Your own diamond and gold mine. - Amazon S3 · Your own diamond and gold mine. ... Sierra Leone is...

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Transcript of Your own diamond and gold mine. - Amazon S3 · Your own diamond and gold mine. ... Sierra Leone is...

Page 1: Your own diamond and gold mine. - Amazon S3 · Your own diamond and gold mine. ... Sierra Leone is rich in resources and mining ... we hope you will find the content of this brochure
Page 2: Your own diamond and gold mine. - Amazon S3 · Your own diamond and gold mine. ... Sierra Leone is rich in resources and mining ... we hope you will find the content of this brochure

Your own diamond and gold mine. With a minimum investment of less than £3,000, this offer is very limited.

Diamonds and gold are solid, tangible assets. In today’s uncertain market this can be particularly important. They can act as a storeof value as well as offer an opportunity to diversify your portfolio. As an investor through Capital Alternatives, you have the option tochoose how you wish to take the potential returns from your mining investment.

Cash or diamonds and goldYou will own the mining rights on your 225 square foot area for 2 years. Once your area is mined, you can choose how you want to takeany diamonds and gold that have been extracted. To make things simple, Capital Mining will send you a valuation so you can then let usknow whether you wish to receive a cheque for your 50% share of the diamonds and gold found in your mining area, or whether you wantto receive your diamonds and gold in physical form. Capital Mining can even offer you the option to have your diamonds cut and set.

Money back guaranteeAs an investor, you will receive 50% of the value of the mineral production your mine generates – as well as the peace of mind thatcomes from a solid money back guarantee if your investment area is not mined within the two year investment period.

Robust geological researchCapital Mining has a highly experienced management team who are well-placed to deliver potential returns by locating physical assetsin hand-picked mining areas. The land chosen has resource rich alluvial deposits sitting just above the bed rock. These deposits will be mined on your behalf by our experienced team of professionals using our mining equipment which is already inplace.

Invest now – for as little as £2,950 per Mining PlotYour investment with Capital Mining is simple:• Ease of investment and a low minimum entry level – £1,750 plus a one-off mining fee of £1,200

• Considerable return potential from two-year mining rights

• Targeting areas in a known alluvial gold and diamond province supported by research conducted by recognised internationalmining consultants

• Systematic, scientific and sophisticated approach to exploration and mining

• Management with considerable exploration experience and led by a senior geologist and mining expert with extensive knowledgeof the local area

Prime mining landSierra Leone is rich in resources and mining is a key part of its economy. As well as considerable deposits of resources such a s ironore, it has proven gold and diamond assets. The country has also stabilised into one of the most promising regions in which to setup mining projects. Sierra Leone has a democratically elected government and unlike many African countries, it has secured apeaceful transfer of power between political parties.

IGX Commodities Brokers Limited, 6th Floor, Remo House, 310-312 Regent Street, London W1B 3BStel: +44 (0) 207 112 4942 email: [email protected] web: www.igxc.co.uk

IGX Commodities BrokersIGX is a respected alternative investment specialist. We offer private investors a range of investments including agricultural land, gold bullion, mining licenses and high value Emissions projects. Such investments offer astute diversification potential from traditional asset classes whilst spreading your investment risk.

As an investor, we hope you will find the content of this brochure attractive and we recommend you consider IGX your investment partner. This mining offer is available on a first come, first served basis with only a limited mining area on offer. If you have any questions please call the IGX team to discuss your prospective investment on +44(0) 207 112 4942, or email [email protected].

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Promoter and Sponsor

Management Team of Capital Mining Limited

Capital Mining Sierra Leone

Capital Mining UK office

Receiving Agent

IGX Commodities Brokers Limited

Robert McKendrick – Executive ChairmanNorman Lott – Finance Director Haj Fawaz – Marketing and Distribution Director

18 Charlotte StreetFreetownSierra Leone

Third Floor55 Gower StreetLondon WC1E 6HQ

Capital Secretarial LimitedSophia HouseThird Floor 76-80 City RoadLondon EC1Y 2BJ

To make an investment please call the IGX team on +44 (0) 207 112 4942

or by email at [email protected] or visit www.igxc.co.uk

Key Parties and Advisers

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Gain direct exposure to diamond andgold mining

Why purchase mining shares when you can potentially own the underlying physical asset – your own mine.

As an investor with Capital Mining, you will receive returnsfrom any gold or diamonds your mining area generates – aswell as the peace of mind that comes from our solid, moneyback guarantee if your investment area is not mined withintwo years.

Many investors are keen to own solid assets such as gold orprecious gems since tangible assets can be an excellent storeof value – especially during weaker economic conditions. Asa result, opportunities in the gold and diamond sector arebeginning to attract serious attention from asset managers,institutional investors and governments.

Professional research

At Capital Mining, the management team is highlyexperienced and well-placed to deliver returns. We offer youphysical, solid assets that are to be found in the hand-pickedmining areas of Sierra Leone that we have selected for theirexceptional potential. The areas we have chosen haveresource-rich alluvial deposits that are relatively simple tomine by removing the overburden – top soil which is onaverage only 18” in depth – to reveal the underlyingdiamondiferous gravels below.

On your behalf we are targeting both high value diamond andgold deposits. In our opinion, the length of time betweendiscovering alluvial gold and diamond deposits and turning itinto production can be well within the two-year mining rightsallocated to prospective investors. Our confidence that thereis great potential in the area is supported by clear evidencefrom professional geological research.

Sierra Leone – a stable miningeconomy

The government of Sierra Leone is fully supportive of theimportance of mining and the income it brings from foreigninvestors such as Capital Mining. The diamonds and gold weare mining for are found in significant quantities in thecountry.

According to the Sierra Leone Investment and ExportPromotion Agency (SLIEPA, 2008):

‘With Sierra Leone’s long civil strife behind it, the country ispoised to usher in a new era of economic growth andprosperity. Having held successful democratic elections,economic recovery has begun, and increasing attention isbeing paid to creating the policies and developing theinfrastructure needed to support economic development andcreate jobs.’

