1. A Premier Merchant Bank Focused on
Building Resource Companies
August 2010
2. Agenda
• Company Overview
• Our Business Model
• Our Delivered Results
2
3. Overview of Forbes & Manhattan
Leading Private Merchant Bank
Focused on the Global Resource Sectors
Headquartered in Toronto, Canada
with Offices, Operations and Assets Across the Globe
World-Class, Multi-Disciplinary Team of Professionals
Successful Track Record of Identifying High Quality Assets
and Advancing them from Discovery through to Production
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4. Overview of Forbes & Manhattan
Access to Timely Capital
We finance early exploration to development companies across most resource sectors
Fast Time to Close
We have taken less than 4 weeks from a signed term sheet to transaction closing
Integrated Leadership
We take direct involvement at the Management, Board and Technical Advisory levels
Extensive Investment Banking / Capital Raising Relationships
Our network spans leading institutional funds, investment banks, private equity,
retail brokers as well as senior industry professionals across the globe
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5. What We Bring
Industry Leading Technical Knowledge
& Accomplished Financial Markets Professionals
Stan Bharti Advisory
Chairman & CEO Board
Technical Legal Financial Admin /
Team Team Team Accounting
• Over 25 engineers • 4 full-time • Over 30 people • Over 15
• Over 25 geologists securities with expertise in accounting and
lawyers – M&A administration
• Expertise in all
– Investment banking staff
mining, energy &
agriculture products – Corporate development
– Investor relations
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6. Who We Are
A Qualified and Experienced Leadership Team
Stan Bharti, P.Eng, Founder, Chairman and CEO
• International financier with 30 years experience in mergers and acquisitions of resource companies
George Faught, CA, COO
David Argyle, MBA, Agriculture
John Begeman, P.Eng, Mining
David Gower, P.Geo, Mining Investment Banking &
Mike Hoffman, P.Eng, Mining Transaction Team
Allan Pickett, Agriculture Julian Bharti
Rene Bharti
Ahmed Said, P.Eng, Energy
Dan Bruno
Peter Tagliamonte, P.Eng, MBA, Mining Mark Eaton
Simon Taylor, P.Geo, Agriculture Patrick Gleeson
Fred Leigh
Simon Marcotte
Helio Diniz, Brazil Operations Scott Moore
Li Feng, Asian Markets David Stein
Aaron Wolfe
Charles Mostert, African Markets
Tony Wonnacott
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7. Who We Are
With an International Advisory Board
General Lewis MacKenzie, Canada
• Served in the Canadian Forces for 36 years; led the UN peacekeeping mission in Sarajevo
Hon. Pierre Pettigrew, Canada
• Served as Canadian Federal Minister of Foreign Affairs
General Sir Michael Rose, U.K.
• Former SAS Commander for the British Army and a highly decorated General
General Jay Garner, U.S.A.
• Served in the U.S. military for 36 years, including command of Air Missile Defense Units in the Gulf War
Feneral Ron Hite, U.S.A.
• Served 33 years in the U.S. military, culminating as Senior Military Advisor to the Army Chief of Staff
General Chuck Wald, U.S.A.
• Air Force, Deputy Commander, European Command including Africa
General George Joulwan, U.S.A.
• U.S. Army, Former Supreme Allied Commander, Europe
General Tony Zinni, U.S.A.
• U.S. Marines, Former Commander in Chief of U.S. Central Command – includes all Middle East Countries
General Larry Gillespie, U.S.A.
