1. Subsidised Studies – BOOTs and All Mark Berger – Director E+PC Engineering & Projects Company Limited South Africa Canada – South Africa Chamber of Business 10 th Annual Mining Breakfast 3 March 2009

2. Aim To provide a brief overview of the various types of financial assistance that can be made available to progress African: Bankable Feasibility Studies Projects (Implementation)

3. Situation

4. E+PC (AFRICA) LIMITED AUSTRALIA (PTY)LTD LOCAL SHAREHOLDERS FOREIGN SHAREHOLDERS MANUFACTURING 100% 75% 25% 75% 67%33% QAKAZANA CONSORTIUM (Tiso led) TRIDENT STEEL HOLDINGS (PTY)LTD

5. E+PC  Aveng  Aveng boasts a proud South African heritage going back 117 years  Revenue US$ 3,0 billion and Market Cap of US$ 3,0 billion  The AVENG Group employs some 30 000 people, in 29 countries  The largest construction group in Africa  Aveng (Africa) acquired “level 6” recognition for BBBEE

6. E+PC

7. Construction Feasibility Studies Engineering Operations & Maintenance Engineering EPCM / EPC Procurement Project Management Commissioning

8. Studies Studies must be to raise capital i.e must be Bankable Loans can be capitalised if project goes ahead

9. Studies Studies on High Risk projects  Currently Libor plus 2.5% for first $500000 for 3 years extendable to 6 (conditional) Studies on Medium Risk Projects  Trade Development Agency (TDA) type fund  World Bank and International Finance corporation - Consulting Trust Funds in place (Sovereign & Private) Studies on Low Risk Projects  Various Private funds - venture capital

10. Medium Risk Studies Nature of the Advance  Maximum advance is 55% of the study value for African Projects, 50% for projects out of Africa  Grant type funding  Proportionally reduced for lower South African content

11. High Risk Studies Nature of the Advance  Soft Loan  Interest rate is LIBOR + 2.5%  3 years extendable to 6 to source funds

12. High Risk Studies Eligibility Criteria  The advance must fall between R100,000 (±US$10 000) and R5,000,000 (±US$500,000)  New projects, expansions of existing projects and rehabilitation of existing projects will be considered  Projects can be anywhere in the world, but projects in Africa will be given preference

13. All Studies Eligibility Criteria  Project must have an adequate chance of being declared a success  Other development aspects will be taken into account:  Links to BEE companies in RSA  Links to small medium and micro businesses in RSA  E+PC will consider undertaking some or all of its scope at risk

14. All Studies Likely Evaluation Criteria  Location of project  Public or private sector  Credit rating of the country  Political Economic and Currency risks  Market and demand

15. All Studies Evaluation Criteria  Owner capacity, local knowledge and ability to operate (E+PC can assist here)  Environmental Impact  Future projects  Estimated cost of the project, sources of funding, structure of funding etc

16. Implementation Export Credit Insurance  No minimum RSA content (E+PC satisfies the requirements here)  Political Risk : Cover is 100% of the loan amount  Commercial Risk : Cover is 85% of the loan amount  Interest rates:  Floating : 6 month Libor plus 2.50% (post crisis)  Fixed : OECD CIRR* for US$ (pre crisis) * Organisation for Economic Co-operation and Development Commercial Interest Reference Rate

17. Implementation Foreign Exchange Risk Cover (GRE)  “Preferential forward cover”  Fund takes both upside and downside risk

18. Implementation Profit Make Up Facility (Libor plus 2.5%)  Allows RSA banks to be competitive on international projects  Client pays this interest rate  Fund will “top up” to allow banks to make normal rate of return

19. Implementation Aveng  Balance sheet allows E+PC to undertake Build, Own and Operate (BOO) or Build, Own, Operate and Transfer (BOOT) projects where appropriate  Can provide “one stop shop” approach: Feasibility StudiesE+PC MiningMoolmans, GLTA Mining Contracting Process Plant DesignE+PC Project/Construction ManagementE+PC ConstructionGrinaker-LTA OperationsE+PC Operations

20. Conclusion  E+PC has :  Access to funds which can advance Bankable Feasibility Studies and the implementation of projects in Africa (and elsewhere) subject to certain criteria The technical ability to undertake many different mineral processing (and other) projects in Africa and elsewhere The appetite to undertake some or all of its scope of work at risk : Engineering services BOO/BOOT

21. Thank You