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Overview of Canada’s Capital Markets and TSX Group’s Global Strength in Mining

Overview of Canada’s Capital Markets and TSX Group’s Global Strength in Mining. November 5, 2003 Elaine Ellingham National Leader, Mining Toronto Stock Exchange 416.947.4516 elaine.ellingham@tsx.com.

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Overview of Canada’s Capital Markets and TSX Group’s Global Strength in Mining

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  1. Overview of Canada’s Capital Markets and TSX Group’s Global Strength in Mining November 5, 2003 Elaine Ellingham National Leader, Mining Toronto Stock Exchange 416.947.4516 elaine.ellingham@tsx.com

  2. TSX Group is a cornerstone of the Canadian financial system and is at the centre of Canada’s equity capital market • Junior listings • 2297 junior growth companies • Smaller financings • Good place to learn to be a public company • Streamlined graduation to Toronto Stock Exchange • Resulted from consolidation of Canada’s regional junior markets (VSE, WE, ASE, ME) • Inactives/Shells • 202 companies • Not for new listings • Easy to identify shells for back door listings • Senior listings • 1321 listed companies • Globally visible indices • Better access to large institutional investors and greater analyst coverage

  3. Toronto Stock Exchange is Canada’s senior equities market and a world-leading stock exchange • Global • 1. NYSE • 2. Tokyo • 3. NASDAQ • 4. London • 5. Euronext • 6. Deutsche Börse • TSX • Switzerland • Italy • 10. Hong Kong Market Capitalization Rankings TSX Stats • C$1.05 trillion in market capitalization • C$637.7 billion traded • 1,304 listed issuers North America 1. NYSE 2. Nasdaq 3. TSX 4. Mexico 5.Amex Source: World Federation of Exchanges, Dec. 31, 2002 / TSX Data 2002 Data

  4. Mining represents an important sector for TSX and TSX Venture Exchange * NEX-listed companies included >30% of the 3800 TSX Group companies are exploration and mining companies (2003 September)

  5. TSX Group has the largest concentration of listed mining companies in the world • Over 50% of the world’s listed mining companies • Being in the same market with a large number of players improves visibility for joint ventures and other transactions • 24 of our TSX mining companies are >$1 billion market capitalization • Supports the largest concentration of mining analysts - 65 Number of Listed Mining Companies * * Dec 2002

  6. 121 financings 2 financings 1041 financings 2 financings 4 financings 214 financings 103 financings 5 financings Access to equity capital is essential to advance exploration, develop mines and build world class mining companies Mining Equity Financings 2003 to September - C$ Millions • 45% of world’s equity capital raised for mining companies was for TSX and TSX Venture-listed companies • Mining companies raised 1½ times more equity capital on TSX and TSX Venture than any other major exchange in the world *Xstrata PLC completed one equity financing for $2.1 billion on LSE Source: Gamah International September 2003 Compiled by TSX

  7. Access to CapitalNumber of Equity Mining Financings Number of Financings 2000 2001 2002 1999 Source: Gamah International Compiled by TSX

  8. Access to small financings is essential to advance exploration projects and to stimulate new discoveries 568 Number of Mining Equity Financings – 2003 to September TSX Venture – 1041 financings AIM - 103 financings • TSX Venture completed five times as many equity financings as any other exchange in the world – many are small and this is unique to Canada but is part of the reason our companies are world leaders in exploring and developing new prospects (Cdn$) Source: Gamah International September 2003 Compiled by TSX

  9. Availability to complete large financings is important to develop mines and build world class mining companies Number of TSX Mining Equity Financings 2003 to September • In the first nine months of 2003 TSX listed companies completed 4 times as many >C$20 million financings than any other exchange in the world TSX ASX JSE NYSE LSE (Cdn$) Source: Gamah International September 2003 Compiled by TSX

  10. Mining Equity Financings1999-2003 1999 2000 2001 2002 2003 to Sept. C$3.4 billion C$2.4 billion Note: C$2.1 b is single Xstrata Plc financing Cdn $ millions *Xstrata PLC completed one equity financing for $2.1 billion on LSE Source: Gamah International September 2003

  11. Access to Capital Largest TSX & TSX Venture Equity Mining Financings 2003 through to August TSX – TSX Venture Financing Region Company (C$ millions) Funded Noranda $900.0 Canada, Peru, others Wheaton River $333.5 Mexico Kinross Gold $185.2 Canada, Russia, South America Sherritt International $109.5 Cuba Eldorado Gold $ 77.5 Brazil Ivanhoe Mines $ 74.5 Mongolia SouthernEra $ 69.8 South Africa Yamana Gold Inc. $ 55.5 Brazil Bolivar Gold $ 53.3 Venezuela Golden Star $ 51.0 Ghana Miramar Mining $ 35.1 Canada Cumberland Resources $ 31.0 Canada First Quantum $ 29.4 Zambia Amerigo Resources $ 27.9 Chile McWatters $ 27.2 Quebec Rio Narcea Gold Mines $ 27.0 Spain High River Gold $ 23.6 Russia/Canada Queenstake $ 21.0 Nevada, Mexico Minefinders $ 18.1 Mexico First Quantum $ 17.9 Zambia Cambior $ 17.8 Canada, South America Celtic Mineral $ 17.8 PNG Canico Resource $ 17.2 Brazil

