1 Impact of the Global Financial Crisis on Mining & Energy Companies

Cindy Gray, MBA Senior Manager, Global Energy

Toronto Stock Exchange & TSX Venture Exchange

June 18, 2009

2 Disclaimer

This document is for information purposes only and is not an invitation to purchase securities listed on Toronto Stock Exchange and/or TSX Venture Exchange or Natural Gas Exchange. TMX Group Inc. and its affiliates do not endorse or recommend any securities referenced in this document. Please seek professional advice to evaluate specific securities. While the information herein is collected and compiled with care, neither TMX Group Inc. nor any of its affiliated companies represents, warrants or guarantees the accuracy or the completeness of the information. You agree not to rely on the information contained herein for any trading, business or financial purpose. This information is provided with the express condition, to which by making use thereof you expressly consent, that no liability shall be incurred by TMX Group Inc. and/or any of its affiliates as a result of any errors or inaccuracies herein or any use or reliance upon this information.

All data used herein as at December 31, 2008 unless otherwise noted

© 2009 TMX Group Inc.

3 Outline 1. Toronto Stock Exchange & TSX Venture Exchange Overview 2. Impact of Global Financial Situation on Mining & Energy Companies 3. Accessing Capital in the Current Economic Environment

TMX Group: A Multi-Asset Class Market Leader

Equities Derivatives

(53% Ownership)

Energy

(19.9% Ownership)

Fixed Income Data

(47% Ownership) 4

Unique Structure Facilitates ‘Graduation’ from Junior to Senior Market

45 graduates in 2008 72 graduates in 2007 2,262 companies

• Earlier stage, smaller companies • Average company size = C$7.5MM market cap • Stepping stone for international companies interested in a North American listing • Potential for “graduation” to senior market as company grows

1,570 companies

• Senior market for more established businesses • Average company size = C$815MM market cap • Access to large, international institutional investors • Strong analyst coverage 5

Toronto Stock Exchange & TSX Venture Exchange

7 th largest exchange group By equity capital raised (WFE, Dec 2008)

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1 st in North America 2 nd globally Based on number of listed issuers on TSX and TSXV (WFE, Dec 2008) 8 th largest exchange group Based on domestic market cap of listed issuers on TSX and TSXV (WFE, Dec 2008)

6

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World Leaders in Resource Equities

1 st in Energy Home to 43% of the world’s public energy companies 1 st in Mining Home to 55% of the world’s public mining companies

World’s Largest Oil & Gas Public Market

409 OIL & GAS ISSUERS 228 145 113 53 TSX/TSXV ASX LSE-AIM NYSE NYSE AMEX 41 NEW OIL & GAS LISTINGS IN 2008 18 6 4 TSX/ TSXV* LSE-AIM NYSE AMEX NYSE N/A ASX

8 Source: Exchange Websites *Includes RTOs and QTs on TSXV

World’s Largest Mining Public Market

1427 MINING ISSUERS 138 NEW MINING LISTINGS IN 2008 684 TSX TSXV ASX 216 LSE AIM 84 HKEx 68 NYSE Amex 55 JSE 48 NYSE TSX TSXV* 29 ASX 9 5 LSE-AIM NYSE Amex 3 NYSE 3 HKEx 2 JSE

9

Source: Exchange Websites *Includes RTOs and QTs on TSXV

Our Oil & Gas Issuers Have Global Operations

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Our Mining Issuers Are Also Global

11

Oil & Gas Companies Raise Equity Capital to Help Fund Their Business 14000 12000 10000 8000 6000 $11.7B

$10.4B

Oil & Gas Financings Have Raised C$46 B over last 5 years

$10.5B

$9.2B

$5.3B

$2.6B

$4.1B

4000 2000 0 2002 2003 2004 2005 2006 2007 2008 Secondary Offerings Private Placements IPOs Oil & Gas Equity Capital Raised on Toronto Stock Exchange and TSX Venture Exchange (C$B) 12

Mining Equity Capital Raised Has Risen Dramatically

Global Mining Equity Financing Trend 1999-2008 ($ Billions) $50.3

$47.8

$26.5

13

$8.4

$9.6

$10.8

$9.7

$2.9

$3.1

$3.5

1999 2000 2001 2002 2003 2004 Source: Gamah International, 1999-2008, compiled by Toronto Stock Exchange 2005 2006 2007 2008

14 Outline 1. Toronto Stock Exchange & TSX Venture Exchange Overview 2. Impact of Global Financial Situation on Energy & Mining Companies 3. Accessing Capital in the Current Economic Environment

General Impacts* • Massive de-leveraging in financial markets • Lack of liquidity in credit markets plus dramatic withdrawal of capital from public markets • Scaled-back production and capital spending deferral • Unprecedented loss of wealth and rapidly weakening labor markets caused sharp pull back in consumer spending • Global GDP expected to contract by 1.7% in 2009 • GDP among developing economies expected to ease to 2.1% from 2008 level of 5.8% • Demand has slowed, especially in emerging markets • Natural gas prices remain weak; oil has rebounded but remains volatile • From July 2008 to December 2008, crude oil prices dropped nearly 70% while non-energy prices fell nearly 40% 15

