BATSALANI JUNIOR MINING BLACK OWNED JUNIOR MINING INVESTMENT

BATSALANI JUNIOR MINING: BLACK OWNED JUNIOR MINING INVESTMENT COMPANY Toronto: 4 March 2008 Farouk Abrahams Chief Executive: Batsalani Junior Mining

BATSALANI JUNIOR MINING GROWTH OPPORTUNITIES IN MINING IN SOUTH AFRICA Batsalani is a Setswana word meaning PARTNERSHIP, a philosophy our team shares with our associated strategic alliances, investors, partners, lenders, BEE consortia and portfolio investee companies www. batsalani. co. za

AGENDA § GROUP – Background – Existing Investments § MARKET OPPORTUNITY § BATSALANI JUNIOR MINING – Executive Summary – Pipeline – Smokey Hills PGM Project – Investment Model – Exit Strategies – Conclusion

THE GROUP

BACKGROUND § Batsalani is a black owned investment company owner managed by experienced entrepreunial investment bankers. § Independent with a sound proven track record in its focus areas and was founded by the late Frank Molobi, Farouk Abrahams (CE) and Ibrahim Khan (Chair). § Batsalani aims to identify, source and secure a portfolio of assets that provides a consistent and sustainable cash flow. § Our vision is to leverage Funding, Strategic industry insight, Relationships, and Transaction execution capabilities to unlock value in our portfolio companies. Batsalani focuses on the following sectors: TELECOMMS-MEDIATECHNOLOGY Services and procurement MINING & RESOURCES Mining Assets “Incl. Junior Mines” PROPERTY Beneficiation

Existing Investments Name of Company Nature of Transaction Mining: The Group is part of consortium who has a Business PGM producer 21. 45% stake in the Smokey Hills PGM project in the Limpopo Province. TMT: The Group was awarded a portion of Welkom Naspers is a multinational media company with Yizani and Phuthuma Nathi BEE schemes launched by principal operations in electronic media and print Naspers late in 2006 & early 2007 media Property: The Group is part of the Buhlobo Vukile is a property Loan stock company listed on Consortium who has direct stake in Vukile Property. the JSE. Sanlam Life is the major shareholder. TMT: The Group has a 30, 95% stake in rapidly growing Largest Independent African Operator = 25% Market SA based multinational telecoms company with offices Share. Voice & data management & routing to & in Johannesburg, London, Brussels, Geneva, and from 34 African countries primarily using satellite several African countries Networks. GTV – a pan African pay – TV satellite delivered service TMT: The Group has a 40% stake in this UK based A UK based mobile prepaid transaction or airtime company which operates in the prepaid airtime and electronic pin-based distributor electronic product market

THE MARKET OPPORTUNITY

Market Opportunity Factors such as structurally higher demand in terms of “Chindia effect”, the weakening US$ and consolidation in supply, remain positive factors South Africa is the world’s richest and most diverse repository of mineral commodities. Globally, largest producer of gold, vermiculite, platinum and chromium. Major deposits of antimony, coal, iron ore, manganese, nickel, phosphates, tin, uranium, diamonds, copper and vanadium Mineral and Petroleum Resources Development Act (MPRDA) 2002 § Prospecting rights applied for between May 2004 and October 2007 totaled: – – 7 547 received 5 948 accepted 2 789 granted 2 033 issued § Mining permits applied for between May 2004 and October 2007 totalled: – 3 840 received – 3 255 accepted – 1 318 issued § The natural consequence of the MPRDA and related legislation over the last 3 years resulted in conclusion of over US$ 10 billion BEE deals § Creation of black owned mining companies – Anooraq, BSC Resources § Creation of Partnership/JV’s – Platinum Australia, GVM Metals, Homeland Corp Source: SAMDA

South Africa’s Exploration Expenditure 2003 -2006 Dominant targets for recent exploration activity in South Africa: PGM’s, Diamonds, Gold, Uranium and Coal Source: SAMI Report – 2006 -2007

