F&M Presentation

Miners, Operators, Builders

…unlocking value in resource assets

January 2013

2

A Unique and Proven Model

Capital Talent

Strategy

Strengthen

Companies &

Increase Value

Each company

has access to:

Global network of

political leaders

Industry experts

Technical teams

Developmental teams

Financial experts

…in over 30

countries around

the world.

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Sulliden

Brazil Potash Belo Sun

Aguia

Aguia

Irati

Alder Resources

Castillian

Alderon

Forbes Coal

Black Iron

Castillian Pitchblack

Allana

Allana

Silver Bear

Rodinia

Castillian

Rodinia

Cap-Ex

Cap-Ex

Legacy Platinum

Dacha

Scandinavian Metals

Ferro Iron

Windamere

TAG Resources

Mason Graphite

Emerita

East Asia Minerals

East Asia Minerals

Forbes Offices Projects / Operations

Global Mining Footprint

What We Bring

Integrated Team Built on Technical and Operational Expertise

and Accomplished Financial Markets Professionals

Stan Bharti Founder and

Executive Chairman

• Over 50 engineers

• Over 50 geologists

• Expertise in all

mining, energy and

agriculture products

• 11 (globally)

full-time

securities

lawyers and

support staff

• Over 30 people

with expertise in

– M&A

– Investment banking

– Corporate Finance

– Corporate Development

– Investor relations

• Over 20

accounting and

administration

staff

Advisory Board

Technical Team

Legal Team

Financial Team

Admin / Accounting

4

Agriculture David Argyle

Corporate Finance Fred Leigh

Investments David Stein

Geology David Gower

Forbes West Mark Morabito

Legal Pat Gleeson

Gold Group Mark Eaton

Iron Ore Group Matt Simpson

Mine Engineering Mike Hoffman

Oil & Gas Ahmed Said

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Executive Committee

Stan Bharti, P.Eng, Founder, Executive Chairman and CEO Internationally educated as a professional mining engineer, Mr. Bharti has over 30 years

of experience in operations, public markets and finance. He has been instrumental in

acquiring, restructuring and financing numerous mining assets worldwide generating

billions in market capitalization. Mr. Bharti is bottom line driven with an enormous

capacity to manage multiple complex transactions.

Who We Are

Chief Operating Officer – Scott Moore

Chief Financial Officer – Deb Battiston

International Advisory Board

General John Abizaid, U.S. Army (Ret.)

Served for 34 years in U.S. military; Commander of US Central Command 2003-2007

Peter Boot, South America

25 years in finance; experience in Brazil, Curacao, Venezuela, Paraguay & Bolivia

General Jay Garner, U.S. Army (Ret.)

35 years in the U.S. military; Command of Air Missile Defense Units during the Gulf War

General Ron Hite, U.S. Army (Ret.)

Served 33 years in the U.S. military; Senior Military Advisor to the Army Chief of Staff

Larry King, U.S.A.

American icon; Former Host of CNN’s Larry King Live

General Lewis MacKenzie, Canadian Army (Ret.)

Canadian Forces for 35 years; led the UN peacekeeping mission in Sarajevo

Hon. Pierre Pettigrew, PC, Canada

Served as Canadian Federal Minister of Foreign Affairs and International Trade

Jim Rogers

Author, financial commentator and successful international investor.

General Sir Michael Rose, British Army (Ret.)

Highly decorated former SAS Commander for the British Army

Bernard Wilson

Corporate Finance and Investment Banking advisor with substantial experience in restructurings

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F&M at a Glance

Over the last 10 years, we have…

Discovered more than 20M oz of gold to 43-101 compliant standards worth

more than $34 billion in situ value today

Produced almost 1 million oz from mines that were built or re-started by our

teams. Another million ounces have been produced from gold mines bought

from F&M companies.

Discovered + 900 million tonnes of iron metal to 43-101 compliant standards

(and + 3 billion tonnes of iron ore)

Produced 3.3 million tonnes of saleable iron ore concentrate before being

acquired and another 12 million tonnes since.

Operated, expanded and produced successfully from coal and nickel mines.

Discovered under 43-101 or JORC compliant standards resources in silver,

zinc, nickel, potash, phosphate, vanadium, tungsten, lithium, and other

commodities.

