Viking Ashanti Limited (ASX: VKA) Auminco Mines Limited Merger - - PowerPoint PPT Presentation

Viking Ashanti Limited

(ASX: VKA)

Auminco Mines Limited Merger Presentation

December 2013

Important Information

Important Information

This presentation has been prepared by Viking Ashanti Limited (Viking Ashanti). The information contained in this presentation is a professional opinion only and is given in good faith. This document is dated 4 December 2013. Certain information in this document has been derived from third parties and although Viking Ashanti has no reason to believe that it is not accurate, reliable or complete, it has not been independently audited or verified by Viking Ashanti. Any forward-looking statements included in this document involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, Viking Ashanti. In particular, they speak only as of the date of this document, they assume the success of Viking Ashanti's strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Recipients of this document (Recipients) are cautioned to not place undue reliance on such forward-looking statements. Viking Ashanti makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued. To the extent permitted by law, Viking Ashanti and its officers, employees, related bodies corporate and agents (Agents) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Viking Ashanti and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.

Competent Person and Report Source Statements

The information in this presentation that relates to the Exploration Results and Mineral Resources of Auminco Mines Limited is based on information compiled by Mr Matt Morgan, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Morgan is a full time employee of Auminco Mines Ltd. Mr Morgan has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Morgan consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. The information in this presentation that relates to the Exploration Results and Mineral Resources of Viking Ashanti Limited is based on information compiled by Mr Peter McMickan who is a Member of the Australasian Institute of Mining and Metallurgy. Mr McMickan is a full time employee of Viking Ashanti Ltd. Mr McMickan has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McMickan consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. The information in this presentation concerning the Mineral Resources of Viking Ashanti is extracted from Viking Ashanti’s announcement to ASX entitled “12% increase to 790,000 oz in gold resource for Ghana Project” dated 4 October 2013 and is available to view on Viking Ashanti’s website at www.vikingashanti.com . Viking Ashanti confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Viking Ashanti confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Currency

All amounts are in Australian dollars ($) unless stated otherwise.

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About Viking Ashanti

• Listed on ASX in May 2010 (ASX:VKA) (www.vikingashanti.com)

– explorer and developer of gold deposits in Ghana – Akoase Gold Project (100%)

• near surface Inferred JORC Resource of 790,000 oz, excellent

scope for further increase in ounces

– West Star / Blue River Gold Project (100%)

• numerous ore grade / width drill hits and multiple untested gold

anomalies along 17 km strike

– experienced Board with track record of successful mine development in remote and challenging regions

• Strategic objective to acquire near term production assets

– achieved by purchase of Auminco Mines – potential to deliver sustainable cash flow in excess of 15 years with substantial exploration upside

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Key Statistics Current Price Range

(21 Nov-29 Nov 2013)

$0.03 to $0.039

Shares on Issue

90,150,580

Options on Issue

22,683,913 $0.18; 31 Aug 2014

Market Capitalisation

(as at 28 Nov 2013)

̴ $3.15 M

Shareholders

>400

Substantial shareholders

(as at 22 Nov 2013)

Resolute Mining Limited 31.89%

Associated with directors

Jack Gardner 8.50% Peter McMickan 3.36% Trygve Kroepelien 4.50% Mark Newlands 0.27%

About Auminco Mines

• Mongolian focussed emerging coal producer

– two high quality strategically located coal projects provide opportunity for short term development, mining and cash flow

• near term production potential from Berkh Uul bituminous coal project, with 41.7 Mt (21.7 Mt Indicated

and 20 Mt Inferred) JORC (2004) coal resource near the Russian border, rail infrastructure and potential off-take customers

• Khonkhor Zag anthracitic coal project close to China’s border - only 1.2 km of the 4 km strike has been

explored by drilling

– upside potential through portfolio of other coal, base metals and gold projects in Mongolia and Australia – experienced management in Australia and Mongolia with proven track records

• Founded by the founding shareholders and former management of Coalworks Limited

(ASX:CWK) which was taken over by Whitehaven Coal Limited (ASX:WHC) for ̴ $200 million in June 2012

