1. La Importancia de los reportes internacionales en el negocio minero Paul Bright Bright Consulting Ltda www.brightcolombia.com 1

2. The Importance of International Reporting Codes in the Mining Business La Importancia de los reportes internacionales en el negocio minero Paul Bright www.brightcolombia.com2

3. Paul Bright - SRK >40 years worldwide experience in resource and reserve estimation with a focus on coal: Australia UK South Africa Kazakhstan Pakistan Indonesia Colombia Russia Mozambique www.brightcolombia.com 3

4. Paul Brights SRK Colombian Coal Experience JORC and CIM (NI 43-101 – * SRK public domain reports available on SEDAR web site) La Caypa-Acquisition* La Francia-Acquisition* Cerro Largo – Acquisition* Drummond ( Due Diligence) Vale (Due Diligence) www.brightcolombia.com 4

5. Our Personnel & Associates Tonkolili Fe – Sierra Leone Hinda Phosphate – Republic of Congo Mkuju Uranium U - Tanzania www.brightcolombia.com 5

6. 6 GME4 Fe – Brazil Minera Alumbrera Cu-Au – Argentina Mazamorras Cu-Au - Colombia

7. www.brightcolombia.com 7 Paraburdoo Fe - Australia Coyote Au – Australia Phu Bhia Cu-Au – Laos PDR

8. Why are there International Codes? Standards for public reporting of mineral resources and ore reserves are being widely adopted around the world, partly as a response to scandals such as the Bre–X gold mining scandal. www.brightcolombia.com 8

9. Why Report to International Codes? Although originally primarily designed to protect investors, the practices and standards discussed in Reporting Codes and supporting documents can significantly reduce risk for owner operators not seeking external finance. Reporting Codes are used as a basis for raising Finance both on a debt or equity basis, as a mutually acceptable standard for mergers and acquisitions and for potential joint venture partners www.brightcolombia.com 9

10. Mining is a capital intensive and high risk business Consistency between Financial Markets - transparency can only be achieved if information is reported on a consistent basis in all financial markets, only then can the information supplied to all investors be identical, clear and unambiguous – SME potential JV partners, vendors and purchasers deserve the same or better standards www.brightcolombia.com 10

11. CRIRSCO Committee for Mineral Reserves International Reporting Standards - set up with the primary objective of developing a set of international standard definitions for the reporting of mineral resources and mineral reserves. www.brightcolombia.com 11 CRIRSCO has developed a Template

12. CRIRSCO members Australasia – JORC Chile - National Committee Canada – CIM Europe – PERC Russia – NAEN South Africa – SAMREC USA – SME www.brightcolombia.com 12

13. The combined value of mining companies listed on the stock exchanges of these countries accounts for a significant proportion of the listed capital of the mining industry worldwide www.brightcolombia.com

14. Colombia is conspicuously absent! Why? www.brightcolombia.com Colombia is a rich in mineral potential with a long mining history Colombia is the 4th largest Coal exporter in the world 14

15. Colombian Exploration and Mining projects are listed on CRIRSCO stock exchanges Colombia has well-trained, well-educated, experienced and capable mining professionals www.brightcolombia.com 15

16. CRIRSCO based on principles of: TRANSPARENCY MATERIALITY COMPETENCE www.brightcolombia.com 16

17. Transparency Transparency requires that the reader of a Public Report is provided with sufficient information, the presentation of which is clear and unambiguous, to understand the report and is not misled enforceable professional code of ethics www.brightcolombia.com 17

18. Materiality Materiality requires that a Public Report contains all the relevant information which investors and their professional advisers would reasonably require, and reasonably expect to find in the report, for the purpose of making a reasoned and balanced judgement regarding the Exploration Results, Mineral Resources or Ore Reserves being reported www.brightcolombia.com 18

19. Competence Competence requires that the Public Report be based on work that is the responsibility of suitably qualified and experienced persons who are subject to an enforceable professional code of ethics. 19 www.brightcolombia.com

20. Recognised Overseas Professional Organisation be a self-regulatory organisation covering professionals in the mining and/or exploration industry admit members primarily on the basis of their academic qualifications and experience require compliance with the professional standards of competence and ethics established by the organisation have disciplinary powers, including the power to suspend or expel a member www.brightcolombia.com 20

21. State Registered organisations Independent Professional organisations Membership of a ROPO allows a CP to report to the Mining Codes of any country where the ROPO is recognised www.brightcolombia.com 21

22. Collaborative work! Geologists Mining Engineers Metallurgists/Processing Engineers Mineral Economists Mechanical Engineers Electrical Engineers Civil or Infrastructure Engineers Environmental scientists Social scientists www.brightcolombia.com 22

23. In practice: A Geologist will usually be responsible for Mineral Resource estimates A Mining Engineer will usually be responsible for Ore Reserve estimates www.brightcolombia.com 23 But the contribution of other professionals is necessary

24. And now - Colombia? The Comisión Colombiana Calificadora de Competencias en Reservas y Recursos Mineros (CCCCRRM) and the Universidad Nacional de Colombia Grupo IGNEA are joining forces and have asked Bright Consulting Ltda to be involved www.brightcolombia.com 24

25. The Path: develop a reporting code using the CRIRSCO template tailored to the nature of its own mineral deposits and drawing on the best features of other codes www.brightcolombia.com 25 develop a Professional Organisation achieve ROPO status report to their own code and other international reporting codes

26. Now: Colombian mining professionals should seek to join established ROPOs to allow them to report to international standards Implementing the above programme is going to take a little time but the prospect is exciting www.brightcolombia.com 26

27. Muchas Gracias! www.brightcolombia.com 27

28. www.brightcolombia.com comunicaciones@brightcolombia.com 28