Current Assets In Production For Two - Avocet

AVOCET MINING OVERVIEWFocused• Focused exclusively on West African gold mining andexploration• Strong balance sheet, fully financed and dividend payingExperienced• Long corporate history dating back to early 1990’s, recentlyexited South East Asia• Management with extensive regional and sector experienceProducing• Current assets in production for two years• 167,000 oz. produced in 2011Growing• Growth potential from existing operations in Burkina Faso• Advanced exploration projects in GuineaAVOCET MINING PRESENTATION * FEBRUARY 2012Page 3

AVOCET MINING LEADERSHIPRussell EdeyBrett RichardsMike NorrisRichard GrayPete FlindellChairmanCEOFDVP – OperationsVP - Exploration• Ex AngloGold -Ashanti Chairman• Ex Anglo American• RothschildAdvisory• Extensive Africanexperience• Ex Katanga Mining• Ex Kinross Gold• MechanicalEngineer, MBACornell• Ex Rio Tinto• Ex Anglo American• CA by profession• Extensive WestAfrican experience• Ex-Golden StarResources• Mining Engineer,Royal School ofMines• Over 25 yearsexperience as fieldgeologist• Ex NewmontMining• Discovered anddeveloped twogold mines inIndonesiaAVOCET MINING PRESENTATION * FEBRUARY 2012Page 4

2011 YEAR IN REVIEWCompleted sale of South East Asian assetsRestructured balance sheet, paid down US$25m debt, declared dividendRamped up production capacity at Inata Gold MineDelivered production and ahead of guidance at 167,000 oz.Doubled Mineral Reserve at Inata to 1.85 M oz.Achieved goal of 2M oz. in Guinea (Dec 2011 – 2.24 M oz.)Progressed Koulékoun project towards feasibilityAVOCET MINING PRESENTATION * FEBRUARY 2012Page 5

FINANCIAL OVERVIEW1401301201101009080Top 5 Shareholders %1 Elliott Management 18.922 Datum 12.273 BlackRock 6.694 J.P. Morgan 6.195 Van Eck 3.46AU US$1744AVM 2.37Gold Index 36147001/11 02/11 03/11 04/11 05/11 06/11 07/11 08/11 09/11 10/11 11/11 12/11 01/12• Cash balance US$120.4m at end of Q3 2011• Debt of US$35m at end of Q3 2011• Regular dividend of US$20m pa, current yield of 3.1% 1• EV / EBITDA 1 , 2 of 6.8• EV / Resource 1 of US$101.7• EV / Reserve 1 of US$358.51. At current share price, balance sheet figures as at 30 September 20112. Based on consensus EBITDA forecast for FY2011AVOCET MINING PRESENTATION * FEBRUARY 2012Page 7

OperationsAVOCET MINING PRESENTATION * FEBRUARY 2012Page 8

BURKINA FASO• Rapidly expandingmining sector- Only one gold mineoperating in 2007- Six gold minesoperational by 2010- Mines produced over700,000 oz. in 2010• Over 30 listed goldproducers and explorersin country• Candidate country forEITIAVOCET MINING PRESENTATION * FEBRUARY 2012Page 9

INATA GOLD MINE• Operating mine Inata produced167,000 oz. in 2011• First gold poured 2009• Mineral Resource of 3.45 M oz.- Ore body open at depth and alongstrike• Mineral Reserve of 1.85 M oz.- 1.7 g/t Au Mineral Reserve grade• Mining licence extends to 2027,across 26km 2AVOCET MINING PRESENTATION * FEBRUARY 2012Page 10

INATA GOLD MINE• Open pit mining across six pits• Owner-operator mining fleets• Processing via conventional CILplant- Current capacity 2.7 M tpa• Exceptional safety record –6 million injury free hours achievedby end 2011• Established Avocet CommunityFoundation- Over USD$500,000 invested in2011 into water supply,community health, regionalinfrastructure programs• Signatory to the InternationalCyanide Management CodeAVOCET MINING PRESENTATION * FEBRUARY 2012Page 11

GUINEA• Untapped mineral potential- Two +5 M oz. and three~1 M oz. Au deposits- Extensive under-exploredBirimian geology- Two strongly mineralisedbelts extend from Mali• Three producing mines inoperation since 2007• New Mining Code gazettedin January 2012- High level Governmentdiscussions commenced• Candidate country for EITIAVOCET MINING PRESENTATION * FEBRUARY 2012Page 12

TRI-K• Extensive land package acrosstwelve exploration licences• Most developed project is Tri-K- Mineral Resource of 2.24 M oz.- Mineral Resource grade of 1.36 g/tAu• Within Tri-K, Koulékoun resourcebase is most advanced- Mineral Resource of 1.83 M oz.- Mineral Resource grade of 1.31 g/tAuKodiéran0.41 M oz. alone60 m @ 2.01 g/t Au20 m @ 6.43 g/t AuCurrently drillingAnomalous gold lowconductivity (granite)margin along majormagnetic linearFowara12m @ 6.28 g/t Au20m @ 3.70 g/t AuAnomalous goldover lowconductivity(granite) bodyKoulékoun1.83 M oz. aloneAnomalous gold onmargin of low-highconductorKourounin25m @ 1.34 g/t Au8m @ 1.79 g/t AuCurrently drillingAnomalous gold lowconductivity (granite)margin along majormagnetic linear2kmKodiafaranAnomalousgold overNW-orientedlinearconductorsAVOCET MINING PRESENTATION * FEBRUARY 2012Page 13

