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Republic of C A M E R O O N

MINISTRY OF INDUSTRY, MINES & TECHNOLOGICAL DEVELOPMENT CAMEROON :A NEW MINING DESTINATION IN AFRICA By Hon. SECRETARY OF STATE FUH. Calistus Gentry, PhD PDAC Toronto 09 March 2010

LOCATION The REPUBLIC of CAMEROON lies midway between West and Central Africa. It stretches from the Gulf of Guinea in the South-West to Lake Chad in the North and lies approximately between 11 ° of (attitudes (01° 80f - 13 ° 00f N) and 08° longitude (08° 251 -

Yaounde, 2008 2

16 °20f E). It is bounded to the: ■ South-West and West by the Gulf of Guinea (the Atlantic Ocean) and the Federal Republic of Nigeria respectively; ■ North by Lake Chad; ■ North-East and East by the Republics of Chad and Central Africa respectively; ■ South by the Republics of Congo, Gabon and Equatorial Guinea.

Infrastructure

• Hydroelectric dams of Edea, Song-Loulou, Lagdo for a total of 1200 MW; • Nyassa in Douala thermic central of gas has been launched for energy capacity enhancing; • Construction of Lom-Panger and Memvele hydroelectric dams starts 2008; • Construction of a thermic central of gas at Kribi ( 150 MW) • 5000 km of asphalted roads, 45000 km of maintained laterite roads; • Three International ( Douala, Yaounde-Nsimalen & Garoua), and three national airports for home flights;

Infrastructure (ctd)

• Railway linking Douala – Yaounde – Ngaoundere & western railway (1009 km); • Deep sea port at Kribi geotechnical & topographical studies have started in january 2010; • Limbe deep sea port preliminary studies have started.

Simple approach to mineral title

Mineral Permits Exploration Reconnaissance Exploitation (Mining)

Licence overview

Reconnaissance Exploration Permit Quarry Exploitation Purpose Property

Open pit various materials As necessary

Area Validity Defined act of allocation

5 years, renewable indefinitely for periods of 3 years years, Fee per m 2 Geological and geophysical surface work According to administrative boundaries 10,0000km 2 All types of work for the definition of mineral deposits Polygon, no limitation in depth 1,000km 2 1 year, Renewable Flat fee 3 years Renewable Fee per km 2 Mine development including facilities Rectangle as per exploitation permit 1,000km 2 25 years renewable for 10 years until exhaustion of resources

Delivery by

Hon. Min. of Mines Hon. Min. of Mines Hon. Min. of Mines HE. President Rep.

Notes

Exclusive rights, must have a sizeable deposit, environmental impact Gives priority for exploration permit Exclusive rights, gives priority for exploitation permit Exclusive rights, must have proven deposit, environmental impact study with a mining convention

Duration for processing applications

• Applications for grant of exploration permit or mining title shall be processed within the following time-frames: research permit: within 30 (thirty) days of registration of the application; exploration permit: within 45 (forty-five) days of registration of the application; mining permit: within 90 (ninety) days of registration of the application.

• Where the application for mining title is not processed within the time frame prescribed above, the title shall be considered as granted, unless the service in charge of mines duly informs the applicant, of the extension of the time-limit for examining the application. Such time-limit may not be longer than the initial time-frame.

• Where an application for renewal of a mining title is not processed before the expiry date, such title shall continue to be in force for the land for which the renewal is requested until notification of the renewal or rejection.

GEOLOGY Cameroon's history different geological begins masses geological with the Archaean era between 3.5 and 2.5 billion years (Ga) ago. Its phases

of

development are illustrated by formed during cycles and successive orogenic characterized by the formation of mountain ranges, subsequent phases by the splitting of the continental crust.

extension

GEOLOGY (ctd) Cameroon is generally acknowledged to have experienced three orogenic cycles: 1.

The Liberian cycle, exemplified by the Ntem complex, which dates from the Archaean era, and is about 2.5

billion years old 2. The Eburnean or Transamazonian cycle, with the Nyong and Ayna, formations, which date from the Palaeoproterozoic period (2.5-1.8

billion years ago); 3.

The Pan-African cycle, which comprises formations years (Ma) ago.

from the Neoproterozoic era 1,000-600 million

Mintom Limestone Kitongo granitic Scarp (Poli)

GEOLOGY (continued) The extension phases consist of:  The Lower Palaeozoic period, during which Mangbaii-type series were deposited, around 580 million years ago;  The Cretaceous era, is exemplified by the Benue trough and its coastal and continental counterparts, which were formed around 110 million years ago;  The Tertiary era, when the plutonic and volcanic complexes of the Cameroon Line were formed, about 70 million years ago.