We anticipate that the country’s emerging economy willbenefit by opening out to Western investors. In the sevenyears since the civil war ended, things have changed. Thecountry is now very different – in fact according to a reportby the World Bank dated September 2009, Sierra Leone hasmade key improvements in business reform*. According tothe report, overall Sierra Leone ranks ahead of its neighbours:Liberia (157), Guinea (171), and Cote D’Ivoire (161) in theMano River Basin.

On starting a business, one of the 10 indicators of the DoingBusiness index, Sierra Leone is the top performer in WestAfrica. In addition, the International Finance Corporation (amember of the World Bank group) is pleased with SierraLeone’s performance, since the improved rankingdemonstrates that the country is increasingly committed toreform agendas that make it easier to do business.

*According to Doing Business 2009, the sixth in an annual seriesof reports published by IFC and the World Bank.

In addition, according to International Monetary Fundestimates of GDP, Sierra Leone compares favourably with itsneighbours and estimates show the potential for significanteconomic growth predictions.

The UK remains one of the biggest supporters in assistingSierra Leone build its way back to recovery. For example, aswell as helping end the civil war, the UK has helped equip anew Police Force as part of a Commonwealth Training Team.The UK continues to help improve national security andimprove stability. This is echoed by the Sierra Leoneauthorities, and the President of Sierra Leone Ernest BaiKoroma has pledged zero tolerance on corruption. SierraLeone is an English-speaking country, and this is supportiveof business relationships with UK companies.

Sierra Leone - a stable mining economy

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Diamonds mined in Sierra Leone typically score highly interms of value per rough carat. This is supported by a

recent report from the internationally recognisedindependent minerals industry consultancy WardellArmstrong International (WAI) in their 2009 ‘Proposal toProspect for Diamonds and Gold in Sierra Leone’** as wellas from one of the most thorough and respected researchsources – that of P.K. Hall ‘The diamond fields of Sierra Leone’including detailed maps and analytical data from over 250test pits dug within Sierra Leone.’***

**Desk Top Study of a Proposal to Prospect for Diamondsand Gold in Sierra Leone, January 2009

***Geological Survey of Sierra Leone by P.K. Hall, 1968

According to WAI a number of international diamond miningcompanies have commenced exploration in Sierra Leone.They include African Diamonds, Mano River, Petra and TransHex. The prognosis has to be that both new production andthe legislation of existing output will boost the country’soutput towards a declarable 3-4 million carats in the next fewyears. WAI believe that there is no reason why these depositsshould not yield their considerable potential when subject tothe mining processes we are operating. The report includesopinion by the following expert:

David Hargreaves, PhD, CEng, FGS, MIMMM, MRI – a regular presenter to the UK All-Party ParliamentaryScientific Committee.

According to the WAI report. ‘…Diamonds are known tooccur on all six continents they are mined predominantly inonly five regions, namely, Australia, Canada, West Africa, sub-Saharan Africa and Russia. Within these regions abouttwenty countries contribute. The quality of the stones theyproduce varies greatly and has regional characteristics. Thevalue per rough carat in the market has a broad range fromUS$15 in Australia to US$1,500 in Namibia. Sierra Leoneandiamonds typically score high in the value chain.’

According to the P.K. Hall report, 3 test pits were dug in thearea and the diamond bearing gravels of the middle Sewa(our chosen area) are some of the best yielding in the wholeof Sierra Leone.

While it is difficult to quantify the potential resourcesavailable due to the uneven distribution of natural elements,this geological detailed analysis confirms the significantpotential of mining for diamonds and gold in this area.

Safe and secure mining operations

Capital Mining is a 95% shareholder of London WallResources SL Limited which is highly experienced indiamond extraction and will be conducting the mining inSierra Leone. This peace of mind means that Capital Miningis well-placed to exploit the potential of your mining rightsarea and retrieve the potential diamond and gold resources.

Capital Mining also places great emphasis on security. As aresult, all production will be retained and secured in a secureand insured unit at all times. We also use highly efficientDOVE Mining portable plant equipment that is capable ofrecovering diamond and gold concentrate. The machinery isvery reliable and allows the gold / diamondiferous gravel tobe sorted and then kept in locked compartments within themachinery that are cleaned out a few times each day. Thistype of processing is well-recognised and has already provensuccessful as a result of its easy transportation and ability towork in harsh and testing conditions.

Geological expertise

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Independent assessor during thewashing process

During the washing of the final concentrate there is always amember of London Wall Resources staff present as well asan independent adjudicator (appointed by the land owner)who will bear witness to each diamond being recovered.

Once discovered the diamond is weighed, labelled, numberedand a description is then entered into a log book. Each logbook entry is then signed for by both the London WallResources member and the independent representative. The diamond is then kept in a locked safe at the guardedmine compound.

All our diamonds adhere to KPCSrequirements

The Kimberley Process Certification Scheme (KPCS) sets outthe requirements for controlling rough diamond productionand trade. Initiated by the United Nations, the KimberleyProcess Certification Scheme came into force in 2003.Currently, there are representatives of more than 70 countriesinvolved and these members account for almost allproduction of rough diamonds around the world.

The KPCS requires members to adhere to strict requirementsin order to certify shipments of rough diamonds as ‘conflict-free’. In practice this means clear legislation and control overexports and imports.

The KPCS also sets out good practice for the transport of rough diamonds through international borders. This means that the diamonds will be transported in a tamper-resistant container and be accompanied by a KimberleyProcess Certificate.

A straightforward investment

As an investor with us, you will own two-year mining rightsfor your mine in Sierra Leone – and the diamonds and goldthat are mined during the two years from it will be yours. The cost of each Mining Plot is £1,750 plus a one-off miningfee of £1,200. For this, you will gain two-year mining rightsfrom your original investment date – during which time weexpect to provide you with an attractive return together withthe repayment of your initial investment.

