Exploration Success in Botswana

1
Exploration Success in Botswana

• PROJECT HIGHLIGHTS 2007

2
Company Snap Shot

• Southern African focussed base metal project
  development company
• Current Inferred Mineral Resources
• Maun Copper Project - 32.5Mt _at_ 1.4 Cu equivalent
• High Grade Zone of 14.4 Mt _at_ 1.7 Cu equivalent
• Dikoloti Nickel - 4.7Mt _at_ 0.7 Ni, 0.5 Cu 1.5
  g/t PGEs
• Maun Copper Project Pre Feasibility study
  commenced
• ASX, AIM BSE listed
• Market Cap AUD42M, cash at bank AUD2.5M
• 95.7M shares on issue, 12.3 held in Botswana
• Major shareholders R. A. Healy (11.9),
  Macquarie Bank (10.6), Investec (7.4)

3
Share Price Performance
AIM Listing
0.48
0.44
0.40
0.36
0.32
Maun Resource Upgrade
0.28
Botswana Insto Placement
0.24
Jan 07
Feb 07
Mar 07
Apr 07
Jun 07
May 07
Jul 07
4
Board and Executive

• Gordon Galt (Non-Exec Chairman)
• ex-Managing Director of Newcrest
• Strong track record of project development and
  improvement processes
• Jeremy Read (Managing Director)
• 11 years experience with BHP Minerals
  Exploration and BHPs Australian Exploration
  Manager
• Part of BHPs team which discovered the Kabanga
  Nickel deposit
• John Shaw (Non-Exec Director)
• ex-Vice President of the Australian Operations
  of Placer Dome Asia Pacific
• ex-Chairman of Gallery Gold Limited
• Morrice Cordiner (Non-Exec Director)
• 17 years experience in the funding, management
  and corporate development of junior resource
  companies
• Karl Schlobohm (CFO)
• Taxation specialist and Chartered accountant
  with 15 years experience

5
Z A M B I A
A N G O L A
proposed railway
Z I M B A B W E
Maun
Nata
Sowa
Francistown
Orapa
B O T S W A N A
Ghanzi
Gobabis
Selebi - Phikwe
WINDHOEK
Walvis Bay
N A M I B I A
S O U T H A F R I C A
Jwaneng
GABORONE
INDIAN OCEAN
PRETORIA
200 km
JOHANNESBURG
6
Goals for 2007

• Maun Copper Project
• Further upgrade Cu resource base to gt40 Mt _at_
  gt1.4 ECu
• Confirm potential for gtUS200M Project NPV
• Complete pre-feasibility study
• Dikoloti Nickel Project
• Demonstrate the viability of Bio-Oxidation Heap
  Leach processing to produce a high-grade
  intermediate nickel product
• Initiate pilot processing study
• Corporate
• Source base metal growth opportunities in
  southern Africa
• Develop an institutional investor base the UK
• Expand our Botswana institutional investor base

7
Maun Copper Project
8
Maun Copper Project geological setting
ANGOLA
ANGOLA CRATON
ZAMBIA
MOZAMBIQUE
ZIMBABWE CRATON

• Poorly explored extension to the Zambian Copper
  Belt

NAMIBIA
BOTSWANA
KAAPVAAL CRATON

• gt300km of known copper bearing rocks

SOUTH AFRICA
9
Maun Copper Project Exploration history

• 1963 Anglo Vaal
• Copper mineralisation discovered
• 1970 1980 US Steel
• Defined resource at Zeta Prospect
• 1989 1994 Anglo American
• Increased resource at Zeta Prospect
• 1999 2001 Delta Gold
• Scoping study indicated gtUS100 M NPV _at_
  US0.90/lb copper
• 2005 Discovery Metals
• 20Mt _at_ 1.2 Inferred resource at the Zeta Prospect

10
Maun Copper - Initial mining assessment

• Resource potential
• Potential Project NPV
• Requirements for Positive Cash Flow

100Mt _at_ 1-2 Cu - based upon gt 60,000 m of
drilling US100 - 300M NPV - Achievable at
US1.5-2/lb Cu - 3Mtpa - CAPEX US60-70M -
Dependent on final resource 1.2 Cu
(open-pit) 1.5-2 Cu (underground)
Source Snowden Mining Industry Consultants
11
Maun Copper Project - Metallurgy

• Conventional flotation
• 97 recovery of Copper
• 83 recovery of Silver
• High grade 41 Cu concentrate
• Clean premium concentrate
• Simple processing circuit
• Lower CAPEX

12
Geology of Zeta Inferred Copper Resource
13
Phase One Drilling - Zeta Inferred Copper Resource
8000m
8m _at_ 1.7 Cu, 33 g/t Ag
Zeta Initial Cu Resource 20 Mt _at_ 1.2 Eu
8m _at_ 2.4 Cu, 25 g/t Ag
11m _at_ 1.9 Cu, 39 g/t Ag
11m _at_ 2.0 Cu, 32 g/t Ag
5m _at_ 1.5 Cu, 22 g/t Ag
5m _at_ 1.6 Cu, 42 g/t Ag
3m _at_ 1.1 Cu, 18 g/t Ag
3m _at_ 1.6 Cu, 20 g/t Ag
2 km
14
Phase One Drilling - Outcomes
G GRID NORTH
Total Inferred Resource 32.6 Mt _at_ 1.4 ECu
Petra Inferred Resource
geological model of Cu mineralisation
Zeta Inferred Resource 28 Mt _at_ 1.4 ECu
G GRID SOUTH
15
Zeta Inferred Copper Resource High Grade Zones

