2BSC On the Brink of Discovery? FORWARD LOOKING STATEMENTSThis presentation, contains certain “forward-looking statements ("statements"). All statements, other than statements of historical fact, that address activities, events or developments that BSC Resources (Pty) Ltd (“BSC” or the “Company”) believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding mineral resources, potential mineral deposits, potential mineralization, exploration results, the Company’s objective of identifying or confirming in the short term significant National Instrument (“NI ”) compliant mineral resources, and the Company’s other exploration and development plans and objectives) are forward-looking statements.These forward-looking statements reflect the current expectations or beliefs of BSC based on information currently available to BSC. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause actual results to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, BSC. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, imprecision in the historical resource estimates, the possibility that future exploration results will not be consistent with the Company’s expectations (such that any future mineral resource estimates are materially less than the Company’s expectations),uncertainties relating to the availability and costs of financing needed in the future, changes in commodity prices, changes in equity and/or debt markets, risks arising from operating in South Africa (including political developments in South Africa, changes to regulations affecting the Company’s activities, surface rights, foreign currency fluctuations and delays in obtaining or failures to obtain required regulatory approvals), the uncertainties involved in interpreting exploration results and other geological data, volatility of and sensitivity to market prices for copper, nickel and/or PGMs (market or otherwise), exploration costs varying significantly from estimates, delays in the exploration and development of the project, inability or delays in procuring the required capital equipment and/or operating parts and supplies, equipment failure, unexpected geological conditions, success of future exploration and development initiatives, environmental and safety risks including increased regulatory burdens, seismic activity, weather and other natural phenomena, changes in government regulations and policies, including tax and trade laws and policies, risks relating to labour, and other exploration, development and operating risks involved in the mineral exploration and development industry.Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, BSC disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although BSC believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.Historical resource figures included in this presentation are estimates based on historic reported data completed by Falconbridge at the Insizwa Complex, who explored the area and which results pre-date the guidelines stipulated by NI These historical estimates are referred to only to indicate the results of past exploration on the Insizwa Project and are relevant to the extent that they indicate the presence of a nickel sulphide mineralization and the approximate size of the target for future exploration These historical estimates are not compliant with NI and therefore should not be relied upon. The Company has not done any work to classify the historical estimate as a current mineral resource as defined in section 1.2 of NI and are not treating it as such. No assurances can be given that the indicated amount of copper, nickel and/or PGMs will be proven or produced. Estimates made at a given time may significantly change when new information becomes available, including as a result of future exploration activity. Resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If the resource estimates are inaccurate or are reduced in the future, this could have a material adverse impact on BSC. Any future mineral resource estimates for the Insizwa Ni-Sulphide Project may be materially different than the historical estimates referred to in this presentation.The geological and related technical information in this presentation was prepared under the supervision of Dave Dodd P.Geo Geo, the Chief Geologist of the Company.The information contained in this presentation has been prepared by BSC and is being presented for informational purposes. This presentation has not been independently verified and the information contained within is subject to updating, completion, revision, verification and further amendment.2
3BSC On the Brink of Discovery? This presentation does not purport to contain all information that a prospective investor may require. While the information contained herein has been prepared in good faith, neither the Company nor its shareholders, directors, officers, agents, employees, or advisors give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as “Information”) and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising from this presentation. In furnishing this presentation, the Company does not undertake or agree to any obligation to provide you with access to any additional information or to update this presentation or to correct any inaccuracies in, or omissions from, this presentation which may become apparent.Information contained in this presentation is confidential information and the property of the Company. It is made available strictly for the purposes referred to above. This presentation and any further confidential information made available to any recipient must be held in complete confidence and documents containing such information may not be reproduced, used or disclosed without the prior written consent of the Company. This presentation shall not be copied, published, reproduced or distributed in whole or in part at any time without the prior written consent of the Company. By accepting delivery of this presentation, the recipient agrees to return it to the Company at the request of the Company.This presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisors. Each party to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumption and each party should satisfy itself in relation to such matters. Neither the issue of this presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company.This presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment whatsoever with respect to such securities.The delivery or distribution of this presentation to persons in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction. In addition, other than to a limited number of persons reasonably believed to be qualified institutional buyers (as defined in Rule Aunder the U.S. Securities Act of 1933, as amended) or accredited investors (as defined in National Instrument of the Canadian Securities Administrators), neither this presentation nor any copy of it may be taken or transmitted into the United States of America or Canada or distributed directly or indirectly, in the United States of America or Canada, or to any resident thereof except in compliance with the applicable securities laws. Any failure to comply with these restrictions may constitute a violation of applicable U.S. or Canadian securities laws. By viewing this presentation, you represent and warrant that you are a person to whom this presentation may be made without a violation of the laws of any relevant jurisdiction. This presentation is not to be disclosed to any other person or used for any other purpose and any other person who views this presentation should not rely or act upon it.3
4South Africa’s Junior Mining Landscape Mineral and Petroleum Resources Development Act (MPRDA) came into forcein May 2004 with the following consequences:“Use it or lose it” principle unlocked non-strategic assets by majors.Interest in Exploration by foreign juniors.First time participation of Black South Africans in the ownership and development of the mineral resources of South Africa.