London Wall conducting open cast mining

Safe and secure mining operations

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• Ease of investment and a low minimum investment –£1,750 plus a one-off mining fee of £1,200 per Mining Plot

• Considerable return potential from two-year miningrights

• Targeting large areas in known alluvial gold and diamondprovince

• Systematic, scientific and sophisticated approach toexploration and mining

• Management with exploration and corporate experience

• Relatively inexpensive extraction processes on accountof shallow overburden

• We believe there could be a relatively short timeframe topotential production

• Supported by geographical research undertaken byindependent recognised mining consultants

‘With Sierra Leone’s long civil strife behind it, the country ispoised to usher in a new era of economic growth andprosperity.*

*Sierra Leone Investment and Export Promotion Agency(SLIEPA, 2008)

Your hand-picked mine location

Sierra Leone is rich in resources and mining is a key part ofits economy. As well as considerable deposits of resourcessuch as iron ore, it has proven gold and diamond assets. The country has also stabilised into one of the mostpromising regions in which to set up mining projects. SierraLeone has a democratically elected government and unlikemany African countries, it has secured a peaceful transfer ofpower between political parties.

Some of the best diamond and gold mining areas, includingCapital Mining’s area, in Sierra Leone are backed bycomprehensive geological reports. Our geographical locationwas chosen because of the long and successful history ofmining in that region since the 1930s. The area we are mininghas one of the best proportions of gem to industrial gradediamonds in Sierra Leone.

We have selected land that offers excellent potential to deliverdiamonds and gold while at the same time being reasonablyvalued in order to make your investment financially viable.Sierra Leone is a country that is attracting significantattention from respected world figures.

According to The Times in November 2009, when talkingabout Sierra Leone the former UK Prime Minister Tony Blairstated that “…the potential of this country is trulyextraordinary…there are millions of hectares of arable land,natural resources and hundreds of kilometres of virginbeaches, all on Europe’s doorstep.”

Meanwhile, one of the most highly successful investors in theworld, billionaire George Soros, has recently chosen SierraLeone as the destination of millions of investment dollars.

Considerable resources available

We have chosen specific mining areas as a result of duediligence and considerable research into viable mining

areas in Sierra Leone. As you can see from the map on page8, Capital Mining have picked one of the most promisingareas in Sierra Leone – if not the world – to mine.

Diamonds are formed over millions of years at incrediblyhigh-pressures deep in the Earth’s mantle. These are broughtto the surface through volcanic eruptions that cool into rockscalled kimberlites. These kimberlites – or volcanic plugs – areoften known as the primary source. Not many such sourcesare considered to be economic, which adds to the rarity andvalue that diamonds have on the international markets.However, in some instances kimberlites are weathered by rainand wind. This can cause the diamonds to be deposited intogravel beds – in this form they are known as alluvial deposits.This latter type of deposit is common in Sierra Leone, whereit can be economic to mine on account of its proximity to thesurface and location in gravel terraces.

Equally, our case for gold mining is supported by thepresence of alluvial deposits of gold in many areas. Whilethere is no guarantee that gold or diamonds will be found, atCapital Mining we have adhered to highly detailed mineralexploration and evaluation. We have placed great emphasison the assessment of resources and have undertaken ground-based seismic refraction. This has allowed us to determine atrelatively little cost – and without major operational intrusioninto the local landscape – the optimum sites for drilling aswell as to asses the density of the underlying material.

Significant diamond found locally

While the Star of Sierra Leone has certainly attracted pressattention, there have also been smaller but significant findsmined very near to our mining location. For example, in 2009a significant diamond was mined by London Wall ResourcesSL Limited, Capital Mining’s 95% subsidiary, with a marketvalue of £57,000. In addition a test pit in the centre of thelicence area was dug in March 2009. Results from the pitrevealed 69 carats of diamonds that were valued at £45,000.

While we cannot guarantee your Mining Plot(s) area willcontain such a diamond, it is clear that the geology supportsthis kind of find. At Capital Mining we believe there arefurther significant finds of this nature to be made.

Star of Sierra Leone

Your investment with Capital Mining is simple

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The original geological surveys undertaken by P.K. Hall arestill considered to be the definitive assessment of

diamond deposits in Sierra Leone, and the report that wascompiled following the detailed results of that sampling. It indicates that the surveys showed significant diamondreserves located in the region we are mining. This evidence issupported by the recent WAI professional persons report,which also highlights that the grade of gem quality diamondsfound in Sierra Leone are in general some of the best in the world.

According to the WAI report, ‘…the presence of diamonds inthe Eastern Province of Sierra Leone has been reported by Hall (1965)…Hall indicates that the whole region isdiamondiferous. Gold is known to occur in the diamondiferousgravels of Sierra Leone.’

Mining area

The area we are mining is approximately 1 mile from Kontavillage. Your Mining area is marked as being diamond bearingon the geological map published by the respected Council ofGeoscience of South Africia.

= Diamonds Alluvial (see map 2).

According to Hall, the 7 mile stretch of river that your mine ispart of, has total reserves of over 1,000,000 carats.

Hall dug a number of test pits in the area 59, 60, 61, 62 and 63(see map 3) the results were as follows:

1. The typical depth of overburden was 15 feet

2. The average thickness of diamond bearing gravel was 18 inches

3. The average amount of carats per cubic yard was 1.00 carat.

The WAI report continues ‘…The grades of diamond found in West Africa are generally higher than those further South and East.’

Key Mining Area

Definitive surveys Map 1

Map 2

Map 3

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The mining we carry out on your behalf is open cast. This is a much cheaper and efficient way to dig since it

does not require us to tunnel underground to find thevaluable and precious materials that lie below the surface ofthe earth. This helps to keep operating costs lower.

