investing in african mining equities

AFRICA RESOURCES

INVESTMENT CONGRESS

IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY, 14-15 JUN 2011www.ObjectiveCapitalConferences.com

Investing in african mining equities Hal Kent – Roulston Resource Opportunity Fund

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Objective Capital Conferences AFRICA RESOURCES CONGRESS June 14 – 15, 2011

Castor Asset Management Ltd. 15 Toronto Street, Suite 205 Toronto, Canada (416) 800-9138

Harold (Hal) Kent Portfolio Manager, President / CEO Presents:

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Objective Capital Conferences AFRICA RESOURCES CONGRESS June 14 – 15, 2011

Presentation Contents

Life-Cycle Of Junior Mining Share

S&P/ TSX Venture Exchange

Roulston Resource Opportunities Fund

Castor Asset Management Ltd.

LSE / TMX Merger Proposal

Current Events

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http://www.financialsensearchive.com/stormwatch/oldupdates/2004/1104.html

http://www.investmentu.com/2005/February/20050228.html

http://seekingalpha.com/article/122369-the-five-m-s-of-picking-gold-mining-stocks

http://2.bp.blogspot.com/_AiAR_NTjdnY/TPpdId3ik2I/AAAAAAAADY0/1L73YZhOQ0s/s1600/life+cycle+of+the+typical+mining+stock+%257E+zimtu+capital+corp.gif

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Roulston Resource Opportunities Fund

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Roulston Resource Opportunities Fund Lawrence Roulston

Industry Experience (Over 30 years of experience in the mining industry) •Analyst with major mining companies;

• Cominco Ltd. (a major metal producer, now part of Teck Resources Limited) • McIntyre Mines Ltd. (operator of a major coal mining operation in Canada)

•Senior executive / management of exploration companies; • manager, Pembina Resources (a Calgary-based mid-tier oil and gas production company, which was then part of the

Mannix family holdings) • vice president, Ventures West Minerals (a group of mineral exploration and development companies) • vice president, Coromandel Resources Ltd. (a mineral exploration company) • president, Canmex Minerals Corp. (a mineral exploration company, part of the Lundin Group)

•Expert guest on financial television, radio, and speaker at investment and mining events. •Expert witness in investment litigation.

Investment Experience •From 1988 to 1991, Mr. Roulston was vice president and director of the Mintax Group which managed an investment fund that invested in the mining industry. •Editor of a highly-regarded mining investment publication, Resource Opportunities, an independent, subscriber-supported newsletter with impressive 10-year track-record Specialist Advantage •Lawrence Roulston trained as a geologist at the Univ. of British Columbia and then gained hands-on experience in various facets of the mining industry. •For 12 years, focused exclusively on small resource companies •Extensive due diligence includes frequent travel to conferences and site visits obtain first hand information •Proven methodology for identifying and evaluating investment candidates.

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Selecting From An Extensive Investment Database In 12 years of publishing an investment newsletter, Roulston and his team have developed an extensive internal database of the mining investment universe and gained invaluable experience in company and project identification and evaluation. That wealth of information enables the Fund to select a short-list of the most suitable investment candidates from the mining universe (rather than selecting from the candidates put forth by others). Many of the candidates that have not yet been discovered by other analysts (and Funds) represent the best opportunities for gains from a low entry level.

Short-List The investment universe is continually screened to develop short list of potential investment candidates. Working from a comprehensive list of companies, due diligence efforts can best be focused in the best companies. Detailed Review For short list candidates a detailed review of public material, including websites and regulatory filings of financial and technical reports is carefully reviewed. Evaluation includes meetings with management as well as geological and engineering staff and site visits, where warranted. In the absence of site visits, reviews include independent reports and conferences with independent consultants.

Roulston Resource Opportunities Fund Investment Process

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Evaluation Criteria The search process is directed to finding companies that can add value to a mineral project in the context of the current metal price outlook. The project must have sufficient size potential to attract the interest of a larger mining company. The management team must have the appropriate skills and motivation to advance the project and they must have the credibility in the investment community to enable them to secure financing on suitable terms. The project must be in a location and in a jurisdiction where mine development is feasible. The project must meet key technical criteria with regard to matters such as metallurgy as well as permitting and other environmental and social issues. External Opinions Independent technical reports are a critical aspect of the review process (Canadian-listed companies are required to obtain comprehensive reports from qualified professionals at various stages of the exploration and development process.) Opinions of other analysts, via formal reports and informal discussions are also considered. Develop Market Strategy Based on the individual characteristics of the company, a strategy is developed to initiate investment, determine a suitable investment price, and determine the way to acquire a position: private placement, market purchase, or negotiated block.

