Communities: Challenges & Initiatives

Poverty, unemployment, skills and training, infrastructure & recognition.

Quarterly stakeholder engagement forum:

Substantial investment in infrastructure projects (Schools, Bridge, Health Centre etc.)

Total expenditure of R54million on various Community projects.


RAPHOLO BRIDGE (FLOODED)


NEW RAPHOLO BRIDGE


Anooraq| Power

• 2008: ESKOM power supply concerns for SA mining industry

• Extent of effect and solutions to power constraints still work in progress

• Too soon to comment definitively on nature, scope & extent of “power crisis”

• SA Mines adapting to new power regime and implementing power saving measures

• Relative advantages for Anooraq:-

- Lebowa Phase 1 (35 year) expansions all above 650 m i.e. no refrigeration required

- Near Term production assets at Lebowa

- Shallow ore bodies at Lebowa and Ga Phasha outcrop at or close to surface

- Anglo Platinum as strategic minority shareholder

- Power infrastructure in place at Lebowa to scale up operations


ARQ: An Exciting Project Pipeline & Growth Strategy

Lebowa• Existing production from Merensky & UG2 of 140 ktpm• Approved expansion 220 ktpm by 2012• Further expansion possible to 375 ktpm

Ga Phasha

• Progressing pre feasibility study• Review optimal resource exploitation strategy in light of

Lebowa transaction & potential synergies with Lebowa mine

Boikgantsho • Progressing pre feasibility

Kwanda • Early stage exploration activities

Production

Development

Exploration


Mineral Reserves and Resources

Notes:1. Source: Anglo Platinum 31 December 20062. Source: Independent QP G.J van der Heever, November 2004

Merensky UG2 Total Total attOre Grade 4PGE Ore Grade 4PGE 4PGE 4PGEmt g/t 4E oz mt g/t 4E oz oz oz

Lebowa¹Reserves 100% 51%Proven 17.5 4.29 2.4 30.6 5.33 5.2 7.7 3.9Probable 5.5 4.31 0.8 11.9 5.23 2.0 2.8 1.4Total 23.0 4.29 3.2 42.5 5.30 7.2 10.4 5.3Resources (excl reserves)Measured 20.8 5.74 3.8 83.3 6.77 18.1 22.0 11.2Indicated 27.9 5.51 4.9 87.7 6.76 19.1 24.0 12.2Total measured & indicated 48.7 5.61 8.8 171.0 6.76 37.2 46.0 23.4Inferred 113.9 5.34 19.6 155.2 6.73 33.6 53.1 27.1

Ga Phasha¹ResourcesMeasured 13.4 4.61 2.0 24.9 6.50 5.2 7.2 3.7Indicated 27.6 5.33 4.7 57.5 6.56 12.1 16.8 8.6Total measured & indicated 41.0 5.09 6.7 82.3 6.54 17.3 24.0 12.2Inferred 122.4 5.41 21.3 185.8 6.47 38.6 59.9 30.6

Platreef Total Total Total Total att Total att Total attOre Grade Ni Cu Ni Cu 4PGE 4PGE Ni Cumt g/t 3E % % 000t 000t oz oz 000t 000t

Boigantsho²Resources 100% 100% 100% 51% 51% 51%MeasuredIndicated 176.4 1.35 0.13% 0.08% 2229.3 141.1 7.7 3.9 117.0 72.0Total measured & indicated 176.4 1.35 0.13% 0.08% 230.3 141.1 7.7 3.9 117.0 72.0Inferred 104.0 1.23 0.14% 0.09% 145.6 93.6 4.1 2.1 74.3 47.7

Total reserves 10.4 5.3Total measured & indicated (incl reserves) 88.1 44.9 117.0 72.0Total inferred resources 117.2 59.8 74.3 47.7


Contact Details

South Africa

4th Floor 82 Grayston DriveSandton, 2146South Africa

Tel: +2711 883 0831Fax: +2711 883 0836

Joel KeslerCorporate Finance & Business [email protected]

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