The potential returns your mine could generate are expectedto be significant although we offer no guarantees that eithergold or diamonds will be found in your mine area. However, you will have an opportunity to capitalise on thepotential of a sector where demand is high and supply islimited should gold or diamonds be found in your mine area.The mining process we are using is capable of recoveringdiamonds and gold of very small size – down to a size of 20 microns (0.02mm).

You will receive 50% of the gross production from your mine– without any deductions. Within the two-year period forwhich the investment will run, we aim to fully mine yourinvestment area. Once this has occurred, we will then sendyou the income that has been generated. For example, if yourarea is fully mined in the first year of your investment, youwill receive any returns generated at the end of that year. If it is completed in the second year of your investment, we will send you any returns generated at that end of thesecond year.

After the two-year mining period your investment will expire.Capital Mining expects that during your investment periodyour returns will exceed your initial investment.

How we determine your mine

We have a considerable area of prime mining land in Sierra Leone.

To retrieve the precious resources in the land, we will use astrip mining method. In this, the overburden of earth isremoved by heavy machinery exposing the diamond bearingriver gravels below. We estimate this will be of approximately15 feet in depth. A lattice is then laid across each acre ’earmarking' your Mining Plot of 225 square feet. As a result, we will be removing approximately 3,375 square feet ofoverburden to reach the layer which we will process on your behalf. The gravel is then removed from each mine and is packed into one ton gravel bags and carefully labelled.Each mine output is individually washed and the resultingdiamonds are then weighed, bagged and labelledaccordingly.

Published From The Telegraph Website: 26 Feb 2010

Diamond the size of a 'chicken'segg' sells for record $35.3 millionHong Kong’s Chow Tai Fook Jewellery Company bought theCullinan Heritage stone for $35.3m, Petra Diamondsannounced on Friday.

Petra recovered the gem, the 19th largest ever found – describedas the size of a chicken's egg, from its Cullinan mine nearPretoria in South Africa in September last year.Petra said that record price reflected the "incredible rarity" ofstone based on its "remarkable size" and "exceptional colour andclarity".

“It is fitting that the Cullinan Heritage should achieve a sale priceof $35.3 million, the highest sale price on record ever achievedfor a rough diamond, as it has the potential to produce one of theworld’s most important polished gems. The sale proceeds furtherbolster Petra’s treasury and will be invested in the growth of ourcore assets.” said Johan Dippenaar, Petra's chief executive.Chow Tai Fook has yet to outline its plans for the stone.The world’s biggest diamond, the 3,106-carat Cullinan, wasdiscovered in the same mine in 1905. That was cut to form theGreat Star of Africa and Lesser Star of Africa, set in Britain’scrown jewels.

Petra got $9.48 million at a sale in May for a polished 7.03-carat blue gem, also from the Cullinan mine, setting a per-carat record. A carat is a fifth of a gram.Diamond prices have soared as producers cut output after thecredit crunch. Rough diamonds rose 48pc in the first 11 monthsof 2009, according to WWW International Diamond Consultants.Demand in China, which overtook Japan as the second-largestgem market, added to the jump in prices.

How it works

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Diamonds are a recognised long-term investment basedon rarity and high demand. In our opinion, now is an

excellent time to consider investment in diamonds as webelieve they offer good value and present a buyingopportunity.

While many of us are familiar with gems like these – and mayeven have seen fantastically rare diamonds with blue oryellow colouring – it is easy to forget just how uncommondiamonds actually are in the ground. The diamonds that havebeen found in Sierra Leone are some of the most highlysought after and desirable in the world on account of theirfantastic purity. Often, the gems that have been found do nothave impurities and are completely colourless.

Most of the world’s diamond production of around 200 millioncarats is found in just a handful of countries. Of all thediamonds that are found, only around half are considered tobe of investment quality and those that remain are put to usein industrial processes. Of the investment grade diamonds,only a minor percentage are transformed into ‘cut’ stones, soit is no surprise that there is a significant premium soughtand paid for good quality diamonds.

The major mining countries include Russia, Australia andCanada, but it is proven that in fact, much of West Africa hasan excellent potential source of diamonds. Capital Miningbelieves that Sierra Leone possesses one of the mostattractive profiles to support this kind of mining. From aneconomical, political and resource perspective, in our opinionthe country offers phenomenal investment potential.

The alluvial deposits in Sierra Leone have already generatedspectacular success. Previously, an absolutely enormouscrystal was found – named the ‘Star of Sierra Leone’. The diamond has become famous because of its immensesize at more than 969 carats. The Star of Sierra Leone isactually the biggest alluvial diamond ever recovered, and onlyranks behind the likes of South Africa’s Cullinan andExcelsior diamonds among the largest gem-quality diamondsever found.

Diamond projections

Our projections for the diamond mining operations in thecountry are supported by thorough research and analysis.Based on previous production from mining in the area as wellas research findings (see pages 4 and 7), we estimate thatreturns have the potential to be significant – there have beensizeable diamond finds which have occurred in adjacentmines in 2009.

Our expectations of returns are based on estimates derivedfrom the professional person report prepared by WAI. Basedon these projections we believe we can recover diamonds atan average of 1 carat per cubic yard. The average thickness ofthe diamond bearing gravel in which we will be mining isabout 18" or 1.5 feet (approximately 0.5 of a yard). As a result,your investment area of 225 square feet of land (which isequivalent to 25 yards of land) has the potential to return 25x 0.5 x 1 = 12.5 carats of diamonds (carats are theinternational weight measurement of diamonds where themetric carat unit is equal to 200mg). At current market valuesof £603 per carat that means that as an investor you couldreceive 12.5 x 603 / 2 = £3,769 on an investment of £2,950. Thisequates to a return of 28% over your two-year mining rightsperiod excluding any returns from gold extraction.

We intend to market the diamonds to achieve the best pricethrough our excellent contacts locally and internationally.This means that we will be better placed to support robustreturns from any diamonds and gold that are discovered inyour investment mining area.