5The Creation of BSC Resources Ltd Incorporated in November 2005.Granted prospecting rights of 39000ha within 6 months (Currently have ha at the Insizwa project).Raised ZAR18.2m (South Africa, Canada, USA).Granted prospecting permit for historic Musina Copper Dumps and Oxide caps (September 2007).Completed Scoping study on the Musina Copper Dumps and Oxide Caps (January 2008).Raised ZAR 16m (South Africa, Canada and USA) February 2008.Completed a competent person’s report on the Insizwa Nickel Project (October 2008).Granted exploration permits on 8 farms in the Northern Natal (KZN) coalfields (October/November 2008).Entered into a joint venture agreement with Vale to further explore the Insizwa Nickel Project, where 20 million USD will be spent on exploration (including option payments of US $1.65 million – to be paid over a five year period).
6Strategic Overview Hands on Management Team. Focusing on acquiring and developing brownfields projects.Currently building a substantial coal portfolio in the Natal region, close to the Richards Bay port.Capitalise on 2009 MPRDA deadline (“Use it or Lose it”) to partner with majors.
7Medium Term StrategyAggressively seek out new projects either at scoping study stage or pre-BFS and use these projects as our going public projects“BSC” to break-even on a monthly basis by charging fees to our JV partners for work being done at our various projects.Continue to increase our land package at our Musina Copper project and target an inferred resource of 14 million 1.2% copper by October 2011.Strengthen our board and management teams as we prepare to list the company by year end.
8Our Point of Difference Our Ability to acquire, explore and develop mining projects in Southern Africa.Our Ability to raise the necessary finance in South Africa and North America.Our Management’s Ability to successfully convert projects.Our comprehensive geological database.
9Project Localities Musina Copper Project Burgersfort Nickel Project KZN Coal ProjectMain objective of the Project.We feel that it is an excellent Project with all major ingredients required for a discovery.Show digital terrain model with 5 lobes of the ICInsizwa Nickel Project
10BSC ProjectsInsizwa Ni-Cu-PGE project – High quality magnetotelluric anomalies to follow-up with ground geophysics and later to drill test. Drilling estimated to start in September 2011.Burgersfort – Disseminated visible Ni-sulphides intersected sporadically over ~20 m, ~ 110 m (finely disseminated) and 80 m in three boreholes. Assay results are pending and further drilling is ongoing.KZN Coal – Potentially large tonnage, high quality coal resources have been estimated from historic data. The validation of the historic data with new drilling is planned to start this month (March, 2011).Mussina – Modeling of historic data shows potential to discover substantial Cu resources. Currently looking for a partner to fund the drilling.Project Generation – Actively looking to acquire new projects in SA and neighbouring countries.Main objective of the Project.We feel that it is an excellent Project with all major ingredients required for a discovery.Show digital terrain model with 5 lobes of the IC
11BSC/Pangea Partnership Burgersfort ProjectBSC/Pangea PartnershipMain objective of the Project.We feel that it is an excellent Project with all major ingredients required for a discovery.Show digital terrain model with 5 lobes of the IC
12Burgersfort Ni-Cu-PGE Project Geology Map Burgersfort Ni-Cu-PGE Project LocalityABurgersfort ProjectGenetic Similarities to Nkomati Ni MineNkomati Ni-Cu-PGE MineBTarget modelled on the Nkomati Ni mine
13Burgersfort - Project’s History MD12 intersected 1.23% Ni over 7.63m at ~173m and MD12 C (deflection) 0.76% over 10m as well as 0.5% Ni over 50 m.
