GLENOVER RARE EARTH PROJECT 1 Disclaimer THIS DOCUMENT (DOCUMENT) - - PowerPoint PPT Presentation

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GLENOVER RARE EARTH PROJECT 1 Disclaimer THIS DOCUMENT (DOCUMENT) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THE DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY


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GLENOVER RARE EARTH PROJECT

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THIS DOCUMENT (“DOCUMENT”) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THE DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY NOT BE DISTRIBUTED IN ANY JURISDICTION EXCEPT IN ACCORDANCE WITH THE LEGAL REQUIREMENTS APPLICABLE TO SUCH JURISDICTION. IN PARTICULAR, YOU MAY NOT DISTRIBUTE, FORWARD, REPRODUCE, TRANSMIT OR OTHERWISE MAKE AVAILABLE THIS DOCUMENT OR DISCLOSE ANY INFORMATION CONTAINED IN IT OR CONVEYED DURING ANY ACCOMPANYING ORAL PRESENTATION (THE “INFORMATION”) , IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN, OR IN ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS. PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES ARE REQUIRED BY THE COMPANY TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCH RESTRICTIONS. NEITHER GALILEO RESOURCES PLC (“THE COMPANY”) NOR ITS DIRECTORS, OFFICERS, EMPLOYEES, RESPECTIVE AFFILIATES, AGENTS OR ADVISERS ACCEPT ANY LIABILITY TO ANY PERSON IN RELATION TO THE DISTRIBUTION OR POSSESSION OF THIS DOCUMENT IN OR FROM ANY JURISDICTION. The Document and the Information have been prepared by or on behalf of, and is the sole responsibility of, the Company. The Information is being provided to you during an oral presentation and is not a complete record of that discussion. The Information does not purport to be full or complete and does not constitute investment advice. No representation or warranty, express or implied, is given by or on behalf of the Company, its affiliates, agents or advisers or any other person as to, and no reliance may be placed for any purposes whatsoever on, the adequacy, accuracy, completeness, fairness or reasonableness of the Information. None of the Information has been independently verified by the Company, its affiliates, agents or advisers or any other person, and no liability or responsibility whatsoever is accepted by any of them for any loss howsoever arising, directly or indirectly, from any use of the Information or otherwise arising in connection therewith. The Company, its affiliates, agents and advisers do not undertake and are not under any duty to update this Document or to correct any inaccuracies in the Information which may become apparent, or to provide you with any additional information. The sole purpose of this Document is to provide background information to assist you in obtaining a general understanding of the business of the Company. This Document does not constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, securities of the Company in any jurisdiction. It is not intended to provide the basis of any investment decision, financing or any other evaluation and is not to be considered as a recommendation by the Company, its affiliates, agents or advisers that any recipient of this Document purchase or subscribe for any securities in the Company. Each recipient of this Document contemplating any investment in the Company is required to make and will be deemed to have made its own independent investigation and appraisal of the business, results of operations, financial condition, liquidity, performance and prospects of the Company and the merits and risks of an investment in the securities of the Company. 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The securities of the Company have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act") and may not be offered, sold, transferred or delivered, directly or indirectly, within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. In the United Kingdom, this document is directed solely at persons having professional experience in matters relating to investments and who are investment professionals as specified in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Financial Promotions Order"), to persons who are high net worth companies, unincorporated associations or high value trusts as specified in Article 49(2) of the Financial Promotion Order (all such persons together being referred to as "relevant persons"). In addition to the foregoing restrictions, this document is made and directed only at persons falling within the meaning of "qualified investors" as defined in section 86

  • f the Financial Services and Markets Act 2000 (as amended).

This Document may contain forward-looking statements, including, but not limited to, statements as to the Company’s business, results of operations, financial condition, liquidity, performance and prospects and trends and developments in the markets in which the Company operates. Forward-looking statements include all statements other than statements of historical fact and in some cases may be identified by terms such as “targets”, “believes”, “expects”, “anticipates”, “estimates”, “aims”, “intends”, “will”, “may”, “would”, “could” or, in each case, their negative or comparable terms. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. A number of factors, which may be beyond the control of the Company, its affiliates, agents and advisers, could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements in this Document reflect the Company’s view with respect to future events as at the date hereof and are subject to known and unknown risks, uncertainties and assumptions relating to the Company’s

  • perations, results of operations, financial condition, growth, strategy, liquidity and the markets in which the Company operates. No assurances can be given that the forward-

looking statements in this Document will be realised. Forward-looking statements are not guarantees of future performance. The Company, its affiliates, agents and advisers undertake no obligation and do not intend to update any forward-looking statements in this presentation to reflect events or circumstances after the date of this presentation.

