Guinea-Bissau: phosphate for food

AFRICA RESOURCESAFRICA RESOURCESINVESTMENT CONGRESS

Guinea-Bissau: phosphate for foodGlenn Laing – Plains Creek Phosphate

IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY, 14-15 JUN 2011www.ObjectiveCapitalConferences.com

TSX-V : PCP

A DEVELOPMENT & PRODUCTION PROJECTPHOSPHATE IN GUINEA BISSAU WEST AFRICAPHOSPHATE IN GUINEA BISSAU, WEST AFRICA

CORPORATE PRESENTATIONJUNE 2011

TSX-V : PCP

Forward Looking Information

This presentation includes statements that are forward‐looking. All statements in thepresentation (other than statements of historical fact) that address future operations or plans ofPlains Creek Mining Limited (“Plains Creek) or Resource Hunter Capital Corp. (“RHC”) or theirffili d i i i d l d i i i f i l

Furthermore, because this financial outlook is based upon estimates and hypotheticalassumptions about circumstances and events that have not yet taken place and are subject tovariation, there are no representations or warranties associated therewith, and there can be no

affiliates, proposed acquisitions, development and commissioning of mines, long termcorporate goals, estimated development costs or operating costs, marketing plans oranticipated customers, mine reserves or resources, expansion of production, demand forproduct, and the future of the mining industry in general and the mining industry in Guinea‐Bissau in particular are forward‐looking statements. Such forward‐looking information involvesknown and unknown risks, uncertainties and other factors which may cause actual results,performance or achievements to be materially different from the results, performance orachievements implied by the forward‐looking statements. Factors that could cause actual

lt t diff t i ll i l d b t t li it d t k t i f h h t l

assurance that the outlook will be attained. Readers are cautioned that no forward lookingstatement or financial outlook is a guarantee of future performance. Plains Creek and RHCassumed no obligation to update these forward‐looking statements or financial outlook exceptas may be required by law.

Not an Offering of SecuritiesThis presentation is for information purposes only and does not constitute an offer to sell or asolicitation to buy the securities of Plains Creek or any other securities.

results to differ materially include, but are not limited to, market prices for phosphate, generaleconomic, market and business conditions, risks and uncertainties related to Plains Creek’s andRHC’s abilities to complete their acquisition of phosphate properties in Guinea‐Bissau, tosuccessfully develop and commission mines at the property, to obtain all necessary permits fordevelopment and production as and when required, to obtain listings for securities of RHC on aCanadian stock exchange upon completion of the acquisition of Plains Creek by RHC, estimationor resources and reserves, estimation of demand for the product, development and productioncosts, transportation delays and costs, ability to convert expressions of interest from potential

t i t d fi iti l t d l i t ti f th i i ti

y y

Cautionary Note to U.S. Investors Concerning Estimates ofMeasured and Indicated Resources

This presentation uses the terms “Measured” and “Indicated” Resources. U.S. investors areadvised that while such terms are recognized and required by Canadian regulations, the U.S.Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not

customers into definitive sales agreements, delays in construction of the mining operation,accidents, equipment breakdowns, title matters, labour disputes or other unanticipateddifficulties with or interruptions in development or production, phosphate price fluctuations,failure to obtain adequate financing when needed, exchange rate fluctuations, and risks anduncertainties associated with doing business in Guinea‐Bissau.

Although Plains Creek has attempted to identify important factors that could cause actualresults to differ materially, there may be other factors that cause results not to be asti i t d ti t d i t d d Th b th t t t t t i i

to assume that any part or all of mineral deposits in these categories will ever be converted intoreserves.

EBITDAReferences in this presentation to “EBITDA” are to inferences from the Technical Report (the“Technical Report”) on the Preliminary Economic Assessment of the Farim Phosphate Project inGuinea‐Bissau, prepared for RHC by IMC Group Consulting Ltd. and GBM Minerals EngineeringConsultants Limited. Such EBITDA consists of the gross sales of production less operating costsanticipated, estimated or intended. There can be no assurance that statements containing

forward looking information will prove to be accurate as actual results and future events coulddiffer materially from those anticipated in such statements. Accordingly, readers should notplace undue reliance on statements containing forward looking information.

