1. Chrome Mining in Turkey

2. Executive summary
Turkey has significant mineral wealth which has yet to be explored
Improved foreign investment is leading to the development of Turkey’s resources
This is increasing money inflow into Turkey, creating significant jobs and helping GDP growth
Nithia Capital, through International Chrome Mining, has made investments in producing Chrome assets
We will invest in mine and production expansion and the employment of hundreds of extra Turkish workers
Increasing global demand for Chrome and Turkey’s cost competitive position will see Turkey increasingly become a large global Chrome producer

3. STRICTLY PRIVATE AND CONFIDENTIAL
International Chrome Holdings (ICH)
Nithia has extensive Chrome experience having managed 2 of the worlds 3 largest chrome mines
Nithia Capital through ICH acquired a number of Chrome Ore producing assets in Turkey
New company is called Turchrome Mining
Trabzon Port
Gemlik Port
Kilicmehmet License
Kangal License
Basalan License
Gokarik License
Mine shipping port
Antalya Port
Mersin Port
New highly experienced on the ground management team put in place to run the operations and expansion programme
Identified operational improvements will add to production increases and profitability
It is our intention to become a significant low cost producer of Chrome Ore in Turkey
STRICTLY PRIVATE AND CONFIDENTIAL

4. Stainless steel - the main driver for chromite demand
Uses
Metallurgical demand
Stainless steel
demand
Stainless steel is used in construction, consumer goods and other sectors %
Share (2010)
95%
91%
High growth (>3%)
Alloy steel demand
Used for ball-bearings, tools and other high-strength applications
Net scrap availability 7%
Decline
(<0%)
Stagnant (0-3%) 2%
Other
Use of chromite in non-ferrous alloys and special cast iron applications (e.g., grinding media)
Chromite demand
Chemical demand
Leather tanning
Pigments and textiles
Metal finishing
1.8%
Refractory demand
Refractory linings for furnaces and kilns in steel, non-ferrous metals, cement, glass and ceramics
0.7%
Stainless steel is currently the largest consumer of chromite and has historically grown faster than other sources.
Foundry sands demand
Sand casting of metals
2.5%

5. 8
Rebound in Chinese and Indian demand has driven stainless steel growth in recent years
Apparent demand1 for stainless steel
Million metric tonnes per annum %
Regional growth
(CAGR)
Global crisis
Global
5.7 10 30
3.5
7.0 25
Developing2 20
Developed3
5.9
-1.8 15
India
9.8
35.8 10
6.8
21.2 5
China
Future crises are not expected to hit stainless steel demand as much as the GFC due to migration of demand from developed world into China and India
2004
2005
2006
2007
2008
2009
2010
1 Including stocking/destocking effects
2 CIS, MENA, Africa, Latin America
3 EU countries; NAFTA; Japan, Korea

6. 3
Going forward, China and India will continue to drive stainless steel demand and production
Global stainless steel demand
Finished steel; Million metric tonnes
Global stainless steel production3
Crude steel eq.; Million metric tonnes
India
Developing1
China
Developed2
+4.3%
48.3
+4.3%
2.9
43.9
2.0
3.0
39.4
6.9
+5.5%
35.8
1.7
-0.4
+5.5%
17.1
31.7
5.6
0.6
28.8
12.2
1.3
16.1
5.1
24.2
7.1
10.0
22.1
11.2
1.3
6.1
8.4
16.1
3.3
4.9
11.0
4.1
18.1
11.5
3.0
2.7
13.8
22.1
18.8
6.5
16.8
1.2
15.1
10.0
11.3
6.1
3.2
Chinese demand is expected to be slower in the next 10 years compared to last 5 years due to flattening of stainless steel intensities. India is expected to move into a growth phase in the short to medium term
2005
2010
2015
2020
2005
2010
2015
2020
1 CIS, MENA, Africa, Latin America
2 EU countries; NAFTA; Japan, Korea
3 Yield loss of 9% (based on historical estimates) between crude steel equivalent and finished steel demand %
Regional growth
(CAGR)

7. Overall chromite demand will continue to be driven by China in future
Calculation of demand excludes Chinese stocking/destocking effects (apparent demand)
Chinese demand is expected to slow down compared to past years driven by plateauing of stainless steel demand (similar to steel demand plateau in other geographies)
42% standard grade apparent chromite demand; Million metric tonnes
Growth (CAGR)
Percent
+3.5% 37 2
Developing1 31
+7.1% 1 26 13
Developed2
0.8
3.9 1 13 19
-0.8
-0.2 6
India 1 13 4 14 3
13.9
8.1 17
China 13 9 1 2
30.9
6.2
2005
2010
2015
2020
1 CIS, MENA, Africa, Latin America
2 EU countries; NAFTA; Japan, Korea