At Capital Mining, we believe that now is an ideal time toconsider diamond investment. Diamond prices fellsubstantially in September and October 2008, and this fallwas worsened through 2009 by the reliance of diamondmerchants on debt. This led to congestion and priceweakness, but the recovery has begun. Although there is lessvisibility on the prospects of diamond demand than in someother markets due to the wide range of varieties of diamondsavailable, in our opinion, the long-term rarity of diamonds willhelp to ensure that prices recover.

Diamond mined in adjacentarea to Capital Mining land

and Valuation Certificate

220

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Diamond Prices Index copyright 2004-2010 diamondse.info

FEB MARCH APR MAY JUN JUL AUG SEP OCT NOV DEC JANMONTH

196.7 196.7 196.7199.7 200.5 200.5 200.5 200.5 200.5 200.5200.5

200.3

Why Diamonds?

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Asset Projected refined Current price Projected return after two-yearenim tf qs 522 rep doirep lairetam

per 225 sq ft mine

Diamonds 12.5 carats £603^^ per carat £3,769.00

Gold 20 grams £23.77^ per gram £475.00

Total £4,244.00

All figures are Capital Mining projections except where indicated. ^ Spot price of gold as at 28.02.10. ^^Price per carat of diamonds asat 28 Feb 2010. Please note there is no guarantee that either gold or diamonds will be found in your mining area. Capital Mining will return your original investment amount if your mining area is not mined within the two-year investment period.

The gold that is recovered from your mine will be added tothe returns generated by the location and removal of

diamonds. Gold in particular has seen significant priceincreases as its status as a highly liquid, global currencyremains strong.

Its performance also tends not to be significantly correlatedwith that of the stock market, so adding gold to an investmentportfolio composed of traditional asset classes such asshares and bonds can help to diversify your overall risk.

Capital Mining believes that robust demand for gold is likelyto continue since many investors are now committed toremaining risk-averse over the longer term and are seekingto retain a significant percentage of their investment portfolioin gold.

‘…ongoing risk aversion, growing uncertainty over whereconsumer prices are headed and a renewed vigour in thesearch for effective portfolio diversifiers all supported gold investment demand….[it] has been one of the few assets that has genuinely provided investors withdiversification throughout the financial crisis.’ World GoldCouncil (April 2009).

‘Total identifiable gold demand for the third quarter of 2009 reached 800.3 tonnes, or US$24.7 billion.....up 15% fromthe second quarter, as gold’s long-term store of value andwealth preservation qualities continued to attract investorsand consumers.’ World Gold Council, Gold Supply andDemand – Q3 2009

Gold projections

For gold our projections have been taken from two reportscovering adjacent areas. The WAI report mentions weights of1 gram per ton of gravel washed from the near by Moa river.

SRK international also report grades of 1 gram of gold per toncontained in a report commissioned for Target Resources.Target Resources were mining diamonds just to the north ofCapital Mining’s area.

As a result of these reports, we believe we can recover gold tothe weight of twenty grams from each mine of 225 square feetduring the two-year mining period. Our expectations are thatthe gold will be worth circa £500 so the total expected returnover the two-year period including diamonds is expected tobe £1,319, based on current assumptions a total return of 43.9%.

Why Gold?

Raw Mined Gold

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The mining plots that Capital Mining are selling are extremelysought after, they can produce spectacular results. Don’t

forget if we fail to mine your selected area within 2 years weguarantee your money back.

The cost of each mine is £1,750 plus a one-off mining fee of£1,200. For this, you will gain the two-year mining rights fromyour original investment date. This offering is designed tocomplement your existing investment portfolio and medium-term investment horizons.

Take delivery or sell your diamonds and gold

Selling the diamonds and gold that are mined from yourinvestment area could not be easier since we do this for you.We arrange for the production to be processed and sold, soyou receive 50% of the gross cash return from your minewithout any deductions. We have excellent market contactswhich will help us to ensure swift and straightforwardconversion at market rates.

We also offer you the option to take delivery of the physicalproduction that is generated from your mining rights area.Once your area is mined, we will send you a valuation report.

It will contain the following:

1. Photograph of each diamond recovered.

2. Description of each diamond

3. Weight in carats

4. Weight of gold recorded in grams

5. Valuation

Once you have received the valuation, you are free to makethe following choices for your investment. Simply let us knowwhether you wish to:

1. Receive the proceeds from your 50% share of thediamonds and gold

2. Reinvest your proceeds into more mining rights

3. Receive your diamonds and gold

4. Receive your diamonds and gold and cut and set

If you opt to receive your diamonds and gold (option 3) we askyou to send us a cheque for the remaining 50% of the valuation.

There will then be a further charge on the total value of theshipment – 5% (export and Kimberly processing)

17.5% VAT (this will be paid to UK customs on your behalf).

Once Capital Mining receives cleared funds, we will ensureyour diamonds and gold are delivered to you within onemonth. We will also send you a validKimberly Process Certificate whichguarantees your diamonds havebeen produced according toUnited Nations requirements.

If you decide you would like toreceive your diamonds (option4 above), we also offer anadditional service whereby youcan have each diamond cutand set. This means you willreceive them in a similar stateto that you would see in a highstreet jeweller. There is a fixedcharge of £1,000 for setting,and the cost of turning yourdiamonds into ‘brilliant cut’form which is based on thenumber of carats each ofyour diamonds have.

