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The Mantaro Phosphate Project
Growing its Phosphate Portfolio in South America
Building an Ethical and SustainableAgricom Business in Latin America
Forward Looking StatementsThis presentation may contain forward‐looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, and other related matters. Forward‐looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Focus Ventures Ltd’s projects in Peru, Colombia and Mexico are at an early stage and all estimates and projections are based on limited and possibly incomplete data. More work is required before the mineralization and the projects’ economic aspects can be confidently modeled. Actual results may differ materially from those currently anticipated in this presentation. No representation or prediction is intended as to the results of future work, nor can there be any promise that the estimates and projections herein will be sustained in future work or that the project will otherwise prove to be economic. Some assay results shown in this presentation are historical in nature and the Company has not completed verification of the accuracy of these results and therefore they cannot be relied upon.
Qualified Person Under the terms of NI 43‐101, David Cass, B.Sc., M.Sc., P.Geo., is Focus' Qualified Person responsible for ensuring that the technical information given in this presentation is an accurate summary of the results reported by Focus.
Cautionary Notes
Senior Management
David CassPresident & Director
Simon RidgwayChairman & CEO
24 years' international experience in mineral exploration and mining, including 15 year tenure with AngloAmerican in Turkey, Iran, Eastern Europe and the America's, including 4 years as Senior Geologist in Peruand 6 years as Anglo’s Exploration Manager for North America responsible for Canada, Central America,Mexico, mainland USA and Alaska. Since 2006, Mr. Cass has worked for junior exploration companiesexploring in Canada, Mexico, Central America and Peru. Mr. Cass holds a Masters of Science degree inMineral Exploration and Mining Geology from the University of Leicester, UK (1990). He is a practicingmember (P.Geo) of the Association of Professional Engineers and Geoscientists of British Columbia.
Co‐founder of the Gold Group with over 20 years of mining and exploration experience worldwide‐Integral in financing a stable of junior mining and exploration companies, raising over $400 Million since2003.
Kevin BalesCFO
15 years of financial reporting experience in mining and IT industries. He currently serves as CFO forseveral public junior exploration companies with operations in Canada, the U.S., and Mexico.
Ralph RushtonVP Corporate Development
Originally trained as a geologist, he has over 20 years' experience in mining and exploration, and businessdevelopment. His work as a geologist included exploration and mining in Southern Africa, the Middle Eastand Eastern Europe.
Mario SzotlenderDirector
Mr. Szotlender holds a degree in international relations and has successfully directed Latin American affairsfor numerous private and public companies over the past 20 years, specializing in developing newbusiness opportunities and establishing relations within the investment community.
Tomas GuerreroPeru General Manager
Don Tomas is a Peruvian with over 45 years of mine geology and mineral exploration experience in LatinAmerica, including 11 years with Cerro de Pasco Corporation and 10 years as Director of Explorations for theHochschild Group until 2001. Under his leadership Hochschild discovered and put in production three midsize gold‐silver mines. Mr. Guerrero is a Director of Fortuna Silver Mines Inc. and is registered with the LimaStock Exchange as a Qualified Person.
Phosphorus: a key ingredient in fertilizer and essential nutrient for plant life
Phosphate is a non‐renewable natural resource, mainly found in sedimentary and igneous deposits
40% of world food production is directly linked to fertilizer applications
Major Consumers of Fertilizer: China & India
Major Countries of phosphate production, China, US and Morocco Source: FAO, USGS (2008 statistics) and International Plant Nutrition
Institute. Percentages based on average annual tonnes of fertilizer applied.
Global Fertilizer Consumption
Phosphate Overview
The Ripening Opportunity
Fertilizers are part of the Food Supply Chain
Traditionally phosphate business is vertically integrated – phosphate rock mined and processed at nearby chemical plants and used locally
New growth of new markets such as Brasil, India, Indonesia, demand for rock phosphate has outgrown supply
Morocco controls seaboard trade of rock phosphate and was willing to sell rock phosphates cheaply, meaning there has been no real investment in phosphates outside Africa
Morocco now has made known its intention to sell at top dollar in order to become a key player in the production of chemical phosphates
This will squeeze the integrated producers such as Mosaic with the goal of causing them to abandon their chemical products and purchase the finished product from Morocco – meaning there will be increased demand for alternative sources of rock phosphate
Phosphate and Food prices go together (AGROFINANCIAL 2012)Price of PhosRock Concentrate 32‐33% P2O5FOB Morocco
Phosphate Projects in the AmericasCompany Project Country
Vale / Mosaic /Mitsubishi
Bayovar Perú
Hochschild plcFosfatos del Pacifico
Perú
Focus Ventures
MantaroMachay
QuebrantaMaria Luisa
PeruPeruPeru
Colombia
Aguia ResourcesRio Grande
BrazilM. da CordaLucena
Eagle Star MineralsBomfim
BrazilRuthSamba
Copebrás Ouvidor BrazilMbac Fert. Corp. Itafos BrazilStonegate Agricom Paris Hills U.S.A
Mosaic Corp. Mosaic U.S.APotash Corp. Aurora U.S.ASamplot Vernal, Smoky U.S.A
Arianne Resources Lac à Paul CanadaPhoscan Martison Canada
Opportunity in the Agribusiness to Feed Latin American markets with Phosrock & P2O5 Concentrates via exploration, reserve definition and production
Peru – Three Phosphate Projects to date:‐Mantaro – option to earn 70% ‐Machay – 100% Focus‐ Quebranta – 100% Focus
Colombia ‐ Option Agreement for Maria Luisa plus Strategic Agreement in signed with local company
Experienced geologists and management in place in Peru and Colombia.
