A Global Resource Investment Company and Merchant Bank
Own a Piece of Our Experience
TSX:AAB
June 2012 A Forbes & Manhattan Group Company
OTCPS:AABVF
TSX:AAB
This presentation contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the proposed use of the proceeds of the financing, the receipt of all necessary approvals, the outcome of legal proceedings, the issue of permits, the size and quality of the company’s mineral resources, progress in development of mineral properties, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, the financial results of the company the future financial or operating performance of the Company, the prospective mineralization of the properties, planned exploration programs, anticipated production schedule and terms and the availability and likelihood of future acquisitions. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; acquisition risks; and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. This presentation does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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TSX:AAB 3
Global resource investment company / merchant bank Focused on private, micro- and small-cap resource companies
Unique, value-added approach to investing Actively builds companies to unlock value targeting triple digit returns over 2-5 years Leverages Forbes & Manhattan’s infrastructure and deal flow
Broad investment mandate in resource sector First Class Performance (67% IRR Since Inception, 4.5 Years) Significant exposure to gold in current portfolio Exciting investments in other resource sectors
TSX:AAB
~$61.8M Investment Portfolio Market Value (April 30, 2012) ~C$0.71* /share
1.
*Excludes value of two gold royalties
Aberdeen’s Shareholders Own:
4
TSX:AAB 5
Dividend – 4.0% Yield 2.
3. Gold Royalties paid quarterly*
5. Ongoing high quality deal flow Supporting next generation of investments
4. Performance Driven Upside • Bonus shares that will vest at No
Cost upon performance milestones on several holdings
~$500-700K *Royalty Sold effective May 31st
Dividend of $0.02/year to be paid semi-annually on March 31st and September 30th
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67%
4.5 Years Since Incept.
121%
3.0 Years Since Oct 2009
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$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
2008 2009 2010 2011 2012
Portfolio Value Shareholders' Equity Stock Price
TSX:AAB
• Seed Level Financings • Maintain Active Role • Public & Private
Companies
Aberdeen’s Capital
8
Actively building companies and creating value
• International Network • Geologists/Engineers • Legal/Admin/IR • Accounting
Forbes & Manhattan’s
Expertise
• Enhanced Returns • Proven Track Record • Successfully growing
the Portfolio Value
Success
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Merchant Banking Short-term investments Bridge financing Fee income
Royalty Revenue* Provides upside to higher gold prices Backed by 8 Moz reserves and 25 Moz resources
Private Micro-cap
Seed financings Active role in management & BOD Support financially in early stages
Active Investment +100%
From initial investment
+10% pa
+ Warrants
$2.5+M
pa
Targets
* Deal Pending for Gold Royalty Sale
TSX:AAB 10
Our Active Strategy Lowers The Risk
1. We invest at “seed” level when valuation is at its lowest • Often we are involved structuring the deal for ourselves • Keep large warrant positions and/or debt for upside and
protection
2. We maintain active role as a company partner • Assist management in early stages • Leverage F&M network to recruit key operational people • Retain board seat(s)
3. We offer diversification
• Diversified over number of investments (commodity exposure, stage of development, etc.)
• Maintain financial flexibility for new opportunities while giving shareholders good upside exposure to our successes.
