Assuming the ban will continue throughout 2015 and beyond.

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3 Assuming the ban will continue throughout 2015 and beyond. Potential 15 million tonne bauxite. Indonesia s export of bauxite in million tonnes reduced to 2.8 million tonnes between Jan 2014 Aug Higher bauxite and alumina prices. China seeking to secure significant amounts of bauxite to meet the industrialisation programme.

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5 *Bauxitereserves selectedcountries(miliontonnes)

6 *Bauxitereserves selectedcountries(miliontonnes)

7 *Bauxitereserves selectedcountries(miliontonnes)

8 *Bauxitereserves selectedcountries(miliontonnes)

9 *Bauxitereserves selectedcountries(miliontonnes)

10 Economic climate in Guinea has not always been favourable for major investment. Delays in obtaining agreements with the Government. In recent years we have seen a major shift in the Guinea Government s attitude to foreign investment.

11 The issue of infrastructure has been an historical problem in Guinea and still remains the case today. Transport distances still pose a problem for exporting bauxite but also for importing chemicals etc for integrated refinery projects. Proposed TGR (Trans Guinea Railway) and Mali railways would give potential to unlock the interior of the country. Proposed plans for expansion of the Port of Conakry.

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13 Background to Guinean Legal System French colony until 1958 Democracy from 2010 Now stable democracy French based legal system

14 Mining Code Mining code amended April 2013 Published in French and English Mining leases to be published on website KPMG review 2012 / Levels of permit: Exploration, Exploitation, Mining Concession

15 Taxes Profit tax reduced to 30% from 35% Bauxite tax (overall) 0.75% of international aluminium price Exemptions for import duties

16 State Participation Maximum 15% free share ownership for government with no dilution Given on signature of Mining Licence Option to subscribe in cash for a further 20% Can be negotiated

17 Local Development Agreement All those with mining licences must also have Local Development Agreement Training of locals Environmental protection Health measures Development of social projects 0.5-1% of turnover

18 Common Problems For English speakers, translation Mapping and overlapping rights Bureaucracy Local rights

19 Is it improving? Only one Exploitation Licence granted since 2013 KPMG review Government willingness for projects to move to production

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24 Existing Bauxite Operations ACG (Aluminium Company of Guinée) République de Guinée & AC Rusal?? (ex Friguia) NB : not operating CBG (Compagnie des Bauxite de Guinée) République de Guinée & Halco (Rio Tinto-Alcan, Alcoa, Dadco) CBK (Compagnie des bauxites de Kindia) AC RUSAL

25 Development Concessions GAC (Guinea Alumina Corporation) MDC DUBAL DIAN DIAN (Société Russki Alumini Management) AC RUSAL

26 Prospective Concessions & Exploitation Licence AMC (Société Alliance Mining Commodities Guinée SARL) ALLIANCE MINING COMMODITIES LTD HENAN CHINE (Henan Chine/Guinée SA) SOCIETE INTERNATIONALE DE DEVELOPMENT DES MINES DU HENAN SA IMD (International Mining Development SA) LISSA MINING SERVICES COMPANY LTD

27 Prospective Concessions & Exploitation Licences ACG (Aluminium Company of Guinea) RUSAL SBDT (Société des Bauxite de Dabola Tougue) REPUBLIQUE ISLAMIQUE D IRAN & REPUBLIQUE DE GUINEE SOCIETE BEL AIR MINING SA ALUFER

28 Advanced Exploration Licences FAR (Forward Africa Resources SA) ANGLO-AFRICAN MINERALS PLC TOUBAL (Tougue Bauxite Alumina Corporation SA) ANGLO-AFRICAN MINERALS PLC SOMALU (Société Minière d Alumine SA) ANGLO-AFRICAN MINERALS PLC MINTEP (Mineral Technology Exploration Production Guinée SA) ANGLO-AFRICAN MINERALS PLC

29 Advanced Exploration Licence CPI (Société China Power Investment) CHINA POWER INVESTMENT SOCIETE ALUFER GUINEE SA (KINDIA) ALUFER SOCIETE ALUFER GUINEE SA (BEL AIR) ALUFER SOCIETE ALUFER PITA-LABE SA ALUFER

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