Prospective Diamond and Gold Projects in Sierra Leone - Proactive ...

Prospective Diamond and Gold Projects
in Sierra Leone
June 2013

These presentation materials are confidential and have been issued in connection with the proposed placing of new ordinary shares of no par value (the "Placing
Shares") in the capital of Golden Saint Resources Ltd (the "Company") and the admission of the Placing Shares and the whole of the issued and to be issued ordinary
share capital of the Company to trading on the AIM market of the London Stock Exchange plc.
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nor shall they or any part of them form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any decision in connection with
any proposed subscription for Placing Shares must be made solely on the basis of the information contained in the admission document to be published by the
Company. Whilst all reasonable care has been taken to ensure that the facts stated in these presentation materials are accurate and that any forecasts, opinions and
expectations contained therein are fair and reasonable, neither Beaumont Cornish Limited nor Optiva Securities Limited has independently verified the contents of
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These presentation materials may contain forward-looking statements that reflect the Company's current expectations regarding future events, the Company's
liquidity and results of operations, as well as the Company's working capital requirements and future capital raising activities. Forward-looking statements involve
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which may be beyond the Company's control. Recipients of these materials should carefully review the risk factors in the final form admission document before
deciding whether to acquire Placing Shares.
2

Portfolio of diamond and gold concessions in prospective but under
explored region of Sierra Leone
Three project areas covering approximately 340km² in the South East of the
country
Granted tenements with near-term alluvial diamond production potential
Experienced management team
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Cyril D’Silva – Executive Chairman
› Cyril D’Silva is a Singapore-born entrepreneur based in Perth, Western Australia, with extensive working experience and a network of business
contacts in the South East Asia region. He is currently the Executive Chairman of Golden Saint Australia Limited in Perth, Australia and Director of
Golden Saint Liberia Ltd in Liberia. Through Golden Saint Capital Pte Ltd (Singapore), he was appointed to the board of directors of ASX listed
Nahrex Life Science Limited (“NLS”) on 16 January 2013. NLS entered into a non-legally binding heads of agreement on 27 December 2012 with
Golden Saint Australia to acquire the Liberian mining assets of Golden Saint Liberia Ltd. Golden Saint Resources Limited has recently accepted an
invitation to become a Foundation Member of the West Australian Branch of the Singapore Chamber of Commerce.
Nick Burn – Chief Executive Officer
› Nicholas B.Sc (Hons), MBA, MAIG, MAICD, is a qualified geologist with over 25 years of experience exploring for a wide range of minerals
including gold, uranium, copper, base metals and mineral sands in Australia and overseas. Nicholas was previously the chief executive officer of
ASX listed explorer, Regalpoint Resources Limited and is currently employed as a consultant geologist for a number of companies through his
consulting company Lucas Resources Pty Ltd.. He graduated from the University of Adelaide, with a thesis on Thermoluminescence studies of an
Uraniferous Tertiary Palaeochannel. Nicholas also holds a MBA in strategic/entrepreneurial management and is a member of the Australian
Institute of Company Directors and the Australian Institute of Geoscientists.
David McDonald – Director
› David has 20 years’ experience in property, commercial and business law, with particular emphasis on property and land development, contract
drafting and advising on contractual issues. Prior to starting David McDonald Legal in 2013, he was the Managing Director at McDonald Pynt
Lawyers in Fremantle from 2003 to 2012, in that time the firm grew to be the largest legal practice in Fremantle and, was in 2010, acquired by a
subsidiary of the Countplus Ltd which is listed on the ASX. David holds professional membership at the Law Council of Australia and the Law
Society of Western Australia and is a director of the Fremantle Foundation Ltd, which advises upon and facilities personal philanthropy in Western
Australia. He is also a board member of the Fremantle Chamber of Commerce.
Anthony Hamilton – Non Executive Director
› Anthony has a 25 year international mining career in exploration and production of gold, diamonds, base metals and oil and gas. Since 2000 he has
been the managing director of CMIH Enterprises Pty Limited where he is engaged as a consultant by public and private companies requiring
advice on project development, restructurings, corporate recoveries and initial public offerings. Anthony is currently an executive director of ASX
listed Leopard Resources N.L developing a gold production asset in Australia and TVX quoted Easton Minerals Limited, a gold and base and
precious metals exploration company in Angola. Between 1992 and 1998 Anthony was the chief executive officer of TSX, AMEX and London
quoted, Redaurum Limited which became the one of the largest independent diamond producers exceeding 1 million cararts annually from its
operations in Zimbabwe, the USA and South Africa.
4

Comparatively stable and investor-friendly
environment
Pro-mining investment climate attracting African
Minerals’ US$1.7 billion iron ore project and
London Mining’s +US$1.0billion iron ore project
Democratic election process held in 2002, 2007 &
2012 with high voter turnout
IMF estimates GDP growth of 30.5% in 2012
(GDP of US$2.89 billion in 2011)*
Mining contributed 20% of GDP until 1995 and is
responsible for 90% of exports**
Encouraging fiscal regime – 6.5% royalty
(precious stones) and no statutory free carry
government interest
* Source: World Economic Outlook database April 2013
** http://www.slminerals.org/
5