Pl ati nu m gr ou Fe Va p rr na m odi et ch u al V ro me s r mi C mi u hr m ocu M l mit a e g n e a n. Fe or e e se G o. M r e n/ ol Fe d -Si Sil ic C M o on a n l m. A et n al m ti on Ni y cr Ik eln o A O l ur e mi ni Ur u an m iu m Le ad C op pe Sil r ve r Zi nc South Africa’s Role in World Mineral Production Number = World Ranking Source: Data from SAMI Report – 2006 -2007

The Listed Junior/Mid Tier Mining Companies By Market Capitalisation New BEE regulations (2002) have added some life into the industry by attracting smaller mining players to join the fray. With the major players focusing on crossacquisition, it is the smaller miners that are now expected to revive the industry. Sector Exposure Source: Business Monitor International Source: Nedcor Securities, as at 15/2/08

Why Junior/Mid Tier Mining Isn’t What It Used To Be? The junior mining space in South Africa has increased massively in value Source: Data from Ned. Sec Junior Mining and Exploration Index and I-Net Bridge

BATSALANI JUNIOR MINING

Executive Summary § The opportunity to benefit from investing into mining projects in South Africa. § Via a black owned investment company managed by an experienced team of technical and financial entrepreneurs/professionals § Intend on partnering with junior/mid-tier mining operators which have a successful track-record in both green and brown fields projects and/or § Or do some early stage development i. e. take it up the value curve and/or § Use different mineral hubs for consolidation in the industry § Strong pipe line in Commodities – PGM, coal, nickel and base metals § To generate capital appreciation, with a view to extracting long term growth from profitable portfolio investments in the junior mining sector § We are not: § § § Operational company such PLA or BSC Resources Nor private equity or asset management company in the strict sense We are development company - combination

Pipeline § Black owned and managed investment firm § Strong and experienced financial and technical team § Has established key relationships with all stakeholders in the industry Project and/or Partner Status Level of participation Platinum Australia’s Smokey Hills PGM project Mining right granted BEE partner to PLA PGM project Prospecting Right imminent BEE partner to junior Coal project PR imminent Batsalani will commence with early stage development In discussion with junior to jointly developed PR granted Iron Ore project Various commodities MOU signed with Either partner or commence company that has with early stage several PR granted, development pending and new

PLA Smokey Hills PGM Project • Located on the eastern limb of the Bushveld Complex in the Limpopo Province • PLA commenced a resource definition drilling program on the project in July 2005 • Mining Right issued & construction commenced in November 2007 • Open Pit Mining started in January 2008 • Commissioning in June 2008 BFS Feb 2008 Base 1 July 062 Base 1 Feb 083 Capital US$ Million 40 40 46 49 Ongoing Capex US$ Million 14 14 Cash Costs US$/oz 4 E 225 270 240 Basket price US$/oz 4 E 677 1, 296 677 1, 530 70% 800% 40% 140 +500 100 +500 IRR (Pre Tax) Cashflow (Pre Tax) US$ Million

Investment Model § 3 C’s – Counterparty – Country – Commodity § Leverage own capital using favourable developmental funding for BEE deals § Cost curve analysis Source: NAMF Annual Report

Exit Strategies § Following results from early stage development either trade sale to and/or partner with a junior mining/mid tier company § Management Buy Out (“MBO”) § Leveraged Buy Out (“LBO”), possibly coupled with a share buy back § Initial Public Offering (“IPO”) § Acquisition by major mining company § Hold

Concluding Remarks § Global demand for commodities § South Africa “response” to this global demand § Batsalani Junior Mining: – Black owned investment company – Structured multi-disciplinary management team – highly experienced in mining and finance – Strong existing relationships with key players in the industry – Strong pipeline of deal flow at advanced stages § Interested parties as investors, assets or relationship with potential sources of junior mines are invited to meet with management to discuss possibilities

Contact details South Africa – Johannesburg Physical Location: 222 Rivonia Road Morningside Close Block A, 1 st Floor Morningside 21496 Postal Address: P O Box 781809 Sandton 2146 +27 (0) 11 656 6816/7 +27 (0) 11 656 6804 Telephone: Fax: Website: www. batsalani. co. za Farouk Abrahams Tel: +27 (0) 11 656 6816/7 fabrahams@batsalani. co. za

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