8. Chromite demand from non stainless steel is expected to grow slower than stainless steel
Chromite demand by type; Million metric tonnes
CAGR
( )
Percent
Other metallurgical demand (alloy steels and cast iron) is biggest driver – however, it grows slower than stainless steel
Refractory and foundry demand show slower growth due to increased substitution with magnesium and alumina
Chemical use has fallen from historical levels but expected to remain in China and CIS
+2.4% p.a.
4.8
+5.3% p.a.
4.3
3.7
3.1
2.9
3.2
2.8
2.3
metallurgical
1.7
1.0
and foundry
1.3
Chemical
2005
2010
2015
2020

9. Current chromite situation in Turkey
Current chromite situation in Turkey
Key strengths for Turkish industry are:
High quality of ore
Greater cost competitiveness compared to South-Africa
Main opportunities for Turkish industry are:
Chinese demand for chromite ore likely to be strong with lower availability of ore by main players
Main threats include:
Higher availability of chromite from Kazakhstan or Zimbabwe
Flooding of market with UG2 ore could depress global prices or Turkish premiums (similar to Q3 2011)
Chromite production in Turkey
Million tons
+19% p.a.
2.1
2.0
1.7
1.7
1.1
2006
2007
2008
2009
2010

10. Turkey has excellent road and port infrastructure in place
Turkey exhibits strong fundamentals that allow an expansion of chromite production while maintaining competitive advantages
Overall Turkish infrastructure is not expected to be a constraint on chromite expansion
Turkey has excellent road and port infrastructure in place
Infrastructure 1
New regulations promulgated to enable ease of entry for professional mining companies
Regulatory environment
Turkey has no shortage of labour coupled with specialised skills in mining disciplines
Labour market

11. In 2011, all Turkish capacity are either first or second quartile mines
2011 CIF China cost for 42% standard grade ore; USD per metric tonne (2011 real)
CIF China costs
USD/tonne
UG2
300
South Africa
Oman
Turkey
250
Other
C901 cost: 210 USD
200
Demand
150
100
C901 50
C90 cost of FOB seaborne cost curves are usually used to assess the cash cost pricing floor. The price premiums for each regime is calculated on the basis of this C90 curve
For the chromite cost curve, the C90 player in the overall cost curve and the seaborne cost curve are the same – the seaborne curves are given in the backup 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44
Capacity
Million metric tonnes

12. In 2010, lower transport costs key reason for competitiveness in Turkish costs
Comparison of Turkish and South African CIF China cost base for comparable mines1
2010 cost comparison
USD per metric tonne (real 2011)
2020 cost comparison
USD per metric tonne (real 2011)
241
Other 2
194
Sea freight
Other 2
172
158
Sea freight 4 3
Inland transport 66
Inland transport 55
Royalties 10 41 34
Royalties
Processing costs 6 4 5
Processing costs
Mining costs
Mining costs
Going forward, Turkey is expected to become more competitive due to
A) Devaluation of TL
B) Lowered electricity costs driving processing cost down
Low sea freight rates in Turkey supported due to availability of excess container capacity on the Turkey – China route
Overall processing cost increase in SA driven by power tariffs
1 Underground mines with ~1 million metric tonne

13. Mining companies continue to consider Turkey an investment friendly destination
Policy Potential Index by country
Score out of 100
Notice
PPI is a composite index that measures the effects of government policies on the investment attractively in mining industry
The score is calculated as a normalized average of score based on set of questions asked to mining companies on administration efficiency, labour issues, infrastructure, regulations
Historically, Turkey generally scored better than other main chromite producing countries
2008
2009
2010
2011
W. Australia 61 63 67 71
Ontario 69 75 66 69
Brazil 45 47 46 43
Turkey 36 40 53 35
Kazakhstan 26 33 39 30
South-Africa 35 40 26 23
Russia 36 38 44 23
Zimbabwe 19 15 22
India 12 16 27 11

14. Turkey’s new regulation favours professional mining investors …2
Turkey’s new regulation favours professional mining investors …
Russia
Obtaining mining rights in Russia is generally a long complicated by several internal factors
From Jun-Nov 2007, success rate of mining rights application was 5 out of 453
South-Africa
Broad Based Black Economic Empowerment (BBBEE) legislation and by the legal uncertainties complicates mining rights process in South Africa
More than 90% of the mining right licenses take more than a year and even up to 5 years
The process is complicated by the amount of administrative issues and bureaucracy involved
India
New Turkish legislation was passed to enable professional mining; it links the licence acquisition with actual mining activity within a certain time frame. License traders with no real investment plans should, therefore, be eliminated from the market
The process to obtain operation license and permit is fairly structured and can take from 3 to 12 months depending on the geographical and specific localisation but is generally considered reliable for genuine mining companies
Turkey 13

15. STRICTLY PRIVATE AND CONFIDENTIAL
Conclusion
Our experience in Turkey has been very positive to date
Turkey’s infrastructure, labour and friendly regulatory jurisdiction is a strong draw for international mining companies
Chrome production in Turkey set to expand significantly over the coming years
Turchrome Mining is set to become a large producer of low cost Chrome Ore
Foreign investment will lead to substantial fund inflow, capital expenditure and importantly – jobs
STRICTLY PRIVATE AND CONFIDENTIAL