*Data Source: World Bank, March 30, 2009

Impact on Resource Companies • Earlier staged resource companies rely on external sources of financing to grow and move projects to the next phase • As a result of the broader economic situation, companies face greater challenges accessing capital from traditional sources • • • • Drop in commodity prices impacts reserves-based lending Venture capitalists / angel investors retreated Private equity firms facing difficulties raising new funds IPO market very tight since Q3, 2008 • Companies scaled-back capital investments to preserve balance sheet strength – impacts production & cash flow • Acquisition, consolidation or winding up also occurring 16

220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 -10 -20

Performance of Energy Indices

Total Return Performance

S&P/TSX Composite Index Amex Oil & Gas Index Source: TSXconnect 17 S&P/TSX Capped Energy Index Dow Jones U.S. Oil & Gas Index

Steep declines in 2H 2008 ranging from 50% to 80%+

220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 -10 -20

However…..Energy Indices Showing Signs of Recovery in 2009

Total Return Performance

Energy indices showing signs of recovery in 2009 S&P/TSX Composite Index Amex Oil & Gas Index Source: TSXconnect 18 S&P/TSX Capped Energy Index Dow Jones U.S. Oil & Gas Index

Diversified Mining & Metals Index Up YTD 250 200

Index Returns Initial Investment: $100 (January 1 2009 to May 27 2009) 92.6%

150 100 50 0 S&P/TSX COMPOSITE INDEX: 9.8% S&P/TSX GLOBAL GOLD: 6.2% S&P 500 INDEX: -4.2% S&P/TSX GLOBAL MINING: 13.9% 19 Source: TSXconnect S&P/TSX DIVFD METALS&MNG: 92.6% AMEX GOLD BUGS: 23.7%

Sources of Financing for Resource Companies • Exploration, development, extraction and production of resources is capital intensive • Landscape for financing has changed • Well capitalized companies with cleaner balance sheets remain well positioned • Industry accustomed to volatility but companies need to be more creative to identify viable financing alternatives • Consolidation / M&A activity • Private placements • Public markets 20

21 Outline 1. Toronto Stock Exchange & TSX Venture Exchange Overview 2. Impact of Global Financial Situation on Energy & Mining Companies 3. Accessing Capital in the Current Economic Environment

Canada and the Canadian Economy Solid Stable Significant 22

Metals & Mining Continue to Access Capital • Majority of financings YTD 2009 are for gold producers, and those companies in production - generating positive cash flow 2009 YTD Mining Financings - Metal Iron Ore 2% Uranium 14% Zinc 1% Copper 20% Gold – 51% 51% Nickel 0% Silver 12% Lithium 0% 23 Source: CanaccordAdams, FP Infomart, common equity financings greater than Cdn$ 1.5 million 2009 YTD Mining Financings - Stage Exploration 4% Development 26% Production 70%

Investor Appetite for Energy in the Canadian Capital Markets • Canadian energy financings have been represented by large cap oil & gas issuers (80%) • Demand for large issuers with oil sands exposure

2009 YTD Energy Financings – Market Cap

Mid cap (>$100M< $1,000M) 20% Large cap (>$1,000M) 79% Small cap (<$100M) 1% 24

Source: CanaccordAdams, FP Infomart, common equity financings greater than Cdn$ 1.5 million.

2009 YTD Energy Financings - Material

Electricity - International 4% Oil & Gas - Canada 80% Oil & Gas - International 11% Energy Services 5%

Methods for Going Public on Toronto Stock Exchange or TSX Venture Exchange 25

Other Considerations • Tailored listing requirements for mining, oil & gas and other industrial sectors • Mining and energy companies required to report their reserves / resources in compliance with NI 43-101 for mining and NI 51-101 – both of which are globally recognized standards in technical disclosure • JORC, SAMREC, etc. resource and reserve standards are recognized for purposes of reporting under NI 43-101 • IFRS Accounting/Audit Standards and U.S. GAAP accepted without reconciliation • No requirement for Canadian officers / directors but senior market public company experience is required • Timelines for listing vary significantly depending on company’s readiness 26

Benefits for Resource Companies

Access to Capital Global Visibility Strong Trading Liquidity

27  Excellent access to capital for smaller exploration and early development staged companies  Listing criteria and transaction policies specific to resources  Balanced corporate governance approach & flexible structure facilitates fast equity raisings  First in mining and energy by number of listed companies  TMX Group mining companies have 10,000 projects around the world; 50% are outside of Canada  Able to finance international projects even in high risk places  Large analyst community that covers juniors & seniors  Strong trading liquidity for mining & energy  Graduation potential up to senior market as company grows  Vibrant investor base that understands resources

Cindy Gray Senior Manager, Global Energy 1-403-218-2822 [email protected]

Toronto Stock Exchange / TSX Venture Exchange 10th Floor, 300 – 5th Ave SW Calgary, AB T2P 3C4 CANADA 28