The Quaternary period is exemplified chiefly by continental erosion and recent alluvial deposits, particularly on floodplains and in subsidence zones.

Syenites outcrop (Lolodorf)

Geological ensembles: Craton of Congo The geology of Cameroon is divided into five geotectonic units: (J. Vicat el al, 1998).

 The Craton: situated at the extreme south part of the country, it is called the Ntem formations and comprises charnockites, leptynites, gneiss & granodiorites, all cut by greenstones dykes. These formations are estimated to be dated between 2.8 and 3.6 Ga (Archean age) and are composed of Nyong, Ntem and Ayina series (from the W to the E) in which green stones belts have been identify;  Craton cover (proterozoic ) is located in the southeast Cameroon on the border of CAR and Congo Republic. It’s discordant with the Mbalam belt and covered partially in the north by the yaounde nappe. This Craton Cover include the upper carbonated), Dja series (650-540 My )

Geological ensembles (ctd): Congo Craton cover & Panafrican The Bélé-Libongo tillite complex, (850-650 My) the Boulou and Mouloundou sandstones, arkoses, conglomerates and shale series of the lower Dja , and the Lobeke numerous dolerites dykes and sills occur with pillow lava and occasional syenite plutons;  the Panafrican Chain is covering the greater part of the territory and its formations have been put in place during the orogeny of the whole Africa. c ontinent of Mobilong conglomerates

Geological ensembles (ctd): Panafrican Chain Its characterized by a strenching belt directed E-W from Sudan to Gulf of guinea and which extends into Brazil territory. This chain (including two entities) : the christallophyllian and migmatitic formations formations of paraderived origin, and granitoïds which are either anatexic or syn and post tectonic and most of them are calco alkili), which belongs to the Oubanguides one, is cut by destral mylonitic shear zones trending NE-SW the Sanaga Fault (SF) and the CCSZ (Central Cameroon Shear Zone).

Geological ensembles (ctd): Sedimentary basins The Paleozoic and the Cretaceous are the two types identified in Cameroon: (1) Paleozoic (northern part) is azoic volcanic detrital deposits ( Hoye near Poli) & Mangbei (Chadian border) dated Devonian-Ordovician (370-490 My by K/AR) overlying the Panafrican; (2) Cretaceous:  fluvio-lacustrine deposits with Aptian, cenomanian and Turonian sandstone ( Mamfé & Benoué areas);  Coastal basins (Rio del Rey, Douala & Kribi Campo, Bakasi area) with deposits dated Eocene & Miocene contain oil & gas.

Geology & Mineral potential This geology is favorable to the mineralization of  substances as precious metals (gold, diamonds) base metal, rare metals etc, and hydrocarbons. So that we can have for example in : Congo Craton - Archaean Greenstone belts (South): iron ore (Mbalam, Kribi), uranium (Lolodorf), Diamond     (Mobilong) Central Cameroun shear - Poli series (North): uranium, saphire, gold, Sanaga shear zone - Lom series (East): gold Pan African Mobile Belt: (Placer gold) Sedimentary basins: oil & gaz (Douala, Campo, Kribi) salt, sapphire (Mamfé).

SUMARY OF THE EXPLORATION ISSUES From 1960 to1990, some of these indices discovered trough the exploration carried out since the beginning of the last century, were investigated with the bilateral cooperation agreements between Cameroon and international bodies like BRGM, UNDP, BGR and others. This resulted in the iron in Mbalam & Kribi, bauxite in Ngaoundal and Minim Martap and Fongo Tongo, Nickel-Cobalt in Lomie, titanium in Akonolinga, Tin in Mayo Darle, Uranium in Poli & Lolodorf, Gold in the East region, Diamond in the south east region. These projects form the current axis of the mineral exploration & exploitation activities in Cameroon.

Actually :  87 research permits have been granted to some companies;  one mining permit in Ni-Co and 3 for limestone and marble have been issued.

The present review has focused its attention to some basic metal and precious substances projects which are going on in Cameroon territory.

Some major projects under development Due to this favourable environment for mineralization some principal project are under developpment and intensive exploration. They are:  Ni-Co in Lomié area: exploitation permit (GEOCAM);  Bauxite in Minim-Martap and Ngaoundal, tworesearch permits (Cameroon Alumina Ltd, derived from Hindalco-Dubal-Hydromine Inc ;  Iron ore in Mbalam (CAM IRON SA/SUNDANCE RESOURCES Ltd)  Iron in Kribi (SINOSTEELCAM)  Diamond in Yokadouma ( C&K Mining);  Gold in Batouri (African Aura Resources) & Uranium in Poli and Lolodorf, Gouna ,Salaki, and Voko.(Mega Uranium Cameroon).

DIAMOND GOLD NUGET ROUGH SAPPHIRE WASHED Ni- Co SAMP.