KOULÉKOUNCross section Koulékoun deposit3D model Koulékoun depositW30m @2.11 g/t Au 37m @1.44 g/t AuEOH: 90m EOH: 100m56m @1.87 g/t Au35m @1.55 g/t Au23m @1.10 g/t Au42m @1.46 g/t AuassayspendingEOH: 117.6mEOH: 265.9mEOH: 335.3m42m @1.28 g/t Au22m @0.67 g/t Au23m @1.13 g/t AuEEOH: 409.4mEOH: 497.1mEOH: 561.6m40m @2.44 g/t AuMineralised drill interceptDoleritePorphyryOutline of gold mineralisation• Primary quartz-feldspar porphyry structure, with shallow cross cutting dolerite• Anticipated circular pit with low strip ratio• Infill drilling to improve Mineral Resource confidence ongoingAVOCET MINING PRESENTATION * FEBRUARY 2012Page 14

GrowthAVOCET MINING PRESENTATION * FEBRUARY 2012Page 15

INATA EXPLORATION• Mine license covers 26km 2 , withsignificant exploration potentialincluded under licence• Further Mineral Resource andMineral Reserve developmentongoing• Large system developing inSouthern corridor – Inata FarSouth, Minfo, Minfo East towardsFilio• 2012 exploration budget ofUSD$20m to develop resources andreplenish reservesInata NorthExtension39m @ 3.01 g/t Aufrom 93mSayouba4m @ 48.5 g/tAu from 173mInata North44.6m @ 3.73g/t Au from266.4mInata Central9m @ 10.3 g/t Aufrom 122mInata South8m @ 5.08 g/t Au from 61mInata Far South26m @ 7.35 g/t Au from97mMinfo21m @ 4.72 g/t Aufrom 5mFilioMinfo East45m @ 3.26 g/t Au from 49mAVOCET MINING PRESENTATION * FEBRUARY 2012Page 17

BÉLAHOURO EXPLORATIONPriority drilling targetOkaGakindeNWESTERNDOMAINCENTRALDOMAINEASTERNDOMAIN5kmKourfadieSOUMA TRENDDynamiteDambaaINATAGomdeBarrageMiilamGasselGarafoFeteKolePaliFilioOuzemiImage: VTEM survey overlain with existing drill hole data.AVOCET MINING PRESENTATION * FEBRUARY 2012Page 18

KOULÉKOUN DEVELOPMENTFeasibility• Regulatory framework clarified before commencement• Study to be completed by early 2013ResourcePlantCapexGrade• Current resource of 1.8 M oz. to be infill drilledbefore construction commences• Targeting initial plant capacity similar to Inata – furtherconstruction / development in phase II• Total capital outlay +US$250 million• Ground breaking early 2013, production start-up 2014• Anticipated Mineral Reserve grade of 2 g/t Au• 90% recovery estimatedSubject to Mining Code,viable opportunity to developmine of similar scale to InataCosts• Like for like - slightly higher costs than Inata (power)• Lower strip ratio anticipatedAVOCET MINING PRESENTATION * FEBRUARY 2012Page 19

PRODUCTION GROWTHAnnual production (oz.)600,000500,000400,000300,000200,000100,000Inata Inata expansion (phase 1)Inata expansion (phase 2)Koulekoun, Guinea250,000 +Start-upStart-up80,000Start-up80,000 80,000167,000 160,000 160,000 160,000 160,00002011 2012 2013 2014 2015On track to exceed production of 500,000 oz by 2015AVOCET MINING PRESENTATION * FEBRUARY 2012Page 20

AVOCET MINING1Established production base of ± 160,000 oz. pa at Inata2Expansion of Inata Mine to minimum of 240,000 oz.3Development of existing resource at Koulékoun to 250,000 oz. pa mine4Driven by strong management team with extensive local and global experience5Achieved with strong balance sheet and cash generative earningsAVOCET MINING PRESENTATION * FEBRUARY 2012Page 21

A leading West African goldmining and explorationcompanyAVOCET MINING PRESENTATION * FEBRUARY 2012Page 22

