ATHOL GOLD & WOODBOURNE SQUARE AG Tom Winnifrith Chief - PowerPoint PPT Presentation

ATHOL GOLD & WOODBOURNE SQUARE AG Tom Winnifrith – Chief Investment Officer

HAMELDON RESOURCES  AIM classified Investment Vehicle  Due to be withdrawn for non investment  26 th October 2010 – £500,000 raised via private placing  27.5m shares at 0.25p (premium to cash at time)  431,643 £1 Convertible Loan Notes – 0 Coupon (convertible at 0.25p)  Increased NAV from 0.91p pre placing to 0.22p. Last stated NAV 0.591p  Mandate to invest in Gold and Precious Metal stocks across LSE, ASX and TSX  TW appointed CIO – no direct fee payable.  T1ps IM – fee equivalent to 25% increase in NAV payable in shares at NAV each quarter (excl shares held by t1ps funds)

WHAT WE HAVE DONE  Complete Board Overhaul  Waseem Shiraz – Executive Director  Director Crosby Capital  Alistair Ford – Executive Director  Leading junior gold miner commentator  Editor of Minesite.com  17 Investments ranging between £30,000 - £43,000  Fully diluted Market Cap: £4.1m

ASCOT MINING  22 Nov 2010 – placing 111.7m shares at 0.6p  Investment via £429,999 of Loan Notes  Converted immediately (20p strike)  2,149,995 ordinary shares  3,009,993 Warrants (20p) – currently 29.5p  Every 10p on Ascot share price – 0.1p on NAV

ASCOT - THE VALUATION  Fully diluted Market Cap at 47.5p = £38m  £3m cash (fully diluted)  January: 600 – 1,000 oz  March: 1,500 oz  June (Boston + 3 smaller mines): 3,000 oz  3,000 oz at $1,400 – all in cash costs of c$400  Free cash flow of $3,000 (£2m) pcm  Annualised cash flow of £24m  June 2011 p/e of 1.5...  Move to AIM imminent  La Toyota lawsuit claim – further £24m?

THE PORTFOLIO  African Consolidated Resources  Market Cap: £33.2m  1 st mover in Zimbabwe  Multiple Assets  Huge potential JORC compliant Resources  Ariana Resources  Market Cap: £10.4m  Turkey focused  Red Rabbit – 50% JV – 2012 = 20,000oz, cash cost of $400  $1,400 Gold Price - $10m ($6.5m) free cash attributable  Major upside through JV with European Gold Fields

 Archipelago Resources (placing)  Market Cap: £358m  Toka Tindung Project, Indonesia (+other targets)  160,000 oz annualised  $1,500 Gold, $425 cash costs  Call that £146m free cash pa  Chaarat Gold  Market Cap: £106m  Tulkubash Project  Large & Growing JORC Gold Resource (4.009m oz at 4.15g/t)

 Conroy Diamonds & Gold  Market Cap: £16.6m  Ireland Based Explorer (news expected imminently)  Clontibret – 1m oz JORC Resource (potentially much larger)  Clay Lake – recent drilling implies large resource  Gold Prospect Precious Metals  Market Cap: £42.8m  Last NAV (31.12.10) – 128p  Hambeldon Mining  Market Cap: £39m  2011 – 30,000oz Au  Move to underground mine – 100,000oz by 2013  $1,400 Au Price, low cash cost (underground)  C$80m (£50m) free cash flow

 Kryso Resources  Market Cap: £44.5m  Hot t1p for takeover in 2011  Large Chinese stakeholder  70% funding of Pakrut by China Non-Ferrous Metals  Metallum  Northern Ireland-centric focused  25 licenses covering 1,000km2  Privately held - PLUS IPO imminent at big uplift  Private placing at 6p

 Minera  Market Cap: £108m  Latin American focused low cash cost producer  Corihuarmi in production since 2008  Don Nicolas: 50,000 – 70,000 oz early 2012 (news imminent)  Ollachea: 120,000 oz to increase production to 200,000 by 2014  Norseman Gold  Market Cap: £115m  Australian focused producer  2011 – 100,000oz Au, cash cost of c$700, $1,400 Au price  Call that £45m free cash flow  Short term production via North Royal (completion of dewatering) estimated to increase production to 140,000oz pa