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Building Companies & Creating Value

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Cumulative Value Added

Source: Bloomberg, F&M

Our Fees

In 2012:

F&M charges on average $28,000 per month per company

Depending on size, stage of development, use of F&M internal resources

This includes ALL bonuses paid to F&M and Stan Bharti

These charges are fully disclosed in each company’s

quarterly reports under General & Administrative expenses

These fees provide the funding for F&M to operate a global network of more

than 200 senior mining/resource professionals who are instrumental in taking

projects from concept to commercial production

Technical, operations management, capital markets, legal, accounting,

investor relations and risk management

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Case Study : Avion Gold

An analysis of overhead costs of each of the F&M companies

reveals that they are run significantly cheaper than their peers

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G&A per oz of gold production (2011)

Source: RBC Capital Markets Data, Forbes & Manhattan Research

G&A cost of $51/oz

Case Study : Avion Gold

11 Source: RBC Capital Markets Data, Forbes & Manhattan

G&A per oz of gold production (2011) – Avion Gold versus Peers

Belo Sun - Avion - Castillian - Sulliden

12 Source: RBC Capital Markets Data, Forbes & Manhattan Research

Relationship between G&A and Market Cap (2011) – Gold Companies

Iron Ore Companies

13 Source: RBC Capital Markets Data, Forbes & Manhattan Research

Relationship between G&A and Market Cap (Dec 2012) – Iron Ore

Companies

Case Study: Consolidated Thompson

• World Class Iron Ore Project in Quebec

• Built from exploration stage in 2005 through to production in 2010

• Completed scoping study, 3 feasibility studies, secured off-take and

financing agreements with China.

• Market cap when F&M got involved was $1 million; sale price market

capitalization of $4.9 billion

• Raised approximately $1 billion, including a strategic US$240 million

investment from Wuhan Iron & Steel Co. (WISCO)

Founded Consolidated Thompson Iron Mines

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Case Study: Consolidated Thompson

Value Realized:

Acquired by Cleveland Cliffs Natural Resources Inc. for $4.9billion

$0.22

$17.25

• ~7,700% return over 4 years

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Case Study: Alderon Iron Ore

• World class iron ore project in the heart of the Labrador Trough,

Canada’s Premier Iron ore District

• Kami Property consisted of three map-staked licences at the time of

acquisition (March 2010)

• Completed 2 NI 43-101 mineral resource estimates, a PEA, secured

a strategic partner and a major off-take agreement within two years

of acquiring the asset

Founded Alderon Iron Ore in March 2010

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Case Study: Avion Gold

• Acquired Tabakoto / Segala mine in Mali, West Africa mid-2008 from

Nevsun Resources for US$ 20 million

• Over US$150 million in infrastructure was invested by Nevsun:

brand new mill, accommodations, roads and power facilities

• Avion’s expert team turned around the operation and put the

property back into production. We build value in struggling assets

where others cannot – our technical team is one of the best in the

world

• 4.8 million ounce resource with significant exploration upside

Founded Avion Gold Corp

MALI

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BURKINA

FASO

Case Study: Avion Gold

Production Ramping Up

Gold Production (000’s oz)

2009 2011 Future

Potential to double

production

~100,000 oz

~50,000 oz

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• 300% return

• Market cap $390M

>$0.88

$0.22

Cost

(Oct ‘07)

EDV

Deal Value

Technical Team Strength

John Begeman, Mining Engineer

Mr. Begeman, is a professional mining engineer with over 30 years of mining

experience and currently President, Chief Executive Officer and Director of

Avion Gold Corporation, a growing gold mining company in Mali, West Africa

and the largest company currently in the F&M Group. John was previously

President and CEO of Valencia Ventures Inc., Chief Operating Officer of Zinifex

Canada Inc., and Vice President, Western Operations of Goldcorp Inc.. Mr.

Begeman is also a director of Yamana Gold Inc. and Premier Gold Mines

Limited. He holds a B.Sc. in Mining Engineering, an M.Sc. in Engineering

Management and an MBA.

Mike Hoffman, Mining Engineer

Mr. Hoffman is a professional mining engineer with over 28 years of experience

in open pit and underground mine operations, projects, engineering and

corporate development. He served in senior executive positions at Crocodile

Gold, Crowflight Minerals Inc., Goldcorp Inc., Desert Sun Mining Corp., and

Yamana Gold Inc. He has been responsible for leading a team in the design

and construction of large mining projects such as the #3 Shaft Project at Red

Lake and the construction of Crowflight’s Bucko Mine. Currently, Mr. Hoffman is

a director of several F&M Group Companies including Aberdeen International

and Crocodile Gold. Mr. Hoffman holds a Bachelor of Applied Science degree in

mining engineering from Queen’s University.

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Bruce Humphrey, Mining Engineer

Mr. Humphrey is a mining engineer with over 30 years experience with such

major companies as Goldcorp, Inco, Cominco and Noranda. He recently served

as Chairman of Consolidated Thompson Iron Mines Ltd. During his time as the

President and Chief Executive Officer of Desert Sun he contributed to the

successful development of the Jacobina Mine in Brazil. Prior to Desert Sun, Mr.

