1. COLOMBIAN MINING SECTOR INVESTMENT OPORTUNITIES CARLOS RUIZ Colombian Embassy in London Investment Promotion Agency British & Colombian Chamber of Commerce Colombia-Latin America’s Hidden Gem Tuesday, 20 th November, 2007

2. Proexport offers investors the following services: Provides updated economic and legal information Assists potential investors in getting established in the country Supports investors that are already established Helps to assess and improve the business climate Proexport International recognition: Special award for merit and innovation from International Foreign Trade Center - 2004 Awarded Leading Agency in Providing Investor Information by WAIPA and MIGA - 2006

3. COLOMBIA IN FIGURES Land Territory1.14 million km 2 Sea Economic Area0.93 million km 2 Total Population42.5 million Bogotá Population6.8 million GDPUS$ 123.2 Billion GDP/CapitaUS$ 2.930 Foreign Direct Investment (2006) US$ 6.3 Billion Literacy Rate93%

4. Colombia's economic growth record surpasses, on average, that of the Latin American Region. GDP growth in 2006 was 6.8%, the highest since 1978. GDP Growth Source: Economic Commission for Latin America and the Caribbean (ECLAC), DANE, Forecasts ECLAC and National Planning Department GDP Growth: Colombia vs. Latin America (1980-2006f) %

5. Inflation Rate (1997 – 2006) % Source: Central Bank Inflation rate Colombia’s inflation rate was 4.5% in 2006, the lowest level in 42 years. 2006

6. Perception on Safety * (2002 – 2006) Confidence and security Safety levels have increased significantly since 2002, which is reflected by business confidence. * Percentage of businessmen who believe security levels have improved. Source: Opinion survey by National Association of Industrials (ANDI), Proexport´s Forecast

7. June 2007 Standard & Poor's upgraded Colombia's sovereign debt rating from BB+ to BBB- Market confidence

8. By 2005 and 2006 Colombia received the highest inflows of FDI recorded to date. Foreign Direct Investment FDI Flows (1994-2006) US$ MM * Proexport forecast Source: Balance of Payments, Central Bank Sab Miller´s investment US$ 4,715 MM 10,255

9. DISTRIBUCIÓN Y DESEMPEÑO POR SECTORES TOTAL: US$ 6,295 MILLION FDI breakdown by sector (2006) Source: Bank of the Republic (Central Bank)

10. Traditionally, Colombia has been recognized as one of the world main suppliers of thermal coal and as a significant actor in the ferronickel market. Furthermore, Colombian mining potential in precious metals, basic metals and gems is very promissory. With increasing commodity prices and improving country security, mining companies are addressing Colombia as an investment target in their priorities. Mining Sector

11. Mining sector and its influence in the country’s economic growth by 2006 Mining percentage in GDP: 2.58% Mining exports: (USD MM): $6.282 Mining exports share: 18.9% Mining FDI (USD MM): $2.010 Mining exemptions (USD MM): $369 Source: Ministry of Mines and Energy – Central bank

12. Mine Growth GDP Source: Ministry of Mines and Energy – Central bank

13. National Coal Production Source: Ministry of Mines and Energy – Central bank

14. Coal Exports Source: Ministry of Mines and Energy – Central bank

15. National Precious Metals Production Source: Ministry of Mines and Energy – Central bank

16. National Metals Production 1996200020012002200320042005 Source: Ministry of Mines and Energy – Central bank

17. Mining Exports Source: Ministry of Mines and Energy – Central bank

18. Infrastructure Cerrejon Drummond Prodeco Drummond Soc. Port. Ciénaga Projected Rail Road Expansion Cerrejon to Pto.Bolivar Projected Rail Road Expansion Cesar to Sta. Marta Port

19. Coal Export Infrastructure Pacific Coast PACIFIC OCEAN BUENAVENTURA Buenaventura20062010 Loading sites 2 2 Capacity1 Mt/yr Draft32´36´ Expected Optimization Operation Dredging channel of access AGUADULCE PORT Capacity: 2.5 MT/Yr Draft 32´ BUENAVENTURA´S PORT

20. North Coast Projected Rail Road expansion from Cerrejon to Pto. Bolivar Guajira Coal Export Inland Infrastructure Projected Rail Road expansion from Cesar to Sta. Marta Port Binational Road Connection Colombia - Venezuela Center Road Upgrade from Norte Santander to Magdalena River Centre Pacific Coast Double road Bogotá - Buenaventura Port Construction various roads to coal from Boyacá to consumption centres

21. Business Opportunities for Investors

22. Institutional Structure of the Mining Sector ROYALTIES INGEOMINAS Geological & Mining Institute MINISTRY OF MINES AND ENERGY Minister of Mines and Energy MAYOR DELEGATES UPME – Planning Unit GEOLOGIAL SERVICES CONTRACTUAL UNDERTAKING SURVEILLANCE PROMOTION SYSTEM OF MINING INFORMATION CONTRACTUAL UNDERTAKING SURVEILLANCE Director of Mines

23. Contractual Terms Guide for Minerals

24. New Tax Reform (Effective since January/2007) Colombia's Competitiveness Promotes Foreign Investment Elimination in a 7% of the dividend remittance tax. Reduction of the income tax rate from 38,5% to 34% by 2007; and to a 33% by 2008. Amortization in a 40% of those investments categorized as productive fixed assets, within the same year. TAXES

25. Traditionally, Colombian government has been absolutely respectful about contracts. In addition, since 2005 the acting Government offer investors a legal stability contractual scheme which provides: Protection for changes in the law (Tax Reform). The cost of this protection implies an additional 2% over the sales tax to guarantee contractual stability. Stability CONTRACTUAL STABILITY

26. Security DEMOCRATIC SECURITY POLICY Control over the public territory Protection of the community Special collaboration scheme designed to protect oil and coal infrastructure. Armed Forces presence in each of the 1.098 country's municipalities Increase of supportive armed and civil forces by 36%

27. Sound macroeconomics and sector policies + Successful friendly market reforms + Higher social & infrastructure investment + Attractive conditions for FDI + Security policies = This is the agenda to make Colombia a regional mining leader CONCLUSION

28. THANK YOU ! CARLOS RUIZ Colombian Embassy in London Investment Promotion Agency Tel: 0207 491 3535