1. Calgary  Toronto  Moscow  Almaty  Caracas  Bogotá  Rio de Janeiro Mining in South Africa: A Canadian Assessment Co-Presented by:Marvin Singer, Partner, Toronto office 416 203-4426 Janne Duncan, Partner, Toronto office 416 202-6715

2. Who we are Calgary, Toronto Caracas Moscow Macleod Dixon LLP is a global law firm with offices in seven key centers of the energy industry: Canada (Calgary and Toronto), Venezuela, Colombia, Brazil, Russian Federation and Kazakhstan. Nine lawyers from Macleod Dixon have just been ranked as leading practitioners by Who's Who Legal, Mining 2010 - the highest number of any Canadian-based firm. PLC Which Lawyer has also just ranked Macleod Dixon as the #1 Energy firm in Canada and Venezuela for 2010. Almaty Rio de Janeiro Bogota

3. 10 20 21 23 15 17 20 11 16 9 22 5 4 5 5 5 10 7 6 49 69 39 107 8 Number of TSX and TSXV Mining Companies Operating in Africa by Region Top 10 Countries South Africa Tanzania DRC Ghana Mali Burkina Faso Niger Namibia Guinea Botswana Zambia Top Mining Destinations for TSX and TSXV Mining Companies in Africa Source: InfoMine, November 2010 3 4 1 2 2 1 4 3 4 3 1 3 3 4 3

4. Fraser Institute Survey of Mining Jurisdictions: 2011 201120102009200820072006 Total Jurisdictions 797271686564 South Africa Policy Potential Index 676149505337 Mineral Potential 664544455727

5. South Africa competes for investment capital Africa: TSXV: 365 Properties TSX: 344 Properties UK/Europe: TSXV: 167 Properties TSX: 140 Properties Russia & CIS Countries: TSXV: 32 Properties TSX: 45 Properties USA: TSXV: 789 Properties TSX: 497 Properties Central America & Caribbean: TSXV: 87 Properties TSX: 59 Properties South America: TSXV: 689 Properties TSX: 403 Properties Mexico: TSXV: 392 Properties TSX: 216 Properties Australia/NZ/PNG: TSXV: 110 Properties TSX: 262 Properties Asia: TSXV: 189 Properties TSX: 205 Properties Source: InfoMine, December 2010 Canada: TSXV: 3966 Properties TSX: 1244 Properties

6. Securing International Investment Five things the Government of South Africa should do to ensure the security of investment from international mining companies: 1.Maintain high standards of transparency and accountability 2.Communicate stability 3.Make statements carefully 4.Have clear enforcement 5.Understand NI 43-101

7. 1. Transparency and accountability The Government of South Africa should send a clear signal to investors about the following: Stability of Government Legislative framework Licencing and permits Registration system /Security of tenure Third party rights Governmental payments

8. 2. Stability The Government of South Africa needs to communicate that its mining regime will not be subject to radical change. Certainty and stability are critical, allowing companies to make forecasts (including to investors), create operating budgets and obtain financing. Expropriation or nationalization of mineral properties is a very high risk factor (and related issues about recourse in such event).

9. 3. Statements Government officials need to be careful about comments they make to the press. A comment can trigger a disclosure obligation for the mining company, can panic investors and create market volatility.

10. 4. Clear Enforcement The legal aspects of a mining investment are crucial for project financing. Need protections in areas of business organization, banking, contracts and bankruptcy. Administrative tribunals and other government agencies must be independent. Need certainty of enforcement (in the courts and by through arbitration).

11. 5. Understand National Instrument 43-101 – Technical Reports for Mining Companies Form 43-101F1 technical report must be filed when a mining company gets listed on the TSX or TSX-Venture Exchange. Technical information about mineral projects on material properties prepared by “qualified persons” using standardized industry terms. Canada accepts JORC, SEC, IMMM, SAMREC, and now Chilean and Pan-European classifications as alternatives to 43-101 if reconciled to NI 43-101.

12. Conclusion – why South Africa? Foothold into Sub-Saharan Africa World Bank economists predict that GDP growth in Sub- Saharan Africa will increase to 5.3% in 2011, with Nigeria taking the lead at 7.1%; driven by demand for commodities but other sectors (telecom for example) becoming important. Africa is being viewed as an opportunity for countries to secure commodities and for companies in the extractive industries to acquire assets at attractive valuations (the “last emerging market”)

13. Conclusion Calgary, Toronto Caracas Moscow Macleod Dixon LLP is a global law firm with offices in seven key centers of the energy industry: Canada (Calgary and Toronto), Venezuela, Colombia, Brazil, Russian Federation and Kazakhstan. Nine lawyers from Macleod Dixon have just been ranked as leading practitioners by Who's Who Legal, Mining 2010 - the highest number of any Canadian-based firm. PLC Which Lawyer has also just ranked Macleod Dixon as the #1 Energy firm in Canada and Venezuela for 2010. Almaty Rio de Janeiro Bogota