14Burgersfort – Target Resource Talvivaara Ni Deposit in Finland (Owned by Talvivaara Mining Company)~1Billion tonnes (measured and indicated) at a cut-off of 0.07% Ni with an average grade of 0.22% Ni (also has Zn and Co credits).Turnagain Ni Deposit in Canada (Owned by Hard Creek Nickel Corporation)~1.1 Billion tonnes (measured, indicated and inferred) at a cut-off of 0.1% Ni and an average grade of ~0.2% Ni (also has Co credits). LOM is 24.4 years with an NPV of US $ 715 million (at a discount of 8%) and an IRR of 10.7%. 55% Ni Recovery from the Mill and 96 % Refinery Recovery.Burgersfort Ni Project (BSC/Pangea Joint Venture)Assay results pending, handheld spectrometer shows values of 0.3 to 0.5% Ni where no sulphides are visible and up to 3.5 % Ni directly over sulphide blebs. (Historic reports refer to PGE’s – no assay values given)Ni Deportment Study shows a potential for high recoveries assulphides consist almost entirely of pentlandite.
15Burgersfort - Work Programme/ Infrastructure Railway lineArea of VTEM StudyTarred RoadPermit Boundaries in RedR7.5 Million Work Programme involving VTEM, ground IP, Ni Deportment Study and drilling
16Burgersfort – Borehole Interceptions AP-06 shows sporadic disseminated sulphides from 33 to 112 m (currently still drilling) and in mineralisation)AP-03 shows significant sporadic mineralisation between m (over ~20m).AP-04 Finely sporadic disseminated sulphides from 80 – 198 m (over 110 m)AP-05Broadly spaced, finely disseminated sulphides from 0 – 220 mAP-05 and holes in the south show no significant visible sulphides
18Burgersfort – Target Resource In other large, low grade Ni resources the sulphides are not always visible.At Burgersfort three boreholes have intersected visible sulphides with grades comparable or better than Talvivaara and Turn Again.There is sufficient area at Burgersfort to obtain a similar tonnage of about 1 billion tonnes.The true grade, percentage Ni recoverable and extent of the mineralisation will be confirmed as the programme proceeds to confirm its economic viability.Mineralised Intersections
19Insizwa Ni-Cu-PGE Project BSC/Vale Partnership Target – Massive Sulphide at base of Insizwa Mountains.Has 10km strike of sulphide showings along exposed prospective horizon.High tenor sulphides up to ~12% NiMain objective of the Project.We feel that it is an excellent Project with all major ingredients required for a discovery.Show digital terrain model with 5 lobes of the IC
20Insizwa Project Conceptual Targets APPROXIMATELY 7 KMView looking west at the Insizwa Lobe showing approximate position of the mineralised footwall contact in red~ 5 kmDeep seated massive sulphide accumulation expected to be close to mouth of feeder dykeTheory is that sulphides formed at depth and have been brought up with the magmaTheoretical Cross-Section
21Ground Geophysics Complete and High Quality Conductors have been Identified which will be drill tested after further Ground Geophysics.Main objective of the Project.We feel that it is an excellent Project with all major ingredients required for a discovery.Show digital terrain model with 5 lobes of the IC
22MT Lines Overlying Insizwa DTM Main objective of the Project.We feel that it is an excellent Project with all major ingredients required for a discovery.Show digital terrain model with 5 lobes of the IC
23Musina Cu Project Main objective of the Project. We feel that it is an excellent Project with all major ingredients required for a discovery.Show digital terrain model with 5 lobes of the IC