Disclaimer

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Project located next to tarred road – Good infrastructure

Location Of Project

Botswana

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Big former pit – easy access to new ore

Aerial photograph of old pit

100 200 50 Metres

Mine Area and Apatite-Haematite Breccia Ore Stockpiles

Ore Stockpiles Ore Stockpiles

1.34 million m3 2.0-2.5 million tonnes 4

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Change of owner – Change of mission

Glenover history

Location

  • Glenover 371 LQ, Ouhoek 345 LQ, Houndslow 372 LQ, Elfrida 378

LQ, Eldorado 370 LQ and Rosevalley 369 LQ

  • 80 km NNW of Thabazimbi and 60 km WSW of Lephalale in

Limpopo Province History

  • 1953 – Dr H N Visser (Geological Survey)
  • 1955 – New Union Gold Fields Ltd and Gold Fields of SA Ltd
  • 1963 – Glenover Phosphate Limited (Gold Fields of SA Ltd)
  • 1999 – Fer-Min-Ore Phosphate
  • 2011 – 2012 Glenover commences resource definition and

prospecting Geology

  • Carbonatite Complex Intrusion (volcanic)
  • Three main host rocks for potential phosphate and REEs:

a.

Apatite-Haematite Breccia

b.

Carbonatite

c.

Pyroxenite

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Galileo is focused

Mission Statement

  • To in-fill drill around old phosphate pit to establish SAMREC tonnage for

primary extraction

  • To independently establish tonnes and grade for old phosphate stock piles
  • To carry out mineralogical and metallurgical test work to optimise rare

earth oxide process flow sheet

  • To carry out bankable feasibility study with the view to develop a fast track

rare earth oxide concentrate project

  • To concurrently carry out an exploration programme over the entire

concession to establish the presence of other rare earth mineral bodies

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Established site

Glenover Rare Earth Project

Phosphate open pit Open pit stockpiles Recent drilling Available process equipment

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0.5 1 0.25 Kilometres

enite roxenite nite

Pit Area

Geology

Carbonatite Carbonatised Pyroxenite Coarse-grained Pyroxenite Fine-grained Pyroxenite Fenitised Quartzite

Southern Africa’s second biggest carbonatite

Glenover Carbonatite Geology

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Fast track drilling programme

Glenover Completed Drill Programme

* Weighted averages over total sampled width including any core loss

GHV021 GHV020 GHV019 GHV017 GHV018 GHV002 GHV005 GHV006 GHV016 GHV013 GHV012 GHV004 GHV003 GHV010 GHV009 GHV008 GHV001 GHV015 GHV014 GHV011 GHV007

Status

Assays Reported Awaiting Assays Borehole Trace

Pit Geology

Apatite Breccia Carbonatised Pyroxenite Pyroxenite

50 100 Meters

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N

Borehole trace Apatite Breccia Carbonatite ~ 160 m ~ 215 m ~ 250 m peripheral zone of drilling

We have a good understanding of our subject

3D model of ore body

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Significant tonnage accessible from current open pit

Independent resource statement

Prepared by Geo-Consult International (Pty) Ltd.

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Rock Type Resource Tonnage %TREO + Y2O3 P2O5 Nb2O5 Sc2O3 Class x 1,000 Tonnes (%) (%) (%) ppm Measured Indicated 7.407 2.2 17.57 0.47 179.5 Apatite-Haematite Breccia Total Measured & Indicated 7.407 2.2 17.57 0.47 179.5 Inferred 0.274 2.16 15.83 0.46 167.9 Measured Indicated 9.374 0.86 3.5 0.18 63.8 Carbonatite Total Measured & Indicated 9.374 0.86 3.5 0.18 63.8 Inferred 0.453 0.8 4.24 0.15 66.3 Pyroxenite Inferred 8.735 0.66 5.31 0.11 71.6 Surface Stockpile Inferred 2.685 1.94 22.21

