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BATSALANI JUNIOR MINING: BLACK OWNED JUNIOR MINING INVESTMENT COMPANY Toronto: 4 March 2008

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.

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BATSALANI JUNIOR MINING: BLACK OWNED JUNIOR MINING INVESTMENT COMPANY Toronto: 4 March 2008

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  1. BATSALANI JUNIOR MINING:BLACK OWNED JUNIOR MINING INVESTMENT COMPANYToronto: 4 March 2008 Farouk Abrahams Chief Executive: Batsalani Junior Mining

  2. 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

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

  4. THE GROUP

  5. BACKGROUND TELECOMMS-MEDIA-TECHNOLOGY MINING & RESOURCES PROPERTY Mining Assets “Incl. Junior Mines” Beneficiation Services and procurement • 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:

  6. Existing Investments

  7. THE MARKET OPPORTUNITY

  8. Market Opportunity 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 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 Source: SAMDA

  9. South Africa’s Exploration Expenditure2003-2006 Dominant targets for recent exploration activity in South Africa: PGM’s, Diamonds, Gold, Uranium and Coal Source: SAMI Report – 2006-2007

  10. South Africa’s Role in World Mineral Production Vanadium Silicon metal Ferro-chromium Vermiculite Platinum group metals Manganese ore Fe-Mn/Fe-Si-Mn Chrome ore Iron Ore Coal Aluminium Antimony Zinc Uranium Silver Gold Copper Lead Number = World Ranking Nickel Source: Data from SAMI Report – 2006-2007

  11. The Listed Junior/Mid Tier Mining Companies 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 cross-acquisition, it is the smaller miners that are now expected to revive the industry. Source: Business Monitor International By Market Capitalisation Sector Exposure Source: Nedcor Securities, as at 15/2/08

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

  13. BATSALANI JUNIOR MINING

  14. 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

  15. Pipeline Black owned and managed investment firm Strong and experienced financial and technical team Has established key relationships with all stakeholders in the industry

  16. 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

  17. 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

  18. 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

  19. 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

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

  21. QUESTIONS&ANSWERS

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