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Dr. Herman Tso, Chief Geologist

Natural Resource Limited. Group Inc. Mining Company & Project Valuation. Dr. Herman Tso, Chief Geologist. HASS Natural Resources Limited HASS group Inc. Address: Unit A, 7/F, Pico Tower, 66 Gloucester Rd., Wanchai , Hong Kong. Website:  http://www.hass-group.com. Natural Resource

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Dr. Herman Tso, Chief Geologist

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  1. Natural Resource Limited Group Inc. Mining Company & Project Valuation Dr. Herman Tso, Chief Geologist HASS Natural Resources Limited HASS group Inc Address: Unit A, 7/F, Pico Tower, 66 Gloucester Rd., Wanchai , Hong Kong Website: http://www.hass-group.com

  2. Natural Resource Limited Business & Intangible Assets Valuation Natural Resources Valuation Purchase Price Allocation Financial Instruments Valuation Industrial Valuation Corporate Advisory CONNECTING YOUR BUSINESS TO THE RESOURCES YOU NEED • Project Feasibility Study • Resources Estimation • Evaluation • Due Diligent • Project Funding • Technical Report Our Pledge

  3. Project Experience Natural Resource Limited Argentina Australia Brazil China Indonesia Kazakhstan Malaysia Mongolia Philippines Russia South Africa USA Our Pledge

  4. Project Experience Natural Resource Limited • Molybdenum • Iron • Manganese • Oilfield • Salt Lake • Silver • Tin Coal Copper Gold Nickel Lead Zinc Our Pledge

  5. Classification of Petroleum Resources and Reserves Project Experience Natural Resource Limited Petroleum Resources Classification System Illustrations of Resources Our Pledge

  6. Classification of Petroleum Resources and Reserves Project Experience Natural Resource Limited Classification and Differences Between Mineral Resources and Reserves • Resources • Inferred • Indicated • Measured • Reserves • Possible • Probable • Proved Differences Between Mineral Resources and Reserves (con’t) Our Pledge

  7. Reporting Standards for Technical Report Project Experience Natural Resource Limited Technical Report • Prepared by Competent Person • - Minimum of 5 years of experience • - Professionally qualified • - Take overall responsibility • - Independent of the issuer Reporting Standards for Technical Report • Mineral Resources • Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”); • National Instrument 43-101 (“NI 43-101”); or • South African Code for Reporting of Mineral Resources and Mineral Reserves (“SAMREC Code”) • Petroleum Resources • Petroleum Resources Management System (“PRMS”) Our Pledge

  8. Reporting Standards for Technical Report Project Experience JORC Code (Mineral Resources) Natural Resource Limited • Originally issued by the Australasian Jointed Ore Reserves Committee in 1989 • Purposes: • Establish the Minimum Standards for Public Reporting of Mineral Resources and Ore Reserve • Set out a System for the Classification of Tonnage and Grade Estimates • Specify the Qualification and Experience required for Competent Person Our Pledge

  9. Reporting Standards for Technical Report Project Experience NI 43-101 (Mineral Resources) Natural Resource Limited • A mineral resource classification scheme used for the information disclosure relating in Canada • Purposes: • Ensure that misleading, erroneous or fraudulentinformation is not published • Stipulate prescribed disclosure within the national instrument (such as technical information, terminology, compliant report) • Comparison to JORC Code • Require substantially more technical disclosure Our Pledge

  10. Reporting Standards for Technical Report Project Experience Natural Resource Limited SAMREC Code (Mineral Resources) • A required minimum standard for public reporting on exploration results mineral resources or mineral reserves in South Africa • Purposes: • Inform investors or potential investors and their advisers • Satisfy regulatory requirements Our Pledge

  11. Reporting Standards for Technical Report Project Experience Natural Resource Limited PRMS (Petroleum Reserves) • Approved by the Society of Petroleum Engineers (SPE) Board of Directors • Purposes: • Provide a consistent approach to estimating petroleum quantities • Evaluate development projects • Present results within a comprehensive classification framework Our Pledge

  12. Reporting Standards for Technical Report Project Experience Natural Resource Limited Russian Code & Chinese Code Conversion Guidelines Russian Resource/Reserve Reporting Standard • Level of Knowledge • P3: Regional Reconnaissance • P2: Target Identification • P1: Initial Trenching and Drilling • C2: Scoping / Pre-feasibility • C1: Feasibility Study • B: Blocking out Ore Panels • A: Production Our Pledge

  13. Reporting Standards for Technical Report Project Experience Natural Resource Limited Russian Code to JORC Code Conversion Guidelines Our Pledge

  14. Reporting Standards for Technical Report Project Experience Definition of the New Chinese Resource Category Scheme Natural Resource Limited Chinese Code to JORC Code Conversion Guidelines Our Pledge

