Managing risk: Gold, Diamonds

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Managing riskGold, Diamonds Iron
Oreexploration in West Africa

• The Geological Society
• London, September 2008

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• Risks
• Rewards
• Success factors

3

• Company Overview
• Diversified mineral exploration development
  company with a core focus on identifying resource
  opportunities in west Africa.
• Three distinct divisions Gold, Iron Ore
  Diamonds.
• Balanced portfolio of assets near term cash flow
  and production medium term growth potential.
• Strong institutional shareholders
• JP Morgan, Fidelity, Hermes, Saracen, New City,
  GAIA
• Credible partners
• Severstal, BHP Billiton, Petra Diamonds, De
  Beers, Trans Hex

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• Strategy
• Ensure transparent valuations for all three core
  divisions
• Advance near term production assets to create
  cash flow
• Add medium term value by rapidly advancing
  exploration projects

5

• Highlights of last 12 months
• New management in place to deliver on the next
  phase of development
• Agreement signed with Severstal to advance the
  Putu Range Iron Ore Project
• Completion of an intermediary drilling programme
  at New Liberty Gold to increase confidence
  expand resource
• Solidified plans to list Stellar Diamonds with
  7.4m financing

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• The Board of Directors

Dave Evans Executive Chairman 33 years mining experience in RSA with Anglo American, De Beers, Kroondal, Aquarius Platinum

Luis da Silva President CEO Extensive international operational, technical corporate experience in multi-nationals within basic industries Blue Circle, Lafarge Dragomar. Mining Engineer MBA

Guy Pas Non-Executive Director Chase Manhattan, Addax Oryx, Samax, Mano, Oxus, Ovoca, Afren, Gaia Resources Fund, AfGas, Siberian Diamonds, co-founder and/or early stage funder

Dr Tom Elder Non-Executive Director Geologist with extensive experience. Former Mano CEO. Board of Centamin Egypt and Angus Ross.

Malcolm Burne Non-Executive Director Golden Prospect, Jubilee Platinum, Great Panther, Ambrian
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• West African Focus
• A primary focus on Liberia, Sierra Leone and
  Guinea.
• Emerging west African democracies with increasing
  political stability and increasing foreign
  investment.
• Well established mining industries following a
  long history in the extractive sector, a key
  driver for economic growth.
• Attractive fiscal terms in chosen countries.
• Improving infrastructure.
• Major players operating investing in the
  region.
•  

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• Mano River Resources in West Africa
• Experience expertise a long history of
  operating in west Africa
• Excellent resource base across three countries
• First mover status well positioned to
  capitalise on future growth opportunities
• Attracted high quality strategic JV partners to
  advance projects
• Stepped outside traditional geographic focus into
  North DRC through JV between Stellar BHPB

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• Chosen Commodities Market Overview
• Long term outlook is strong in gold, diamonds
  iron ore
• Supply demand factors governed in part by China
  Indias appetite
• Gold ? 890oz (minimum 1.5Moz)
• Diamonds ? 20-25 increase in 2008 (production
  this year)
• Iron Ore ? 60-80 price increase in contracts for
  2008 (targeting 900Mt)
• Liberia as an Iron Ore Producer - Previously 6th
  largest exporter

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• Iron Ore
• Putu Range Iron Ore Project, Liberia
• Located in Grand Gedeh County in eastern Liberia
• First explored in 1950s 1960s established a
  resource of 455Mt at grades ranging between
  45-65
• Exploration focussed on the Mt. Jideh Ridge
  12km strike length
•  

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• Putu Range Iron Ore Project
• Significant developments to date
• Severstal Agreement
• Agreed to invest up to US22m into Mano directly
  US30m into AIOG to earn up to 61.5 to take
  the project through to BFS
• Severstal is a leading Russian steel and mining
  company with expertise in mining iron ore
  deposits
• 5,000m drilling programme underway to further
  delineate the resource and further establish the
  quality quantity of the resource.
• SRK Report targeting 900Mt.
• Historic 218m adit rehabilitated - sampling
  completed.
• Phase 1 of rail route study completed.
• Environmental Impact Assessment (EIA) performed.

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• Iron Ore Division Goals
• Fast track development through to production
• Further delineate the Mt Jideh resource
• Convert exploration licence to an Mineral
  Development Agreement (MDA)
• Optimise points for port rail
• Deliver a Bankable Feasibility Study (BFS)

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• Gold
• New Liberty Gold Mine North West Liberia
• Positive feasibility completed for open pit
  operation in early 2007
• Now targeting 2-3Moz  

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• New Liberty Gold Mine
• Significant developments to date
• Completion of a positive feasibility study in
  early 2007
• New strategy to examine underground potential
• 2008 2,688m resource delineation drilling
  programme completed
• 6 holes 200-300m
• 2 holes 500-600m
• Initial results encouraging for the development
  of an underground operation
• K-115 23m grading 4.95 g/t gold (including 12m at
  9.12g/t)
• K-116 31m grading 3.59 g/t gold (including 17m at
  7.03 g/t)
• Mineral Corporation of South Africa commissioned
  to review database to define further targets on
  Manos licence area

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• Gold Exploration
• Weaju Property
• Liberia
• Gondoja
• Liberia
• Golden Star Resources JV
• Sierra Leone

Photos of exploration projects
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• Gold Division Goals
• Allocate funds from Severstal deal to fast track
  development
• Redefine resource at NLGM
• Initiate new feasibility study
• Advance exploration activities in Liberia, Sierra
  Leone and Guinea.

