Overview of Analyzing Mining Companies March 14, 2012 Chris Callahan| Mining Portfolio Manager This presentation is for informational purposes only, and is not an offer to buy or sell or a solicitation to buy or sell any securities, investment products or other financial product or service, an official confirmation of any transaction, or an official statement of Limestone Capital Investment Club. Any views or opinions presented are solely those of the author and do not necessarily represent those of Limestone Capital. 1

Table of Contents o Mining Resource Classification o Primary Steps to Production o Key Factors for Resource Valuation o Valuation Methods

Mineral Resource Classification Technical Report outlining process for evaluating resource, report on reserves made by third party Obtainable through SEDAR.com Created after the Bre-X incident in 1997 Company used a core to estimate reserves using gold that management inputted themselves, turns out there was no gold at all States Measured, Indicated, Inferred, Proven, Probable Important Metrics: Cut-off grade: Lowest grams per ton of the commodity beyond which it is not economical to extract the commodity from the asset in question Equivalent grams/ton: Junior mining companies may use this metric to deceive investors. Ratios are just as important as the cut-off grade for a complete analysis National Instrument NI ProductionKey Factors 3

Steps to Production 1.NI Pre Feasibility Study 3.Feasibility Study 4.Bankable Feasibility Study 5.Timeline to Production 6.Production Steps to Production NI ProductionKey Factors 4

Management Key Factors for Analysis Property “Who are the key players involved with the company?” Research management biographies Sedi.ca Research previous position successes Company with bad reserves with good management can be a good buy Euromax, tripled in value just because they hired Steve Sharp. Between 95% and 99% of mining properties do not go into production Due to costs and economic variables to produce at profit Minimum of 50 Million to build a mine Search for Big Deposits (Big Upside) Recent Financings Match up companies objectives to its current finances Look through press releases to see past financing rounds Match up expenditures/CAPEX with financings Political Factors/Risk Can make or break a promising junior stock. Majority of Gold Deposits are found in third world countries Nationalization Threats Royalties/Taxes Valuation Metrics Precedent Comparable Transactions Resource Comparable Ratios: (EV/Total Resource) DCF (Not Applicable for early stage projects) NI ProductionKey Factors 5