The Inata Gold Mine

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Inata management team

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General Manager Inata

Gold Mine

Colin Belshaw

Deputy GM and Projects

Manager

Bob Voisey

Mining Manager

Michel Labbe

Maintenance Manager

Frans Gonsalves

Environment and

Community Manager

Nick Shirley

Safety and Training Manager

Terry Wilhelm

Security Manager

Daniel Gagnon

General Services Manager

Sharon Kell

Finance Manager

Guy Riopel

Technical Services

Kell Monro

Geology Manager

Alex Hagan

Chronology of Inata Project

2009 – present Avocet Mining PLC Step-out drilling commenced

April 2009 announced takeover of Wega in all-share deal

June 2009 acquisition completedFirst gold pour in December 2009 and commercial completion by March 2010

2007-2009 Wega Mining ASA No drilling at Inata

Acquired Goldbelt Resources in 2007 for C$130 million in cashEntered US$65 million project finance facility agreement with

MBL

2004 – 2007 Goldbelt Resources Ltd 69,000m

TSX-V listedAcquired properties in January 2004 for cash and shares worth US$6.5 million

Outlined reserves and resources of 0.944 Moz and 1.7 Moz respectively

1998 – 2004 BHP - Resolute Ltd Joint Venture Metres drilled: 49,000m

Joint venture with BHP (1998-2001) Resolute sole operator until 2004 Resolute outlined 750,000 oz resource

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Inata 2010 – A very successful year!

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• 91,524 oz poured in initial 9 monthso First gold produced December ’09 – 152oz

o Production (poured) of 40,461oz Q3 ‘10

o Gold now sold at hedge and spot prices

• Ramp up to name plate thru’put (285tph)

achieved Sept 2010 (and showing

potential for greater capacity)o Plant recoveries currently >93%

o Commercial production planned for by Q3

2010. Actually achieved from 1st April 2010

• Set to produce over 120,000 oz in 2010

1 NI 43-101-compliant Reserves as of 31 August 20102 NI 43-101-compliant Resources as of 30 June 2010

AVM Ownership 90%

LocationBurkina

Faso

Reserves (oz) 1 1,081,500

Resources (oz) 2 1,310,700

Production (oz pa)2010 c. 120,000

LoM c. 165,000

Cash costs ($/oz) LoM 525-575

Plant feed grade (g/t) LoM 2.12

Estimated Mine Life (years) 7+

Inata – progress and YTD performance

• Extensive rectification work by

Avocet post June ‘09 acquisition of

Wega Mining – ore to mills 28th

November 2009

• De-bottlenecking completed

October 2010

• Recoveries as planned at 93%+

• YTD feed grade of 2.65gpt

• Mined tonnages reconciling well

with BFS resource model

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2010 – Other achievements and milestones

• Successful Inauguration by the Prime Minister, His Excellency

Mr Tertius Zongo

• Increased Resources and Reserves

• Set up Geology and Exploration facilities on site – teams

working closely with each other

• Improved Chart of Accounts and management accounting

• Completed numerous infrastructure projects incl. Gendarmerie

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Inata North Pit

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Geological Settings and Prospectivity

• Deposit hosted in Birimian

greenstone belt of volcano-

sedimentary series

• Folded metasediments and

ovoid granites intrusives

• Gold mineralisation commonly

associated with quartz–sulphide

veining along sheared zones

and contacts of volcanic

intrusives

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Avocet Mining

INATA

1.8 Moz Au

VTEM Map Of Inata Prospect

Ore Deposit – Mineralization Style

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• Generally NE trending fold axial plane

structures

• Extensive weathering and lateritisation of

the mineralisation and surrounding host

rocks, resulting in oxide mineralisation up

to 100 m depth

• Mineralization associated and\or in close

proximity to the graphitic shales, quartz

veins and sulphides

• Simple structural domain at deposit scale

N

s

Reserve Potential

• Mineralization open both

along strike and at depth

• Grade improves with

depth

• Good correlation

between Resource

Model and Grade

Control Model

• Revision of Grade

Control Processes

OngoingINATA NORTH _SECTION 1588475N

0.3 – 0.7 g/t Au

0.7 – 2.0 g/t Au

> 2.0 g/t Au

Grade Control Processes

A section along 1588392N showing the GC model with

the GC RC drill holes

A plan view of 285mRL showing mining

outlines from the GC model

• Robust, wide and continuous ore body being delineated from the Grade Control modelling.