Roulston Resource Opportunities Fund Investment Process Cont’d

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People Company management is paramount to the success rate of exploration and early production mining companies. Having the basic skill set is only the first step in evaluating management. The most successful people have an element of motivation that is best identified through personal meetings. Having a high level of credibility in the industry is important, as management must be able to effectively communicate with investors in order to secure funding. Property Geology of the Property as well as the location and access to infrastructure are critical to the viability and profitability of any resource company. The project must have a geological setting permissive of large size in order to attract the interest of the larger companies. Financial An analysis of the company’s share structure, cash on hand, and access to capital (equity and/or debt). The company must be able to secure equity financing on suitable terms in order to add shareholder value.

Regulatory/Political Environment An assessment of the external risks to project development. Permitting delays can be more costly to shareholders than hostile government actions. The manner in which a company handles its relations with local regulators can be critical to success. Metallurgy Ability to economically extract metal from ore is often poorly understood in resource evaluation. Roulston and his team understand this key component in the evaluation process.

Engineering / Development Estimates of capital, revenues, and operating costs. Roulston has years of experience in resource project modeling and analysis.

Roulston Resource Opportunities Fund Evaluation Criteria

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Investment Strategy •The primary emphasis will be small producers that have expansion plans, emerging production companies, and companies with advanced-stage metal deposits which are judged to have good prospects of advancing toward production. •More than 90% of the fund will be invested in companies that have a metal deposit in hand. Most will have formal resource estimates. Projects that have not yet had a formal resource estimate but which have drill results suitable for an approximation of size and grade will also be considered, as projects at that stage offer the greatest upside potential. •Up to 10% of the Net Asset Value of the Fund may be allocated to exploration companies that have projects and other characteristics that demonstrate potential to enhance the value of early-stage metal projects. Such an investment would seek to capitalize on specific attributes such as proven exploration success and/or management capability or an exceptional circumstance related to the project or property. •Concentration on publicly traded companies. The Fund maintains a 3% allocation to private holdings, where an IPO or liquidity event is believed to be imminent. •Flexibility to invest in any mined resource at discretion of management team;

•Precious metals - gold, silver, PGM group metals, etc. •Base metals – copper, nickel, lead, zinc, etc. •Uranium. •Rare earth minerals. •Other specialty metals.

Roulston Resource Opportunities Fund Evaluation Criteria

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Castor Asset Management •Licensed Investment Fund Manager / Portfolio Manager •Registered with Canada’s principal securities regulator (Ontario Securities Commission) Castor Asset Management Ltd. (“Castor”) is a Toronto, Canada based Investment Funds Manager. Castor was formed to provide both international and domestic investors with access to unique and differentiated investment products that feature proven proprietary investment management techniques but also, and importantly, provide access to the skills and often unconventional perspectives originating from the development and/or sponsorship of emerging managers and organizations. Harold Kent, MBA, CIM - President / CEO and Portfolio Manager •Past Portfolio manager to;

• DKAM Capital Ideas Fund LP • DKAM Financial Services Venture Fund • ACCL Multi-Strategy Fund • All-Canadian Resource Fund • All-Canadian Capital Fund

•20+ years financial Industry Experience

Roulston Resource Opportunities Fund Investment Manager

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Castor Asset Management Ltd.

Company Overview • Founded in 2010. Regulated in Canada by Ontario Securities Commission (Principal regulator).

Business Plan • Provide Intl. investors access to Canada via core multi-sector Canada Allocation Fund and a complementary suite of specialized funds with new managers and/or unconventional themes or strategies. Both Canadian and Global. • Roulston Resource Opportunities Fund example of new fund with direct from industry/unconventional inputs.

Management Style • Top down – Bottom up manager that doesn’t ignore fundamentals. • Generalist due to wide range of experience. Has managed financial services, resources, alternative energy, large-cap, small-cap, growth and value. • Similar experience from sales-desk . • Won ‘Best new Hedge Fund” award in 2009 award for multi-sector small-cap. (1) • Sector rotation strategy works well in Canada as 3 sectors make up 75% of mkt. cap. is Financials, Energy, Materials (core of investment management experience) • Favours businesses with ‘moats’ and structural advantages. Plenty in Canada. • Consideration to style and capitalization •Challenges • Sales and marketing of new funds into new markets despite new funds/managers outperforming established ones. • Overcoming agency conflicts at investor decision-making level.