Rough market stabilised in July 2012; reasonably flat since then
Current global supply fear – trend expected to last through to end of the 2013 and
beyond
Global rough production for 2011 estimated at 124mcts; in 2013 around 140mcts, figure
is expected to remain stable growing to 157mcts by 2020
Bain Report 2012
Bain Report 2012
6

Tongo (diamond)
› 53.42km²
› 4 year EL expires 24-11-2015
Baja (diamond/gold)
› 240.11km²
› 4 year EL expires 12-12-2015
Moa (diamond/gold)
› 46.45km²
› 4 year EL expires 27-01-2016
Small scale mining licence required
for mining operations
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Tongo
› Situated northeast of Kenema in
Kenema District, Eastern
Province, approximately 52km
from Kenema
Baja
› Situated in Kenema District,
Eastern Province, and Bo District,
Southern Province, approximately
52km from Bo
Moa
› Situated southwest of Kenema in
Kenema District, Eastern
Province, approximately 55km
from Kenema
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Golden Saint Resources has a two part strategy to establish the company as a
significant diamond and gold producer
1. Commence near-term small scale alluvial diamond and gold mining at the
Baja tenement
2. Identify gold and diamond assets for large-scale mining
The initial focus for 2013 comprises:
Bulk sampling in all 3 concessions
Airborne magnetic surveys
Mapping, reconnaissance work and initial sampling at the Baja, Tongo and Moa
concessions
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Alluvial diamonds were discovered in
the Tongo area in 1953
Alluvial diamond mining has reportedly
produced in excess of 4 million carats
from the area
Area of diamonds in Eastern Sierra
Leone which has seen historic
commercial mining by Sierra Leone
Selection Trust and more recently
artisanal miners
Koidu Holdings Tonguma project in
development
› Second phase of bulk sampling
planned
Figure 3.3: Geological Map of the Region
with GSR Africa Licences
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Historic diamond indicator anomalies unexplained
Within structural Tongo corridor adjacent dykes proven to contain
significant quantities of diamonds with sample grades up to 3 carats per
tonne and values of US$200 per carat
Preliminary pitting undertaken, further reconnaissance work in
progress
Significant alluvial diamond potential
11

The figures in the cash flow projection detailing the budget of expenditure were all given in Australian dollars; in line with the currency of the licence
documentation and expenditure requirements under the Mines and Minerals Act 2009, these figures have been converted to US dollars using a conversion
rate of 1AUD = 0.957USD, being the rate prevailing as at 1st June 2013 and taken from www.currency.me.uk.
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Approximately 240 km² located on
the Sewa River which has good
potential for alluvial diamond
deposits
The Sewa River is being worked by
small scale miners further along the
river from the Baja licence area
Historical and current artisanal
diamond mining
Figure 3.3: Geological Map of the Region
with GSR Africa Licences
13

The figures in the cash flow projection detailing the budget of expenditure were all given in Australian dollars; in line with the currency of the licence
documentation and expenditure requirements under the Mines and Minerals Act 2009, these figures have been converted to US dollars using a conversion
rate of 1AUD = 0.957USD, being the rate prevailing as at 1st June 2013 and taken from www.currency.me.uk.
14

Artisanal gold mining within
Kambui Hills schist belt
Moa River is a known source of
alluvial gold
Alluvial mining currently underway
in some parts of Moa River
Southern extension of Capital
Mining/London Wall Resources
Block 1 alluvial diamond project
area
Figure 3.3: Geological Map of the Region
with GSR Africa Licences
15

The figures in the cash flow projection detailing the budget of expenditure were all given in Australian dollars; in line with the currency of the licence
documentation and expenditure requirements under the Mines and Minerals Act 2009, these figures have been converted to US dollars using a conversion
rate of 1AUD = 0.957USD, being the rate prevailing as at 1st June 2013 and taken from www.currency.me.uk.
16

£500k raised @ 8p, unconditional to listing 21 st June
£3.5m raised @ 10p 12 July
London marketing 26 June
Book closed 12 July
Admission to AIM 19 July
17

