1. MINISTRY OF ENERGY AND MINES

2. Area 124,000 km² including about 350 Red Sea islands Sea Coast 1,200 km coastline along the Red Sea Population Approximately 3.5 million Capital Asmara Main Ports Massawa and Assab Climate Varies with altitude : Temperate central highlands plateau; Hot and humid Eastern lowlands; and Hot and arid Western lowlands. Time zone GMT + 3 The State of Eritrea

3. Eritrea In Pictures

4. REGIONAL GEOLOGY

5. THE GEOLOGY OF ERITREA Precambrian basement rocks Greenstone proterozoic rocks underlie > 60% of the land area Mesozoic sediments Outcrop in southern parts of the country and in the Danakil Tertiary volcanics and sediments Tertiary plateau basalts Lower Afar stratified flows Afar basalts Quaternary Sediments Great exposure of rocks makes target generation by Landsat & Aster imagery possible for rapid cost effective targeting

6. THE GEOLOGY OF ERITREA

7. The geological setting is prospective for:  Gold deposits…e.g. Zara Gold project  Volcanogenic massive sulphide (VMS) deposits…e.g. Bisha, Debarwa, Emba Derho etc.  Base metals in quartz vein settings …e.g. Adi Rassi  Evaporites…e.g. Common Salt and Potash in the Eastern Lowlands  A variety of Construction & Industrial mineral deposits  Geothermal energy sources in various places of the eastern depression KNOWN MINERAL OCCURRENCES

8. KEY POLICY ISSUES All mineral resources are state property. The Government aims for a sustainable development of the minerals sector. Adherence to internationally accepted mining industry practice are cardinal requirements. Foreign investment in mineral exploration and extraction is encouraged. A National Mining company holds Government interests of up to 40% in mining operations.

9. CURRENT EXPLORATION AND MINING ACTIVITY Currently 19 companies are operating in Eritrea

10. Bisha Mining Project Commissioning has commenced; Commercial gold production is expected to begin by the end of this year. MAJOR ACTIVITIES IN THE SECTOR

11. Bisha Mining Share Company

12. MAJOR ACTIVITIES IN THE SECTOR ZARA PROJECT Definitive feasibility study submitted; Definitive feasibility study submitted; Processing of application for a mining license underway; Processing of application for a mining license underway; Development will commence in 2011 with a 40/60 joint venture with the national mining company. Development will commence in 2011 with a 40/60 joint venture with the national mining company.

13. MAJOR ACTIVITIES IN THE SECTOR Asmara Project Feasibility and Prefeasibility Studies for different discoveries within the property underway

14. MAJOR ACTIVITIES IN THE SECTOR RAS KASAR COLLULI PROJECT Assay results from 3 holes confirm extensive shallow potash over a 4.5 km 2 area with mineralization open in all direction; To confirm these results, drilling programs is continuing.

15. WHY INVEST IN ERITREA RAS KASAR Geology  Untapped resources coupled with a highly prospective geology  More complex and extensive than is apparent.

16. WHY INVEST IN ERITREA 5% ROYALTY ON PRECIOUS METALS INCOME TAX – 38 % NO TAX ON DIVIDENDES 0.5% IMPORT DUTY RIGHT TO CARRY FORWARD OPERATIONAL LOSSES RIGHT TO EXPLOIT DEPOSITS DISCOVERED RIGHT TO SELL MINERALS PRODUCED FREE OF EXPORT DUTIES OR TAX. SIMPLE AND STABLE TAXATION SYSTEM EQUITABLE FOREX REGULATIONS PERMIT 3,5% ROYALTY ON BASE METALS TAXATION SYSTEM

17. WHY INVEST IN ERITREA RAS KASAR Governance  Peaceful, politically stable and Corruption free system  Strong Government commitment to develop the Minerals sector in partnership with foreign investors,

18. WHY INVEST IN ERITREA RAS KASAR Infrastructure  Two international ports adjacent to the Red Sea international sea lane  All parts of the country are easily accessible by road

19. WHY INVEST IN ERITREA RAS KASAR People Hardworking, disciplined and motivated

20. SECRET FOR SUCCESS RAS KASAR Equal partnership and equitable share of Benefits The host-state must derive real benefits from the exploitation of its resources The investor must derive reasonable rate of return on its investment

21. MINISTRY OF ENERGY AND MINES See you in Eritrea