GDP estimates: Sierra Leone compared with neighbouring countries

Source: Annual percentage change in GDP from International Monetary Fund staff estimates, Gross domestic product, constantprices (national currency), World Economic Outlook Database, April 2009

Country 2007 2008 2009 2010 2011 2012 2013 2014

Côte d’Ivoire 1.6 2.3 3.7 4.0 4.678 5.263 5.817 6.0

Guinea 1.8 4.9 0.00 2.74 4.69 4.861 5.005 4.2

Liberia 9.4 7.1 4.9 6.3 10.271 12.904 12.8 12.9

Sierra Leone 6.4 5.5 4.0 4.0 5.968 6.429 6.464 5.4

Costs - your money back guarantee

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The investment we make will help to create jobs for localworkers. At Capital Mining, we consult with local groups,

landowners and local government to ensure that we abide bylocal laws and processes. We have received encouragementwith our investment approach as it helps to generate localincome as well as putting in place the supportinginfrastructure to assist with the development of local areas.

We are keen to ensure that the local community also gainsfrom the work Capital Mining does. In addition to theemployment we will provide, we have also committed to helpwith local education and health issues through directinvestment.

As an investor with Capital Mining,you can benefit from:

• Receiving 50% of the gross incomegenerated from your mine

• Option to receive the physical output fromyour mine

• No hidden fees, management or mining costs

• A strong and highly experienced managementteam

• Secure, safe and tested operations

• Money back guarantee

• Potential to capitalise on gains from two tangibleassets where demand is high and supply isextremely limited

• Estimated returns of £4,244 on your initial investmentfollowing two years of production

• The addition of a tangible asset to your investmentportfolio – an attractive alternative option to owningmining shares

Tax considerations

Net income generated from the mine will be paid grosswithout the deduction of income tax. Investors will not beliable to local Sierra Leone taxation. Any investor who isin doubt as to their tax position and in particular thosewho are subject to taxation in a jurisdiction other than theUK are advised to consult with their professional adviser.

The Capital Mining investment is considered to be both aSIPP and SSAS compliant investment as it is classified acommercial property asset by HM Revenue and Customs.This means that there will be no income tax paid on theincome generated from the mine. These arrangements alsooffer other advantages.

SIPPs and SSASs are member directed pension schemes; aSIPP is a Self Invested Personal Pension whilst a SSAS is aSmall Self Administered Scheme.

Payment of income and reportingto investors

As an investor, you will own two-year miningrights for your Mining Plots in Sierra Leone –and the diamonds and gold that are minedfrom it will be yours. Payment of income will

be 50% of the gross income solelyattributable to the mining of preciousmetals from your mine before any

deductions.

Within the two-year period for which theinvestment will run, we aim to fully mine yourinvestment area. Once this has occurred, we willthen send you the income that has beengenerated. For example, if your area is fullymined in the first year of your investment, youwill receive any returns generated at the end ofthat year. If it is completed in the second year ofyour investment, we will send you any returns

generated at the end of the second year. Once youhave purchased your mine you will receive a Mining

Licence Certificate and an annual report on theprogress of your mine. After the two-year mining period

your investment will expire at which point your areawill have been fully mined.

Exchange rate risk

Capital Mining has implemented currency hedgingarrangements to ensure that any adverse movements inexchange rates does not affect investors’ income or capitalgrowth. This cost has been borne by Capital Mining.

Capital Mining - supporting the local economy

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Robert McKendrick,BSc Hons, MSc D.I.C.

Executive Chairman

After graduating from Leicester University with a degree inGeology, Robert McKendrick spent several years as projectgeologist in South Africa. He returned to the UK andundertook a post graduate degree at the Royal School ofMines (Imperial Collage London) in Petroleum Exploration.In 1999, he entered the property market and has beenchairman of several property companies, developing asignificant property portfolio. Robert is a co-founder ofLondon Wall Mining which has operating mines in SierraLeone and has established a number of other businessactivities in Sierra Leone including agricultural projects.

Norman Lott Finance Director

Norman Lott is an associate member of the Institute ofChartered Accountants in England and Wales and is the part-time finance director of ReGen Therapeutics Plc and variousother public and private companies. Prior to taking up hispresent positions, Mr Lott was the finance director anddeputy managing director of Tiger Books International Plc,financial controller of Mary Glasgow Publications and ParksBookshops Limited (each part of Wolters Kluwer (UK) Plc).His previously appointed positions also include UK financedirector of FTC Holdings Plc, finance director of FlowsaveInternational and Graham & Trotman Limited, financialcontroller of Stromberg (UK) Limited and an assistantmanager with Peat Marwick (HongKong).

Haj FawazMarketing and Distribution Director

Haj Fawaz is a highly experienced production and distributionexpert with excellent contacts in Sierra Leone and in the localarea in which Capital Mining operates. Haj will oversee theproduction, distribution and sales for the project and ensurethat the route to market is easily accessed. He is also theproprietor of a chain of retail outlets and general stores withinthe country and has considerable local knowledge.

Capital Mining management team

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The Capital Mining management team is highly experiencedand has considerable knowledge and expertise that will befocused on this project. Management has exceptionalmarketing and distribution contacts locally in the operationalhead office based in Sierra Leone’s main city of Freetown. Inaddition the Company’s 95% subsidiary London WallResources SL Limited, which will be undertaking the miningon behalf of the investors, is an experienced miner ofdiamonds and gold in Sierra Leone.

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About us

Apply now

We have constructed our diamond and gold investmentopportunity so that it is straightforward to invest.

Please find contained in this document an application formproviding further details on this unique offer for yourcompletion.

If you wish to discuss this further please contact the IGX teamby telephone 020 7112 4942 or via email at [email protected]. Once you have purchased your mine you will receive a Mining Licence Certificate and an annual report on the progress of your mine and CapitalMining in Sierra Leone.

IGX Commodities Brokers are offering investors the exclusiveopportunity of purchasing mines through Capital Mining.IGX works with the UK’s leading providers ofalternative investments. We specialise in selling tangibleassets such as land, property, gold and Emissions projects As our investors actually own the underlying asset theyhave purchased we are able to keep our set up fees andcharges to a minimum with no management or performancefees. In contrast with firms offering collective investmentschemes which are generally in the form of funds orinvestment trusts, IGX and its products do not need tobe regulated simply because the investors actually“purchase” the physical asset.