ECUADOR
VENEZUELA
BRASIL
Focus Project
Focus’ Projects in South America
Peruvian Phosphate Projects• Mantaro• Machay• Quebranta
Mantaro & Machay Phosphate Projects
The Mantaro Project is located in theJunin region, in the central Andes atthe southern end of a highlyproductive and important miningbelt in the Central Peruvian Andes.
The Machay Project comprises18,000 claims is located roughly 30km north of Mantaro, with similargeology and mineralization toMantaro. Exploration is early stagewith up to 11.4% P2O5 sampled inoutcrop.
Phosphate mineralization wasdeposited on an ancient sea floorwithin the Aramachay Formation, aJurassic‐aged sandstone‐shale unitthat extends for hundreds ofkilometers
10 km
Mantaro DepositMeasured & Indicated39 million tonnes at 10% P2O5 Inferred 376 million tonnes at 9% P2O5
* http://www.stonegateagricom.com/i/pdf/Mantaro-NI43101.pdf
Machay Claims (100% Focus) Up to 11.4% P205 in surface outcrops, float and trenches
TarmaAsphalt Highway
Phosphate bearing Unit
La OroyaMetallurgical Complex
Railway
The Mantaro Project is a mineralized zone of phosphatic rock currently defined by surfaceoutcrops, trenches and drilling exposed as three roughly parallel mantos each extending overa strike length of more than 30 km over a width of more than 5 km on the west side of theMantaro River.
Mantaro Project Overview
1 Mineral resources estimates are included in a Technical Report dated February 21, 2010 by Donald H. Hains, P.Geo. and Michelle Stone, PhD., P.Geo. of Hains Technology Associates & CaracleCreek International Consulting. Michelle Stone, PhD., P.Geo. is the qualified person as defined in National Instrument 43‐101 for the resource estimates. 2 Measured and Indicated Mineral Resources are reported using a 4% P2O5 cut‐off. Inferred Mineral Resources are reported with anassumed grade of 9% and no cut‐off. 3 The potential conceptual tonnage estimates of phosphate rock are on zones that are considered exploration targets at this stage. The potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The target zones have been geologically mapped and exhibit surface mineralization widths similar to the zone on which Measured, Indicated and Inferred Mineral Resources have been estimated.
Mantaro Project Overview
Potential to be one of the largest phosphate deposits in the world
Testwork shows suitability to make marketable concentrate grading 30% P205 ; via conventional screening and flotation
Good quality concentrate suitable for phosphoric acid production
Ratio Ca : P205 low, low contaminantcontent
Mantaro Project Overview
Phosphate
West ZoneWest Zone
East ZoneEast ZoneFar East ZoneFar East Zone
Phosphatic units occur as sandstones rich infrancolite (calcium‐rich Apatite) in theupper part of the Aramachay
These are marine sedimentary depositsformed on an ancient sea floor and typicallyextend over many kilometers
Phosphatic units are up to 25m thick locally
Phosphatic units occur as sandstones rich infrancolite (calcium‐rich Apatite) in theupper part of the Aramachay
These are marine sedimentary depositsformed on an ancient sea floor and typicallyextend over many kilometers
Phosphatic units are up to 25m thick locally
West Zone Phosphate Unit
Mantaro Project History
1960’s: Cerro de Pasco recognizes potential for phosphate in the Mantaro Valley
1998: Phosphex S.A conducts exploration work within the Philip concession.
1999: German company Zublin improves studies and expands work area to include Quicha Chicoand Philip concessions by trenching and concludes interesting potential for phosphates.
2000‐2001: Bateman Technologies conducts positive pre‐feasibility study
2008: Stonegate Agricom acquires concessions Quicha Chico and Philip via Mantaro Perú SAC.
