The Rapu Rapu Project Lafayette Mining Limited

Overview People Project - Location - Description - Social and Political - Statistics Prospects - Schedule - Financing - Company - Valuation

Management Andrew McIlwain – CEO with a proven track record of project management and operations David Ronayne Mahony – Executive Director with extensive finance and banking background Rod Watt - Country Manager with more than 7 years in-country experience

Location

Ungay Pit Resource MtCu (%) Zn (%) Au (g/t) Ag (g/t) Measured Indicated Inferred Total Reserve

Mine Plan

Statistics First new mine in the Philippines Favourable tax incentives Offtake Agreement for all production Average Annual Production 10,000 t Copper 50,000 oz Gold 14,000 t Zinc 600,000 oz Silver

Support Pres. Gloria Arroyo, Gov. Bichara and local leaders meet on Rapu Rapu

Support VILLAGE -MOA’s with villages – relocation, mine development & operation -Land purchase complete PROVINCIAL - MOA with Province, Public Hearing and Senate Inquiry - Public support from Governor FEDERAL -Seeking foreign investment through resource development -President Arroyo publicly endorsed the project - ECC & EPEP signed by DENR - Declaration of Mining Feasibility issued by MGB

Project Financials Copper cash costsUS $0.30/lb Gold cash costsUS $53/oz Zinc cash costsUS $0.11/lb Add back by-product credits: Copper cash cost< US $0.05/lb or Gold cash cost< US $20/oz

Project Financials Capex:US $45m (owner operated) A$ 75m - LAF mkt cap A$ 24m IRR: 35% Payback: < 2 years

Advantages High Margin Operation –Lower quartile of cost curve –Profitable throughout the metal price cycle Medium Size –Capex under US$50 million –Short development timetable –Simple and readily achievable financing Solid Partnership –LG International Corp –KORES

Advantages Complimentary Revenue Streams –Liquid markets for all products (Cu, Au, Zn, Ag) Low Operating Risk –Conventional technology –Low risk mining Low Political Risk –Established mining culture and laws –Export of commodities –Repatriation of earnings

Project Schedule Land purchase completeQtr 1 ’03 Credit approvalQtr 2 ‘03 Commence construction Qtr 2 ‘03 First ore minedQtr 4 ‘03 Plant commissionedQtr 2 ’04

Financing Capex: US$45m (owner operated scenario) Indicative Underwritten Project Debt: US$30m –plus interest capitalisation –subject to credit approval LG/Kores:US$10m Additional funding: –supplier finance/BOO contracts for power plant, camp and design plus mine fleet, prestrip cost deferral –value estimate up to US$10m

Capital Structure Lion Selection Group32.6% Bell Potter Nominees14.1% KAP Investments4.1% National Nominees3.6% Allundy3.4% Commonwealth Custodians3.3% Issued Shares303.7m Top % Total Shareholders1,304

Exploration High grade sulphides 28 outcrop samples averaging 8.6 g/t Au Outcropping massive sulphides 18 km strike length of untested host horizon

Valuation LAF market 8cpsA$ 24m Rapu Base Case 10%A$ 75m NPV / Issued CapA$ 0.24 Hixbar and U/G 10%A$ 15m Total NPVA$ 90m Total NPV / Issued CapA$ 0.29

The Rapu Rapu Project Lafayette Mining Limited