Ni-Co in Nkamouna achievements

(1) October 16, 2009:

Increase in resources at the Nkamouna Cobalt Project  Measured and indicated resources increased 97% to 120.6million tonnes .

 Inferred resources increased 25% to 202.5 million tonnes.

(2) December 9, 2009:

Lycopodium appointed to update feasibility studies; deliverable date Q2 2010.

(3) December 16, 2009:

Standard Chartered Bank engaged by Geovic Mining Corp as financial advisor to the Nkamouna Cobalt Project.

Ni-Co (ctd): Resources & reserves

Mine Permit: 1,250 km 2

Nkamouna Proven & Probable Reserves:

54 million tonnes 0.25% cobalt, 0.69% nickel and 1.33% manganese within a

mineralized area of 13 km 2 Physical Concentration of this ore yields 12 million tonnes with upgrades to O.72% Co, 0.90 % Ni and 3.71 % Mn

Mada Inferred Resources:

145 million tonnes 0.21% Co, 0.48% Ni and 1.15% Mn within a

mineralized area of 60 km 2 Five other deposits contain

264 km 2 of mineralized area

Ni-Co Updated resources & reserves

Measured and Indicated resources increased 97% to 120.6 million tonnes, grading 0.23% cobalt, 0.65% nickel, and 1.34% manganese.

• Inferred resources increased 25% to 202.5 million tonnes, grading 0.20% cobalt, 0.59% nickel, and 1.20% manganese.

• The January 2008 estimate of Nkamouna's Proven and Probable reserves, at 54.7 million tonnes grading 0.25% cobalt, 0.69% nickel, and 1.33% manganese, was projected to support a 19-year mine life. The approximate doubling in Measured and Indicated resources suggests the potential to double this period .

Ni-Co (ctd): Some favorable caracteristics  Cameroon cobalt mineralization is higher grade and

coarser size

than all other known laterite deposits; 

Cobalt is upgraded nearly three-fold

using low-cost washing and sizing similar to simple sand and gravel operations ;

Shallow open pits

only 16 meters deep enable low mining costs, concurrent backfill and reclamation; blasting not needed  Recent test work indicates opportunity to utilize

simpler leach chemistry and processing equipment

Iron ore of Mbalam : Resources & reserves

Deposit Resource category Tonna ge (Mt) Grade (%) Fe SiO 2 Al 2 O 3 P LOI Mbarga Mbarga Indicated 168.7

60.

5 9.5

Inferred 10.4

57.

5 13.0

2.1

2.7

Mbarga south Inferred Metzime vin Inferred 14.2

Total-indicated & inferred resource 21.8

58.

8 61.

8 9.4

10.3

215.1

60.

2 9.8

3.0

3.6

2.3

0.08

1.4

0.06

1.6

0.06

2.9

0.09

1.8

0.08

1.6

Iron ore of Mbalam (ctd) : Resources & reserves

Deposit Resourc e category Tonnag e (Mt) Grade (%) Fe SiO 2 3 Al 2 O P LOI

Mbarga Indicate d 168.7

Mbarga Inferred 10.4

Total-indicated & inferred resource 215.1

60.

5 57.

5

60.

2

9.5

9.8

2.1

13.0 2.7

2.3

0.0

8 0.0

6

0.0

8

1.4

1.6

1.6

Mbalam Iron Ore: Recents achievements • • The indicated resource of itabirite hematite is sufficient to provide beneficiation feed required for the proposed production of high quality Direct Reduction grade and blast furnace grade iron concentrate during the first 20 years of project operation.

To enhance the high grade hematite, another RP (N°143) has been granted to CAM IRON SA/ SUNDANCES RESOURCES Ltd for further exploration activities.

Mbalam Iron Ore: Recent achievements (ctd) • • • • • • 20,000 metres budgeted in 2009/10; 3 new drill rigs purchased; Transport and port scope • • defined –site investigations commenced; Framework Agreement signed with Government; Feasibility Study under review for Mining convention negotiations Environmental and Social Assessment report under Government review; Full funded Definitive Feasibility Study to be completed in 2010 -$90m capital raising; Deutsche Bank appointed as strategic partners and arrange project financing.

Yokadouma Diamond: Resources & Reserves The conglomerates are the source rocks

Yokadouma Diamond: Resources & Reserves (ctd)

ZONES DIMENSIONS OF THE CONGLOMERAT E OUTCROPS (m ²).

>/=150.000

TOTAL SURFACE AREA OF THE BLOCKS CONCERN (m ²).