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• Stellar Diamonds
• An integrated diamond explorer with production in
  2008 from Guinea and underground bulk sampling of
  kimberlite fissures in Sierra Leone, 63 owned by
  Mano River
• Regional focus Sierra Leone, Guinea, Liberia and
  the DRC
• Independently managed with dedicated Board
• AIM Listing, subject to market conditions
• 7.4m pre-IPO financing to date

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• Kono Lion Kimberlite Dykes
• - Sierra Leone
• 4951 JV with Petra Diamonds
• Underground bulk sampling focusing on two shafts
• Grades between 65 75cpht
• Diamond value of 200/ct forecasted
• Largest diamonds 10.55 carats valued at 31,200
• Initial parcel weighing 800 carats sent to South
  Africa for valuation
• 1,049 diamonds from trial mining to date
• First tender scheduled for August 2008
•  

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• Mandala Diamond Mine
• - Guinea 
• 100 owned project.
• 536,000 carat indicated resource, 144,000 carat
  inferred resource.
• 65/ct estimate.
• Largest diamond 21.47 carats.
• Construction of MB100tph DMS plant completed
  shipped early June 08.
• Mine fleet on site since early 2008.
• Production to commence H2 2008.
• Attractive margin / low capex mining operation
  giving early cash flow.
•  
•  

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Stellars Exploration

• Advanced Exploration
• Tongo Project
• Sierra Leone
• Bouro Kimberlite Project
• Guinea

• Early stage exploration
• BHP JV
• DRC
• Transhex JV
• Liberia
• MCA/Alpha
• Liberia
• North Bea
• Liberia

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• Stellar Diamonds Goals
• Complete additional private placement
• Mine decision on Kono
• Commence commercial operations bring Mandala to
  production
• Advance exploration at Tongo other activities
  including DRC
• List Stellar on AIM, subject to market conditions

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• Performance of a Junior
• 1998 to 2008

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• Key ingredients
• Luck
• Timing
• People
• Technology
• Funding
• Mano has raised in total more than US47m since
  1997

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• The reality
• Competition is high
• 191 AIM miners
• 2.5bn raised in 2007
• Mainly before June
• Only 370m in Q4
• H1 2008 raised 820m
• 91 or 743m from secondary issues

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• Quarterly trend of funds raised on AIM by mining
  companies

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• Performance of shares since listing (at 31 July
  2008)

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• Cash reserve estimates (June 2008)

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• Summary
• Risks
• Political ultimately a funding one
• Geological
• Rewards
• Can be high
• Success
• Diversification
• Anticipating trends or reacting to trends in time
• Personal belief drive

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• Disclaimer
• This presentation has been compiled by Mano River
  Resources Inc (the Company) for information
  purposes only and is not advice upon which it is
  intended that recipients should rely in deciding
  whether or not to invest in the Company. It is
  provided solely for use by recipients to consider
  the proposed business of the Company and is not
  an offer of shares or an invitation to subscribe
  for shares or to make any loan or other funding
  available to the Company. This document is only
  being distributed to persons who are reasonably
  believed to be sufficiently expert to understand
  the risks involved as described in the Financial
  Services and Markets Act (Financial Promotions)
  Order 2001.
• The recipients accept that they will make their
  own investigation, analysis and decision relating
  to investing in the Company and will not rely
  upon or use this document to form the basis or
  any decision on such an investment. This document
  does not take into account the particular
  investment objectives, financial situation or the
  needs of individuals investors and you should
  consider whether it is suitable for your
  circumstances and, if necessary, seek
  professional advice.
• The directors and advisers of the Company make no
  representation or warranty themselves, express or
  implied, as to the accuracy, reasonableness or
  completeness of the information contained in this
  document and it should not be relied upon as
  such. It contains statements and estimates with
  respect to the future anticipated performance of
  the Company. Such information may or may not
  prove to be correct. To the extent that it is
  lawfully able to do so, the Company and its
  advisers exclude liability for any representation
  or as to the accuracy of such statements,
  estimates or projections.
• This document is confidential. It is only for the
  use of those to whom it is issued. It must not be
  copied or distributed to third parties (other
  than in confidence to the recipients
  professional advisers).
• The Companys affiliates, officers, directors,
  advisers and employees, including persons
  involved in the preparation or issuance of this
  document may from time to time have holdings in
  the Companys securities.

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• Sum of parts valuation

Iron Ore Division 20 m (80 of 25m)

Gold Division 37.5m (at 50/oz)

Stellar Diamonds 19.5 m (63 of 30.5m)

Total Value 77m

Implied price per share 0.24
Added value - 170m 200m
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Creating value towards production

• Research based on 2005 prices

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Significant investment potential

• Putu targeted resource
• 900Mt _at_ 40 Fe
• Equates to 360Mt
• _at_ 5/t
• Equates to 1.8bn
• _at_ 38.5
• Equates to 346m (173m)

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• Key Value Drivers
• Soon to be fully funded
• Production cashflow in 2008 through the
  diamonds
• Significant investment upside

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• The Investment Case
• Strong management team with strong technical and
  regional expertise brought on to oversee the next
  phase of development.
• Balanced portfolio of assets with near term cash
  flow and significant long term opportunities.
• Asset consolidation provides exposure to high
  commodity prices going forward and simplifies the
  investment opportunity.
• Well positioned in west Africa to develop
  existing assets through to production and
  capitalise on new opportunities a strong
  platform for future growth.