Humphrey served as Senior Vice President and Chief Operating Officer at

Goldcorp Inc. during the re-development of its high-grade Red Lake mine. He is

a member of the Professional Engineers of Ontario. Currently Mr. Humphrey

serves on several F&M boards including Chairman of Black Iron Mining (Iron

Ore, Ukraine).

Richard Bishop, Mining Engineer

Mr. Bishop is a mining engineer that joined F&M from RBC Capital Markets,

where he was a gold mining equities analyst covering exploration and

development stage mining companies. He has industry experience in gold,

molybdenum, titanium, tungsten, and phosphate, having worked for Mosaic,

Iluka Resources, Freeport McMoRan, and Barrick Gold. Mr. Bishop holds a

Bachelor of Science degree in Mining Engineering from Virginia Tech, and a

graduate certificate in Mining Engineering from the European Mining Course in

Finland, England, Germany, and the Netherlands.

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Dave Anthony, Mining Engineer

Mr. Anthony has more than 30 years of engineering and environmental

experience in the mining industry. Recently, he worked with Barrick Gold Corp.

as Chief Operating Officer, responsible for African Barrick Gold (ABG) Mines &

Capital Projects. He also has held general management positions with Barrick's

gold and copper operations in Tanzania, directing the design, commissioning

and operation of greenfield projects. Mr. Anthony also completed designs for

mining companies across the globe while a senior metallurgist for SNC-Lavalin

Engineers & Constructors Ltd., a leading Toronto-based engineering and

construction group. He is a graduate of Queens University and holds a

Bachelor of Science in Mining Engineering.

Chantal Lavoie, Mining Engineer

Mr. Lavoie is a professional mining engineer with more than 25 years of

experience in mining operations and projects. Mr. Lavoie has previously spent

eight years at De Beers Canada Inc. where he was responsible for the

Canadian operations including Snap Lake and Victor mines, the Gahcho Kue

project and was acting CEO of De Beers Canada. He has also worked for

Barrick Gold Corporation at Goldstrike in Nevada and Aur Resources Inc. at the

former Louvicourt mine.

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Neil Ringdahl, Mining Engineer

Mr. Ringdahl is a mining engineer with 17 years experience held in senior

management positions with a number of companies including Anglo Platinum,

Golden Star Resources, and an executive position with Peruvian base metals

producer Volcan Companía Minera. Most recently, he was country manager for

Ancash Mining (now a Korea Zinc subsidiary). On behalf of the defaulting

creditors, he was responsible for taking the company through the administration

process. He also financed and managed the construction and commissioning of

its silver/base metals concentrator and mine. Neil has led a number of mining

and project teams on mines across South America and Africa. He spent five

years as a consultant specializing in strategic and tactical mine planning on

various diamond, precious and base metals mines around the world.

Peter Tagliamonte, Mining Engineer

Mr. Tagliamonte is a professional mining engineer and also holds an MBA from

the Richard Ivey School of Business, at the University of Western Ontario. He

is the former President and CEO of Central Sun Mining Inc. and Chief

Operating Officer of Desert Sun Mining Corp. where he was responsible for the

development of the Jacobina Mine in Brazil into a 4,200-tonne-per-day mining

operation. Mr. Tagliamonte has over 25 years of progressive managerial

experience building and operating mines worldwide, notably in Central and

South America. In 2005, he received the Mining Journal's "Mine Manager of the

Year" award in recognition for his work in the mining sector. 22


Allan Polk, Mining Engineer

Mr. Polk is a mining engineer with over 20 years of experience in mine

operations and consulting for both underground and open pit mines in a variety

of commodities at mines and projects around the world. He is an expert in

resource to reserve conversion as a qualified person for technical reports and

as a corporate representative at operating mines. Allan recently worked at Pan

American Silver Corporation as the Director of Mining Engineering and was a

Principal Engineer at Snowden Mining Industry Consultants in Vancouver.

Mark Trevisiol, Engineer

Mr. Trevisiol is a professional mechanical engineer with over 24 years of

management experience in the base metals industry, the majority of which

have been spent specifically in the nickel sector. Between August 2009 and

December 2010, Mr. Trevisiol acted as CEO of Crowflight Minerals. Mr.

Trevisiol was the Chief Operating Officer of Liberty Mines, where he was

responsible for their mining and milling operations in Timmins, Ontario.

Formerly General Manager of Business Development & Strategy of Xstrata

Nickel Sudbury Operations, Mr. Trevisiol spent 18 years with Falconbridge Ltd

in various roles, including General Manager of the Sudbury Smelter business

unit, Production Manager of the Sudbury smelter and Superintendent of the

Kidd Creek zinc operations. He holds a mechanical engineering degree from

the University of Waterloo.

