Part of the Pella Resources Group

TIN, TANTALUM AND TUNGSTEN MINING IN RWANDA

GETTING INVOLVED IN THE EXTRACTIVE INDUSTRY IN RWANDA

UK – RWANDA TRADE & INVESTMENT FORUM, OCTOBER 2014

BEN SMIT, MANAGING DIRECTOR

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ABOUT PELLA RESOURCES

• An Africa focused natural resource and energy group that has a strong track record in exploration and mine development across the continent

• Origins lie in over 50 years of successfully developing mineral and energy projects

• Established network, infrastructure and depth of experience in operating across continent

• Proven track record of success in discovery, development and delivery of projects

• Emphasis on ethically and socially responsible investment

• Strongly promotes local partnerships and participation

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ABOUT PIRAN RESOURCES

• Piran has a 90% interest in the Musha and Ntunga mines (25 year licence) through its subsidiary Pella Rwanda Resources Limited

• Historic mines: – Provides invaluable information on product, grade and

mining potential– Huge scope for significant tin recovery from tailings

• Two phase mining plan:– Recommence reprocessing of tailings– Ramp up into commercial production, commence mining of

primary ore bodies

• Exploration underway to determine the extent of the mineral resource and define potential for open pit/underground mining

• Seeking to make a meaningful contribution to the Rwandan economy

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THE OPPORTUNITY

• Pella sought out Rwanda as an investment destination over two years ago – well known for its mineralogy, specifically tin and tantalum

• Formed Piran Resources to create a new tin business within the Group• Submitted the tender for the Musha and Ntunga mines in late 2012

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SECURING PIRAN’S MINING LICENCE

Piran’s contract was signed within four months and our licence issued by the Minister ten months later after we had concluded the environmental and social impact assessments as well as a mining feasibility study.

Pella signing ceremony – Thomas Nziratimana (Piran), Honourable Evode Imena, Minister of State in the Ministry of Natural Resources in charge of Mining, Claire Akamanzi (Rwanda Development Board)

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WORK UNDERTAKEN TO DATE

• Validated the historical geological information, created a new mining model• Conducted a programme of auger drilling, sampling, metallurgical and recovery testing• Scoped out first targets for recommencing small scale production• Consulted with the local community to look to harness their knowledge and expertise• Constructed a pilot plant • Has and continues to identify the open pit or underground mining opportunities

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WORKING WITH THE RWANDA DEVELOPMENT BOARD

• A vibrant and dynamic organisation with empowered people • Tender process was transparent, uncomplicated and very professional • In Piran’s view, the best functioning organisation of this nature on the continent• A recent CNN study quoting Rwanda as the 8th easiest country in the world in which to start a new

business• Actively encourages and facilitates foreign investment

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WORKING WITH THE RWANDA DEVELOPMENT BOARD

• Supportive and a driving force behind the licensing process• A real “can do” attitude• Progressive, transparent, growth oriented policies

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BECOMING A CENTRAL HUB IN AFRICA

• Transformation post genocide has been hugely impressive

• Creating a sustainable future

• Excellent infrastructure good example of this development:

– Road networks and transport links – Telecoms– Power

• Rwandair: “Fly our dream to the heart of Africa”

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CHALLENGES AND ISSUES

The expectations of a growing and densely populated country and a developing mining economy will have to be met by both Government and industry in close partnership:

• The creation of formal sector jobs• Stimulation of the economy• Creation of a middle class • The eradication of illegal mining and dangerous practices in artisanal mining• Continuing to address the problems regarding conflict minerals

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PIRAN’S INITIATIVES

These are all key issues that Piran will be looking to address through our operations:• Community development• Enlisting local communities to recommence artisanal mining• Employment, training and equipment• Health and safety practices • Environmental protection• Support of a conflict free and responsibly produced product

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THANK YOU

We stand ready to face these challenges as a responsible corporate citizen and partner of choice.