• Mining outlines wide and well defined

Reconciliation - GC and Resource Model

INATA NORTHGRADE CONTROL RESOURCE MODEL-NEW

RL Tonnes Grade Ounces Tonnes Grade Ounces

TOTAL INSITU ORE

285-282,5 63,049 3.35 6,786 63,074 2.88 5,841

282,5-280 63,693 3.17 6,502 63,514 2.85 5,830

280-277,5 63,693 3.06 6,269 62,124 2.96 5,917

277,5-275 63,322 3.01 6,121 61,967 2.95 5,885

275-272,5 59,117 3.01 5,722 56,472 3.03 5,510

272,5-270 57,902 2.87 5,348 56,429 3.03 5,502

GRAND TOTAL 370,776 3.08 36,748 363,580 2.95 34,485

ORE GRADE PROPORTIONS

MARGINAL ORE 11% 16% 2% 5% 19% 1%

LOW GRADE ORE 32% 43% 14% 29% 44% 13%

HIGH GRADE ORE 58% 147% 85% 66% 131% 86%

VARIANCE 2% 4% 7%

• Revision of

Grade Control

Processes

Ongoing

• Good

reconciliation

between GC

Model Mined and

Resource Model

• Positive

reconciliation

being observed

Reconciliation Resource, Mine Production vs Processing

• Good reconciliation

between Mined and

Resource Model

• Good reconciliation

between Mining and

Processing head

grade and Ounces

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2011 – Inata Processing Plant

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Inata - increasing production capacity

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• Forecast gold production for Inata life of mine

increased to 165,000 ounces p.a. from

120,000 ounces p.a.:

• Capital required: US$25 milliono Mining equipment: US$15 million

o 1 x PC2000 excavator

o 5 x 777F dump trucks

o 1x 988H wheel loader

o 1 x D9R dozer

o 1 x L8 blast hole rig

o Plant upgrade: US$10 million

o 2nd elution circuit and electro-winning cells

o Upgrade CIL inter-tank screens and piping

o Upgrade lime supply system

o Expand gold room

o Extra raw water and process water pumps

o Dust collection systems – crusher and reclaim

o CIL tanks oxygen supply system

The 3rd Mine Fleet

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A Third Mine Fleet of value US$15M is required for the following reasons, both of

which represent opportunities created by successful resource development and

plant expansion:

• Exploit the new Inata Resource Model completed August 2010

−235,000 oz additional Ore Reserve announced September

−Evaluation of economic pits completed, new designed pits

−Ore Reserve increased as a result, 25% increase to 1.08M oz

−LOM waste to ore strip ratio increased from 7:1 to 9:1 as a result of deeper pits

• Enable the expansion of existing Inata plant

−Increase from 285t/hr to 340t/hr

−Reduce % of annual production that is hedged from ~70% to 55%

−Increase spot price exposure at time of increased gold prices

Expanding the plant

•Planning for expansion of processing

capacity has been progressing since

July

•Processing plant reached nameplate

capacity of 285 tph in August as

planned and has run steadily since

•Expanding capacity by fully utilising

installed milling capacity and further

debottlenecking to reach target of 340

tph by July 2011

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Increasing mining capacity

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Mining equipment

• Existing mining fleet:

− Excavator: 1 x PC2000

2 x PC1250

− Production Loader: 1 x WA 800H

− ROM Loader: 1 x 988H

− Dump Trucks: 6x 777F

6 x HD785-7

− Track Dozer: 1 x D9R

1 x 375A

− Wheel Dozer: 1 x 834H

− Grader: 1 x 16M

1 x GD825A

− Water Truck: 2 x HD475-7

− Blast Hole Drill Rig: Atlas Copco L8

− RC Drill Rig: Atlas Copco L8

• Ordered 3rd mining fleet:

− Excavator: 1 x PC2000

− Dump Trucks: 5 x 777F

− ROM Loader: 1 x 988H

− Dozer: 1 x D9R

− Blast hole drill rig: Atlas Copco L8

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Life of mine plan

• Current life of mine plan outlines the following:

o 7 year initial mine life, subject to ore body

extensions and/or additional greenfields

discoveries

oOverall strip ratio of 9.4 (rising from 6.5 in 2010

to 12.7 in 2011/2012, declining thereafter)

oExpanded plant capacity of 2.7 Mt p.a.

o LoM plant feed grade of 2.12 g/t

oBudgeted recoveries of 90-95%; currently

>93%

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Mining schedule

• Optimisation of pit designs and LOM schedule

• Schedule focuses initially on higher grade

Inata North pit

• Mining fleet performing as budgeted

• Mining in 2.5 m flitches to reduce dilution

• Currently achieving 920k BCM per month

• Production to increase to 1.3M BCM per

month with arrival of 3rd fleet Q3 2011

• Large stockpile of ore maintained on ROMo Stockpile of 500,000 tonnes at +2.05 g/t (as

of 30 November ‘10)

• Mining from Inata North and Central Starter

Pits

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Inata North

Sayouba

Inata Central

Inata South

Mining challenges and opportunities

• Operator trainingo Mining is new to Burkina Faso

o Lack of skilled operators

• Optimise drill and blast operations

• Minimising dilution and ore loss

• Resource model performing well

• Diesel consumption per tonne and

tyre wear lower than expected

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Plant key components

• 7 x 1.8 MW (de-rated) Generators

• 1 x 110 kW Primary Crusher

• 1 x SAG Mill

• 2 x Ball Mills

• 1 x Cyclo-Pac (20 cyclones)