• > 50% owned by ex-Coalworks management and advisers

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Transaction Rationale

Acquisition to drive a substantial increase in shareholder value to Viking

• Two advanced projects - Berkh Uul and Khonkhor Zag – provides the opportunity for short term

development, mining and cashflow

• Upside potential from three other coal projects in proven coal basins
• Spread of geographical risk – Ghana and Mongolia
• Spread of commodity risk – metallurgical / bituminous coal, gold and zinc
• Improved access to funding
• Greater market liquidity as a result of an increased shareholder base
• Broad range of complementary skill sets at Board and management level with in-country

management expertise

• Extensive experience in developing projects through to mines in emerging economies

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Details of the Transaction

• Shareholding

– Viking will acquire 100% of Auminco by the issue of:

• 81 million Viking shares
• 27 million unlisted Viking options - exercisable @ $0.12

within 30 months of completion

• 3 million unlisted Viking options - exercisable @ $0.20
• n or before 15 Nov 2016 (to an existing Auminco
• ption holder)

– Post acquisition / pre capital raisings on an undiluted basis

• Viking shareholders = ̴ 53%
• Auminco shareholders = ̴ 47%
• Board

– two invitees of Auminco will join the Viking Board – two current NED’s to resign

• Conditions

– customary conditions including all regulatory approvals

• Unanimous support of the Boards of both

companies

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Indicative Timetable

VKA announces Merger agreement 20 Nov 2013 Due diligence period ends 15 Dec 2013 VKA dispatches Notice of Meeting Mid / late Dec 2013 Auminco EGM to approve transaction Early Feb 2014 VKA EGM to approve transaction Early / Mid Feb 2014 VKA prospectus for capital raising closes Late March 2014 Transaction completes Late March 2014

Board and Management Post Transaction

• Jack Gardner, Non Executive Chairman

– founding and non-executive director of Mincor Resources – former Chairman of Ghana Manganese Co and Chief Engineer for Guinor Gold Corp in West Africa – extensive global experience in ore processing, mining, shipping and marketing

• Andrew Whitten, Non-Executive Deputy

Chairman

– legal and commercial experience in ASX companies and corporate governance including public market transactional work with Itochu, Noble Group, Whitehaven Coal and Coalworks

• Matt Morgan, Managing Director

– former Exploration Manager at Coalworks – exploration and production experience with BHP and Rio Tinto – 20 years in coal, gold, antimony and iron ore – qualified Geologist and experienced Mining Engineer and Mine Manager

• Peter McMickan, Executive Director

–

• ver 30 years experience throughout Australia

and Africa with multi-national mining companies in gold, base metals, nickel and tin; – Managing Director of Viking since listing on ASX

• Bayar Tsagdaa, Alternate Director to

Andrew Whitten and Chief Executive Officer, Mongolia

– Geologist and Mongolian national – excellent business network in Mongolia – instrumental in Auminco’s project development programs in Mongolia

• Mike Langoulant, Company Secretary

– Chartered Accountant with 20 years experience in corporate administration – worked with large international accounting firms for 10 years – acted as chief financial officer, company secretary and non-executive director for a number of publicly listed companies

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Combined Portfolio – Key Assets Overview

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Southern Ghana Mongolia

Berkh Uul Coal Project

• 100% owned
• located 400 km north of Ulaanbaatar in northern Mongolia

within the Orkhon-Selege coal district and within 20km of the Russian border

• within 40km of rail access into Russian offtake markets;

close proximity to water, infrastructure and transport

• exploration permit valid to 2015; Mining Lease application is

imminent

• 21.7Mt Indicated and 20Mt Inferred JORC (2004) resource
• near surface high quality bituminous coal, with scope to

dramatically increase resource for long term mining project

• shallow, consistent coal seams amenable to low strip ratio
• pen pit mining, with low capital and operating costs
• local industrial demand for Berkh Uul coal; unwashed

product is favoured for its low ash and relatively high calorific value

• expected that Berkh Uul will move to production within 12 -

18 months

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(adb) unit average

Moisture % 13.7 Ash % 11.5 Sulphur % 0.52 Volatile matter % 33.6 Heat value kcal/kg 5,575