There may be information in this presentation that is information about prospective results ofoperations, financial position or cash flows (a “financial outlook”). This financial outlook isprovided only to assist in an evaluation of the prospective business outlined in this presentation,but are not to be relied upon as accurate representations of future results and may not be

Consultants imited. Such IT A consists of the gross sales of production less operating costsbefore interest, income taxes, depreciation and amortization. Management of Plains Creek andRHC believe that, in addition to net earnings, EBITDA is a useful complimentary measure of cashavailable prior to debt service, capital expenditures and income taxes. However, EBITDA is not arecognized measure under Canadian GAAP and does not have a standardized meaningprescribed by Canadian GAAP. Readers are cautioned that EBITDA should not be construed asan alternative to net earnings determined in accordance with Canadian GAAP as an indicator ofperformance, or to cash flows from operating, investing and financing activities as a measure ofliquidity and cash flows. Plains Creek’s method of calculating EBITDA may differ from thebut are not to be relied upon as accurate representations of future results and may not be

appropriate for any other purpose.

.

q y g ymethods used by other entities and, accordingly, its EBITDA may not be comparable to similarlytitled measures used by other entities.

3www.plainscreek.com

TSX-V : PCP

ACQUISITION &OWNERSHIP STRUCTURE

• Share Purchase Agreement to acquire 100%Plains Creek Phosphate Corp

50.1%S i C i h ld d i

• Share Purchase Agreement to acquire 100% GB Minerals AG

Previously known as RESOURCE HUNTER CAPITAL CORP

GB MINERALS AG, Risch (CH)

100% Ownership (sole asset)

• A Swiss Corporation holds Production Agreement (on very attractive terms) Issued in 2009 – mining license with exclusive rights to explore, mine and commercialize Farim Phosphate Deposit• Undertaking Bankable Feasibility Study(complete Q4 2011)

GB MINERALS SARL Guinea Bissau

Share Purchase Agreement

(complete Q4 2011)

•Operating Company

2010 2011 2012 2013

Share Purchase Agreement

PURCHASE 24.9%GB MINERALS AG$13.5 Million EUR

PURCHASE 50.1%GB MINERALS AG$ 19 Million EUR

PURCHASE 25%GB MINERALS AG$13.5 Million EUR


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PROJECT LOCATION

•Approximately 25 km south of Senegal

FARIM

km south of Senegal Border

•Sea Port location 80km south and connected by paved

d

S E N E G A L

GUIN A ISSAU

road.

•Project area is bisected by Cacheu River that flows to Atlantic (155km).

Northern partf C t l

GUINEA‐BISSAU •Production License issued

of Central GUINEA‐BISSAU,WEST AFRICA

BISSAU

Pointe Chugue

SEAPORT(location)


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MINERAL LICENSES & LEASES AREA

1741.61 sq kms306.25sq kms


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PROJECT HISTORY

Discovered duringBRGMCore drilling

PositivePreFeasibility

Champion Resources34 drill holes

GB Minerals AG30 drill holesP i lid ioil exploration

Core drilling+100 drill holes113 million tonnesGrading 29.8% P2O5

PreFeasibilityStudy

34 drill holesConfirmed BRGM results.166 million tonnesGrading 29.1% P2O5

Progressive validation Studies. ID M & I resources105 million tonnes32.75 %P2O5

• Discovered during oil exploration in the early 1950’s

• During 1980’s French mining agency (BRGM) carried core drilling program (+100 drill holes) and identified resource of 113

1950 1960 1970 1980 1990 2000 2010

Production Agreement

During 1980 s French mining agency (BRGM) carried core drilling program ( 100 drill holes) and identified resource of 113million tonnes grading 29.8% P2O5. Metallurgical test work produced phosphate rock concentrate grading 36.5% P2O5. In1986 Sofremines produced positive feasibility study. Did not go ahead because of prevailing phosphate market conditions.

• From 1996 to 2003 Champion Resources conducted successive stages of feasibility work including drilling 34 drill holes.Confirmed BRGM results and extended resource. Identified a resource of 166 million tonnes grading 29.1% P2O5. Miningplan of 37 million tonnes grading 32.5% P2O5 for 15 year mine life was developed. Phosphate market conditions and thepolitical situation in Guinea Bissau prevented project going aheadpolitical situation in Guinea Bissau prevented project going ahead.

• 2004 to Present. GB Minerals AG, a Swiss company acquired exploration license and mining lease. Carried out successivevalidation studies, excavated a box cut, drilled 30+ drill holes. Completed Measured & Indicated resources of 105 milliontonnes grading 32.75% P2O5. Twenty Five year mining plan of 68 million tonnes grading 31.5% P2O5 .