• 6 x 1980 m3 CIL Tanks

• 1 x Falcon Concentrator

o Installation progressing

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Process flow chart

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Gomde barrage

• Capacity of 120 Mm3

• Current monthly usage of 0.3 Mm3

o Evaporation in dry season accounts for 5.2 Mm3 per month

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Inata Cost Structure and Cost Drivers

• Diesel - price set by government in FCFA (current equivalent – US$0.81/litre); sourced from Benin

• Reagents – principally cyanide, lime and grinding media; synergies in supply with S.E. Asian operations

• Labour – high initial requirement for expats, declining in subsequent yearso Presently employing 501 nationals (105 local area) and 49 expats

• . LoM cash costs of US$525-575/oz (incl. government royalties)

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Diesel22%

Reagents12%

Maintenance Consumables

- Plant10%

Maintenance Consumables

- Mine18%

Contractors & Consultants

6%

Labour -Expatriate

11%

Labour -National

8%

Others13%

Adimistration 30%

Mine32%

Process 38%

Key Operating Cost Drivers

• Fuel usage and cost

• Cyanide usage and cost

• Labour

• Strip ratio

• Planned maintenance schedules

• Grade

• Royalties

• Scale of operations

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Focus on incremental operational cost savings

• Change to Junior staff accommodation policy

• Change to bulk explosives

• Change to SAG mill lifter design

• Reengineering of high wear areas of plant

• Move to in house services for environmental assays, grade control drilling

etc

• Reduction of 3rd party rental equipment such as craneage, backhoes etc

• Negotiation of consignment stock agreements

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An Excellent Safety Record

• Occupational Health, Safety & Environment Committees

• First meeting held in May with the Committees being comprised of representatives from all departments and management

• Committees meet once per month to review health and safety issues

• Emergency Response Team

• In May, 2009 SMB developed an Emergency Response Team. The team is comprised of representatives from every department. They train four hours per week in all aspects of rescue; first aid, fire extinguishment, spill response, confined space rescue and embankment rescue.

• Achievements• In December 2009 SMB worked 1 Million man hours without a Loss Time

Injury (LTI)

• In June, 2010 SMB worked 2 Million man hours consecutively without a LTI

• On September 30th SMB worked 3 Million man hours consecutively without a LTI

Environment Programmes

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• Implementation of Environment Management Systems for SMB

• Development of:• Operational and system procedures

• Impact and Aspects Register for all mining activities

• National and International Environmental Legal Register

• Conducting regulatory reporting regarding environmental

management and control

• Establishment of on-site waste management program, and

local recycling projects in the community

• Establishment of formal monitoring and control programs for

water, air and soil discharges

• On going reforestation and restoration programmes

• On going environmental training for employees

• Launch of the „Foundation Avocet Pour Le

Burkina‟ “FAB”

• Investment in projects that have directly benefited

the local communities including:o Road systems

o Improvement of medical centres

o Village water supply

o Improvements in mobile communication

• Emphasis with regards to local recruitment by SMB

and contractors

• Developing local business opportunities in the

impacted region

• SMB holds regular Local and Regional Committee

Meetings to maintain close links with the mine and

the communities

Community Relations – Projects

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In Conclusion

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2010 Goals and Achievements

Skilled management team with diverse worldwide mining experiences

Safety culture

Completed construction

De-bottlenecking and commissioning

Mining on schedule

Implemented AccPac financial software

Motivated national team

Effective community relations

Gomde barrage water storage

Potential to outperform resource model and extend mine life via resource

development

Potential to expand plant capacity

PP

P

PP

PPP

P

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P

P

2011 Goals

• Maintain safety record

• Successfully implement expansion plans and achieve production targets

• Continue incremental cost saving initiatives

• Successfully complete current drilling program with resultant resource

increase

• Redesign mine plan based on new resource model to increase reserves

whilst also providing greater operational flexibility and smoothed waste

mining profile

• Build on AVM’s capacity in West Africa by development of Regional Office in

Ouagadougou utilising synergies between SMB and the exploration entities

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Inata – upside potential

• Only main zone modelled

• Significant mineralisation outside of modelo At depth

o Parallel zones (in pit)

o Along strike

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And final thoughts

• Inata successfully operating

above nameplate capacity

• Skilled management team with

diverse worldwide mining

experiences

• Production and exploration upside

substantially greater than

expected – already being

exploited

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www.avocet.co.uk

Cautionary note

DISCLAIMER

• The information contained in this confidential document ("Presentation") has been prepared by Avocet Mining PLC (the "Company").This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or are high net worth companieswithin the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. Any other person who receives this Presentation should not rely or act upon it. By accepting this Presentation, the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the Presentation.

• While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation.

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