Raw (unwashed) coal quality

Khonkhor Zag Coal Project

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• 100% owned anthracitic coal project

located 1,400 km SW of Ulaanbaatar in Western Mongolia

• strategically located within 40km of

Chinese Burgastai Border Port with an existing haul road adjoining the tenement

• previously mined outcropping coal with

large scale open cut mining potential

• current mining license granted in April

2013 for 30 years

• 42 drill holes completed on tenement,

with further drilling planned to increase deposit size for JORC resource

• excellent scope to develop a low cost,

high margin premium coal project close to Chinese markets

Coal Outcrops

Akoase Project

• located in the Ashanti Gold

Belt of southern Ghana, one of the most prolific gold endowed regions in the world

• 100% owned by Viking, 25 km

from Newmont’s 8.5 million oz Akyem gold mine

• 790,000 oz gold Inferred

JORC (2012) resource, open along strike to NE and at depth

• free milling, expect 85-95%

recovery

• nly 6 strike km of 11 strike km

Kadewaso structural corridor tested by drilling to date

• soil geochemistry defines six

new targets related to parallel faults

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Current resource Exploration target

West Star/Blue River Project

• located in the Ashanti Gold Belt of southern

Ghana directly along strike from Endeavour’s 2 million oz Nzema gold mine

• under joint venture, Viking has earned 100%

interest in rights to hard rock gold

• soil geochemistry and drilling highlights

prospectivity of Salman Shear Zone, less than 20% drill tested

• numerous ore grade/width intersections in RC

drilling on broad spaced lines

• multiple untested >200 ppb Au soil anomalies over

17 strike km

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Exploration Opportunities

• Auminco holds interest in four
• ther projects in Mongolia:

– Buduun, an exploration project, 40km from the Chinese border where coking coal is targeted in a proven coal basin – Dalt and Budurgana exploration projects, in a proven coal basin where outcropping coal has recently been discovered on the Budurgana project – Tsairt zinc exploration project, located 1km along strike north

• f an operating zinc mine
• In Australia, Auminco owns the

Reedy Creek gold project

13 Coal outcropping at the Budurgana Project

Summary

By acquiring Auminco, Viking will achieve its strategic objective of owning near term production assets to drive increased shareholder value

The transaction rationale is compelling due to:

• potential for early cash flow from expected low capex, low opex and high margin coal projects
• spread of geographical risk, mainly Ghana and Mongolia
• spread of commodity risk, mainly metallurgical coal and gold
• broad range of complementary skill sets at Board and management level with in-country

management expertise

• extensive experience in developing projects through to mines in emerging economies
• improved access to funding
• strengthening share register
• greater market liquidity as a result of an increased shareholder base

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Appendices

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Improving investment climate in Mongolia

On the back of an improving political and regulatory environment, Mongolia’s mining industry is regaining its momentum

• April 2013 amendments to the Strategic Entity Foreign

Investment Legislation (SEFIL) has reduced uncertainty for foreign investment through tax stabilisation, relaxation of foreign workforce limitations, removal of restrictions on asset movements, and protection against nationalisation of assets – it has reignited interest in the mining sector in Mongolia

• Tsakhia Elbegdorj, the current president of Mongolia,

ushered in a period of greater stability

• Elbegdorj was quick to inform investors on his re-

election that his “reform” government would continue to support foreign investment

• Mongolia rated medium political risk in Maplecroft

Political Risk (Dynamic) Index 2013. Equivalent to Spain, Italy and South Africa. Equal to, or better than, all other countries in Africa, Asia and South America (ex-Japan, Chile & Uruguay)

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Recent positive developments in Mongolia’s mining sector

Jan 2013 Noble Group has committed to provide additional support on port and rail (including 10% of pre-development capital) solutions to Aspire’s Mongolian projects Feb 2013 Mongolia hosted it 3rd Annual Coal Investor Conference with the goal of attracting foreign investment and boosting international cooperation May 2013 Samsung C&T Corp. was awarded a $483mn contract to build a 267 kilometer railway from south Mongolia’s coal fields to the Chinese border (Phase I railway project) July 2013 Rio Tinto restarted supplying China with copper from its Mongolia based Oyu Tolgoi mine, amid declining tensions with the Mongolian government Aug 2013 Prophecy announces signing of two binding offtake contracts to sell thermal coal to Siberian coal markets in Russia