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Definitions

Application Form: the form to be completed by the Investor when applying for the purchase of a MiningPlot;

Company: refers to Capital Mining Ltd (06470608) registered in England and Wales at registeredoffice Third Floor, 55 Gower Street, London WC1E 6HQ;

Investment: refers to £2,950 being a Mining Plot(s) at a cost of £1,200 and a £1,750 mining fee;

Investor: is a reference to any of the following words ‘You’,’ Purchaser’ or ‘Licensee’.

Landlord: the owner(s) of the freehold interest of the Licensed Area;

Licence: refers to the Investors’ Mining Plot that are sub-licensed to the Investor in accordancewith these terms and conditions, and the Offer;

Licensed Area: refers to the four acres of mining land licensed to the Company;

License Certificate: refers to the Mining Certificate issued to the Investor; and

Mining Plot: a parcel of land equivalent to 225 square feet within the Licensed Area;

Mining Revenue: 50% of the gross income solely attributable to the mining of precious minerals in theInvestor’s Mining Plot(s) before any deduction of costs and expenses incurred inconnection with the management, mining and sale of the extracted metals payable onan annual bases during the Term;

Offer: includes this document and the Application Form;

Receiving Agent: refers to Capital Secretarial Limited (6457016) registered in England and Wales at registered office Sophia House, Third Floor, 76-80 City Road, London, EC1Y 2BJ;

Term: refers to a period of 2 years commencing from the date recorded on the LicenceCertificate.

Terms & Conditions

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Application Form

Closing Date – for details of the closing date, please refer to the cover letter

Please read the following Application Form carefully ensuring you have selected the number of Acres(s) you wish topurchase in accordance with the terms and conditions of this Offer. Should you have any questions please contact TheIGX team on 020 7112 4942

I/We wish to purchase ........................... Mining Licence(s) at £2,950 per Mining Plotincluding the £1,200 mining fee required per Mine in accordance with the terms andconditions contained in this offer.

Personal details

EMANRUSLLUF NI SEMANEROFELTIT RO SM ,SSIM ,SRM ,RM

FIELD(S) TO BE REGISTERED IN THE NAME OF

ADDRESS IN FULL

ELIBOMENOHPELETEDOCTSOP

EMAIL

I/We wish to make payment for my/our Land via the following method:

I/We enclose a cheque made payable to “Capital Secretarial Limited” for the amount payable of £

Please charge my VISA / MasterCard / Maestro with the amount payable of £

rebmuN ytiruceS tigiD 3rebmuN draC

Start Date / Expiry Date / Maestro Issue Number

Name as it appears on the card

If the credit card is registered to a different address than stated in “Personal Details” above please complete the following:

Address:

Post code:

I/We will arrange an electronic transfer to “Capital Secretarial Limited” with the amount payable of £to the following bank account: Capital Secretarial Limited, HSBC Bank plc, Sort Code 40-03-40, Account Number 80570311

A small bank charge of 2% may be charged for allcredit/debit card payments.

(last 3 digits on reverse of card)

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Terms and Conditions

Please allow up to [28 days] from receipt of your application form and cleared funds for delivery of your Licence Certificate,together with receipt of your Investment. This Offer is open for a limited time and applications are accepted on a first come,first served basis.

I/We understand that the completion and delivery of this Application Form accompanied by a cheque or payment instructionsby credit/debit card or bank transfer constitutes an undertaking that the payment will be honoured on firstpresentation/transaction. I/We understand that no application will be accepted unless and until payment in full for theagricultural land has been made.

I/We confirm that I am/we are applying on my/our behalf, that I/we have read, accepted and understood the terms andconditions and in this Application Form. I/We further confirm that I am/we are purchasing a Mine on the basis only of theinformation contained in the Offer and Application Form which supersedes all other information (whether written or oral) andany such other information or representations must not be relied upon when buying a Mining Licence.

We recommend that you carefully consider your purchase before submitting an Application Form based on your own personal financial circumstances. The information Capital Mining Limited has provided does not constitute financial advice.

Money Laundering Regulations

Please send one document from List A and one Document from List B with your Application Form.Capital Mining and its agents reserve the right to request further documentation in respect of any applicant in order tosatisfy their obligations to ensure adherence to Anti Money Laundering regulation and/or legislation.Each item must be less than three months old and should show your name and permanent residential address. Please notethat statements printed via the internet are not acceptable.

Signed

Full Name

Date

Please send this completed application form together with payment by post or by handto: Capital Secretarial Limited, FREEPOST RRYE-EKBA-LGRA, Sophia House, 76-80 CityRoad, London EC1Y 2BJ. If you post your application form you are recommended toallow at least two business days for delivery.

By signing and submitting this Application Form you are committing to purchasing agricultural land asyou have stated on this Application Form and confirm you have read and understood the wholeApplication Form including the terms and conditions.

Driving Licence

Passport

Bank statement

Building society statement

The statement you provide must show transactionsand relate to the Bank/Building Society accountfrom which your payment is drawn

Utility bill (but not a mobile telephone bill)

Council Tax bill (for the current year)

Benefits notification letter from the Benefits Agencyconfirming the right to benefits (e.g. child benefit,working families tax credit)

Original tax notification from HM Revenue &Customs

LIST A (VERIFICATION OF IDENTITY) LIST B (VERIFICATION OF ADDRESS)

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(a) By completing and submitting theApplication Form in this Offer, youconfirm you have read and understoodthe Offer and accept to be bound by theseterms and conditions.

(b) Within 28 days of receipt of a dulycompleted Application Form the Investorwill receive confirmation of the MiningPlot(s) allocated to You by way of aLicence Certificate issued by theCompany, to the address provided, or, inthe case of joint applicants, to that of thefirst named applicant set out in theApplication Form.

