GRAFTON RESOURCE INVESTMENTS LIMITED

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GRAFTON RESOURCE INVESTMENTS LIMITED

• A resources based realisation fund

www.graftonresources.net
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  Resources Limited (the Company). It has not
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Overview

• Formed end 2008 by the founders of the successful
  Resources Investment Trust.
• Cayman based fund taking advantage of the low
  valuations of companies in the resources sector.
• Approximately 90 million committed to
  date(31/10/2009)
• 5 year life to take advantage of the economic
  cycle.

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How does Grafton Work?

• Established as a dedicated resources based
  realisation fund.
• Acquires shares or other related instruments in
  resource related companies only.
• Portfolio established through stock swaps with
  investors and directly with listed companies
• Limited five year life with no new investments
  after year 3.
• Experienced sector management team.
• Active management style which will look to
  encourage consolidation and other corporate
  activity.
• Following rigorous analysis of the holdings,
  those securities not passing muster to be
  liquidated and cash introduced to support
  companies with better potential
• Will return cash or buy back its own shares when
  cash exceeds 25 of NAV.

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Grafton Resource Investments Limited Directors
and Consultants

• Peter Seabrook Director
• Over twenty years experience as an investment
  manager. Joined Fleming Investment Management
  Limited in 1984 became a director of Robert
  Fleming Holdings Limited in 1994, and appointed
  UK chief investment officer. Served Societe
  Generale Asset Management in a similar role from
  1997 to 2002. Graduate of Oriel College, Oxford.
  Former Chairman of Ocean Resources Capital
  Holding plc up until its solvent voluntary
  liquidation in 2007.
• David Hutchins - Director
• 20 years experience as a resources analyst and
  fund manager. Began career with the Melbourne
  Stock Exchange in 1979. Subsequently became an
  executive director of MG Investment Management.
  Headed International Desk at MG Investment
  Management from 1995, concurrently responsible
  for MG's investments in the precious metals and
  commodities sector globally. Left MG Investment
  Management in December 1996 and later became
  involved in Fund Management at Yorkton Securities
  and acted as a consultant at AWI Administration
  Services in Australia. Founding director of
  Resources Investment Trust plc at the launch in
  January 2002 Non-executive chairman of Commodity
  Watch plc, and a non-executive director of
  Australian listed Pan Palladium Limited.

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Grafton Resource Investments LimitedDirectors
and Consultants

• Kjeld Thygesen Fund Manager
• 30 years experience as a resources analyst and
  fund manager. Graduate of the University of
  Natal in South Africa, joined African Selection
  Trust in 1970, managing a portfolio of South
  African mining companies. Joined James Capel and
  Co. in London in 1972 as part of their highly
  rated gold and mining research team. Joined N M
  Rothschild Sons Limited in 1979 as manager of
  its Commodities and Natural Resources Department,
  becoming an executive directors of N M Rothschild
  International Asset management Limited in 1987.
  Co-founded Lion Resource Management Limited, an
  FSA regulated and SEC registered specialist
  investment manager in the mining and natural
  resources sector in 1989. Director of Ivanhoe
  Mines Ltd since 2001. Served as Investment
  Director for Resources Investment Trust PLC from
  2002 2006.
• David Cather Consulting Mining Engineer
• Mining engineer with extensive experience in the
  development and management of a wide range of
  resource projects. Held senior executive
  positions both at operational and line management
  levels with both Anglo American plc and,
  formerly, with De Beers. Chartered Engineer,
  member of IoM3 and a competent Person. Director
  of Compostela Mining Limited, an exploration
  company with copper/gold porphyry assets in the
  Philippines.

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About the Fund

• Structure
• Cayman Island Exempted Limited Liability Company
• Manager
• Newland Asset Management LLP (Regulated by the
  FSA)
• Custodian
• PNC International Bank LTD
• Administrator
• PNC Global Investment Servicing (Europe) LTD
• Auditor
• Moore Stephens Caplin Meehan
• Fee Structure
• 1.5 annual management charge up to US100
  million and then a 1.0 annual management charge
  over US100 million. Computed and paid monthly.
• Semi-annual Performance Fee equal to 20 after an
  8 return and subject to a high water mark.

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About the Fund

• Quoted on the Irish Stock Exchange
• All securities are held directly to the order of
  the fund by PNC which is the administrator and
  custodian.
• No prime broker or margin facilities.
• Sole debt is the convertible loan stock
• Listed on the Dublin Stock Exchange (ISE)

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Pro forma Financial Status as at 31/10/2009

• (millions)
• Total assets 91.95
• Value of convertible notes 7.00
• Short term liabilities 0.13
• Estimate net assets 84.82

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Major Holdings (31st October 2009)
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Major Holdings (30th September 2009)
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Resources Investment Trust plc (REI)Background
and History
Grafton Resources is successor to

• REI launched in early 2002 as a self managed
  investment trust.
• Initial portfolio of 15 million was created
  exclusively by stock swaps in the same manner
  as Grafton.
• An EGM in 2006 instructed the directors to
  realise the companys investments and return cash
  to the shareholders.
• Since January 2007 REI undertook three tender
  offers and returned almost 50 million to
  shareholders against the initial 15 million
  investment.
• A final distribution of 4.5 million was made,
  hence shareholders invested 15 million in the
  initial swap status and received back a total of
  54.5 million.

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REI Performance Record 3 years to April 2006
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Grafton Resource Investments LimitedSummary

• Dedicated resources based realisation fund
  established through stock swaps.
• Limited five year life with no new investments
  after the first three years.
• Experienced sector management team with active
  management approach.
• Listed on the Dublin Stock Exchange.
• Debt limited to convertible note outlined on
  following page.
• No prime broker all securities held by PNC to
  the order of Grafton.

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Convertible Unsecured Loan Notes

• Issue Price US1,000
• Coupon 12 ¾ Paid Semi-Annual
• Term Expires December 2013
• Conversion 10 premium to most recent NAV at
  date of issue
• Security Negative pledge forbidding the
  Company to incur any further borrowings over
  and above the convertible.
• Limitation No more than 20 of gross
  assets to be issued.
• Size of Issue 7 million
• Listed On the Irish Stock Exchange

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Commodity Breakdown
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NAV Per Share History