(1) Best New Hedge Fund in Canada from KnowledgeSuites/Hedge Fund Hotel for DKAM Capital Ideas Fund

Materials (1617)25%

Information

Technology (287)

3%Industrials (233)

5%

Healthcare (188)1%

Financials (392)27%

Energy (626)27%

Consumer Staples (89)

3%

Consumer

Discretionary (224)4%

Utilities (49)2%

Telecommunication Services (30)

3%

Canadian Industries by # of companies and market cap %

Canadian Sectors by Market Capitalization.

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S&P/TSX Venture Exchange – Monthly Returns

Jan Feb Mar April May June July Aug Sep Oct Nov Dec

2002 7.9% 0.0% 6.1% -2.4% 6.8% -6.4% -11.9% 0.1% -6.9% -3.8% 5.0% 11.8%

2003 4.0% -0.9% -4.3% -1.4% 4.4% 1.2% 10.0% 8.4% 5.8% 12.3% 8.0% 3.6%

2004 -0.7% 8.6% -0.8% -11.2% -3.2% -2.5% -4.0% 1.1% 6.9% 0.0% 7.6% 4.1%

2005 -1.6% 11.1% -5.5% -9.7% -3.1% 4.6% 4.5% 6.6% 12.3% -7.7% 2.8% 9.1%

2006 14.3% -0.9% 15.1% 6.5% -8.6% -7.1% -0.8% 4.2% -9.0% 3.9% 9.9% 5.5%

2007 -1.6% 7.9% 0.5% 2.5% -0.7% -2.1% 0.6% -17.1% 8.9% 8.7% -12.7% 3.8%

2008 -9.7% 8.5% -9.5% -2.5% 8.2% -0.8% -15.6% -10.8% -28.7% -35.3% -16.3% 4.0%

2009 10.7% -2.4% 11.0% 5.5% 11.4% -2.9% 8.0% -0.4% 8.7% 1.1% 9.6% 7.5%

2010 -1.9% 2.6% 3.0% 6.2% -9.5% -6.5% 0.8% 5.1% 13.9% 14.2% 6.3% 10.4%

2011 -0.6% 5.1% -4.0% -1.9% -7.0% n/a n/a n/a n/a n/a n/a n/a

Average 2.1% 4.0% 1.2% -0.8% -0.1% -2.5% -0.9% -0.3% 1.3% -0.7% 2.3% 6.6%

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S&P/TSX Venture Exchange – Monthly Returns

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Fund Administrator Harmonic Fund Services is an independent financial services firm that specializes in the global alternative investments industry. They provide comprehensive fund services from offices in Grand Cayman, Toronto, and Geneva. Prime Broker / Custodian Bank of Montreal (BMO Capital Markets) is one of Canada’s ‘Big 6’ Schedule A banks included in the World Economic Form’s ratings is the most stable banking system for the second consecutive year. BMO also is the top rated securities research firm in Canada. Auditor As one of the global ‘Big Four’ audit firms, KPMG operates as an international network of member firms offering audit, tax and advisory services. We work closely with our clients, helping them to mitigate risks and grasp opportunities. Legal Counsel (Cayman Islands) Walkers is internationally recognised as having one of the leading offshore investment fund practices, advising many of the world's most prominent asset managers, fund promoters and institutional investors. Legal Counsel (Canada) London-based World Finance magazine named Stikeman Elliott as the 2008 Best Corporate & Commercial Team in Canada and Chambers Global identifies it as one of Canada's two top-tier Corporate/M&A practices

Roulston Resource Opportunities Fund Service Providers

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To Mitigate Against Operational Risk - Independent Directors with Strong Operational / Legal Background Martin Laidlaw, •20+ years in Offshore Fund Administration. •Director and Head of Fund Services at CIBC Bank & Trust Co. (Cayman) Ltd. •Founding Member of Cayman Islands Fund Administrators Association. •Currently Managing Director of Cayman Islands based Fund Administrator.

Anthony Baker, •Called to the Bar in 1985. •Formerly Intl. Corporate Finance for UBS, NatWest, and IndoSuez Group in London. •Formerly Maples Finance (Cayman). Engaged in structured finance and capital markets. •Former Director Ogier Fiduciary Services (Cayman) Ltd. •Currently involved in capital market activities for local & overseas companies, governments, and statutory authorities

Independent Mining Consultation - Independent Directors with Strong Operational Background Michael Legg •Mineral Resources Investment Consultant – Switzerland •> 45 years’ international mineral resources experience

15 years’ exploration, mine geology & production in Africa, Ireland and Canada 13 years’ in resource project banking and management consulting (Canada) 10 years’ as mine finance and management consultant mostly in former Soviet Union 2 years’ in executive management of two Canadian junior exploration companies 3 years’ as mineral resources investment consultant, Canada and Switzerland

Roulston Resource Opportunities Fund Independent Directors

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Fund Administrator

Prime Broker /

Custodian

Prime Broker / Custodian

Fund Administra

tor

Investment Manager

Investor

The investor’s capital remains within a secure loop including the Fund Administrator and the Prime Broker / Custodian. The Investment Manager does not have access to the invested capital at any time.