• Reduce payback
• Optimize early cash flow

16
Phase One Drill Program - Report Card

• Objectives
• Increase copper resource base
• Increase grade of resource
• Define new inferred resource

58 Increase
17 Increase
Petra Resource
17
Open Pit Potenital of Zeta and Petra Resources

• Analysis completed by Snowden Mining Industry
  Consultants
• Parameters used for Whittle Open Pit
  Optimisation
• Copper Price US1.50/lb, US2.00/lb, US2.50/lb
• Production rate - 2 Mtpa, 3 Mtpa
• Pit slop angle 450, 500, 550
• Mining base cost US2/tonne
• Processing cost US8/tonne
• Discounted Cash Flow
• US62 CAPEX
• 10 discount rate

18
Open Pit Analysis of Zeta and Petra Resources
20100E
19900E
20000E
20000E
950m RL
80m Strip Ratio 5.8
US1.50/lb Cu
900m RL
US2.00/lb Cu
US2.50/lb Cu
0.0 0.1 Cu
0.1 1.0 Cu
850m RL
120m Strip Ratio 7.7
gt1 Cu
50m
Pit Slope 450, Processing 2 Mtpa
19
Open Pit Analysis of Zeta and Petra Resources
2.7km

• Zeta Open Pit Tonnage Potential
• 7.1 Mt _at_ 1.4 ECu (US1.50/lb Cu)
• 9.5 Mt _at_ 1.4 ECu (US2.00/lb Cu)
• 11.4 Mt _at_ 1.4 ECu (US2.50/lb Cu)

Tonnage potentials quoted above are for 3Mtpa and
550 pit slope
20
Open Pit Analysis of Zeta and Petra Resources
Copper Price (US/lb)
Mining Rate (Mpta)
Ore (Mt)
Ag (g/t)
Pit Wall Slope
NPV (USM)
Cu
1.3
22
80
9.3
2
2.00
500
1.3
22
154
11.7
2
2.50
500
1.3
22
97
9.8
3
2.00
500
1.3
22
183
12.2
3
2.50
500
1.3
22
210
14.5
3
2.50
550
1.3
22
80
6.5
2
2.00
450
NPVs are based upon the current Zeta and Petra
Inferred copper Resources
21
Open Pit Analysis of Zeta and Petra Resources

• Project is viable at 1.50/lb copper
• Median Economic Model
• NPV of US100M
• 10 Mt of open pittable mineralisation
• Average grade 1.4 ECu
• Range of potential NPVs
• US80 210M
• Open Pit Mine Life (current resoruces)
• 4 7 years

22
Phase 2 Drilling - Building the Resource Base
Drilling to investigate gt1.5 Cu over 5km
NE Extension To Zeta
Drilling of geochem anomaly
23
Phase Two Drilling Plutus Prospect
4m _at_ 1.9 Cu
13m _at_ 1.6 Cu
5m
10m
6m _at_ 1.8 Cu
8m
6m
5.5 km
5m
10Mt _at_ 1.3 Cu adds US70-150M to the NPV
2.5 km
Petra Inferred Resource
24
Maun Project Exploration potential soil
geochemistry
MAUN
Fault Exploration grid Cu prospect
Tsau
Toteng
G
P
ZETA
Ngwako Pan
B
J
M
Max. 630 ppm Cu in soil value
K
F
J
DML Tenements
50 km
Kuke
25
Maun Project Development Timetable

• July 2007
• Commencement of pre-feasibility study
• August 2007
• Pre-feasibility drilling (7,000m) commenced
• October 2007
• Resource defined for Plutus Prospect
• Metallurgical test work
• December 2007
• Resource base expanded to gt40 Mt _at_ gt1.4 ECu
• Exploration drilling confirms potential confirmed
  for 100 Mt of gt1 Cu
• January March 2008
• Pre-feasibiity study completed
• Bankable Feasibility Study commences
• December 2008
• Bankable feasibility Study completed
• Inferred copper resource increased to gt60Mt

26
Dikoloti Nickel Project
27
Dikoloti Nickel Project
28
Dikoloti Nickel Project Conceptual mine plan
29
Dikoloti Nickel Project Potential processing
option

• Preliminary economics
• 400,000 tpa production at 0.5 Ni
• Recovered nickel 1,800 t
• US70M revenue at current prices
• CAPEX US10-15 M
• Payback period 2-3 months
• 12-18 months to production

• Nickel recovery may be improved by Heap Leach
  Bio-Oxidation process
• Precipitate a high-grade nickel sulphide product
  ready for smelting
• Stand-alone operation
• 97 Ni dissolution
• Feasibility decision 2 months

30
Conclusions

• Track record of exploration success
• Maun Copper Inferred resource increased by 62
• Dikoloti Nickel Inferred resource increased by
  240
• Significant and expanding resource base
• 32.5 Mt _at_ 1.4 ECu
• 4.1 Mt _at_ 0.7 Ni, 0.5 Cu
• Potential for project NPVs ranging from
  US100-300M
• Anticipate announcement of Plutus resource in
  October
• Dikoloti Feasibility study decision in two months
• Excited by the challenge of building Botswanas
  next copper mine