2009: Mantaro Peru achieved permits for exploration works from the Communities of Aco,Quicha Chico and Quicha Grande. Conducts exploration and 3,414m drilling within the Philipconcession
2010: NI 43‐101 Technical Report on the Mantaro Deposit published by D Hains and M Stone,February 21, 2010
2011: Stonegate completes a further 6,386m drilling
2009ExplorationProgram
Geological surface mapping of the Phillip Property. Development of a digital terrain model based on ortho‐rectified aerial
photos. Cleaning and sampling of the old Quicha Chico (Aco or Trench A‐A’)
and Quicha Grande (Trench B‐B’) trenches totaling 133 m. Development of 7 new trenches and sampling of the trenches totaling
333 metres in length and an average depth of approximately 2 m. Drilling of 23 HQ core size diamond drill holes from 8 drill pads totaling
3,414.5 m. Two holes were drilled down dip to test the depth of oxidation.
Completion of an archaeological survey within the Philip concession (Palomino,2009).
Development and execution of an extensive program of community consultations
Preliminary geological mapping and chip sampling on the Puerta de Piedras 9‐16 claims on the east side of the Mantaro River.
NI‐43101 Report
2010‐2011ExplorationProgram
The drilling program was conducted entirely within Quicha communal lands.
Drilling of 29 diamond drill holes from 12 drill pads totaling 6,386.25 meters.
Two trenches, totaling 105 m. 963 Drill samples. 44 samples from trenches.
Exploration Conducted to Date
Mantaro Project Overview
Area of Measured and Indicated Resources (Phillip Property, West Zone
2009 DIA and drill locations(purple squares) Quicha Area
Example Drill Section
Due Diligence 3 months Community Relations and 6 – 12 months
Stakeholder Engagement
Technical Program 6 – 48 months• WEST ZONE ‐ Trenching and drilling at a minimum of 1 km spacing (or closer) to
upgrade the Inferred Resources to Measured and Indicated Resources
• EAST AND FAR EAST ZONES ‐ Mapping, trenching and drilling at a minimum of 1 km
spacing (or closer) for Inferred, Measured and Indicated Resource Definition
• 43‐101 Resource Upgrade
• Advanced Beneficiation Studies to enhance recoveries and final concentrate grades
• Engineering Studies – Mining Plan
• Feasibility Study
Mantaro Work Program
Stage Timeframe
New Phosphate discovery by Focus
30 km north of Mantaro, similar geology and mineralization
Potential for low‐cost strip mining
24m @ 5% P205 inc.10m @ 8% P205
> 50km of AramachayFormation Staked18,000 hectares
1km
LegendSampling_Machay_Total_resultsP2O5
0.000000 - 2.000000
2.000001 - 4.000000
4.000001 - 6.000000
6.000001 - 8.000000
8.000001 - 11.440000
CONCESIONES_FOCUS_AYMARA_2011
Geo_InterpretadaLitology
Formacion Condorsinga
Formacion Aramachay 3
Formacion Aramachay 2
Formacion Aramachay 1
Formacion Chambara
Up to 11.4% P205 in surface outcrops and float
New Sampling 9% P205
Inferred Sub‐surface trace of
PhosphaticMember(yellow)
Machay Project, 30km. N of Mantaro
Close‐up of Francolite pellets ‐ a variety of the phosphorous mineral
Apatite
Close‐up of Francolite pellets ‐ a variety of the phosphorous mineral
Apatite
Phosphatic Sandstone outcrop in the Aramachay FormationPhosphatic Sandstone outcrop in the Aramachay Formation
Typical topography formed by Aramachay Formation, phosphate‐bearing sandstone unit dips parallel to slope, note poor outcrop, sandstone as weathered float and abundant in wall center‐left of photo
Typical topography formed by Aramachay Formation, phosphate‐bearing sandstone unit dips parallel to slope, note poor outcrop, sandstone as weathered float and abundant in wall center‐left of photo
Machay Project
Text
Ica City
Ocucaje
25 Km
Pelletal Phosphate hosted in Miocene‐aged DiatomiticLimestones (Pisco Formation)
Geology analogous to SechuraRegion (Bayovar Deposit)
28,000 hectares acquired by staking
Excellent Infrastructure, 30km from Coast
Early Stage – up to 16.5% P2O5 sampled
LegendClaims under Option
Agrifos Claims
Pisco Formation
Pacific Ocean
Quebranta Project, Coastal Peru
Quebranta Project
Fosforita Iza – Cuitiva, Boyacá ‐ Colombia
Colombian Phosphates
Belt of Jurassic/Cretaceous Sedimentary Rocks ~ 1,000km long
Typically high grade >20% P2O5
According to INGEOMINAS (1987) Colombia may host > 365 million tons of phosphate rock in the departments of Boyaca, Huila and Santander
Local production of chemical P2O5 in Boyacá, Huila & Santander from artisanal underground and open pit operations
Opportunity for ethical investment, low capex operations
First Report on Colombian Phosphates1967 by Hans Burgl
Colombia Phosphate Overview
Desktop compilation, regional exploration and field assessments undertaken since January 2012
Regional ground evaluations completed in 4 Departments
Work has highlighted Boyacá, Huila, Santander and Norte de Santander
Option Agreement for 1,600 hectares in Boyacá signed with local Bogota landholder for Maria Luisa project.
