BATSALANI JUNIOR MINING:BLACK OWNED JUNIOR MINING INVESTMENT COMPANY

Toronto: 4 March 2008

Farouk Abrahams

Chief Executive: Batsalani Junior Mining

BATSALANI JUNIOR MINING

GROWTH OPPORTUNITIES IN MINING IN SOUTH AFRICA

Batsalani is a Setswana word meaning PARTNERSHIP, a philosophy our team shares with our associated strategic alliances, investors, partners, lenders, BEE consortia and

portfolio investee companies

www.batsalani.co.za

AGENDA

GROUP

– Background

– Existing Investments

MARKET OPPORTUNITY

BATSALANI JUNIOR MINING

– Executive Summary

– Pipeline

– Smokey Hills PGM Project

– Investment Model

– Exit Strategies

– Conclusion

THE GROUP

BACKGROUND

Batsalani is a black owned investment company owner managed by experienced entrepreunial investment bankers.

Independent with a sound proven track record in its focus areas and was founded by the late Frank Molobi, Farouk Abrahams (CE) and Ibrahim Khan (Chair).

Batsalani aims to identify, source and secure a portfolio of assets that provides a consistent and sustainable cash flow.

Our vision is to leverage Funding, Strategic industry insight, Relationships, and Transaction execution capabilities to unlock value in our portfolio companies.

Batsalani focuses on the following sectors:

TELECOMMS-MEDIA-TECHNOLOGY

MINING & RESOURCES

PROPERTY

Services and procurement

Mining Assets

“Incl. Junior Mines”

Beneficiation

Existing Investments

Name of Company Nature of Transaction Business

Mining: The Group is part of consortium who has a

21.45% stake in the Smokey Hills PGM project in the

Limpopo Province.

PGM producer

TMT: The Group was awarded a portion of Welkom

Yizani and Phuthuma Nathi BEE schemes launched by

Naspers late in 2006 & early 2007

Naspers is a multinational media company with

principal operations in electronic media and print

media

Property: The Group is part of the Buhlobo

Consortium who has direct stake in Vukile Property.

Vukile is a property Loan stock company listed on

the JSE. Sanlam Life is the major shareholder.

TMT: The Group has a 30,95% stake in rapidly

growing SA based multinational telecoms company

with offices in Johannesburg, London, Brussels,

Geneva, and several African countries

Largest Independent African Operator = 25% Market

Share. Voice & data management & routing to &

from 34 African countries primarily using satellite

Networks. GTV – a pan African pay – TV satellite

delivered service

TMT: The Group has a 40% stake in this UK based

company which operates in the prepaid airtime and

electronic product market

A UK based mobile prepaid transaction or airtime

electronic pin-based distributor

THE MARKET OPPORTUNITY

Factors such as structurally higher demand in terms of “Chindia effect”, the weakening US$ and consolidation in supply, remain positive factors

South Africa is the world’s richest and most diverse repository of mineral commodities.

Globally, largest producer of gold, vermiculite, platinum and chromium.

Major deposits of antimony, coal, iron ore, manganese, nickel, phosphates, tin, uranium, diamonds, copper and vanadium

Market Opportunity

Mineral and Petroleum Resources Development Act (MPRDA) 2002

Prospecting rights applied for between May 2004 and October 2007 totaled:

– 7 547 received– 5 948 accepted– 2 789 granted– 2 033 issued

Mining permits applied for between May 2004 and October 2007 totalled:

– 3 840 received– 3 255 accepted– 1 318 issued

The natural consequence of the MPRDA and related legislation over the last 3 years resulted in conclusion of over US$ 10 billion BEE deals

Creation of black owned mining companies – Anooraq, BSC Resources

Creation of Partnership/JV’s – Platinum Australia, GVM Metals, Homeland Corp

Source: SAMDA

South Africa’s Exploration Expenditure2003-2006

Source: SAMI Report – 2006-2007

Dominant targets for recent exploration activity in South Africa:

PGM’s, Diamonds, Gold, Uranium and Coal

South Africa’s Role in World Mineral Production

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Iron

Ore

Alu

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Sili

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Number = World Ranking

Source: Data from SAMI Report – 2006-2007

New BEE regulations (2002) have added some life into the industry by attracting smaller mining players to join the fray. With the major players focusing on cross-acquisition, it is the smaller miners that are now expected to revive the industry.

