Compostela Mining Limited

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Compostela Mining Limited

• ComVal Tribal Resources Corporation

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Project Overview

• Gold and copper exploration company, operating in
  Mindanao, Philippines.
• The project has been granted a unique Operating
  Agreement (OA) over two areas (TRIMA 1 and TRIMA
  2) totalling 950 hectares.
• Within TRIMA 1 are located continuations of the
  Mt Diwalwal vein systems from which high grade
  gold has been identified.
• TRIMA 2 shows strong evidence of porphyry style
  copper/gold mineralisation.
• Please refer to the ACA Howe report at
  www.comvaltribal.com for further technical
  details on TRIMAs 1 and 2.
• Mt Diwalwal (which is contiguous to TRIMA 1) is
  recognised as a world renowned gold producing
  area. The Philippines hosts many of the worlds
  major porphyry deposits.
• Funds raised will be used to delineate the
  ore-bodies in both TRIMAs and prepare a
  preliminary feasibility study over the next 2
  year period. Further potential is offered in an
  another area comprising 3,200 ha (EPA-2).

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What differentiates Compostela from other
exploration plays in the Philippines?

• Uniquely, Comval Tribal Resources Corporation
  (Comval) has joined with the indigenous people of
  the region surrounding Monkayo in the province of
  Compostela Valley to exercise their
  preferential right to explore and mine any
  portion of their ancestral domain. This confers
  the project with the key milestone of achieving
  Free, Prior and Informed Consent (FPIC) of the
  local community, who enjoy a 30 free-carried
  interest in the project. Accordingly, no
  interference from any activist organisations has
  been experienced or expected in the future.
• The Philippine Mining Development Corporation
  (PMDC) has granted the Indigenous Cultural
  Community (representing 4 tribes) the OA over
  950ha known as Tribal Mining Areas, TRIMA 1 and
  TRIMA 2. Again, uniquely, the OA confers the
  rights to commence exploitation (mining) without
  the requirement for further input or permitting
  from the authorities.
• The right geological address by virtue of being
  directly adjacent to Mt Diwalwal an infamous
  gold rush area since 1983 and potentially host to
  a major Cu porphyry deposit.

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History of the Project

• A Japanese Geological Survey for copper
  porphyries was undertaken in the early 1970s.
• In 1983 a local tribal member discovered gold in
  streams on Mt Diwalwal, sparking a gold rush that
  has been sustained to this day. At its peak, over
  100,000 small-scale miners worked on Mt Diwalwal.
  
• In 1986, a company called Marcopper commenced
  exploration in the area, but its programme was
  terminated in 1992 as the company failed to
  obtain a renewal of its EP. However, sufficient
  soil anomalies in what is now TRIMA 1 and TRIMA 2
  had been recorded for Mike Spadafora, Comvals
  consultant geologist, to note the sites
  potential.
• In 2006, Hawkeye (a Philippines exploration
  company) entered into a FTMA with the 4 tribes
  over their 30,000ha Certificate of Ancestral
  Domain Title.
• In 2008, Comval acquired an option from Hawkeye
  over EPA-1 (now TRIMA 1 and TRIMA 2) and EPA 2
  (see map on slide 12)
• 3m has been expended building capacity on
  sustainable projects within the tribal community,
  obtaining FPIC as a precursor to acquiring the OA
  from the PMDC over TRIMA 1 (gold) and TRIMA 2 (Cu
  porphyry) and completing the ACA Howe Technical
  Appraisal Report.
• Compostela Mining Ltd. was established in the
  Isle of Man as a tax-efficient vehicle to take
  the project forward to an IPO on an appropriate
  stock exchange.

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Corporate Structure
CMLs interest is derived from its control of CTRC
which, under the Philippine Constitution, is
limited to 40. Upon exercise of the MQI option a
further 50 interest in the project will be held
in trust for CML by MQI. MQI is a 100 Philippine
owned and controlled corporation.
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Capital Structure

• Ordinary Shares 15,940,570
• Anticipate listing on a recognised exchange by
  end of 2009.
• Implied value of 5.5m.
• Major Shareholders
• Grafton Resource Investments Limited 5,375,000
  (33.7)
• Newland Resources Limited 3,284,374 (20.6)
• Roy Nominees Limited 2,000,000 (12.5)