>/=11.934

MOBILONG LIMOKOALI/MOMIKO GUI and MOMETCHOBI >/=483.249

>/=10. 62 TOTOBI >/=1.75

>/=9. 888 NONPEDA/MPMALO UDOU and LINGUI TOTAL SURFACE AREA >/=3. 564 >/=9. 296 >/=13. 469 >/= 45. 911

Yokadouma Diamond(ctd): Open pit mining

• • Open pit mines are used when deposits of minerals are found near the surface or along kimberlite pipes . This method is used when the are "overburden," material covering the deposit, is relatively thin and/or the minerals imbedded unstable earth.

in or surface structurally In open cut mining, the ore shall be removed from deposits that crop out at the surface, lie on a hillside, or are covered by a shallow overburden that is stripped before or simultaneously with the removal of the ore.

• •

Yokadouma Diamond (ctd):Environmental issues

The first step in developing exploitation is the removal of vegetative cover of trees and underbrush. Next, the overburden of topsoil and subsoil is removed and stockpiled for future reclamation. The ore is exploited in the preferred method to be applied. Considering the fact that the zone is located in a tropical dense forest area, a detail environmental study is planed to be carried out in the different target zones which include, Mobilong, Limokoali/Momikogui, Momitchobi, Totobi and Nonpeda areas . This shall be done following a well defined reference terms based on socio-economic, flora and fauna that is found in this zone.

Bauxite : Resources & Resrves

Exploration campaign was conducted between January 16th and May 25th 2009. 11 plateaus on Minim-Martap and 3 plateaus on Ngaoundal were drilled, and 11,358 samples were collected, prepared, and analyzed. Estimated Bauxite resources are around 550 Mt with potential for additional 100-200 Mt in the southern region of Minim-Martap deposit.

Bauxite(ctd) :

Environmental

Issues

• • Total population in the project area is around 45,000, but none of them is living on the potential mining pits.

The base line study covered the Exploration Permits area and a buffer zone of 10 km around their perimeters. It basically showed that the area is fully suitable for implementing mining operations, with no endangered or protected flora and fauna specie, nor any migratory path within. Air, water, and noise monitoring followed the same pattern.

Bauxite (ctd): Alumina refinery

Alumina refinery, planned to be established near the bauxite deposits, will have the capacity of 3 Mtpa of smelter grade alumina (SGA).

It will be built in two phases. Proven and robust technologies have been chosen in the process design, which is based on a typical low temperature digestion, given the gibbsitic nature of the bauxite. Process and operating parameters will be in the first quartile of the industry. The plant will be operated to adhere to the best safety, environment, and efficiency standards in the industry.

Bauxite(ctd): Recents achievements • • • The port facilities :Government of Cameroon intends to develop at Lolabe, about 860 kilometers by rail from the preferred refinery site. The total yearly cargo to be transported by rail will amount 6.4 Mtpa, when the refinery is fully developed.

The existing railway line between Macor and Makondo has to be upgraded to support such additional quantities, and a new line of around 140 km is to be by Government and/or third parties.

Uranium of Poli: Resources Reserves

• Detailed mapping, ground radiometrics, trenching and sampling of the Salaki radiometric anomaly in the Salaki concession, 22 kilometres WSW of Kitongo. The work delineated a 500 metre long zone of elevated radiometric values of 100-12000cps in microdiorite, brecciated basic volcanics and volcaniclastic sediments along a major NW-trending fracture. Ten representative grab samples of the various lithologies in the prospect assayed in the range 324 8293ppm U 3 O 8 .

Distribution of the anomalies on the Teubang research permit Uranium (ctd): Teubang • Mega conducted a detailed helicopter-borne magnetic radiometric survey over the area, comprising 8900 line kilometres at a line spacing of 150 metres and flying height of 30 metres. The survey highlighted numerous radiometric anomalies and other areas of interest and ground follow up is planned to began in may 2010.

Uranium (ctd): Lolodorf

Trenching to expose uranium mineralization in a prospect

A detailed 7350 line kilometre helicopter-borne magnetic radiometric survey over the entire Lolodorf property at 150 metres line spacing and flying height of 30 metres. The more prominent radiometric anomalies detected in the survey have been followed up by ground radiometric surveys, trenching and geochemical sampling. Several drilling targets have been identified, but drilling has been deferred due to budget constraints.

Gold of Batouri: resources & reserves (ctd)

• • • 3.5km envelope of >250ppb Au in soils (2) Granite hosted quartz vein and stockwork deposit (4) Extensive artisinal pitting on coarse-gold bearing veins (4) – >8,900m of diamond drilling completed, high grade results: 1m @ 132g/t (3) – 6.8m @ 8.86g/t (5) , 1.5m @ 49g/t (3) , 1.5m @ 43g/t (2) & 2.67m @ 66g/t (2)

THANK YOU FOR YOUR KIND ATTENTION