PRECIOUS METALS,DIAMONDS & GEMSTONESINVESTMENT SUMMIT

THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 20 MAY 2010www.ObjectiveCapitalConferences.com

11.50 – 12.15 Hunting for gold in Africa – it's not all about the geologyKatharine Pulvermacher – Chief Executive, African Rainbow Consulting

African Rainbow Consulting

Africa:Going for GoldPrecious Metals, Diamonds &Gemstones Investment Summit

London, 20 March 2010

www.africanrainbow.org

African RainbowConsulting

Key facts

• In 2008 only 20% of gold mined came from Africa (GFMS Gold Survey 2009)

• Seven of the top fifteen gold producers have properties in Africa

• Africa is home to about half of the planet’s identified gold resources

www.africanrainbow.org 3

African RainbowConsulting

Cost of doing business

www.africanrainbow.org 4

African RainbowConsulting

A global perspective

www.africanrainbow.org 5

African RainbowConsulting

Electricity

www.africanrainbow.org 6

More than 400 million people don’t have it.

African RainbowConsulting

Sanitation

www.africanrainbow.org 7

More than half a billion people need a clean loo.

African RainbowConsulting

Life lines

www.africanrainbow.org 8

Despite exponential growth, there are still over 600 million potential subscribers.

African RainbowConsulting

To be: or PC

www.africanrainbow.org 9

98 in 100 people haven’t answered this question yet.

African RainbowConsulting

At a glance

The Star of Africa™ is a weighted index that provides an instant and intuitive five-D view of a country’s relative attractiveness to investors.

Each country is compared with the top-ranking nation in Africa as well as with the continental average for each dimension.

www.africanrainbow.org 10

African RainbowConsulting

Governance

• Derived from World Governance Indicators, a survey published annually by the World Bank

• “... The traditions and institutions by which authority in a country is exercised ...”:– Voice and Accountability– Political Stability and Absence of Violence– Governance Effectiveness– Regulatory Quality– Rule of Law– Control of Corruption

www.africanrainbow.org 11

African RainbowConsulting

Social Capital

www.africanrainbow.org 12

African RainbowConsulting

Electricity

• The electricity index gives information about the potential market size in terms of megawatt hours (MWh).

• It is based on the product of the number of people without access to electricity and the energy poverty line of 50 kg of oil equivalent (koe), i.e. 0.5815 MWh.

• To obtain the actual minimum potential in MWh, simply multiply the country indicator by 42.

• One MWh is equal to 0.086 tonnes of oil equivalent, i.e. 0.000086 kgoe. 50 kgoe is equal to 0.5815 MWh.

• This method has the virtue of being transparent but does not take regulatory aspects and market structure into account.

www.africanrainbow.org 13

African RainbowConsulting

ITC

• Mobile telephone use – 20% • Internet use – 20%

• PC ownership – 20% • Market competitiveness – 40%

www.africanrainbow.org 14

African RainbowConsulting

Water

• Irrigation

www.africanrainbow.org 15

• Supply• Sanitation

African RainbowConsulting

A golden opportunity

• Global Reporting Initiative

• ICMM’s Sustainable Development Framework

• South African Mining Charter

• Johannesburg Declaration

• African Mining Vision 2050

Mining companies have a unique opportunity to “do well by doing good”: active and creative support of social and diversified economic development benefits investors,

corporations and the communities in which they work.

Bon Appétit!www.africanrainbow.org 16

African RainbowConsulting

www.africanrainbow.org

Disclaimer

The information and opinions contained in this presentation have been obtained from sources believed to be reliable, but norepresentation or warranty, express or implied, is made that such information is accurate or complete and it should not berelied upon as such. This presentation does not purport to make any recommendation or provide investment advice to theeffect that any related transaction is appropriate for all investment objectives, financial situations or particular needs. Prior tomaking any investment decisions investors should seek advice from their advisors on whether any part of this presentationis appropriate to their specific circumstances. This presentation is not, and should not be construed as, an offer orsolicitation to buy or sell any related products. Expressions of opinion are those of African Rainbow Consulting Limited onlyand are subject to change without notice.

17