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David Gower, Geologist

Mr. Gower has over 20 years of experience in exploration with Falconbridge,

Noranda (now X-strata) most recently as Director of Global Nickel and PGM

exploration. He was a member of the Senior Operating Team responsible for

mining projects with Falconbridge. He has led exploration teams which were

responsible for brownfields discoveries at Raglan and Sudbury, Matagami,

Falcondo – DR, and greenfield discoveries at Araguaia in Brazil, Kabanga in

Tanzania and significant increases in known resources at Kabanga in Tanzania

and El Pilar in Mexico. He has a Bachelor of Science In Geology from Saint

Francis Xavier University and a Masters degree in Geology from Memorial

University.

David Stein, Geologist

Mr. Stein is an investment manager specializing in natural resource assets and

companies. He is the CEO of Aberdeen International, our in-house fund

management company. He served as director for three public companies and

three private companies with direct experience in and exposure to Latin

America, Asia, and Africa. Mr. Stein is a former top-ranked mining equity

analyst with Cormark Securities/Sprott Securities in Canada. He earned a

Bachelors’ degree in Geological Engineering and Masters’ degree in Geology

from Queen’s University, Canada.

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Bill Pearson, Geologist

Dr. Pearson is a professional geologist with 38 years of experience in the

national and international mining industry in all phases from grassroots

exploration through to advanced projects and mine development. Has carried

out exploration programs in 15 countries in North and South America, Europe,

East Asia and Australia. He was the former Vice President, Exploration for

Desert Sun Mining Corp. prior to the April 2006 takeover by Yamana Gold Inc.

and the former Executive Vice President, Exploration for Central Sun prior to

the April 2009 takeover by B2Gold Inc. He holds a B.Sc. In Geology from the

University of British Columbia and a M.Sc. and Ph.D. from Queens University in

Ontario.

Joseph Arengi, Geologist

Mr. Arengi is a professional geologist with 38 years of exploration and

operational experience throughout Canada, Central America, South America

and Africa. Prior to joining Alder Resources, Mr. Arengi was V. P. Exploration for

Hana Mining Ltd. where he managed the team that discovered 4.0Bn pounds of

copper and 60MMoz of silver in the Kalahari Copper Belt of northwest

Botswana. Prior to that he was Regional Exploration Manager of Central

America and the Caribbean Basin for Aur Resources Inc., a mid-tier copper

producer acquired by Teck Resources Ltd. in 2007. He holds a M.Sc. in

Geology from the University of Toronto and a B.Sc. in Geology from the State

University of New York.

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Bill Nielsen, Geologist

Mr. Nielsen is a professional geologist with over 35 years of worldwide mineral

exploration and development experience. Most recently, he has been working

as a senior industry consultant to mining exploration companies working with a

variety of commodities in various countries and geological environments. From

2003 to 2008, Mr. Nielsen was the V.P. Exploration of Nevsun Resources Ltd.,

where he played a significant role in the discovery of the Bisha gold-VMS

deposit in Eritrea. He has worked with the F&M group since early 2010.

Sarah Palmer, Geologist

Dr. Palmer is a professional geologist that previously spent fourteen years as

an exploration geologist and consultant to the Canadian oil and mining

industries. She has managed projects and conducted exploration programs for

both junior and major international mining companies over a broad range of oil

and mineral commodities, including uranium, gold, base metals, and platinum

group metal deposits. She holds a B.Sc. (Cum Laude) from Saint Mary’s

University, M.Sc. in structural geology from Dalhousie University, and a Ph.D. in

geochemistry from Queen’s University.

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Helio Diniz, Geologist

Mr. Diniz has over 30 years of experience, most recently as Director of

Exploration, Brazil for Xstrata (formerly Noranda – Falconbridge). In this role,

he was a primary discoverer of the world class Araguaia Nickel Deposits (+100

million tonnes, 1.5% Ni) which are currently undergoing scoping studies by

Xstrata Nickel. He also assembled one of the most impressive property

portfolios in the prolific Carajas Mineral District and the land position at

Mangabal. Prior to that, he worked with GENCOR South Africa, and was

involved in the evaluation and development of the Sao Bento gold mine in

Brazil which operated for 25 years.

William Randall, Geologist

Mr. Randall is a professional geologist with extensive experience in mineral

exploration and production, including lithium projects in South America. Mr.

Randall has run and supervised numerous discoveries and has taken deposits

from the resource stage through to feasibility and production.

Raymond Spanjers, Geologist

Mr. Spanjers has twenty-nine years experience in industrial exploration, plant

and mine management. Mr. Spanjers joined Rodinia from FMC Lithium division,

where he explored for lithium brine deposits in Nevada and the Andean Puna of

Argentina.

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