*Definition: SEFIL: Strategically Significant Entities Foreign Investment Law Source: News release

• Over the last two years Mongolia has experienced record high

double-digit growth, fuelled by high foreign investment in its burgeoning mining industry (80% of 2012 FDI was in the natural resource sector(1))

• The coal industry alone contributing 88% of the country’s total

export value and 1/5th of its GDP

• Mongolia has one of the world’s largest estimated coal

resources (173Bnt), and has produced 31.1mn tonnes in 2012(2)

• Given its proximity to coal hungry China and Russia,

Mongolia’s coal production is projected to grow at an annual average rate of 17% from 2011 to 2020, eventually reaching 121Mt(2)

• Mongolian Government bond issue raised US$1.5Bn last year

after being heavily oversubscribed

Mongolian foreign direct investment

Forecast

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Mongolian coal production forecast Real GDP growth

Mongolia poised for strong growth

Source: World Bank, Bloomberg

9%

• 1%

6% 17% 12% 13% 10% 9% 10% 9% 8% 8% 2008 2009 2010 2011 2012 2013F Mongolia China

Source: Mongolia Foreign Investment and Foreign Trade Agency, World Bank, Mongolia Economic Outlook, June 2013 Source: Index Mundi. Projections based on USGS prediction of average annual 17% growth rate from 2011-2020

6 8 28 31 55 121 2000 2005 2010 2012 2015F 2020F Mt 317 367 500 709 801 1,026 4,600 3,800 2005 2006 2007 2008 2009 2010 2011 2012 US$ millions Total FDI FDI in the natural resources industry

1. Mongolia Economic Outlook – June 2013 2. Ministry of Mining, Mongolia , United States Geological Survey (USGS)

Natural resource sector will continue to drive growth

Improving investment climate in Mongolia

(continued)

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Key coal mines and projects in Mongolia

Railway project Description Estimated capacity Expected start date

Phase I Tavan Tolgoi to Gashuun Sukhait 30Mtpa 2016/2018 Phase II Naryn Sukhait – Shivee Khuren, Ukhaa Khudag – Gashuun Sukhait, Khoot – Tamsagbulag, Khoot – Bichigt 18Mtpa 2018 Phase III Western railway line Unknown Date not yet specificed Northern Railway Ovoot – Erdenet. Will link Aspire Mining’s coal mine to existing railroad 20Mtpa 2018

Existing Railway Phase I Phase II Phase III Producing Exploration/ development Other cities/border crossing Capital

Source: News release, Wood Mackenzie

Ulaanbaatar

Ovoot Khushuut Soumber Ovoot Tolgoi Naryn Sukhait

MONGOLIA

Tsankhi Tavan Tolgoi Tavan Tolgoi Tsant Uul Baruun Naran Ukhaa Khurdag Gashuun Sukhait Tamsagbulag Bichigt Choibalsan Shivee Khuren Dalandzadgad Zeegt Shinejinst Tugrug Valley & DundGobi Sharyn Gol Nuurstei Altai Nuurs Khoot

Mongolia’s improving infrastructure

Erdenet

Northern Railway

Development of rail infrastructure will open new transportation routes

Auminco Projects

Development of rail infrastructure will open new markets...

China’s demand for all types of coal continues to grow…

• 72.7
• 83.8
• 68.5
• 46.1
• 25.4

2.1 4.9 103.4 145.8 167.7

• 3.9
• 3

1.4 7.1 17.5 25.2 13.3 31.3 22.2 31.9

• 100
• 50

50 100 150 200 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Coal & Anthracite Net Imports by China

in million mt

Coal Total Anthracite 920 1,185 1,440 200 400 600 800 1000 1200 1400 1600 2010 2015 2020

Global Metallurgical Coal Demand

in million mt “Annual coal demand is expected to grow to 9b tonnes in 2017 due to forecast of a 20 per cent increase in global steel production”

“In China, it’s expected that 15-20 million people will move into the cities each year over the next decade, driving demand for met coal use for required infrastructure.” – Greg Boyce, Peabody Energy 2013

Source: China Coal Resource Website, Bloomberg Source: Peabody Global Energy Analytics

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Introduction to Coal Quality

