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New Liberty in Liberia is Aureus Mining’s most advanced project and is expected to begin production in Q4 2013. The NI 43-101 compliant resource is currently 1.57moz at a grade of 3.6g/t, with 102koz at 4.74g/t Measured, 984koz at 3.53g/t Indicated and 483koz at 3.5og/t Inferred. The Company released its maiden reserve estimate of 873koz at 3.1g/t in February 2012, with cash costs expected of $632/oz and low initial capex of $113m, the project economics look very robust. The full definitive feasibility study is due at the end of March 2012 and construction is expected commence in Q4 2012.

New Liberty sits within the large, 457km2, 25-year, renewable Bea Mountain Mining licence, which along with the adjacent 89km2Archaen exploration licence, is highly prospective and under-explored. Aureus Mining has extensive multi-phased exploration programmes currently running, from target generative work to focussed drilling programmes on well-defined targets. This ensures that the pipeline of projects behind New Liberty remains healthy.

Aureus Mining also has two gold-bearing licences in Cameroon, which cover a total of 787.5km2. The Batouri and Ntem licences host multiple gold in soil anomalies and extensive artisanal mining activity. Target generative work is in progress at both licences. 

Overview - Liberia

• Democratically elected government since 2006
• Madame Ellen Johnson-Sirleaf: Africa’s first female Head of State, re-elected in 2011
• Region underexplored for gold
• Attractive fiscal code and lowered levels of corruption to attract external investment
• US$18 billion foreign direct investment committed to date, mainly for the mineral, oil and agricultural sectors. Companies involved include: BHP Billiton (iron ore), Arcelor Mittal (iron ore), Vedanta (iron ore), Severstal (iron ore), Firestone (rubber), Sime Darby (palm oil), Exxon (oil and gas) and Chevron (oil and gas)
• Madame Ellen Johnson-Sirleaf won the Nobel Peace Prize in 2011. Recognition of improvements in Liberia by international community as well as by the private sector
• Liberia’s external debt decreased from $4.9bn to $250m (2007 – 2010). It was one of the first West African countries to do this under HIPC
• Redevelopment of port and electricity grid in Monrovia
• Sustained UN and US commitment
• One of the highest levels of FDI in West Africa (relative to GDP)
• Improving level of corruption as measured by Transparency International. Since 2007 position has improved from 160 to 87 in 2010
• High level of GDP growth forecast by the IMF. Higher than many other West African countries
• The IMF forecasts large falls in Gross Government debt by 2012

Geology

• The New Liberty deposit is located on the Bea Mountain mining licence, in north-west Liberia
• The New Liberty deposit is hosted in sheared and altered ultramafic rocks, and gold is associated with disseminated sulphides
• The disseminated sulphide host body is more continuous than a quartz body and allows for easier exploration and mining. It is a highly sheared and mylonitised schist-belt, which trends east/south-east
• Situated in an area of intensive alluvial gold mining, known as “Gold Camp”. Artisanal mining has been focussed in the eastern end of the deposit, but has now dispersed, due to the high water table
• The orebody has a defined geophysical signature and is characterised by a zone of high chargeability, low resistivity and high magnetic intensity. Ground geophysical surveys highlight potential western extensions to the deposit
• New Liberty lies on Archaean rocks. These formations host approximately 25% of the world’s gold. The west African Archaean rocks are under-explored, due to past political risk
• New Liberty is located in secondary forestNew Liberty Gold Project

New Liberty Gold Project

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Overview – Cameroon

Diverse Economy

• Stability since unification in 1962 has led to development of agriculture, roads, railways and the petroleum industry
• 15% of land is used for agriculture
• Oil production of approx. 65,330bbl/day
• GDP of $26Bn with growth of 3.8% in 2011

Strong Power Potential

• Current national grid capacity 1,017MW, with 95% from hydroelectric
• Government targeting 3,000MW by 2020
• Among the greatest potential for hydroelectric power in Africa
• 216MW gas power station planned at Kribi for 2012
• 205MW Mvele’elle dam due to be on-line 2016

Infrastructure Expertise

• Government experienced with large infrastructure projects. E.g. COTCO: 886km of oil pipeline built in Cameroon, for Chad exports

Supportive of Mining Industry

• Attractive mining code: 2.5% royalty. 10% free carried for Government
• Both English and French used as official languages

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David Reading - CEO & Director

Information taken from Company website 11.01.2013