March 2008
Slide 2
Opportunities Exist
• The Region Is Vast, Under Explored And Undeveloped
– Remote
– Historical Lack Of Funds For Exploration
• Exploration And Production Projects Are Available In Different Forms
• Success Requires A Highly Defined Approach With Defined Objectives
• The Competition Is Intense And There Will Be Competition On All Levels
• Staying Power Both Financially And On A Long Term Basis
Target Audience
• Western Companies
• Unfamiliar With The Russian Federation
• Looking For Background And An Understanding
Slide 4
The Far East - Licence Locations
KustakskayaNickel, Copper
Kun-ManieNickel - CopperKun-Manie
Nickel, Copper
Anadjakan Copper, Gold
Key Considerations Before Committing
• Financial• Administrative• Commodity• Infrastructure • Licence Considerations• Partner Relationships• Service Availability
Financial Considerations
• Deep Pockets, It Is Not Inexpensive• Support Services Are Presently Limited And At A Premium
– Mobilisation– Geophysics– Drilling– Analytical– Transportation– Qualified Staff
• Two Standards Are Present– Federation Ministry/Agency And Accounting Requirements– Western Information Flow, Financing And Accounting– Duplication Of Costs Will Be Incurred To Meet Both Needs– Western Reporting Versus Russian Regulations
Administrative Consideration
• Time, Language, Culture And Distances• No Short Cuts Or Quick Fix’s• Protocols And Procedures Are Cast• Russian Partnerships Are Helpful• Federation And Local Ministry Contacts
Must Be Developed And Maintained• Difficult To Attain A Full Understanding• Personal Communications• Long Lead Time And Excellent Planning
Commodity And Operational Configuration
• Infrastructural Support– Access– Power– Transportation– Supply And Support Of An Operation– Product Delivery And Sale
• High Grade And/Or Very Large• Nearby Transportation
Licence System And Considerations
• Exploration (Awarded Directly If No Other Interest)– Five Years– Opportunity To Extend– Convert To A Production Licence
• Resource Registration• Obtaining The Mining Licence• Obtaining Mining Permits And Approvals
• Exploration Production Licence (Via Auction)– 20 To 25 Years– Resource Registration– Mining Permits And Approvals
• Lengthened Lead Times• Reporting Requirements• Terms, Conditions and Performance Requirements• Ownership By A Russian Company• Transferability, Can Be Difficult
Partner Relationships
• Acquisitions Of Existing Projects Or Operations • Ownership By A Russian Company• Establish Partnership By Ownership Of The
Russian Company• Provides Existing Contacts• Possible Support Within The Local and National
Ministries• Know The Terms Of The Licence• Financial Audits Of The Companies, Dig Deep,
Very Deep
Service Support Availability
• Less Costly Than Elsewhere, Incorrect Perception• Contract Rig Shortage
– Alternatively, Buy And Import– Complications At Importation, Primarily Lack Of
Understanding Of Importation Regulations– Delivery To Project Site
• Air Supported (Limited Quality Companies)• Analytical Services, Improving• Geophysical Support, Limited• Personnel, High Demand Already Exists• Distances
– Samples and Core Handling– Camp Or Operational Supply And Support– Weather
Kun-Manie As An Example
Slide 12
Drilled – limits defined Partial drilling – large upside remains
Undrilled – strong exploration potential
Large upside remains with further planned drilling in
2008/2009
Slide 13
Kun-Manie Overview
• Large nickel/copper sulphide project - cobalt present
• SRK Consulting resource estimate 341,000t Ni & 95,500t Cu
• 6 zones identified, 3 contain all measured and indicated resources (18,000 meters drilling to date)
• Drilled resources are open pit mineable
• Pre Feasiblity Study Completed
PFS Economics
Base Base CaseCase
Long term Nickel price $7.50
Post-tax IRR 15.7%
Payback period 4
Net Present Value $84m
Total cost per pound $3.46
Slide 14
Capital CostsCapital Costs US $ US $ MillionsMillions
Studies 5
Infrastructure (road, power) 140
Mining 87
Processing 137
Transportation fleet 20
EPCM, Site Facilities and other 12
TOTAL 401
Sunk Project Costs To Date: Approximately 18 Million USDTotal Drilled Meters: 18,000 MetersAll In Cost Per Meter: $1,000 Per Meter
Projected Cost To Access Project: 40% Of Total Initial Capital Cost
4.0 MTPA Ore Production With 16,000 TPA Nickel Production
Kum-Manie Geological Resource Summary
OrebodyTonnage
(Mt)Ni (%)
Ni(t)
Cu(%)
Cu (t)
Vodorazdelny
Indicated 5.9 0.71 41,800 0.20 11,800
Ikenskoe
Measured 3.7 0.61 22,700 0.16 5,800
Indicated 26.8 0.42 111,300 0.12 32,700
Sub-total 30.5 0.44 134,000 0.13 38,500
Inferred 5.9 0.49 28,700 0.13 7,500
Total Ikenskoe 36.4 0.45 162,700 0.13 46,000
Maly Krumkon
Indicated 15.0 0.49 73,700 0.13 19,900
Inferred 11.2 0.56 62,800 0.16 17,800
Total Maly Krumkon 26.2 0.52 136,500 0.14 37,700
Total Resources
Total Measured 3.7 0.61 22,700 0.16 5,800
Total Indicated 47.7 0.48 226,800 0.13 64,400
Total Inferred 17.1 0.54 91,500 0.15 25,300
Grand Total 68.5 0.50 341,000 0.14 95,500
Slide 15
Independent Resource Estimate (Prepared in accordance with JORC Protocols)
Remaining Near Term Work
• Complete Registration Of Resource With GKZ• File For Conversion Of Exploration Licence To Production
Licence• Establish Final Operational Configuration
– Resources And Mine Plans– Metallurgical Testwork– Finalize Process Design– Continue With Environmental Reviews And Base Line
Definitions– Detailed Infrastructure Access To Be Undertaken
• Obtain All Necessary Permits To Mine In The Federation• Obtain All Necessary Studies To Allow Western Financing• Continue To Explore, Substantial Potential Remains
Slide 17
Contacts
Amur Minerals CorporationRobin J. Young, [email protected] F. Wood, [email protected]+7 495 629 4418+7 4212 734 301
RBC Capital MarketsNominated Advisor & Joint BrokerAndrew Smith+44 (0)20 7029 [email protected]
Bankside ConsultantsMichael Padley / Louise Davis+44 (0)20 7367 [email protected]
Fox-Davies CapitalJoint BrokerDaniel Fox-Davies+44 (0) 20 7936 5200 [email protected]
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