Price High

Russian Offtake Markets

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Siberian Coal Markets

• Mongolian coal producer has recently signed
• fftake with coal buyers in Buryratia, Russia
• Buryratia, Irkutsk, Ulan – Ude Kansk and other

Russian regions have substantial coal consumers

• Around 60% of coal produced Buryratia and

Irkutsk is brown coal giving black coal producers

• pportunities to provide superior product
• Aging power plants, technology and local coal sold

for export has produced coal shortages in Siberia

• Berkh Uul has superior coal quality to many

southern Siberian producing coal mines

• Russian power coal consumption is expected to

increase to 164Mtpa by 2015 (from 131Mtpa in 2010) with strong growth to 2030 predicted (source: INKRU)

• Siberian Power Stations with coal market potential

include Gusinoorzersk (see case study ) , Ulan- Ude (1 Mtpa and Kharanor (0.5Mtpa) and others Infrastructure

• Trans-Mongolian Railway to

Siberian coal markets

• Ample rail capacity
• Low rail costs

Case Study of Power Plant in Southern Siberia

• Gusinoozersk Power Station

(1Mtpa) designed to take black coal from Tugnui black coals

• Raw Coal quality of Tugnui coal

mine was CV 5,350 m Ash 19.3% Sulphur 0.39% & moisture 9.2%

• Berkh Uul raw coal quality is CV

5,575 m Ash 11.5% Sulphur 0.52% & moisture 13.7%

• Ash is major factor in coal quality

choice for Gusinoozersk

Berkh Uul is situated in close proximity to Russian coal buyers

Growing Mongolian Domestic Markets

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Current Opportunities

• Air quality – Ulaanbaatar is the 2nd most polluted city in

the world (WHO); Government Clean Air Initiative is seeking

• ptions to reduce pollution; potential to utilize more energy

efficient low ash coal - Berkh Uul Coal

• Power Supply to Ulaanbaatar - current capacity is 856MW

produced from four power stations – imports 175MW capacity from Russia Forecast demand of an additional 3,000MW capacity in next 10 years

• Current supply from low energy, high strip ratio, older mines,

requiring significant capital investment to meet future growing demands. Berkh Uul provides a low capex entry point into the current domestic market

• Brown Outs common in Ulaanbaatar due to current

excessive power demands. Berkh Uul can be a reliable, near term, high energy coal supplier

• Berkh Uul Coal is a high energy, low ash coal ideally located

to meet current and future industrial and domestic coal markets

Berkh Uul is situated in close proximity to current rail infrastructure to readily access growing Mongolian energy needs

KZ Anthracite targeting Xinjiang’s Tremendous Growth Potential

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Xinjiang Province, China

• Important province in Western China with a population of 22m

and GDP per capita of US$4,600

• The province posted 12% real GDP growth for 2012
• The provincial government aims to double the per capita

income of its urban and rural residents by 2015 on the basis

• f the 2010 level
• Municipal government of Urumqi, Xinjiang’s capital, is aiming

to build the city into a modern international metropolis

• Xinjiang has been highlighted as a special case for policy-led

growth initiatives

• Total of RMB 2.1tn (US$333bn) to be spent through 2020 for

infrastructure

Expected development in next 2 years Infrastructure

• 170,000km of new roads
• 8,200km of new rail
• 22 new airports

Steelmaking

• Produce 35mtpa steel by 2015 (i.e.

50% more than 2011)

