1. MALAWI MINING SECTOR The sector and fiscal regime

2. PRESENTATION OUTLINE l Background Statistics l Ministerial Structure l Duty and Taxation l Mineral Rights l Exploration Update l Why Invest in Malawi

3. MALAWI STATISTICS

4. MINISTRY Ministry of Natural Resources MinesGeologyEnvironmentFisheriesForestryEnergy

5. DUTY AND TAXATION l Duty rates: range from 30-35% l Duty waiver possible l Surtax at 20% l Royalties vary from 5 to 10% l Corporate Tax at 35% l Capital allowance at 20%

6. MINERAL RIGHTS l Mines and Minerals Act 1981  Regionally competitive  Reconnaissance Licences  Exclusive Prospecting Licences  Mining Licences  Reserved Minerals Licence l Environmental Management Act 1996

7. YEAR 2000 EXPLORATION UPDATE l GSD: geo-chemical sampling on Au anomalies in the Kirk Range l Lisungwe Valley Mineral Resources identified 18 targets for Au, Ni-Cr and PGM minerals in the Kirk Range l Placer Dome/Phelps Dodge: geological mapping and reconaissance drilling in the Shire Highlands on Cu-Ni anomaly.

8. WHY INVEST IN MALAWI l Comprehensive geological data base l Political stability l Security of tenure guaranteed l Liberalised economy l Independent Licencing Committee l Cheap labour l Improved supporting infrastructure

9. POTENTIAL JOINT VENTURE PROJECTS l BAUXITE28.8mtMDC l Rare Earths11.0mt Saner l Titanium100mtDOM l Phosphate2.0mtMDC l Vermiculite2.5mtDOM l Uranium.063mtPalladin