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Bear Market • Opportunistic from
investment perspective • Investments in distressed
assets and public companies • Assist in restructuring to
unlock value
Bull Market • Opportunistic for
portfolio growth • Investments in private
companies • Unlock value by taking
investments public and corporate sales/mergers
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Aberdeen’s recent success:
$0.26
$1.18
$0.48
Avg Cost
Forbes & Manhattan success:
3,750% return in 4 years 4,500% return in 3 years
Desert Sun Mining (Gold) Consolidated Thompson (Iron Ore)
$735M sale price to Yamana Gold
$4.9B sale price to Cliffs
$0.14
$2.32
$0.34
Avg Cost
SOLD (Exited position at
$1.80-$2.32)
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Asset Class
Public Equities
Private Gold & Precious
Metals
Stra
tegi
c
By Commodity
*February 29, 2012
TSX:AAB 14
Sulliden Gold (TSX-SUE) Canadian-based gold development company with assets in Peru Developing the Shahuindo Gold Project, its 100%-owned flagship property
located in a prolific gold producing district in northern Peru, close proximity to Barrick’s Lagunas Norte and Newmont’s Yanacocha operating mines
Low cost, low capital mining scenario, forecasting production of ~150,000 oz per year, financed to construction
Feasibility study underway with expected completion by fall 2012
TSX:AAB 15
TSX-v: EAS Engaged in the exploration, acquisition and
development of mineral properties in Asia with a key focus on Indonesia and Mongolia
Current focus on the multi-million ounce Miwah high sulfidation epithermal gold deposit located in Aceh, Indonesia. Currently @ 3.28 MMoz
In 2011, East Asia Minerals became a member of the Forbes & Manhattan Group of Companies
Capital Structure
Common Shares 110,221,582
Warrants 29,950,000
Options 6,708,000
Fully Diluted 146,879,582
52-wk High/Low $8.24 / $0.41
Market Cap C$65 million
Cash C$19 million
TSX:AAB 16
Aberdeen has a UNIQUE and SUSTAINABLE business model that needs to be better recognized
• Tell our story through enhanced marketing efforts
• Continue to post exceptional results
• Cannot replicate our business with public holdings, therefore large valuation gap is not warranted
• Increase assets under management
• Sold gold royalties for $20.9 million (May 31, 2012)
• Increase liquidity and reduce market risk
• Organic portfolio growth
• 2012 warrants ($37.5 mm)
• Manage capital structure
• Execute regular share buybacks
• Increase dividend • Pursue other
corporate growth opportunities
PRIORITY #1 PRIORITY #2 PRIORITY #3
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PORTFOLIO GROWTH
CORPORATE GROWTH
Reducing discount to shareholder’s equity Increasing AUM should increase liquidity and reduce discount
Sale of gold royalties (closed May 31st) will provide new cash for investment into high quality, extremely undervalued world class assets.
New investments in precious metals, iron ore, coal, agri-minerals and energy set to continue the momentum in 2012
3 – 4 private investments to list in next 12 months – more value and liquidity Performance shares expected to vest for Aguia and Forbes Coal Unique access to seed financings on great resource assets
David Stein President & COO 416-861-5812 [email protected]
Contact Details
Mike McAllister Manager, Investor Relations 416-309-2134 [email protected]
A Forbes & Manhattan Group Company
Follow us:
TSX:AAB
www.aberdeeninternational.ca
TSX:AAB 19
TSX:AAB 20
Share Structure Major Shareholders
Management & Directors
15%
Shareholders’ Equity (Jan 31, 2012) = $1.12/share
Share Price (June 6, 2012) $0.44
Market Capitalization $38.1M 52 week High/Low $0.92/$0.40
TSX:AAB Shares Issued & Outstanding 86.5M Options 6.0M Fully Diluted 92.5M
AXA US Global Investors Freestone Capital TD Asset Mgmt Sentry Investments Dimensional Fund Meyer Handelman
11%
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George Faught, C.A. Chief Executive Officer
David Stein, CFA, MSc. President & Chief Operating Officer
Ryan Ptolemy Chief Financial Officer
Richard Bishop Vice President of Investments
Board of Directors
Strong management with a DEPTH of experience in the resource sector and a PROVEN track record at building companies from the seed level through to highly successful exits
Management Team Stan Bharti, P.Eng. Executive Chairman
George Faught, C.A. Director
David Stein, CFA, MSc. Director
Hon. Pierre S. Pettigrew Director
Bernard Wilson, C.A. Director
Mike Hoffman, P.Eng. Director
Jean-Guy Lambert, MBA Director
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Aberdeen compares favorably with the “better-known” resource investment companies
Sprott Resource Corp.