• In May 2009 GB Minerals AG signed a comprehensive production agreement with Guinea Bissau Government.y g p p g

• In 2010, Plains Creek completed a 43‐101 compliant resource estimate of 84 million tonnes Measured and IndicatedResources at a grade of 29.9% P2O5 and Inferred Resources of 44 million tonnes at a grade of 29.6% P2O5.


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DRILLING HISTORY 146 HOLES


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OVERVIEW OF P2O5 CONTENT IN DEPOSIT AREA SATELLITE VIEW OF THE MAIN DEPOSIT AREA

DEPOSIT

FARIM

Note: The Production License for the exploitation of phosphate ore covers an area of 30,625 ha. The initial focus area (above) of p p p , ( )the 25 year mining plan of 68 million tonnes @ 29.9% P2O5 is contained within the measured and indicated resource of 84 million tonnes of the upper FPA upper layer.


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PHOSPHATE HORIZONSFPA & FPB

Two Main Phosphate Horizons FPA / FPB

SimplifiedCross SectionNot to Scale

Ground Level

MININGOverburdenAv. 39 metres(clayey sand)

FPA68 MILLION TONNES (based on 3.3m av. seam thickness)

MININGFOCUS

29.9% P2O5

A few metres below

Cut-off1 metre

FPA128 MILLION TONNES (based on 1.5m cut-off)

3.3m

84 million tonnes Measured & Indicated 44 million tonnes Inferred

Cut-off1 metre

Average20-60 metres

FPB 10-15% P2O5

450 MILLION TONNES

50% underlies PFA


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DEPOSIT AREA


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DEPOSIT AREAOPEN IN 3 DIRECTIONS

AREA OFHIGH QUALITY

PHOSPHATE RESOURCE@ 29.9% P2O5

12

1

2

1 POTENTIAL DIRECTIONSTO EXPAND THE SIZEOF THE RESOURCE3 OF THE RESOURCE

EXISTING RESOURCES

3

128 MILLION TONNES @ 29.8% P205comprising

84 MILLION TONNES @ 29.9% P2O5Measured & Indicated

44 MILLION TONNES @ 29.6% P2O5InferredPLUS

450 MILLION TONNES @ 10-15% P2O5Geological Resource


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MINING & TREATMENT OPERATIONSMining (no drilling or blasting)Mining (no drilling or blasting)• Overburden average 39 meters, Stripping ratio 11.8:1. Soft clayey sand (no drilling and

blasting)• Use conventional truck and shovel overburden stripping for upper 7‐10 meters• Using stripping dredges to strip overburden to hanging wall of FPA phosphate layer• U i d ti d d f 3 3 t thi k FPA h h t l ( d l f• Using production dredges for 3.3 meter thick FPA phosphate layer (produce slurry of very

fine, liberated phosphate particles , 1 mm)• Production rate per annum : 2,760,000 tonnes ROM phosphate ore grading 29.9% P2O5

Beneficiation (no crushing)• Screening of +1 mm particles• Screening of +1 mm particles• Sizing : remove minus 10 micron particles• Magnetic separation to remove iron particles• Slurry pipeline to port (80kms)• Dry product at port to 8 ‐10 % moisture for shipping• Production rate per annum – 2,160,000 tonnes at 8% moisture

Recovery (based on BRGM and Champion test work)• P2O5 recovery :79.6%• Weight recovery : 72 5%Weight recovery : 72.5%• Product : P2O5 phosphate rock concentrate grading 32.5% P2O5 and 3.5% Fe+Al content ‐

Medium grade concentrate 70 BPL• Production rate per annum: 2,000,000 dry tons. 13www.plainscreek.com

TSX-V : PCP

PRODUCTION AGREEMENT

Production Agreement • Includes production license, mining lease and incentive agreement

Ownership• 100% GB Mi l AG ( i i i )

Phosphate Rock

• 100% GB Minerals AG (no government participation)

Duration• 25 years, renewable for successive period of 25 years

Infrastructure• Port, roads, pipelines etc at sole discretion of company. • No Government taxes, license fees or other costs

Rights and ObligationsRights and Obligations• Regulates rights regarding access and use, building of infrastructure,

expats, imports, exporting products etc

Taxes and Royalties10 h lid f f i l i• 10 year tax holiday from start of commercial operations

• 2% tax deductible royalty on production


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INFRASTRUCTURE

POWER FARIM

• World Bank financingconstruction /upgrading ofexisting paved road fromFarim to Mansoa (56 Kms)

ROAD / PIPELINE POWER

• Install diesel or heavy oilgenerators at mine site ‐ +/‐ 10‐15 MW

• Recently announced 130 MW oil

GUINEABISSAU

• Existing road (14 kms) fromMansoa to Dugal (turnoff toport)

• Pipeline from Farim toPointe Chugue (port) ‐80

Recently announced 130 MW oilfired power station to be built atBissau. Planning power line infuture to mine site. Financed byWorld Bank and operated by UScompany.