 Olympus Pacific Minerals  Market Cap: £120m  Vietnam and Malaysia focus  Producing from Bong Mieu & Phuoc Son – Vietnam  2011 – 80,000oz  Bau Goldfield  The next Medusa? – potential JORC resource of up to 4.75m oz  Ortac Resources  Market Cap: £38m  RTO Templar Minerals – Central EU focus  Kremnica Project  Imminenet 760,000 JORC Resource update  Current Resource – only along 1.1km of 6.5km strike

 Ovoca Gold  Market Cap: £29.4m  Russian operative  Net Tangible Assets (as of 30.6.10) £32m (shares in Polymetal through disposal of Goltsovoge Silver deposit)  Stakhanovsky – internal resource estimate = 700,000+ oz Au  Rassoshinskaya – ‘ Olcha ’ Au deposit – JORC + potential v high grade  Nevsko-Pestrinskoye – surrounds huge Goltsovoge Ag deposit  Pan African Resources  Market Cap: £158m  African Focused -100,000oz pa producer  Net cash (30.6.10) – £c£13m - dividend  Pheonix Platinum forecast within 2011  At $1,500 Gold – 20p per share  Valuation: £290m

 Vatukoula Gold Mines  Market Cap: £148m  Fijian Focus  June 2011 – 100,000oz, cash cost $655oz  $1,400 Gold price - $75m (£49m) free cash  $1,700 Gold price - $105m (£70m) free cash  Volta Resources  Market Cap: £141m  West African Focus  Multiple Assets across: Burkina Faso, Ghana, Mali  Circa 3m oz Resource due to be built upon

 Portfolio also contains a material weighting in Silver via:  First Majestic Silver  Great Panther Silver  Covered within the Woodbourne Square Portfolio...

WOODBOURNE SQUARE AG  Rescue of failing media play  17 November 2010 – TW appointed as CIO  Mandate to invest in Ag and precious metals – exposure to Silver producers via AIM  Board changes  Russell Darvill – RSH uk FD  Nicolas Hall – CEO of Angel Mining  EGM passed 7 th Jan 2011 - £1.5m net cash assuming non core asset sold for £175,000 ( c3.1p per share)  Possible windfall tax claim of up to 4.5p per share  So far 5 investments  Current Market Cap at 5.38p: £2.7m

THE PORTFOLIO (SO FAR) First Majestic Silver   Market Cap: £770m  TSX listed Mexico focused  Pure Senior Silver producer – currently 3 operating mines Flag Ship Mine - La Encantada – 4m oz Ag production pa   Exploration upside across 4,000ha property  La Parilla Mine – 1.4m oz Ag pa - 90m oz 43-101 resource  San Martin Mine – 1.3m oz Ag pa – 65m oz 43-101 resource  Del Toro – 3m oz by 2012  5 th Mine – Real de Catorce – potentially largest of all  2012 production atleast 9.7m oz  $50/oz Ag price + $7.5 all in cash costs  2012 free cash flow $415m (£270m)  Huge upside from 5 th mine likely to be largest producing mine

 Kootenay Gold  Market Cap: £25.3m  TSX listed explorer and developer via JVs in Canada & Mexico  Flagship Promontorio Silver mine in Sonora State, Mexico  Initial estimates 10m oz resource (more drilling in 2011)  Currently 5 projects awaiting drill results  Numerous other options over assets  23.12.10 $6m placing – strong Balance Sheet  Cash to accelerate drilling on flagship Silver Mine  £200,000 warrants in Ascot Mining – 20p strike  Justifiable due to the huge upside

Silver Wheaton   Market Cap: £7.8bn (established in 2004)  15 long term Silver purchase agreements from high quality senior player assets  Purchase Silver at or below Market price  2010 – 24m oz Silver forecast  2013 – 40m oz  Company also has agreements to purchase 20,000oz Gold at $300/oz  Highly operationally geared play on Silver and Gold with fixed operating costs of $3.9/oz and $300/oz respectively Great Panther   Market Cap: £167m Primary Silver producer – 23% of Revenue from Au (produced as by product)   2 operating mines in Mexico – no royalty payments  Low operating costs of $6-7/oz  2010 – 2.2m oz Silver  2012 – 3.8m oz  2012 – 3.8m oz at $50 = $167m (£105m) free cash (excl Au Revenues)