The investment Manager executes directly with the Prime Broker.

Subscription.

Redemption.

Roulston Resource Opportunities Fund Security of Investor Capital

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Minimum Subscription: $125,000 Management Fee: 1.5% Currency Denomination: Canadian Dollars Performance Fee: 15% of net new profits Liquidity: Quarterly with 60 days notice High-Water Mark: Yes. No reset. NAV Calculation: Monthly Reporting: Monthly No gates or hold periods. ISIN # KYG7677A1076 No commissions or loads. CUSIP # G7677A 107 Contact; Roulston Resource Opportunities Fund Castor Asset Management Ltd. c/o Harmonic Fund Services 15 Toronto Street Cayman Corporate Centre Suite # 205 4th Floor, 27 Hospital Road Toronto, Canada P.O Box 940 GT M5C 2E3 George Town, Grand Cayman KY1-1102 Phone (416) 800-9138 Cayman Islands [email protected] Phone (345) 949-0090

Roulston Resource Opportunities Fund Fund Information

mailto:[email protected]

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This presentation is made on a confidential basis to selected sophisticated institutional, high net-worth individual s or organizations, sovereign wealth funds, Fund of Funds, family office, or similar type entities. It must not be copied or disclosed to anyone except to personnel and professional advisors of the recipient on a confidential, need-to-know basis. This presentation does not constitute an offer nor a solicitation of a transaction or investment, a promotion or recommendation of the purchase or sale of any security. All investments in securities entail an element of risk and may not be suitable for certain investors. The information contained herein does not purport to be complete or current or to cover all the information or risk factors which a recipient may need to reach an investment decision, and it does not take into consideration the investment objectives , financial situation , sophistication, investment experience or particular needs of any potential investor. Investors should always refer to the Private Placement Memorandum for detailed information and any investment decision must be made solely on the basis of the information contained in the Private Placement Memorandum in its final form and/or the definitive agreement relative to the investment, the information in which may be materially different from the information in this presentation. Each recipient should conduct its own independent investigation and assessment of the investment opportunity discussed herein, with particular attention paid to the information on risk factors. The contents of this presentation have not been reviewed by any regulatory authority. Investment is subject to significant risks of loss of income and capital, and will be subject to restrictions on transfer. Unless other wise noted, there will be no public market for investments in this issuer and the securities will not be negotiable on the capital markets. Accordingly, investors should regard this investment as illiquid . There can be no assurance that the targeted returns, results, diversification, capitalization or asset allocations will be met or that the issuer referenced herein will be able to implement its investment strategy and investment approach or achieve its investment objectives. Actual investment performance will depend on future operating results, general market conditions, and a variety of other factors. Past performance should not be seen as an indication of future performance. Statements contained in this presentation that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs. Such statements involve known and unknown risks, uncertainties and other factors, and past results are not necessarily indicative of future performance. In addition, this presentation may contain forward-looking statements.‖ Actual events or results or actual performance may differ materially from those reflected or contemplated in such forward-looking statements. Certain economic, market and other information contained herein may have been obtained from published sources prepared by third parties or from the issuer referenced herein and in certain cases may not have been updated through the date hereof. While such sources are believed to be reliable, neither Castor Asset Management Ltd., nor the Roulston Resource Opportunities Fund Ltd., assumes any responsibility for the accuracy or completeness of such information. With respect to materials distributed by Castor Asset Management Ltd., Castor Asset Management Ltd. is not acting for or advising the recipients of this document or any other person except the issuer referenced herein, and is not responsible for providing them with the protections which would be given to those who are clients of Castor Asset Management Ltd. under Canadian securities laws. As the underlying security referenced in this presentation is not available for purchase to citizens or residents of Canada or the United States, this presentation does not constitute an offer nor a solicitation of a transaction or investment, a promotion or recommendation of the purchase or sale of any security to such persons, or any other, and may only be viewed for information purposes.

Roulston Resource Opportunities Fund Disclaimer

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LSE / TMX Proposed Merger

Participants and Background Implications Why It Won’t Happen