1. eeding in Afr Simon Village, Chairman Mine Africa – 8 th Annual Mining Seminar Toronto March 9, 2010 The African Resource Development Cycle

2. Gold & the New Frontier – 20 year Monthly Gold Price 2

3. 3 Robust Supply/Demand Fundamentals 3 Copper Deposits Copper Smelter Complex 50 km

4. Africa’s Rich Natural Resources - Minerals 4 4 Gold 21% of Global Production Diamonds 27% of Global Production Copper 13% of Global Production Iron Ore 17% of Global Production Bauxite (aluminium) 43% of Global Production Uranium 38% of Global Production Nickel 6.5% of Global Production Platinum 78% of Global Production

5. Africa & Global Exploration “Gold” 5 Source: Metals Economics Group

6. Attracting Foreign Capital 6  Stable, peaceful, corrupt free “Democratic” countries  Transparent clearly defined legal system  Rule of law applies  Reformed mining act Security of tenure Right to mine from exploration Transparent & competitive fiscal terms Equitable sharing between stakeholders Freedom of exchange controls  Basic infrastructure  Freely available data, geology, topography, economic and fiscal data

7. Stages of an African Development Resource Cycle 7  Legislating a New Mining Code to attract foreign investment  Liberalisation of the economy to allow currency exchange & repatriation of funds  Undertaking basic activities of mineral exploration (limited investment)  Juniors increase investment in exploration leading to discoveries  Majors acquire juniors & expand near mine projects & increase exploration spend

8. 8 Ghana & Tanzanian Gold Industry Development 8 Ghana 1986 New Mining Code introduced Privatisation incl. Ashanti Goldfields in 1994 1995 Government promoted investment in Ghana Bank deregulation & floating exchange system Tanzania Revision of Mining Act in 1990 UN/World Bank financial assurances to attract Mining Investment Promotion of mineral potential Exploration expenditure increased from $80m to $413m between 1990 to 1996 From one mine feasibility study in 1996 to 5 gold mines by 2003 Up to 2000 around 25% African Exploration was spent on Ghana/Tanzania

9. 9 Impact of Mining on Economies of Ghana and Tanzania 9 Trade liberalization & related measures have attracted significant production and exports to both countries Annual mineral export increased 208% and 1,055% for Ghana and Tanzania over a nine year period to 2008 Gold accounts for major component of total mineral export increase Royalties of $68m and $30m paid in 2008. $m

10. Advanced Primary Gold Projects in Ghana 10

11. Active Primary Gold Projects in Tanzania 11

12. Yindi Ngayu Greenstone Belt LONCOR Moto Greenstone Belt(22 Moz) Anglogold/Randgold Kilo Greenstone Belt(5Moz) KILO Twangiza-Namoya (11 Moz) Uganda Rwanda Tanzania Burundi Kenya Sudan Geita (17 Moz) Bulyanhulu (15Moz) Moto Mongbwalu Adumbi LONCOR BANRO Major Gold Mine/Deposit Greenstones Legend: North Mara (8Moz) Golden Pride (6Moz) Buswagi (5Moz) North Kivu Project LONCOR 12 The New Frontier - DRC

13. DRC Development Resource Cycle 13  2003 – DRC introduces new Mining Code with assistance of the World Bank  2004-9 – World class gold deposits outlined in eastern DRC by Moto, Banro, Kilo, Loncor  2006 – Democratic elections usher in new Central & Provincial governments  Ongoing – US$ billions invested by IMF, European Union and China in economic reconstruction and infrastructure development  2004 to present – Growing mining industry led by Freeport McMoran, Anvil, First Quantum, Moto Gold and Banro Corp  Oct. 2009 – Investment in the region by the majors (AngloGold Ashanti/Randgold acquisition of Moto Gold, Newmont investment in Loncor)

14. 14 The New Frontier – DRC 10 year production outlook * 14 * Estimates for Loncor and Kilo based on both projects yielding at least 2mozs mineable reserves

15. 15 DRC Potential Economic Development* 15 * Estimates for Loncor and Kilo based on both projects yielding at least 2mozs mineable reserves

16. 16 The Benefits To Local Stakeholders 16 New High School in Twangiza, DRC Hospital in Manjurechipa – N. Kivu DRC Water Project – Eastern DRCNew Bridge – Eastern DRC