(c) The Company reserves the right, in itsabsolute discretion, to reject anyApplication Form. If an Application Formis not accepted any application monieswill be returned together with theapplicants’ payment to the address of thefirst named applicant at the risk of theapplicant(s).

(d) You warrant that if You sign an ApplicationForm on behalf of someone else includinga corporation, You have authority to do soand such person/company will be boundaccordingly and will be deemed also tohave accepted the Offer and given theauthority, confirmation, warranties andundertakings contained in these termsand conditions.

(e) Applications must be made on theApplication Form unless otherwiseagreed by the Company. By completingan Application Form, you as theapplicant(s) agree to buy the MiningPlot(s) allocated to You at the Company’sdiscretion by way of a Licence on thefollowing terms;

(i) Your Licence and rights that comewith that licence are provided to you bythe Company.

(ii) You are liable for any taxes levied in any jurisdiction during the Term of the Licence;

(iii) the Mining Plot(s) are licensed formining purposes only;

(iv) upon payment of the Investment,the Investor irrevocably andunconditionally agrees to the Companybeing solely responsible for managingand mining the Licensed Area on behalfof the Investor;

(v) the Company will procure that theInvestor will receive the Mining Revenueon an annual basis subject to your MiningPlot being mined in the relevant year. AnyMining Revenue will be paid within 2 years;

(vi) should the Company transfer orassign its rights over the Licensed Area toa third party, the Company shall procurethat all proceeds of the transfer orassignment solely attributable to theMining Plot(s) (post all deductions of anynature including, without limitation anytaxes or charges of any nature on thetransfer proceeds) are distributed to theInvestors in proportion to the number ofMining Plot(s) licensed by the Investor;

(vii) should the Company notcommence mining within two years fromthe date of the License Certificate, therights issued by the Company to theInvestor will automatically terminate andthe Investment will be refunded to theInvestor after any fees, taxes and chargeshave been deducted from the Investmentto be capped at a maximum of 10% of theInvestment made by the Investor;

(viii) The Company reserves the right todefer the date of performance of, orpayment of the Mining Revenue or toterminate this Licence, if it is preventedfrom, or delayed in, carrying on itsactivities by acts, events, omissions oraccidents beyond its reasonable control,including without limitation) strikes,lockouts or other industrial disputes(whether involving the workforce of theCompany or any other party), failure of autility service or transport network, act ofGod, war, riot, civil commotion, maliciousdamage, compliance with any law orgovernmental order, rule, regulation ordirection, accident, breakdown or plan ormachinery, fire, flood, storm or default ofsuppliers or subcontractors.

(ix) the Investor accepts that the miningLicence is subject to a mining licenceissued by the Landlord to the Company,and the termination of that licence willterminate this Licence; and

(x) the Investor accepts the description ofthe Licensed Area contained in theCompany’s marketing material and thisOffer, is approximately correct and suchplan is used for the purposes ofidentification only and no warranty isgiven or implied as to its accuracy and forthe avoidance of doubt the Investorhereby acknowledges that the Companyshall be entitled in its absolute discretionto change the layout of the plan providedthe total Licensed Area is not reduced.

(f) Any notice under this agreement shall begiven in writing only by the party servingthe same and shall be served upon theparty at the address of such party or atsuch other address as may be notifiedfrom time to time.

(g) Any notice served by first class post shallbe deemed to be served upon the thirdworking day after the date of posting.

(h) You may transfer your Licence to a thirdparty at any time after the initial 12 monthperiod subject to clause (i) in which caseyou may request in writing that theCompany assist to find a third partyinvestor. The Company will not be underany obligation to find an investor but willuse its reasonable endeavours to find aninvestor in which case the Company willbe entitled to a fee of 3% of the totalproceeds of any transfer which it procuresor arranges on the Investors behalf.

(i) You may not assign or transfer the benefitfrom this agreement without the priorwritten consent of the Company. TheCompany may assign the benefit of thisagreement to any of its holding

companies or subsidiaries of suchholding companies, or any other thirdparty.

(j) The Company reserves the right in theirsole discretion to change, suspend orsubstitute the terms and conditions ofthis offer at any time with or withoutnotice.

(k) This agreement and the Application Formwill be governed by and construed inaccordance with the laws of England andyou submit to the non-exclusivejurisdiction of English Law.

(l) The document and the Application Formconstitute the entire agreement betweenyou and the Company in respect of yourLicence and you acknowledge andconfirm that you have not entered intothis agreement in reliance on anyinformation which is not included in thisOffer or the Application form.

(m) A person who is not party to thisagreement has no rights under theContracts (Rights of Third Parties) Act1999 to enforce any term of thisagreement but this does not affect anyright or remedy of a third party whichexists or is available apart from the Act.

(n) This agreement constitutes the entireagreement and understanding of theparties and supersedes any previousagreement between them relating to thesubject matter of this agreement.

(o) The Investor hereby acknowledges that:

(i) the Company does not claim specialistknowledge or expertise as to the futureprice of the Licensed Area;

(ii) any representation made by theCompany’s sales consultants, agents orsales literature either in paper orelectronic form do not form part of thisagreement;

(iii) the Company gives no warranty as tothe future value of the Licensed Area orthe quantity and quality of metalsextracted from the Mining Plot(s);.

(iv) historical results on extractionamounts in the area surrounding theLicensed Area and the value of same isnot a reliable guide to future extractionperformance.

(v) there is no guarantee that the Licensedwill provide any return and the companycannot provide any guarantee as toresults from mining the Licensed Area.

(vi) the Company cannot guarantee thatthe price paid for the License representsmarket value for the Mining Plot(s); and

(vii) the Company cannot guarantee thatthere will be any annual return from themanagement and mining of the LicensedArea.

Terms & Conditions

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IGX Commodities Brokers Limited6th Floor, Remo House310-312 Regent StreetLondonW1B 3BS

Tel. +44 (0) 207 112 4942

Email. [email protected]. www.igxc.co.uk