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Directors
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Organization Chart Corporate
Comval Tribal Resources Corporation
Chairman (Filipino) Non Executive
Non Executive Director (Filipino)
Non Executive Director (Filipino)
Non Executive Director (UK)
Co Secretary
President Executive Director (Australian)
Secretary (Filipino)
Legal
Technical
Admin/Finance
Financial Controller (Filipino)
Accounting Clerk (Filipino)
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Organization Chart Exploration
President
Security
Exploration Manager
Drill Operation Manager
GIS/Database Manager
Geological Exploration Manager
IT Manager
CSR Manager
Exploration Logistic
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Technical Team and Advisors
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Geography
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Map of the Region and noteworthy deposits

• Medusa Co-O Mine High grade u/g gold expanding
  to produce 100koz/a by end 2010. Resources of
  1.38Moz _at_ 10.8g/t Au.Lingig porphyry target.
  Market cap of approx. US350m.
• Benguet Corps Kingking Cu/Au porphry project
  1Bnt _at_ Cu 0.31, Au 0.41g/t.
• Crew Gold Maco Mine epithermal vein complex with
  resources of 520koz.
• The former Amacan Mine (closed in 1992) 110Mt _at_
  0.34 Cu and 0.41g/t Au in situ.

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TRIMA Regional Geology
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TRIMA Tenement Status Map
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TRIMA 1 (Tribal Mining Area 1)

• TRIMA 1 adjoins Diwalwal to the west this Gold
  rush area, discovered in the early 80s, is a
  high grade epithermal vein complex which has been
  the subject of intensive artisanal mining,
  reputed to have produced at least 11 million oz
  (over 340 tonnes) of gold.
• TRIMA 1 is contiguous to the western boundary of
  Diwalwal whose major vein systems extend along
  strike into TRIMA 1. The extent of the
  continuation of the vein systems into TRIMA 1 is
  to be verified in the next phase of the
  exploration programme.
• The area is host to several gold bearing quartz
  veins. Past geochemical sampling work has
  generated a number of gold anomalies in the south
  east quadrant of the area where initial
  exploration will focus.
• Work to date on TRIMA 1 has been limited to chip
  sampling of existing adits (previously worked by
  artisanal miners) and soil sampling near workings
  in the northwest corner of the area.
• A second (3,200 ha) area to the north of TRIMA-1
  lies on strike and of similar lithology to rocks
  hosting the major vein systems of Mt Diwalwal. An
  Exploration Permit (EPA-2) has been submitted to
  carry out work over this area.

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TRIMA 1 Future Work Program

• Grid entire area and carry out Digital Terrain
  Modeling
• Detail map and soil sample south east quadrant
• Structurally map disposition of Fregor vein
  system on surface to confirm extension of the
  Diwalwal vein system into TRIMA-1
• Re-open old existing and previously high graded
  adits
• Geophysics magnetics (entire area)
• Assess and plan drill targets

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TRIMA 2

• Evidence of porphyry style copper/gold
  mineralisation.
• Cu soil assay values in two discrete areas, both
  open to the north
• Au values coincident with As values, particularly
  in east of TRIMA 2, Hill 631 and Mamunga
• Au zones in East correlate with silicate and
  sulphide mineralisation identified by TEM
  resistivity survey
• Pb association with gold may indicate high gold
  values
• Anomalous zones correlate well with historic
  anomalies

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TRIMA 2 Future Work Program

• Closer spaced and extension soil sampling to
  improve interpretation and enable target
  definition.
• Geophysical surveys over entire geochemically
  anomalous area consisting of
• Ground magnetics
• Dipole Dipole IP (Previous work limited in area
  and partly inappropriate techniques for porphyry
  copper deposits)
• Topographical surveys along grid lines (necessary
  for IP depth estimation)
• XRF alteration study
• Design and execute preliminary drill program

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TRIMA 2 Gold, Arsenic and Soil Anomalies
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Source ACA Howe Report 2009
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TRIMA 2Copper Soil Anomalies
Source ACA Howe Report 2009
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View of Higanteng Bato
A gold mineralised volcanic pipe, indicative of a
possible porphyry source at depth
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TRIMA 2Higanteng Bato
A previous consultant to the project estimated a
non-JORC compliant Resource of 1.6mt at a grade
of gt 1g/t Source ACA Howe 2009
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TRIMA 2Idealised Schematic Cross Section
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SWOT