Potential for near term proposed alluvial production
Support from the Sierra Leone government, with the Attorney General
being a partner in the projects
Strong relationship with people on the ground
GSR intends to commence near-term, small scale alluvial diamond and
gold mining at the Baja Exploration Licence area within 12 months of
Admission
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Golden Saint Resources Ltd
Expected AIM ticker - GSR
Golden Saint Resources (Africa) Ltd
(Sierra Leone)
75% owned by GSR
25% held by local interest
*Post-listing Chairman Cyril D’Silva’s anticipated holding will be over 32%
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Registered Office
171 Main Street
Road Town, Tortola VG110
British Virgin Islands
Nominated Adviser
Beaumont Cornish
2nd Floor, Bowman House
29 Wilson St
London EC2M 2SJ
UK
T: +44 207 628 3396
F: +44 207 628 3393
Broker
Optiva Securities
2 Mill St
Mayfair W1S 2AT
UK
T: +44 203 137 1902
F: +44 870 130 1571
Solicitors
Osborne Clarke
One London Wall
London EC2Y 5EB
UK
T: +44 207 105 7000
F: +44 207 105 7005
Auditors
Baker Tilly
25 Farrington Street, London EC4A 4AB
T: +44 (0) 20 3201 8626
F: +44 (0) 20 3201 8001
Share Registry
Computershare
2 nd Floor
Vintners’ Place
68 Upper Thames Street
London EC4V 3BJ
T: +44 (0) 870 703 0300
T: +44 (0) 870 703 0301
Media/Investor Relations
Newgate Threadneedle
5th Floor
33 King William Street
London
EC4R 9AS
T: +4420 7653 9850
F: +4420 7653 9851
E: info@newgatethreadneedle.com
W: www.newgatethreadneedle.com
Media
gtmedia
1/343 Newcastle Street, Northbridge
WA 6003
Australia
E: info@gtmedia.com.au
T: +61 8 9227 8195
F: +61 8 9227 8195
Mercury Consulting
Level 7, 107 Pitt Street
Sydney NSW 2000
Australia
E: info@mercuryconsulting.com.au
T: +61 2 8256 3333
20

Mr Cyril D’Silva
Executive Chairman
Golden Saint Resources
T: +61 420 590 860
E: cyril@goldensaint.com
www.goldensaintresources.com
Mr Nick Burn
Chief Executive Officer
Golden Saint Resources
T: +61 407 711 496
E: nick.burn@goldensaint.com
www.goldensaintresources.com
Media/Investor Relations
Newgate Threadneedle
5th Floor
33 King William Street
London
EC4R 9AS
T: +4420 7653 9850
F: +4420 7653 9851
E: info@newgatethreadneedle.com
W: www.newgatethreadneedle.com
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Ken Hock Seah – Non-Board Finance Director
› Keng Hock Seah, B.Bus, CA, graduated from Curtin University, Australia with a bachelor of business degree. He is a Chartered Accountant
(Australia) and a Member of Certified Public Accountants in Singapore. Keng Seah has more than 16 years’ experience in senior financial
management positions in businesses located in Australia and overseas. Keng Seah has held chief financial officer / financial vice president
positions at SGX listed Singapore Press Holdings Limited (1998-2000), Lindeteves Jacoberg Limited (200-2001) and Informatics Holdings
Limited (2001-2002.) Keng Seah specialises in financial performance reviews, cash management including debt and capital market funding
Timothy Saidu Bangura – Country Manager
› Timothy is based in Sierra Leone and, to date, has had primary responsibility for obtaining GSR Africa’s Exploration Licences. He is also
responsible for ensuring that GSR Africa complies with its obligations under the Exploration Licences obtained. Timothy is a full time
consultant and has ten years of experience as an artisanal/small scale precious minerals gold dealer, and is also a core member of the Gold
Dealers Supervisory Committee in Sierra Leone. He has worked with a number of establishments involved in gold and diamond mining
activities and has been the Operations Director for eight years in the Sierra GEM Company Limited, Sierra Leone. As at the date of this
document Timothy Bangura holds 10 per cent. of the issued share capital of GSR Africa.
Alimamy Rasin Wurie – Mining and Business Development Consultant
› Alimamy Wurie, who was previously employed as a Government Mining Engineer in the Sierra Leone Ministry of Mineral Resources,
where he served for 36 years before retiring in September 2008, advises GSR Africa as a consultant on general mining matters. In his
capacity as Director of Mines, he was Principal Technical Adviser on mining and related matters, to the Minister of Mineral Resources and
was also responsible for the effective monitoring of all mining and exploration companies to ensure that these companies complied fully
with the provisions of the Mines and Minerals Act. He is a member of the Minerals Advisory Board, which advises the Minister of Mineral
Resources on all matters relating to minerals
Tyril Gouldson – Consultant Senior Geologist
› Tyril Gouldson is GSR Africa’s resident and chief consultant geologist in Sierra Leone. Tyril is engaged as a consultant as and when
necessary. Tyril Gouldson oversees and directs the geological activities of the Group. He has extensive geology experience, particularly in
the field of mineral resource estimation (tonnage and grade estimation) and supervision of auger drilling and wire line diamond drilling.
He is also equipped to oversee grade control, mine planning, and field mapping of primary resources within the concession boundary. He
has worked on numerous large-scale projects for London Mining Co. Ltd. and Sierra Leone Minerals. His range of expertise encompasses
the entire chain of geology work including surveying, mapping and mine planning
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