MANSOA

Pointe Chugue (port) 80kms to be constructed bycompany

PORT (SOLE USE)• Port roads pipelines etc at sole

GENERAL

BISSAUSEA PORT

DUGAL • Located 80 kms from mine site and 18 km east ofcapital city of Bissau

• Depth at low tide is 12 meters• Access for 35,000 to 40,000 tonnes vessels

directly from Atlantic• Storage facilities for 40,000 tonnes. 24 hour

( )• Port, roads, pipelines etc at solediscretion of company.

• No Government taxes, licensefees or other costs

Storage facilities for 40,000 tonnes. 24 hourloading turnaround

NOTE: Phosphate rock exists close to the surface allowing open pit mining with direct connection to transport.15www.plainscreek.com

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PRODUCTION & MARKET

PLAINS CREEK- PRODUCTION

2 MILLION TONNES PER ANNUM

Source: Stonegate


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WORLD MARKETS

WESTERN EUROPE

INDIACHINA

USA

BRAZIL

HIGH DEMAND FOR PHOSPHATE ROCK CONCENTRATE17www.plainscreek.com

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FEASIBILITY STUDY

• Plains Creek has awarded GBM Minerals Engineering a contract to complete a Bankable Feasibility Study a s C ee as a a ded G e a s g ee g a co t act to co p ete a a ab e eas b ty Studyon the Farim Phosphate Deposit, Guinea Bissau.

About GBM Mineral Engineering Consultants

“EXPERTS IN DESIGN, ENGINEERING, PROJECTMANAGEMENT, PROCUREMENT AND CONSTRUCTION

OF PROCESS PLANTS …”

• GBM Minerals Engineering Consultants Limited (GBM) is an independent firm of engineering consultants specialising in the development, design and construction of new mining projects and the refurbishment of existing gold, base‐metal and industrial minerals ore processing plants. They are experts in the design, engineering, project management, procurement and construction of such plants and are currently providing technical services to the mining industry in Africa, Central Asia, Russia, Europe, Australia, the Americas and MiddleEast

• GBM was formed in March of 1994 by the employees of a large North American engineering consultant following the closure of that consultant’s Gold and Base Metal Mining Projects Centre in London. The Centre had operated as a stable unit with the employees and other consultants working together on i t ti l j t f l Th GBM l h ll k d f i ifi t i d i thinternational projects for several years. The GBM employees have all worked for significant periods in the mining industry, worldwide, and are familiar with the latest work practices and technologies

• GBM has been certified by the British Standards Institution and deemed by them to operate a Quality Management System which complies with the requirements of BS EN ISO 9001:2000.

• GBM’s Head Office is located in Twickenham, 15 kilometres south‐west of London City centre.


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CAPITAL & OPERATING COSTS

CAPITAL

BASED ON 43-101TECHNICAL REPORT

CAPITAL EXPENDITURE US$

Feasibility Study 5,000,000Engineering and design 23,155,000

OPERATING COSTper tonne US$

Overburden removal 21,220,000Infill drilling + exploration 5,228,000Geology /Hydrology 500,000

Mining 25

General Expenses 5

Processing 15Mining /dredging 25,000,000Processing plant 77,600,000Power Plant 12,000,000Water 1 850 000

Processing 15

Power + water 10

Pipeline 3P 2Water 1,850,000

Mine site + Infrastructure 16,045,000Roads & Pipeline 58,750,000Port 35 700 000

Port 2TOTAL COST per tonne $60

Port 35,700,000General Overhead 6,084,000

TOTAL EXPENDITURE $288,132,000 19www.plainscreek.com

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FINANCIAL MODEL

FINANCIAL MODEL 2011 2012 2013 2014 2015 2016 2017 - 38Production

ROM ('000 Tonnes) 1,380 2,760 2,760 2,760 2,760

Recovery by Wt (%) 72 50 72 50 72 50 72 50 72 50Recovery by Wt (%) 72.50 72.50 72.50 72.50 72.50

