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Kenor ASA Nov 2003

Kenor ASA Nov 2003. Agenda. Corporate Profile Animation Large Exploration Program Scoping study Private placement and Rights issue Next phase. KENOR – Corporate Profile. Norwegian Gold mining and Exploration Company 18 years of experience in Guinea

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Kenor ASA Nov 2003

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  1. Kenor ASA Nov 2003

  2. Agenda • Corporate Profile • Animation • Large Exploration Program • Scoping study • Private placement and Rights issue • Next phase

  3. KENOR – Corporate Profile • Norwegian Gold mining and Exploration Company • 18 years of experience in Guinea • Gold production increased from 35 – 108 000 • 650 000 oz produced since 1995 • Listed on Oslo Stock Exchange • Continued focus on TSE listing

  4. KENOR – Corporate Profile • 142 mill shares after rights offering • 69 % overseas shareholders • 9 % Management and Board • 74 % of shares 20 largest shareholders

  5. 20 largest shareholders

  6. Animation The animation is available at www.kenor.no

  7. Objects 2002 - The Large Exploration Program • Financed June 2002 – USD 20 mill • LEP commenced 1 September 2002 • 1st Phase target: 1.5 ys – 6.75 m oz resource Cost: USD 9 m 2nd Phase target: 1.5 ys - 1.9 m oz resource - 3.8 m oz reserve Cost: USD 12.5 NPV (10) USD 192 m Exploration cost USD 2,50 per resource oz Cost of converting to reserve USD 3,50 per oz reserve Conversion rate 65 % Reserve grade 1,85 g/tones Stripping ratio: 3.5:1

  8. Scoping Study– 1st phase projected results by Dec 03 • 60 Mt economic mineralization • Grade 1.5 g/t / stripping ratio 2.4:1 • 4.5m oz resource/2.9m oz reserve (64 %) • Cost: USD 9m • USD 6 per resource oz (total average USD 4/oz) • USD 10 per oz reserve

  9. Scoping Study– New plant • Throughput 8 t/y (oxide and sulphide) • Average production 360k/year/7.6 ys (500k y1 and 415 y2) • Low stripping ratio 2.4:1 • Capex USD 124 m • NPV (8) USD 123 m • Payback 20 months

  10. Scoping Study summer 03 – key findings • LEP strategy to focus on higher grade, medium size deposits in the LEFA Corridor impacting positively on the new CIL project NPV and project life • Reasonable possibility for a much larger mineralized system in the LEFA Corridor

  11. Offerings Fall 2003 • Successful LEP and promising scoping study • Private placement 11m shares–NOK 52.25/USD7m • Rights issue 20m shares–NOK 95m/USD 12.7 • Subscription price NOK 4.75 • Use of proceeds: • USD 8m Feasibility study • USD 5 continued exploration in the LEFA corridor • USD 5 general corporate purposes

  12. Creating Shareholder value • 4.5 million ounces resource in the LEFA Corridor • Transactions in the market: average market cap per resource oz: USD 82 • KENOR current market cap USD 100 mill ( market cap per oz: USD 22) • Potential market cap USD 315 mill • Based on Placer Dome acquisition - 4.5 mill resource ounces x USD 70

  13. Creating Shareholder value

  14. Key financials • Cash generated from production • Q2 USD 1.8 milion • H1 USD 2.7 million • Cash cost Q2 isolated – 03 USD 254 / oz

  15. Key financials (IFRS) All data is reported according to IFRS.

  16. Next phase • Financing the new CIL project • Export credits • Bank loan combined with purchasing puts • Equity financing • Combination of these

  17. Safe Harbour Statement Certain statements contained herein, as well as oral statements that may be made by the company or by officers, directors or employees of the company acting on the company's behalf, that are not statements of historical fact, constitute "forward-looking statements" and are made pursuant to applicable and relevant national legislation (including the Safe-Harbour provisions of the Private Securities Litigation Reform Act of 1995) in countries where KENOR is conducting business and/or investor relations. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties are outlined in the company's Annual Report. The company is not obligated to revise or update any forward-looking statements in order to reflectevents or circumstances that may arise after the date of this presentation.

  18. http://www.kenor.com KENORs history The Large Exploration Program Current Operations Annual reports, news, presentations, teleconferences, webcasts, press releases Key figures Updated shareholder register

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