24Musina Geology, Boreholes and Soil Geochem Main objective of the Project.We feel that it is an excellent Project with all major ingredients required for a discovery.Show digital terrain model with 5 lobes of the ICHistoric mining took place here between 1905 and 1993 (about 100 years) extracting t of Cu but ended with resources still left in the ground
25Musina Soil GeochemExtensive dataset of historic borehole, assay, soil geochem and geological mapping.15 km of largely mineralised strike extent.Untested soil anomalies and mineralised intersections warranting follow-up work.Oxides were not previously mined and many of the sulphide bodies are left un-mined.Mollytoo represents a target with a modelled resource showing potential for between ~13 and 43.5 million tonnes.Main objective of the Project.We feel that it is an excellent Project with all major ingredients required for a discovery.Show digital terrain model with 5 lobes of the IC
27Modelled Sulphide Lenses and Selected Cu Interceptions BH.NCH mMOLLYSHAFTH5H5H8H44 LEVEL6 LEVEL-180nBH mH7H7H6H6BH mBH m15.3mH5H5H4H4-600m EXTRAPOLATION BASED ON ARTONVILLA MINE MODEL
28Oblique View of Modelled Sulphide Lenses NORTHH2H1H3H7DOWE-TOKWEWRENCH FAULT-600m VDDOWE TOKWEWRENCH FAULTH6H8H5H4SURFACE ALTERATION-600m VERT DEPTH
29Levels of Confidence in Modelled Data Red = Borehole InterceptionPink = Known Mineralisation from underground Development (not yet mined out)Blue = Possible Extent of Prospective Horizon
30H2L4H4H1H3MINEDOUTH5H8H6H7PRIORITY AREAS EXTRAPOLATED FROM HISTORICAL BOREHOLE ASSAYSMINERALIZED HOST ROCK DEFINED FROM BH INTERSECTIONS UNDERGROUND DEVELOPMENT, SURFACE TRENCHING AND GEOLOGICAL MAPPINGUNEXPLORED HOST ROCK EXTENSIONSCONTOURS EVERY 20m
31PROJECTED VERTICAL DEPTH (m) Potential Tonnage to be ExploredLENS NUMBERPROJECTED VERTICAL DEPTH (m)VOLUMEm³DENSITYTONSRED,PINKBLUEMINERALIZED RED & PINKTONS REDH1300899,1752.652,393,2341,574,839562,633H2147,391394,552312,742214,137H3600282,8512.7771,983455,629H45,081,81313,725,4909,659,2874,472,297H55,645,56415,281,06810,991,9576,543,353H62,679,4617,185,4343,526,3281,096,075H7780,1912,078,409582,3756,555H8693,3671,846,233935,639475,754TOTALS16,209,81643,676,40628,355,15213,826,434Weighted Ave of 1.40% Cu with values ranging from 0.55% Cu to 4.84% Cu over widths of 1.6 to 19 m (averaging 8.4 m)
32Musina Exploration Target Boreholes with mineralised intersections – need further follow-up drillingMollytoo Sulphides Modelled potential for ~13 to 43 million tonnes plus untested areas of alteration around shaftOther historic shafts with sulphides remainingMain objective of the Project.We feel that it is an excellent Project with all major ingredients required for a discovery.Show digital terrain model with 5 lobes of the ICt Oxide Cap RemainingUntested Substantial Soil Anomaly
33KZN Coal Projects BSC/Bright JV Main objective of the Project. We feel that it is an excellent Project with all major ingredients required for a discovery.Show digital terrain model with 5 lobes of the IC
34Application StatusPermits granted across all five of the KZN coalfields - Klip River, Utrecht, Vryheid and Somkele Coalfields.49 Mt potential on ElandsbergAll permits close to good infrastucture
36Conclusions/Way Forward Strong, experienced technical, financial and legal team able to identify, acquire, fund and evaluate projects.Drill test extent of disseminated mineralisation at Burgersfort.Validate historic coal borehole data.Validate modelled Musina data and test strike extent of mineralisation (once project is funded).Drill Test Insizwa Geophysical Targets.Acquire additional projectsMain objective of the Project.We feel that it is an excellent Project with all major ingredients required for a discovery.Show digital terrain model with 5 lobes of the IC