Strategic Agreement signed with local Colombian landholder
Target Areas identified ready for Ground Staking
Phosphatic Rocks
Bogota
VENEZUELA
EQUADOR BRAZIL
PERU
MAP AREA
100 km
Maria Luisa
Work to Date in Colombia
Maria Luisa Project, Boyacá
7 km south of city of Tunja Excellent access & infrastructure 2 high grade P2O5 beds mapped over at least
4km Beds average 1 – 3m thick, locally up to 7m
grades consistent and generally >15% P2O5 Can be advanced quickly to resource definition
by Trenching & Drilling
Option and Purchase Agreement with Local Colombian Company whereby; Focus can earn 70% of the project by spending
$0.7m over 5 years Can purchase remaining 30% Additional Areas acquired will be under same
terms under signed Strategic Agreement Additional 40,000 hectares planned for
acquisition in Boyacá
Proyecto Maria Luisa, Colombia
Proyecto Maria Luisa, Colombia
Departament of Huila
Phosphate elsewhere in Colombia
Departament of Norte SantanderDepartament of Boyaca
Departament of Santander
Long‐term growth in fertilizers, irregular global distribution & lack of phosphate deposits and resources in Latin America will ensure steady demand for phosphates
Strategy to develop an ethical and Sustainable Agricom business in Latin America via acquisition, exploration and development
Peru ; Three Projects to date including recent the Mantaro Deposit, arguably one of the worlds biggest phosphate deposits
Colombia ; Option Agreement for Maria Luisa project and Strategic Agreement signed with local landholder. Excellent growth opportunity via additional acquisitions and staking
Additional Opportunities under Review
Summary
Appendix
Focus Ventures
Focus is a publically traded Canadian exploration company listed on the TSX Venture Exchange (FCV.V) with Headquarters in Vancouver, and part of the Goldgroup stable of companies
Focus has Copper, Silver, Phosphate and Gold Projects in Mexico, Peru & Colombia
Local Offices and Technical Personnel in Lima and Durango
40.1 million shares issued
61.1 million shares fully diluted
Insiders own 12% of issued, 16% of fully diluted
Compañia Minas Buenaventura (NYSE: BVN own 9.35%
Company Location Reserves + Resources (Mt)M + I Inferred
Av. Grade P2O5
Development Stage
Market Cap.(M)
Mantaro Project 39.5 376 10% Exploration
StonegateAgricom
USA 29.8 4.6(Lower Zone)
25% Feasibility $75
MBAC Fertilizer Corp
Brasil 11 3 10% Construction / small scale production
$280
Aguia ResourcesLtd
Brasil ‐ 1 ‐ Exploration $9
Eagle Star Minerals
Brasil ‐ ‐ ‐ Exploration $20
Arianne Resources
Canada 23 ‐ 7% Feasibility $84
Phoscan Canada 15 12 23% PEA $42
Junior Phosphate in the Americas
Source : Company Filings, Paradigm Capital Report January 21, 2013
Phosphate Demand
Key Factors Impacting World Fertilizer Demand
World population growth
Changing diet in emerging economies
Less land available for agriculture
Government policies to enhance farm yields
Programs to encourage use of biofuels
Source: FAO, USGS (2008 statistics) and International Plant Nutrition Institute. Percentages based on average annual tonnes of fertilizer applied.
World Phosphate Rock Reserves
Source: 2012 Reserves, Millions of Metric Tonnes, U.S. Geological Survey, Mineral Commodity Summaries, January 2013
Latin America is an important consumer of phosphates as its importance as a provider of nutrients to the World is increasing
It’s phosphate reserves are verysmall (1.5% of global inventory) compared to China, Russia, Africa and the USA
Total fertilizer consumption in Latin America will grow to 23.1% from 2011 to 2015 driven by Brazil, making it the second largest in demand
Latin America’s Role
Evolution of consumption of phosphate in Brazil
Source: ANDA, 2012
Growing its Phosphate Portfolio in South America
Building an Ethical and SustainableAgricom Business
David Cass, President [email protected] Rushton, Investor Relations [email protected] Phone : 604 688 5288