Source: Business Monitor International

The Listed Junior/Mid Tier Mining Companies

Source: Nedcor Securities, as at 15/2/08

Sector Exposure

By Market Capitalisation

The junior mining space in South Africa has increased massively in value

Why Junior/Mid Tier Mining Isn’t What It Used To Be?

Source: Data from NedSec Junior Mining and Exploration Index and I-Net Bridge

Growth in Junior Listed Sector

5197.52

72972.74

106000.02

91846.54

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Market Cap

BATSALANI JUNIOR MINING

Executive Summary

The opportunity to benefit from investing into mining projects in South Africa.

Via a black owned investment company managed by an experienced team of technical and financial entrepreneurs/professionals

Intend on partnering with junior/mid-tier mining operators which have a successful track-record in both green and brown fields projects and/or

Or do some early stage development i.e. take it up the value curve and/or

Use different mineral hubs for consolidation in the industry

Strong pipe line in Commodities – PGM, coal, nickel and base metals

To generate capital appreciation, with a view to extracting long term growth from profitable portfolio investments in the junior mining sector

We are not:

Operational company such PLA or BSC Resources

Nor private equity or asset management company in the strict sense

We are development company - combination

Pipeline

Black owned and managed investment firm

Strong and experienced financial and technical team

Has established key relationships with all stakeholders in the industry

Project and/or Partner Status Level of participation

Platinum Australia’s Smokey Hills PGM project

Mining right granted BEE partner to PLA

PGM project Prospecting Right imminent

BEE partner to junior

Coal project PR imminent Batsalani will commence with early stage

development

Iron Ore project

PR granted In discussion with junior to jointly developed

Various commodities MOU signed with

company that has

several PR granted,

pending and new

Either partner or commence

with early stage

development

PLA Smokey Hills PGM Project

• Located on the eastern limb of the Bushveld Complex in the Limpopo Province

• PLA commenced a resource definition drilling program on the project in July 2005

• Mining Right issued & construction commenced in November 2007

• Open Pit Mining started in January 2008

• Commissioning in June 2008

BFS Feb 2008

Base1 July 062 Base1 Feb 083

Capital US$ Million 40 40 46 49

Ongoing Capex US$ Million 14 14 14 14

Cash Costs US$/oz 4E 225 225 270 240

Basket price US$/oz 4E 677 1,296 677 1,530

IRR (Pre Tax) 70% 800% 40% 140%

Cashflow (Pre Tax) US$ Million 140 +500 100 +500

Investment Model

Source: NAMF Annual Report

3 C’s

– Counterparty

– Country

– Commodity

Leverage own capital using favourable developmental funding for BEE deals

Cost curve analysis

Exit Strategies

Following results from early stage development either trade sale to and/or partner with a junior mining/mid tier company

Management Buy Out (“MBO”)

Leveraged Buy Out (“LBO”), possibly coupled with a share buy back

Initial Public Offering (“IPO”)

Acquisition by major mining company

Hold

Concluding Remarks

Global demand for commodities

South Africa “response” to this global demand

Batsalani Junior Mining:

– Black owned investment company

– Structured multi-disciplinary management team – highly experienced in mining and

finance

– Strong existing relationships with key players in the industry

– Strong pipeline of deal flow at advanced stages

Interested parties as investors, assets or relationship with

potential sources of junior mines are invited to meet with

management to discuss possibilities

Contact details

South Africa – Johannesburg

Physical Location:222

Rivonia Road

Morningside CloseBlock

A, 1st Floor

Morningside21496

Postal Address: P O Box 781809

Sandton2146

Telephone: +27 (0) 11 656 6816/7

Fax: +27 (0) 11 656 6804

Farouk AbrahamsTel: +27 (0) 11 656 6816/7

fabrahams@batsalani.co.za

Website: www.batsalani.co.za

QUESTIONS&

ANSWERS