Pinetree Capital
• Large size, well financed, brand name mgmt
• 40% in cash and gold • Equity accounting
(private holdings) means revaluation events are rare
• Heavily weighted to agriculture and energy
• Expensive management fees
5-10 positions 20-30 positions 400+ positions
0.9x Shareholders’ Equity (March 31, 2012) 0.5x SE (est.) 0.5x SE (April 30, 2012)
• Large size, liquidity • Holds many passive
minority positions, marked-to-market quarterly (good visibility)
• Shareholders’ equity tracks TSXV index
• Little to no impact for individual positions
• Small market cap • Combination of liquid
public, private holdings, gold royalties
• ACTIVELY participates with management to optimize value and protect interests
• Big investment wins have a material impact to shareholders
• Pay dividend
TSX:AAB
F&M Provides Industry Leading Technical Knowledge & Accomplished Financial Markets Professionals
• Over 25 engineers • Over 25 geologists • Expertise in all
mining, energy & agriculture products
• 6 full-time securities lawyers
• Over 30 people with expertise in – M&A – Investment banking – Corporate
development – Investor relations
• Over 15 accounting and administration staff
Technical Team
Legal Team
Financial Team
Admin / Accounting
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Financing Marketing
M&A World class team Proven track
record
Actively building companies and creating value
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Gold Royalties*
Investment Portfolio
Cash
1% gold NSR
Buffelsfontein Mine (Simmers & Jack) Mine Waste Solutions (First Uranium)
8 Moz reserves
25 Moz resources
US$2.5M Current net over next 12 months
C$61.8M
Value at (April 30, 2012): 1. Sulliden Gold 2. Belo Sun 3. Forbes & Manhattan Coal 4. Brazil Potash 5. Black Iron
20other investments Agriculture Oil & Gas Mining
C$1-5M
Always evaluating new investments. Typical entry point:
Top 5 holdings
Top 5 holdings = 51% of Portfolio
* Gold Royalty Sold (May 31, 2012)
TSX:AAB
Sulliden
Sagres Brazil Potash
Belo Sun
Aguia Aguia
Largo Aguia
Irati
Alder Resources Bell Copper
Copper One
Bell Copper Copper One
Castillian Alexis Alexis
Alderon
Forbes Coal
Black Iron Sulliden
Alexis
Castillian Pitch Black
Allana
Allana
Silver Bear
Rodina
Castillian
Sagres
Copper One Rodina
Sagres
Cap-Ex
Cap-Ex
East Asia
East Asia
East Asia
Longford
Vast Exploration
East Asia
Temujin
Legacy Platinum
Dacha
Scandinavian Metals
Desert Eagle
F&M Headquarters
Forbes Offices
Energy
Precious & Base Metals
Fertilizer/Ag Output
Iron Ore/ Specialty Metals
Strategic Metals
TSX:AAB 26
Excellent infrastructure access to power, rail and port facilities Close to 5 other operating mines including
Arcelor Mittal’s iron ore complex 814 MT of measured, indicated inferred
resources at 31-32% iron Similar size and grade to Consolidated
Thompson (Canada), recently sold for $4.9 billion Experienced Management Team
TSX: BKI
Capital Structure
Common Shares 57,414,132
Warrants 21,829,348
Options 6,871,999
Fully Diluted 86,115,479
52-wk High/Low $1.16 / $0.25
Market Cap $42 million
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TSX-v: CEV Iron ore company with significant landholding in the Labrador Trough, near Schefferville, Quebec. The company is focused on the development of its wholly owned Block 103 property Management led by former Consolidated
Thompson. Huge land position of 121,000 hectares with
access to existing and planned infrastructure Flat lying iron ore sheet at surface covering 12km
by 2km area based on 26 drill holes with average drill indicated width of 110m and average grade of 30.5% Fe 2011 exploration drilling program completed
6,000 meters. 15,000 meters planned for 2012 NI 43-101 resource expected December 2012 PEA expected March 2013
Capital Structure
Common Shares 57,414,132
Warrants 21,829,348
Options 6,871,999
Fully Diluted 86,115,479
52-wk High/Low $1.25 / $0.25
Market Cap $25 million
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Strategic Platinum Holdings in South Africa
A growing platinum company in the midst of acquiring exploration and development assets on the Bushveld complex in South Africa with a focus on platinum with by-products (palladium, rhodium, vanadium, chromium, nickel)
21.9% of Sable Platinum Holdings (~178MMoz 4PGMs) on the Doornpoort, Klipfontein, Syfterfontein, Bank, and Abrina projects
Recent acquisition of Naboom Platinum Mine, South Africa’s first platinum mine which produced during the 1920’s via shallow underground and open pit mines with little modern exploration to date. Near surface mineralization with exceptionally high grades (7-20 g/t)
Looking for fit between short-term production at Naboom and long-term potential of Sable Platinum. Constantly evaluating additional opportunities in current market
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Gold and Base Metals in Sweden & Norway Resource stage polymetallic project in
Norway Early to advanced stage exploration
projects in Sweden Skellefte Field, Sweden: 100%
interest in > 23,180 hectares with multiple VMS targets
Bergslagen, Sweden: 100% interest in 10,766 hectares adjacent to world-class VMS-skarn type deposits of over 100MT
Grong Area, Norway: 40% interest in 14,067 hectares with multiple VMS deposits
Proposed dual listing on TSX-v and Sweden within 12 months
TSX:AAB
GOLD
METALS
BULK COMMODITIES
AGRI MINERALS
ENERGY
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