  15. Project Experience Natural Resource Limited Chapter 18 AGENDA • Part 1 Chapter 18 • 1.1 Introduction to the Mining Industry • 1.2 Key Changes and New Requirements of HKEx Listing Rule on Mineral Companies - Chapter 18/18A • 1.3 Important Issues - Listing Requirements • - Disclosure Requirements • - Preparation of Reports • 1.4 Recent Technical Advisory and Valuation Projects of ROMA • Part 2 Valuation • 2.1 Reporting Standards for Valuation • 2.2 Determination of the Value of Mineral/Petroleum Assets Our Pledge

  16. Project Experience Part 1- Chapter 18 Natural Resource Limited Chapter 18 • Mining Industies - Definte Life - Limited resouces • Other Industries - Going comcern - Terminal value(DCF) Key Changes and New Requirements of Chapter 18/18A • Purpose of Rule Change: • Increase shareholders and investors’ confidence in junior mining companies listed in the HKEx Our Pledge

  17. Project Experience Natural Resource Limited Chapter 18 Chapter 18/18A • New Rules - Effective on 3 June 2010 • Exclude early stage exploration companiesfrom listing • Industry experience requirement of Competent Person has been increased from 3 to 5 years • Disclose specific risks and general risks Chapter 18/18A (con’t) • Allow mineral and exploration companies to list withoutneeding the financial track record of Listing Rule 8.05 • Mineral resources and mineral reserves must be reported separately Our Pledge

  18. Project Experience Natural Resource Limited Chapter 18 Chapter 18/18A (con’t) Allow companies to list only if they have a minimum of the following resources: Petroleum Companies - At Least a meaningful portfolio of Contingent Resources Minernal Companies - At least meaniful portfolio of Indicated Resource Our Pledge

  19. Project Experience Listing Requirements Natural Resource Limited Chapter 18 • All Mineral Companies • Companies thatonly have Inferred or Prospective Resourceswill not be eligible for an IPO listing under the new Chapter 18 rule • Demonstrate working capital for 125% of budgeted needs for at least the next 12 months ( 13 months) Disclosure Requirements • Interim and Annual Reports have to include: • Details of its exploration, development and mining production activities • A summary of expenditure incurred on these activities during the period under review Our Pledge

  20. Preparation of Reports Project Experience Natural Resource Limited Chapter 18 Important Issues – Preparation of Reports Our Pledge

  21. Important Issues Project Experience Natural Resource Limited Chapter 18 • Early Stage Exploration Companies • Must outline their plans to proceed to production, supported by an independent Scoping Study • Mineral companies which do not satisfy Rule 8.05(1) (Profit Test), but are applying to list under Listing Rule 18.04 must demonstrate a clear path to commercial production • Pre-feasibility studiesare required • All Mineral Companies • Must demonstrate that they have adequate rights to participate actively in the exploration or exploration and extraction of resources, either by: • Having controlling interests in a majority (by value) of the assets in which they have invested; or • Through other rights, which give them significant influence in decisions over the extraction of those resources Our Pledge

  22. Insights from Our Recent Project Experiences Project Experience Natural Resource Limited Chapter 18 • In order to smoothen the listing and transaction transaction process, we suggest: • Make sure that both the technical and valuation reports are prepared in accordance with the reporting standards accepted by the HKEx • Have sufficient due diligence conducted • Show that you have conducted sufficient researches on the involved market and mineral resources • Have sufficientdisclosure of informationrequired by the HKEx in the circular (Do not try to hide anything) Our Pledge

  23. Project Experience Natural Resource Limited Valuation • 1. CIMVAL • Set out in Canada • Outline the sections to be included in the Valuation Report • 2. SAMVAL • Set out in South Africa • Relatively less restrictivecompared to the VALMIN Code and the CIMVAL Code • Necessary to carry out a site visitby a Competent Valuator or by a Competent Person or an expert Our Pledge

  24. Recent Technical Advisory – Natural Resources Industry Recent Job Natural Resource Limited Our Pledge

  25. Recent Job Natural Resource Limited Our Pledge

  26. Recent Job Natural Resource Limited Our Pledge

  27. Recent Job Natural Resource Limited Our Pledge

  28. Valuation Natural Resource Limited Part 2 Valuation Reporting Standards for Valuation • Standards and Guidelines for Valuation of Mineral Properties (“CIMVAL” code); • South African Code for the Reporting of Mineral Asset Valuation (“SAMVAL” code); or • Code for the Technical Assessment and Valuation Mineral and Petroleum Assets and Securities for Independent Expert Reports (“VALMIN” code) Our Pledge

  29. Determination of the Value of Mineral/Petroleum Assets Valuation Natural Resource Limited Market-Based Approach - Comparing prices of business entities in a similar nature - e.g. Using price-to-sales ratio (P/S ratio) - Estimate the price using information of similar transactions Our Pledge

  30. Valuation Natural Resource Limited Income-Based Approach • - Economic benefits due to the income producing capability • Estimation of value depends on cost structure of companies • Adopt discount cash flow (DCF) method Cost-Based Approach - Aggregating the costs of developing the asset to its current condition, or replacing that asset Our Pledge

  31. Valuation Determination of the Value of Mineral/Petroleum Assets Natural Resource Limited

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