• 10mtpa of special steel production
• Improve blast furnace efficiency –

shut blast furnaces smaller than 400m3

• Current and growing market for

PCI coal – KZ Anthracite poised to access a premium PCI market

Mongolia Xinjiang

Source: Factiva, Brokers’ research

• Khokhor Zag is situated in close proximity to a growing

Chinese Steel, metals and PCI market

• Anthracite coal from the KZ project will target the

Premium Ultra Low Volatile PCI market

Berkh Uul Resource Summary

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Runge Asia Limited, (”RAL”) trading as Minarco-MineConsult (MMC), was commissioned by Bold Resources Limited, (Bold), to prepare an independent estimate (hereafter, referred to as the Statement) of the Open Cut Coal Resources of the Berkh Uul Coal Project, (Berkh Uul or the Project), which is located in the Orkhon-Selenge coal district of Khuder Soum, Selenge Province, Mongolia. The Statement reports the Coal Resources as at 31 January 2012 and has been undertaken in compliance with the requirements of the reporting guidelines of the 2004 Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australasian Institute of Geoscientists and Minerals Council of Australia (The JORC Code). Ms Merryl Peterson, author and Competent Person of the report Berkh Uul Project, Selenge Province, Mongolia Inaugural Statement of JORC Open Cut Coal Resources, 31 January 2012 by Minarco Mine Consult has consented to the inclusion of the above information on the Berk Uul resource in the form and context in which it appears. Berkh Uul consists of a single exploration license. The Mineral Resource Authority of Mongolia on behalf of the Mongolian Government initially granted exploration license 14753X to Mega Mines Mongolia LLC on the 24th of February 2009 and ownership was transferred to BRX on the 3rd of April

• 2012. The exploration license continues to be held by this company and is valid until the 24th of February 2015, with the option to extend for a further

three years. MMC has been informed by the company that Berkh Uul is owned by Bold through their fully owned subsidiary BRX LLC. The Project occurs in the Upper Jurassic - Lower Cretaceous age Shariin Gol Formation which is hosted within the Orkhon-Selenge Coal Basin which also hosts a number of large hard coal deposits including the Mongoin Gol, Sharin Gol and Ulaan Ovoot deposits. The two main seams (Seam group 1 and 2) typically average > 1.5 m in thickness, however average seam thicknesses are typically variable, ranging from 0.6 m to 4.5 m, with splitting

• common. The deposit is a multi-seam deposit lying on the flanks of a broad synclinal structure with NE-SW axis trend. Current exploration has been

carried out on the eastern flank of the syncline and coal of exploitable thickness has been identified. Seams dip gently at up to 11 degrees, with the eastern flank generally steeper than the western flank of the syncline. The coal is bituminous in rank with average in situ quality as follows: Inherent Moisture 13.7% (adb), Calorific Value 5,575 kcal/kg (adb), Ash 11.5% (adb) and Total Sulphur 0.52% (adb). The deposit has been subject to predominantly semi-detailed, full-cored drilling for obtaining coal quality samples for analysis. Geophysical logging was carried out for all drillholes. The database is considered to be of a suitable standard for an estimation of Coal Resources that complies with JORC Guidelines (2004). Resources were estimated from the geological model prepared by RAL geologists based

• n drillhole data to the end of January 2012.

The Berkh Uul deposit Coal Resources are estimated to total 41.7 Mtonnes, of which 21.7 Mtonnes are Indicated with the balance of 20 Mtonnes classified as Inferred. The Coal Resources by seam group are summarised in the following table.

Berkh Uul Resource Summary

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Average coal qualities for the main seams are summarised below.(Note: average qualities are the weighted average of Measured and Indicated category Coal Resources) JORC Coal Resource (Mtonnes) Seam Indicated Inferred Total C 0.3 0.3 A 3.2 3.2 1 12.4 11.4 23.8 2 9 5.4 14.4 Total 21.7 20 41.7 Average Coal Qualities by Seam - Berkh Uul Seam TM % (ar) IM % (adb) Ash % (adb) VM % (adb) TS % (adb) CV % (adb) RD (gm/cc) C 20.2 14.3 12.6 31.9 0.55 5,405 1.35 A 20.8 13.5 12.7 33.4 0.4 5,480 1.38 1 21.5 13.9 12.7 32.9 0.61 5,475 1.37 2 19.7 13.4 9.9 34.5 0.39 5,720 1.35 Weighted Average 20.8 13.7 11.5 33.6 0.52 5,575 1.36

* As Received (ar); Air Dried basis (adb); TM- total Moisture; IM-Inherent Moisture; VM-Volatile Matter; TS- Total Sulphur; CV- Calorific Value; RD- Relative Density (dry)

Bold Resources Limited is a wholly-owned subsidiary of Auminco Mines Limited.

Contact

Peter McMickan

Managing Director W: + 61 8 9261 7300 E: pmcmickan@vikingashanti.com

Matthew Howison

Emerald Partners, Corporate Advisers W: + 61 2 9251 5065 E: m.howison@emeraldpartners.com.au

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