• Highly decorated, including Distinguished Flying Cross, Soldier‟s Medal and Meritorious Service Medal
Peter Boot, South America
• 25 years in the financial markets; 15 with ING Group in Brazil, Curacao, Venezuela, Paraguay and Bolivia
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8. The F&M Group At A Glance
Market Capitalization of F&M Group Companies >$4B
Employees & Consultants >150
Group Companies >30
Total Funds Raised in last 4 Years >$3B
Number of Resource Projects in F&M Group >40
Number of Producing Assets in F&M Group 7
Number of Countries F&M Group has Projects 22
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9. The F&M Group At A Glance
Forbes &
Manhattan
Forbes Forbes Forbes Forbes
METALS & MINING AGRICULTURE ENERGY FINANCIAL
GROUP GROUP GROUP GROUP
Forbes Forbes
BASE & PRECIOUS SPECIALTY
METALS GROUP METALS GROUP
China Mining United Fund
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10. Agenda
• Company Overview
• Our Business Model
• Our Delivered Results
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11. Our Business Model
1. A clear focus: “stick 2. Disciplined
to the knitting” investment & technical
– we focus on what approach
we know best − clear criteria
4. Deliver excellent 3. Build assets
returns – strong active
management
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12. 1. A Clear Focus
Resource Companies Are Our Core Business
>30 companies with assets in 22 countries
Full range of resource investments:
precious metals, energy, fertilizer, bulk commodities
Corporate Headquarters Regional Offices 12
13. 2. Disciplined Investment Approach
We Know What We Are Looking For
Excellent assets
Significant growth potential
Strong local and political relationships
Long term ability to build assets
Potential exit in 3-6 years
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15. 4. Deliver Excellent Results
Select Success Stories with Tremendous Returns
Price Per Share and Returns
>$7.00 >$9.00 $7.00 >$1.00
$0.20 $0.22 $0.86 $0.20
Cost Sale Exit Cost Market Cost IPO Exit Cost Market
(Mar „10) (Mar „10)
• ~4,000% return in 4 • ~4,000% return over
years • 715% return over • >400% return in less
4 years 2 years than 18 months
• Sold to Yamana Gold • Market cap nearly $2B
for $735M • Market cap $C1.5 B • Market Cap $230M
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16. In Summary
What Sets Forbes & Manhattan Apart
• Extensive International Network
– Political leaders, industry experts, strong technical and developmental team,
financial experts, high net-worth individuals and institutional investors
– Track record of securing Asian and other international financing and off-take
agreements
• Proven Business Model
– First class team of specialists take project from concept to operating
success and have done this successfully numerous times –
we are asset builders, not stock traders
• Excellent Results
– Ability to raise money on large scale and deliver outstanding results
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17. Select List of Group Companies
Primary Country Market Cap
Company Name Main Product(s)
of Operations (Recent)
Constd. Thompson Canada Iron Ore $2,300M
Desert Sun Mining Brazil Gold Production $735M
Crocodile Gold Corp. Australia Gold Production $230M
First Uranium Corp. South Africa Uranium & Gold $210M
Avion Gold Corp Mali Gold Production $180M
Vast Exploration Kurdistan (Iraq) Oil & Gas $155M
Sulliden Gold Peru Near-Term Gold Producer $80M
Crowflight Minerals Canada Nickel Production $116M
Alexis Minerals Canada Gold Production $65M
Belo Sun Mining Corp. Brazil Gold Production $70M
Alderon Resource Corp. Canada Iron Ore $61M
Largo Resources Brazil Strategic Metals $55M
Longford Energy Canada Oil & Gas $40M
Aberdeen Int'l Global Resource Investment $40M
Allana Potash Ethiopia Potash $52M
Rodinia Minerals U.S.A. Lithium $21M
Apogee Minerals Bolivia Silver / Zinc $10M
Dacha Capital N/A Rare Earth Investment $17M
Newport Mining (ASX) Brazil Phosphate $15M
Brazil Potash Corp. Brazil Potash Private Co.
Forbes Coal South Africa Coal Private Co.
Atlantic Potash Brazil Potash Private Co.