Phosphate Rock (000 tonnes) 1,001 2,001 2,001 2,001 2,001

Price phosphate rock US$/t 100 100 100 100 100

Sales ('US$ '000's) 100,050 200,100 200,100 200,100 200,100

Operating Cost /tonne (US$) 60 60 60 60 60

Total Operating Costs (US$ '000's) 60,030 120,060 120,060 120,060 120,060

EBITDA 40,020 80,040 80,040 80,040 80,040

$CAPEX (US$ '000's) 6,084 106,917 169,181 10,100 10,100 10,100 10,100

Discount Rate Pretax NPV5% $636 Million$

10% $254 Million15% $104 Million


TSX-V : PCP

CORPORATE & DEVELOPMENT TIMELINE

2010 2011 2012 2013

FEB2010

Mar2011

Nov2010

Dec2011

Dec2012

Dec2013

Sept20132010 2011

TSX.VLISTING

DetailedEngineering

& DesignSTART

PRODUCTION

2010

43-101TechnicalReport

2011 2012 20132013

Offtake &

StartFeasibility

Study

LISTING Plains CreekRTO Feasibility

StudyCompleteQ4 2011

CONSTRUCTION

Report O a e &Financing

EARN-INPURCHASEADDITIONAL

24 9%

PURCHASEADDITIONAL

25%

Q4 2011

PURCHASE50 1 % 24.9%

GB MINERALS AG25%

GB MINERALS AG

(50.1%) (75%) (100%)

50.1 %GB MINERALS AG


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DIRECTORS &MANAGEMENT

Glenn Laing B.Sc Eng (Mining Geology) and M.Sc (Mining Engineering) –CEO &President & Director

John Reynolds – Chairman & DirectorJohn Reynolds Chairman & Director

Paul C. Jones B.Sc Mining Engineering. P. Eng – Independent Director

Guocai Liu – Independent Director

James Xiang – Independent Director

Carson Phillips ‐ Corporate Development & Director

.22

TSX-V : PCP

CAPITAL STRUCTURE

Common WarrantsCommon Shares

Warrants

Founders & Management 38,100,000 280,000

WAD Consult – Owners of 49.9% GB Minerals 101,000,000

Common Shares 205,533,053

Options Outstanding Warrants Outstanding

2,000,0001,590,000

Brokers Warrants ( M Partners – RTO Financing 14,786,209

Capital Structure upon TSX Listing 344,634,053 18,656,209


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OVERALL SUMMARY

• F i Ph h t P j t d l t j t th t h iti tt ib t W ld Cl• Farim Phosphate Project – a development project that has many positive attributes – World Classpotential, high quality mining reserves / resources 128 million tonnes @29.8% P2O5), close to existinginfrastructure, strong economics (US$80 million per annum EBITDA @ US$100 per Tonne phosphaterock prices) with production license and incentive agreements in place.

• Attractive Long Term Phosphate Industry Fundamentals (prices have doubled in the last few years toAttractive Long Term Phosphate Industry Fundamentals (prices have doubled in the last few years tosustainable levels) + current stock markets are upbeat on fertilizers, potash and phosphate companies.Current prices US$150 -170 per per tonne for 32.5% P2O5 phosphate rock))

• Company strategy to advance Farim Phosphate Project to production at 2 million tonnes phosphaterock concentrate per annum. Straight forward mining and simple beneficiation process.

• Significant Exploration & Resource Expansion Potential – open in 3 directions and large lower gradephosphate zone underlying main deposit. Additional 1741.61 sq km exploration license.

• To date two positive feasibility studies completed. A 43-101 Technical Report – Preliminary EconomicAssessment completed A Bankable Feasibility Study underway – complete by Q4 2011Assessment completed. A Bankable Feasibility Study underway complete by Q4 2011.

• TSX Venture Listed – TSXV – PCP .

• Plains Creek is one of few opportunities on world stock markets to participate directly in a purephosphate development stage play - and has most favorable fundamentals in peer group of purephosphate development stage play and has most favorable fundamentals in peer group of purephosphate production companies.


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A DEVELOPMENT & PRODUCTION PROJECTPHOSPHATE IN GUINEA BISSAU WEST AFRICAPHOSPHATE IN GUINEA BISSAU, WEST AFRICA

Guinea-Bissau: phosphate for food

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