AVOCET MINING HISTORY• 1996 - Listed on LSE with a market capitalisation of £72m- Gold deposits in Peru- Operating gold mine in Penjom, Malaysia- Tungsten interests in Portugal, Peru and California• 1999 - Divested tungsten operations to focus on gold• 2002 - Moved to AIM, with a market capitalisation of £12m- Acquired 80% in North Lanut, Indonesia- Acquired 49% interest and management control in gold mining companyZGC in Tajikistan• 2007 - Disposed of Tajikistan gold operations ZGC• 2008 - Acquisition of the Seruyung gold exploration project in Kalimantan, Indonesia• 2009 - Acquired Wega Mining and the Inata gold project, Burkina Faso- Poured first gold at Inata Mine• 2010 - Disposed of the Houndé licences in Burkina Faso to Avion- Listed on the Oslo Axess list of the OSE- Agreed disposal of all South East Asian assets• 2011 - Listed on Main Market of LSE- Market capitalisation of £434m- On track to enter FTSE250 in 2012AVOCET MINING PRESENTATION * FEBRUARY 2012Page 23

MINERAL RESOURCES AND RESERVES: INATAOre Reserves and Mineral Resources as at 31 December 2011Gross Net attributable (90%)Tonnes(Mt)Grade(g/t)ContainedouncesTonnes(Mt)Grade(g/t)ContainedouncesMineral ReservesProven 16,091,000 1.72 888,000 14,482,000 1.72 799,000Probable 17,234,000 1.70 940,000 15,510,000 1.70 846,000ROM Stockpiles 497,000 1.22 20,000 447,000 1.22 18,000Reserves total 33,822,000 1.70 1,848,000 30,440,000 1.70 1,663,000Mineral ResourcesMeasured 17,881,000 1.68 963,800 16,093,000 1.68 867,400Indicated 39,446,000 1.35 1,712,000 35,501,000 1.35 1,540,800Measured + Indicated 57,327,000 1.45 2,675,800 51,594,000 1.45 2,408,200Inferred 17,846,000 1.36 779,100 16,061,000 1.36 701,200Resources total 75,172,000 1.43 3,455,000 67,655,000 1.43 3,109,4001. Mineral Resources are inclusive of Ore Reserves and reported above 0.5g/t gold cut off. The Mineral Resource was estimated by Mr David Williams(MAusIMM) and Mr Sam Beckett (MAusIMM) of CSA Global Pty Ltd, both being Competent Persons as defined by the JORC Code. Mineral resources arereported below the 31 December 2011 topographic surface.2. The Ore Reserves are estimated by Mr Clayton Reeves (Member SAIIM), Principal Mining Consultant, CSA Global (UK), and is a Competent Person asdefined by the JORC Code.3. Rounding errors may occur.AVOCET MINING PRESENTATION * FEBRUARY 2012Page 24

MINERAL RESOURCES AND RESERVES: SOUMAMineral resource estimate as at 31 October 2010Gross Net attributable (100%)Tonnes(Mt)Grade(g/t)ContainedouncesTonnes(Mt)Grade(g/t)ContainedouncesMineral ReservesProven - - - - - -Probable - - - - - -ROM Stockpiles - - - - - -Reserves total - - - - - -Mineral ResourcesMeasured - - - - - -Indicated 320,000 1.49 15,500 320,000 1.49 15,500Measured + Indicated 320,000 1.49 15,500 320,000 1.49 15,500Inferred 10,380,000 1.64 545,600 10,380,000 1.64 545,600Resources total 10,700,000 1.64 561,100 10,700,000 1.64 561,1001. Mineral Resources are inclusive of Ore Reserves and reported above 0.2g/t gold cut off. The Mineral Resource was estimated by Mr David Williams(MAusIMM) of CSA, a Competent Person as defined by the JORC Code Mineral resources are reported below the topographic surface. Rounding errors mayoccur.AVOCET MINING PRESENTATION * FEBRUARY 2012Page 25

MINERAL RESOURCES AND RESERVES: TRI-KMineral Resources as at 20 December 2011Gross Net attributable (100%)Tonnes(Mt)Grade(g/t)ContainedouncesTonnes(Mt)Grade(g/t)ContainedouncesMineral ReservesProven - - - - - -Probable - - - - - -ROM Stockpiles - - - - - -Reserves total - - - - - -Mineral ResourcesKoulékounMeasured - - - - - -Indicated 21,610,000 1.44 1,000,800 21,610,000 1.44 1,000,800Measured + Indicated 21,610,000 1.44 1,000,800 21,610,000 1.44 1,000,800Inferred 22,600,000 1.15 832,200 22,600,000 1.15 832,200KodiéranInferred 7,260,000 1.76 411,100 7,260,000 1.76 411,100Resources total 51,470,000 1.36 2,244,100 2,244,100 1.36 2,244,1001. The resource has been estimated within constraining wireframe solids based on a nominal lower cut off grade of 0.3 g/t Au. The resource is quoted fromblocks above 0.5 g/t Au. The Company owns 100% of Wega Mining Guinée, owner of the Koulékoun gold project and Kodiéran prospect. Resources arereported above 0.5g/t gold cut off. The Koulekoun Mineral Resource was estimated by Mr David Williams (MAusIMM), Principal Consultant, CSA Global PtyLtd. The Kordieran Mineral Resource was estimated by Mr John Milovanovic (FAusIMM), Chief Resource Geologist for Avocet. Both are Competent Personsas defined by the JORC Code.2. Note: rounding errors may occur.AVOCET MINING PRESENTATION * FEBRUARY 2012Page 26