  • Indicated

16.781 1.45 9.71 0.31 114.9 Total Total Measured & Indicated 16.781 1.45 9.71 0.31 114.9 Inferred 12.147 0.98 9.25

  • Total Resource

28 928 1.24 9.52

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A bulk target with significant high grade shoots

High Grade Shoots

Significant high grade shoots Borehole TREO Borehole TREO ID ID GVH m % GVH m % 1 17.3 4.4 11 2.2 3.58 4 7.8 8.03 15 3.4 5.08 5 15.7 3.37 16 6 3.95 6 5.7 6.63 17 2.5 4.7 7 7.3 3.49 20 6.8 2.38 10 26.7 4.01 21 15.7 2.69

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GRADE CUT FROM (m) TO (m) WIDTH (m) P2O5 % TREO % > 1% LREO 25.22 181.26 156.04 23.61 2.77 Including 38.5 41.5 3 27.33 3.38 Including 93.38 99.16 5.78 22.15 4.31 Including 102.65 114.06 11.41 25.41 6.03 Including 125.92 139.35 13.43 23.87 3.97 Including 150.29 167.55 17.26 20.20 4.57

Apatite is very significant

Borehole Core Lithology Log

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But so is carbonatite

Borehole Core Lithology Log

GRADE CUT FROM (m) TO (m) Width (m) TREO % P2O5 % > 1% LREO 22.92 26.36 3.44 1.71 2.58 > 1% LREO 27.42 29.19 1.77 3.30 0.99 > 1% LREO 34.68 37.15 2.47 1.32 1.97 > 1% LREO 40.44 62.44 22 3.12 11.79 > 1% LREO 60.1 65.8 5.7 6.33 16.61 > 1% LREO 125.77 141.86 16.09 1.45 4.90

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Niobium significant by-product. Stand alone grades?

Niobium (Nb2O5)

* Weighted averages over total sampled width including any core loss

Hole Entire core Nb2O5 High Grade Nb2O5 GHV metres %* metres % * 1 243 0.5 17 1.02 2 194 0.11 2 0.47 3 133 0.43 52 0.85 4 100 0.18 8 0.74 5 163 0.62 91 0.93 16 1.24 6 142 0.26 20 0.66 9 0.99

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Valuable rock when you make comparisons

Platinum and Gold equivalents

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*

Basis Galileo resiurce estimate cut off 0.75% REO ** Basis FOB China REO prices March 2012: La Ce Nd Pr Sm Eu Gd Tb Dy and Y (98% of total REO in samples) price source: www.metal-pages.com/metal prices/free-charts/ *** Pt $1670/oz Au $1660/oz March 2012

Based on recent prices

Resource In situ grade In situ gross metal value Platinum equivalent Gold equivalent g/t *** % REO * $/t ** g/t

***

Indicated 2.2 1100 21 21 Indicated + inferred 1.64 820 15 15

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Ce, 46% Nd, 22% La, 17% Pr, 6% Sm, 3%

Y, 2%

Eu, 1% Gd, 1.8% Dy, 0.6% HREOs;3%

HREOs >0.5% dist’n

heavy rare earth oxides

LREOs 97%

Light rare earth oxides

Good split of desired rare earth Oxides

REO Distribution

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* Weighted averages over total sampled width including any core loss

Exploration Drilling Current Pit Area Magnetic Dykes Later Dykes Thorium Anomaly Demagnetised Zones Magnetic Pyroxenite Outline of Carbonatite Quartzite

1 000 2 000 Meters

Open pit area

Bold step outs being drilled against geophysics

Glenover New Exploration Drilling

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  • Mineralogical & metallurgical test work
  • Pit expansion mine design
  • Design flow sheet for rare earth oxide concentrate processing
  • Preliminary economic assessment
  • Explore entire deposit to increase rare earth ore resource

Results good, economic assessment in progress

Programme

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  • Quality, near cash flow, strategic position
  • Glenover rare earth project well positioned against peers since close to

production

  • Good local partners
  • Strong international trade interest
  • Mining cost lower since at least 2.5 million tonnes is stock piled and

current remaining ore can be mined from the old open pit

  • Geological setting provides immense opportunity for much of the same

Well balanced with above average rare earth project

Compelling Investment Case

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Thank you very much

www.galileoresources.com

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