  12. Strong liquidity in the secondary market supports best valuations and is important to investors Trading of mining shares on TSX in 2002: • Value traded US$87.4 billion • Volume traded 11.5 billion shares Average annual turnover for TSX mining securities 75% compared with overall TSX average of 66% 2002 Large cap (> $1 billion) 136% Mid cap ($250 m - $1 b) 91% Small cap ($50 m - $250 m) 53%

  13. A large peer group supports a large analyst community Average Number of Analysts covering a company 0-50 50-150 150-500 500-1,000 >1,000 Market Cap (Cdn$ Millions) • Concentration of 65 mining analysts in Canada - increased by 30% in one year • Canadian mining analysts provide coverage for broader range of companies • Our 27 interlisted mining companies received over 3 times as much Canadian analyst coverage as U.S. coverage

  14. Analyst Coverage Analyst Coverage of the World’s Largest Gold Companies TSX Listed Average 27 analysts per co. Not TSX Listed Average 13 analysts per co. 36 Exchangeables listed on TSX • Concentration of 65 mining analysts in Canada 30 29 20 Number of Analysts 20 15 13 10 Source: Nelson Financial 2002 Canadian Analysts US Analysts Other Analysts (UK, South Africa, Australia)

  15. International exploration and mining projects are readily financed through our Canadian capital markets • International mining projects are readily financed through our markets Of the 2417 exploration and mining properties held by TSX companies, 41% are outside of North America Of the 322 mines & mills operated by TSX companies 44% are outside of North America • A significant number of top mining people from around the world participate in our markets 35% of CEOs and 27% of directors of TSX mining companies are non-Canadian

  16. Global distribution of TSX and TSX Venture exploration and mining projects 1127 75 2857 63 248 147 370 170 184 260 281 195 331 52 338 125 37 53 Number of Properties by Exchange Source: InfoMine Compiled by TSX November 4 2003

  17. TSX mining companies have significant global participation 4 4 801 34 28 3 142 2 4 2 6 4 6 7 2 1 4 11 11 15 • 290 TSX mining company directors or 27% are non-Canadian

  18. Canadian securities laws and Exchange standards provide a high level of integrity to the markets • Focus on transparency and a level playing field • Timely disclosure policy cornerstone • Longstanding rules against selective disclosure • Website disclosure: www.sedar.com, www.sedi.ca • World leader in mining standards which creates investor confidence • TSX guidelines for disclosure by exploration & mining companies • Canadian Securities Administrators introduced NI 43-101 governing standards of disclosure for exploration and mining companies • Forwarding corporate governance

  19. Largest Peer Group In World Best exploration incubator Access to Capital Expertise in Mining Global Destination Liquidity TSX Group mining market has unique strengths • Supports premium valuations and enhances visibility for jv’s, mergers and acquisitions • Large analyst community that covers juniors and seniors • Specialized mining indices (Gold and Diversified Mining) • Facilitate the raising of more equity capital for exploration and mine development than any other major exchange in the world • Environment facilitates small and large financings • Vibrant retail investor base provides strong liquidity in secondary market even for smaller issuers • Strong equity culture - 46% of Canadians own shares • Institutional investor base that understands mining • Ability to finance international projects • Large number of non-Canadians use our markets to finance their mining projects • Abundance of skilled junior explorers with access to capital to stimulate new discoveries • Link between junior and senior market fosters growth of world class mining companies • Listing criteria, transaction policies and disclosure standards reflect our understanding of the business • Exchange staff with relevant mining business experience • Globally recognized standard-setter for mining disclosure

  20. TSX Group understands the mining business • The Canadian mining industry and our stock exchanges grew up and matured together to create a quality junior and senior stock exchange that are home to over 50% of the world’s publicly-traded mining companies • Globally recognized as a leader in mining reporting and disclosure standards • Listing criteria, transaction and disclosure policies that reflect our understanding of the business • A significant number of non-Canadian mining people are actively growing their companies through a TSX listing

  21. Toronto Stock Exchange and TSX Venture Exchange Global Strength in Mining Contacts: Elaine Ellingham National Leader, Mining Toronto Stock Exchange 416-947-4516 elaine.ellingham@tsx.com back

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