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18. Contact Information
Corporate Headquarters
65 Queen Street West Tel: +1 (416) 861-1685
Suite 805, P.O. Box 71 Fax: +1 (416) 861-8165
Toronto, Ontario, Canada
M5H 2M5 info@forbesmanhattan.com
If you wish to submit or discuss a specific idea, please submit your company
information or business proposal to:
bplans@forbesmanhattan.com
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19. Agenda
• Company Overview
• Our Business Model
• Our Delivered Results
19
20. Case Study: Desert Sun Mining
Founded and Built Desert Sun Mining
1980 – 1999 1999 – 2001 2002 – 2006
Gold Producer Mining Suspended Desert Sun Ownership
• Anglo-American • Low gold prices • Acquired property
developed / operated in 2002
• Modernized operations
• William Resources
operated • Aggressive growth plan
through exploration
• Produced 700,000
• Built to production as a
oz gold
100,000 oz / year producer
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21. Case Study: Desert Sun Mining
Key Steps in Developing Desert Sun Mining
Date Key Step
2004 April Began Jacobina Mine redevelopment
2005 July Began commercial production at Jacobina
2005 September Formalized development plan
2005 December Increased resources in Jacobina Mine area
through aggressive exploration
2006 April Sold to Yamana Gold for $735M
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22. Case Study: Desert Sun Mining
Realized Significant Value on Desert Sun Mining
Result: Desert Sun Mining sold
for $735M to Yamana Gold
$1.00
DSM Share Price
$0.00
3/2/2003 05/14/03 08/22/03 2/12/2003 11/3/2004 06/21/04 09/29/04 7/1/2005 04/19/05 07/28/05 7/11/2005 02/15/06
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23. Case Study: Consolidated Thompson
Founded Consolidated Thompson Iron Mines
• World Class Iron Ore Project in Quebec
• Production: Q1 2010
• Built from exploration stage in 2005 through development to 2010 production
– Completed scoping study, 3 feasibility studies, secured off-take and
financing with China and have all environmental permits in place
• Market cap when F&M got involved was $1 million; built to current market
cap of nearly $2 billion
• Have raised approximately CAD$1 billion , including a strategic $240 million
investment from Wuhan Iron & Steel Co. (WISCO)
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25. Case Study: Consolidated Thompson
Value Realized: Peak Market Cap over CAD$1 Billion
>$9.00
• >4,000% return over
3 years
• Market cap $2.3B
$0.22
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26. Case Study: First Uranium
Created First Uranium Corporation
• Focused on the development of its South African uranium and gold mines
• Forbes & Manhattan cut the deal with Simmers & Jack as a uranium spin-off
• Seed financed First Uranium at $0.86 per share
• Initiated and completed a $7 per share IPO on the Toronto Stock Exchange
with the assistance of RBC Capital Markets
• Low-cost, near-term operator
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27. Case Study: First Uranium
Value Realized: Peak Market Cap CAD$1 Billion
$10 - $12
• 1,400% return over 2
years
• Peak Market cap
$0.86
$C1.5B
Cost Exited 2007
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28. Case Study: Crocodile Gold
Created / Turned Around Crocodile Gold Corp
• New emerging gold producer – Northern Territory, Australia
• Assets purchased by Forbes & Manhattan out of receivership
– 4 mines (3 underground, 1 open pit)
– NI 43-101 compliant reserves and resources of 4.4 million ounces gold
– 2.5 million tonne per year mill
– Exploration licenses and mining leases totaling >3,500 km2
• Low technical risk (recently producing assets – Nov. 2008, now back in
commercial production)
• Substantial potential to increase reserves and resources
Northern Territory
• Raised over CAD$100 million to date
• Current Market Capitalization: $200 million
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29. Case Study: Crocodile Gold
Immediate Production
Gold Production (000’s oz)
>200,000 oz
>100,000 oz
2009 2010 Future
Commence
production
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30. Case Study: Avion Gold
Founded Avion Gold Corp
• Acquired Tabakoto / Segala mine in Mali, West Africa from Nevsun Resources
mid 2008 for USD$20 million – current market cap CAD$192 million
– Over $150 million in infrastructure spent by Nevsun: brand new mill,
accommodations, roads and power facilities all in place
• Avion, via its expert team, turned around the operation and is in production
– 2.7 million ounce resource with significant exploration upside
• Result: current market cap $192 million
• We can build value in struggling assets where other cannot – our technical team
is one of the best in the world
MALI
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31. Case Study: Avion Gold
We Build Value Where Others Cannot
Milling Facility – 96% Au recovery Fuel Supply – contracted
Camp – houses 150 staff Power Supply – purchased 2008
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32. Case Study: Avion Gold
Production Ramping Up
Gold Production (000’s oz)
Potential to double
production
~75,000 -
80,000 oz
~50,000 oz
2009 2010 Future
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33. Case Study: Newport Mining
Founded / Created Newport Mining Limited (ASX: NMN)
• New emerging phosphate producer in Brazil
• Conditional agreement to acquire 2 phosphate projects
– Both in excellent locations close to infrastructure and in mining friendly jurisdictions
• Lucenta Project has an initial exploration target of 40-50Mt @ average grade of 10-
14% P2O5
• Mata de Corda Project has outcropping mineralization with historical rock chip
results of up to 23.2% P2O5
– Initial land position of 83,362 hectares with additional areas identified
• Exceptional demand for phosphate – Brazil is a net importer (49%) of
phosphate needs
• Low technical risk – within 150 km of the 3 largest phosphate mines in Brazil
• Potential to increase reserves and resources
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