Nigerian Bentonite

1. Nigerian Bentonite • THE SUCCESS OF THE NIGERIAN BENTONITE ByOlukunle Amoo, Bestkamco Resources, Toronto, Canada & Prof.W.O. Emofurieta (Terra Miners Nig, Ltd) Agent : Watts, Griffis and McOuat, Toronto.

2. Nigerian Bentonite • Records have it that oil drill operations started in 1951 using imported bentonite largely from the US. • Before now millions of dollars are spent in the procurement of bentonite annually which has not been healthy for the economy of the country. • The justification for the importation was based on the belief that Na-bentonite did not exist in Nigeria particularly being a tropical country because Na-bentonite is traditionally a temperate mineral.

3. Nigerian Bentonite • But fossil Na-bentonite deposited under reducing and alkaline environment can occur in tropical countries. • In 1992, Terraminer reported the occurrence of more than 2 billion metric tons of bentonite reserve in Nigeria and the successful development of oil-well drilling mud from same but many did not believe.As of today, proven reserve has risen to more than 4 billion MT. • In 2001, SPDC decided to use the Nigerian Bentonite for the drilling of all the SHELL- EA Project Wells as a test.

4. Nigerian Bentonite • It is now on record that more than 600 wells have been successfully drilled in both east and west of the Niger Delta without the slightest hitch and it is still drilling at this moment. • Quite recently, the Nigerian Steel company has decided to use our raw bentonite ore as a binder in their manufacturing operations. They will be needing 100MT/day as well as need by other oil drilling companies. • There is therefore, absolutely no need for the importation of even a gram of bentonite or Aqua Gel into Nigeria anymore.This brings me to the thrust of my discussion with you today. • You are all welcome.

5. Geological Summary of the Deposit • The bentonite deposit occurs as a continuous highly fossiliferous sedimentary bed of early Mid-Eocene age (SPDC Report, 1999) with an east – west strike and a dip of 5 to 10 degrees. • The deposit is secondary in origin. • It is more than 10km wide, stretches through hundreds of kilometres and more than 40m thick on the average. • Pitting, sampling, mineralogical, geochemical analyses and geophysical surveys have revealed very consistent thickness and composition.

6. Geological Summary of the Deposit • The deposit is capped by one and a half to two and a half-meter thick soft layer of combined humus soil and a thin gypsum-shale overburden. In some places, the deposit is overlain by a massive continental sandstone. • Terra Miners Nig. Ltd is currently quarrying the deposit in an open cast mine for oil well drilling operations in the Niger Delta of Nigeria.

7. Location; Edo State, Nigeria

8. The Project • The project owners have acquired a mining license covering a portion [see figures attached] of a deposit of “bentonite” a clay material, which is used primarily in both the oil drilling and steelmaking process. • The owners currently have secured market orders for the delivery of over 8000 tons for the current year. The main purchasers to date have been/are; • Delta Steel (20 tonnes per day) but 100 Tonnes per day as Plant begins Operation early in the year. • Haliburton drlling mud supply company (1000 tons). • The current owners have been supplying bentonite to the local market since 2001.

9. Proposed Investments Structure • The current Nigerian operator functions at an artisan level. To meet the current and projected future need the project would benefit greatly by having access to an experienced, international industrial minerals operator. • The likelihood of success for this project would be greatly enhanced with experienced management, good equipment and processing facilities, a good quality control system and the ability to supply the market on a continuous year round basis. • With the right partners, good management and a firm market contract, this could be a very good project.

10. Investment Model • Forming a joint Nigerian- international company or partnership to supply both the local and international bentonite market; • The proposed structure would see the current Nigerian property owner and licence holder (operator) vend into the new co. the property assets, all current and future supply contracts and all current Nigerian business relationships government contacts etc. • The foreign investor would provide [capital or equipment required to enhance the operation] and the foreign investor would upon a minimum level of investment become the operating manager. • Initial JV earn in structure, for an investment of • $1 million……………10% • $3 million ……………20% • $5 million …………….40%

11. Investment Model • Upon achieving the investment level of $3 million, the foreign investor would become the technical operations manager. • Upon achieving the level of production required to supply the local market the partners would agree to discuss development of foreign markets, subject of course to any applicable Nigerian regulations. • Any additional capital investments required to meet the foreign market specifications and quantity of product required etc. would be based on the ownership ratio and should either party elect not to participate their percentage of interest in the joint company or partnership would be diluted.

12. Government Policy • The current Government policy to ban importation of bentonite and barite is best for the country and investment in this industrial Minera, Bentonite. This policy is rigidly being implemented and enforced. • Government is assisting indigenous companies in shopping for credible Technical Partners and financiers. • The indigenous companies should be backed officially and assisted financially by foreign Funding and Technical knowhow to take off properly.

13. CONCLUSION • A massive montmorillonitic clay deposit has been discovered in Nigeria with an estimated reserve of more than 4 billion MT.. • It is suitable for oil well drilling operations in all environments, including land, swamp, shallow off-shore and deep off-shore. • Teamwork and patriotism are cardinal to technological development. • Nigeria has put a ban on importation of bentonite. • The industry, when set up will provide jobs for many skilled and unskilled Nigerians and a training ground for the younger ones particularly now that the Nigerian Steel Company is set to use our bentonite ore as a binder in the manufacture of steel in Nigeria..

14. Quarry Site

15. Nigerian Bentonite THANK YOU ALL !!!