1. The Role of the Investor in Financing Exploration PAUL BURTON MD GFMS WORLD GOLD FINEX LONDON SEPT 23 2008

2. EXPLORATION

3. 6D MODEL OF MINING D ETECTION D ISCOVERY D EFINITION D ESIGN D EVELOPMENT D EPLETING High Risk Lower Risk

4. US$ millions NEWMONT NORMANDY NEWMONT NORMANDY EXPLORATION CUTBACKS PRE $111 POST $73 Source: Barrick Gold

5. US$ millions BARRICK HOMESTAKE BARRICK HOMESTAKE POST $104 EXPLORATION CUTBACKS PRE $149 Source: Barrick Gold

6. EXPLORATION SPENDING Source: GFMS World Gold

7. EXPLORATION SPENDING Source: MEG

8. Production V Exploration Source: GFMS, MEG

9. “Companies at all levels of the industry have substantially increased their budgets over the past five years, but the junior sector is clearly driving the current exploration upswing. Junior exploration spending has increased a remarkable 909% since the bottom of the cycle in 2002, accounting for more than half of the overall year-on-year increase in each of the last four years, and for more than half of the 2006 and 2007worldwide total”. Source:MEG

10. EXPLORER - DEFINITION Entrepreneurial Professional geologists TSXV, AIM, ASX Intellectual capital Ability to burn cash Performance on results not gold price

11. What does a Junior Explorer do? DETECTION DISCOVERY De facto exploration arms of majors

12. 8 7 6 5 4 3 2 1 0 $10 9 DISCOVERYDEFINITION AND DEVELOPMENT DEPLETION SHARE PRICE HIGHER RISK LOWER RISK Life Cycle of a Mining Share Source: US Global Funds/Tocqueville US$5/oz US$40- 70/oz US$140/oz

13. JUNIOR EXPLORER Source: Stockwatch

14. “The juniors’ dependence on equity financing to fund exploration makes them the most volatile sector of the industry, suffering the steepest declines in exploration during bad times and enjoying meteoric increases during the booms.” Source: MEG

15. RISK MATRIX EXPLORER MAJOR High Low Risk Propensity LowHigh Equity Risk

16. 3 YR COMPARISON Source: Barry Cooper, CIBC World Markets

17. 2006 EQUITY PERFORMANCE Source: GFMS World Gold

18. MARKET SIZE (US$ Billion) Source: Tocqueville Asset Management

19. QUESTIONS? WWW.GFMSWORLDGOLD.COM