• Strengths
• Operating Agreement no further permitting
  requirements prior to commencing exploitation
• Positioning as son of Medusas Co-O mine with
  value potential gt 350m
• Relationship with Tribes gives security over
  asset
• Ease of access and good infrastructure
• Weaknesses
• Mindanaos reputation as a conflict zone
  activities of MILF and NPA
• Early stage exploration play with no JORC/NI
  43-101 compliant borehole data
• Potential delays and disruption to exploration
  programme caused by weather/landslides.
• Opportunities
• Early cash flow potential from small scale
  working of high grade gold veins in TRIMA 1
• Accelerated development of TRIMA 2 copper
  porphyry through farm-in by major mining company
• Promotion of stock through regular releases of
  exploration results
• Threats
• Release of bonanza gold grades may provoke site
  invasion by artisanals
• Peso/US forex risk adversely affecting cost base

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Strategy and Objectives

• Obtain JORC compliant assessments of the
  mineralisation over both TRIMAs with an initial
  focus on TRIMA 1.
• TRIMA 2 has potential to host near surface, bulk
  tonnage gold deposits (gt1 g/t, open pit
  mineable), plus major porphyry copper/gold
  mineralisation at depth.
• Once a minimum gold reserve on TRIMA 1 has been
  identified, initiate small-scale (c 5-10kozpa)
  production using local toll treatment CIP
  facility and u/g mining contractor.
• Use cashflow to accelerate expansion of TRIMA 1
  resource base.
• Once initial resource on TRIMA 2 identified,
  negotiate farm-in.
• Carry out groundwork over EPA-2, which has
  similar rock units to TRIMA 1 and 2, to explore
  for potential repeats of the Diwalwal style
  epithermal gold veins and further Copper/Gold
  porphyry systems.

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Use of Funds 2009 - 2011 (000)
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Two Year Exploration Work Program
YEAR 1

• Notes Assumptions
• 50 soil samples/day by one crew of 4 people.
• Ground magnetics about 2.5 line km/day, then
  interpretation.
• IP, about 50-60 days to complete 14 lines, then
  interpretation.
• Type(s) of drilling and no. of drill rigs to be
  determined from targets generated.
• Initially, one diamonds core rig working 2 shifts
• Preparation of topographic sheets may entail
  acquiring aerial photography for accurate
  contours.

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Two Year Exploration Work Program
YEAR 2

• Notes Assumptions
• 50 soil samples/day by one crew of 4 people.
• Ground magnetics about 2.5 line km/day, then
  interpretation.
• IP, about 50-60 days to complete 14 lines, then
  interpretation.
• Type(s) of drilling and no. of drill rigs to be
  determined from targets generated.
• Initially, one diamonds core rig working 2 shifts
• Preparation of topographic sheets may entail
  acquiring aerial photography for accurate
  contours.

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Social Responsibility

• Comval Tribal Resources Corporation is a unique
  Filipino mining project insofar as the 4 tribes
  who were signatories to the OA continue to hold a
  30 interest in the project, having ceded the
  other 70 to investors who will manage and
  develop the project to the benefit of all
  stakeholders.
• To date Comval Tribal Resources Corporation have
  sponsored and supported numerous community based
  projects in and around Monkayo, the township
  nearest to the TRIMA and EPA areas.
• As part of CTRCs Community Aid program, the
  Company provided assistance in an emergency, such
  as when a landslide hit Diwalwal in November
  2008. CRTC was the only organisation in the area
  to provide emergency aid and goods.

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Contacts

• David Cather
• dcather_at_graftonresources.com
• 44 20 75141490 (London Office)
• John Doughty
• jrd_at_comvaltribal.com
• 638 2233 0963 (Davao City Office)

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Appendix Notes on Filipino Mining Rights
Foreign ownership is restricted to a maximum of
40 with the other 60 owned by locals or local
corporation.
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Appendix Notes on Comval Tribal Operating
Agreement

• The OA between the 4 tribes and Comval Tribal is
  unique and falls outside the usual title
  contractual arrangements with the Government
  described above.
• Free, Prior and Informed Consent (FPIC) under the
  Indigenous Peoples Rights Act grants to the
  indigenous peoples (the Tribes) certain
  preferential rights to their ancestral domains
  and all resources found therein.
• In the case of Comval, FPIC is deemed to have
  been granted as the Tribes have, self-evidently,
  title over their own ancestral domain. The
  National Commission on Indigenous Peoples are
  also a signatory to the OA endorsing this crucial
  point.
• Key clauses and features in the OA are
• Contract area of 950 ha comprising TRIMA 1 (284
  ha) and TRIMA 2 (666 ha).
• Term of 10 years (renewable)
• Royalty payable to PMDC of 5 of gross sales of
  gold and other mineral products or Net Smelter
  Royalty in case of mineral concentrates.
• Mining Operations shall proceed immediately
  consistent with relevant mining laws.

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