Profitable & Growing Integrated Mining & Smelting Operations in Namibia. Rod Webster, CEO October 2007

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1 Profitable & Growing Integrated Mining & Smelting Operations in Namibia Rod Webster, CEO October

2 Introducing Weatherly Profitable permitted copper producer Focused on Africa with operations in Namibia Integrated mining & smelting assets Growing production profile Resource base supports longevity of production Production is unhedged Team has proven African track record Listed on London s AIM: WTI 2

3 Namibia: A Good Place to Do Business Stable democratic government Long mining history Established mining code & security of tenure Other companies: De Beers, Rio Tinto, Anglo American Main mineral exports: Diamonds, copper, gold, zinc, lead, uranium Weatherly is: the largest copper producer a top employer substantial contributor to local economy 3

4 Brief History Acquired producing but distressed assets for 17 million in 2006 Former Goldfields & Newmont Namibian assets Long history of production Strong brownfields & greenfields exploration potential, suffered from lack of investment focused on rehabilitation & restructuring Investment predominantly funded by internal cashflow Reinvested $35 million Restructured the business into Mining and Smelting divisions to maximise tax benefits 4

5 Strategic Goals Establish a viable, self-funding mining & smelting business in Namibia Mining Expand production at existing mines Commission new mines (Kombat underground) Develop new projects (Berg Aukas, Tschudi O/pit) Smelting Increase smelter capacity Reduce costs Increase lucrative custom toll-treatment business Exploration Expand resources through brownfields exploration Investigate further African exploration opportunities Opportunities Trial new technology for dump reprocessing Opportunistic African M&A 5

6 Otjihase Operations Long life stable cash flow 2008 forecast production 10,000t Cu Otjihase Underground Mine Resource base 1.86% Cu Expected mine life >14 years 2008 production targeting 7,700t Cu, 76koz Ag, 3.5koz Au Future growth from development of Tigerschlucht Matchless Underground Mine Western shoot resource base 3.0% Cu Historic Rivershoot reserve Expected mine life >10 years 2008 production targeting 2,300t Cu, 18koz Ag, 800oz Au 6

7 Kombat Operations Core production from Kombat Number of ore sources for development 3 shaft lead orebody Gross Otavi Kombat Open Pit Asis Far West 2008 forecast production of 5,580t Cu Kombat Mine - production Nov 2007 Historic resource base 3.1% Cu Expected mine life >5 years 2008 production targeting 5,580t Cu, 200koz Ag Gross Otavi Potential underground mine Historic resource base 1.5%Cu, 5%Pb Opportunity to take advantage of high commodity prices Decision imminent 7

8 Note: The resources stated above are a combination of internal and historical work and may not conform to AIM regulatory requirements for statement of resources and reserves Reserves and resources are historical

9 Tsumeb Operations Good growth opportunity 2008 forecast production 5,250t Cu Tsumeb West Underground Mine Resource base 2.3%Cu, 11g/t Ag Expected mine life >5 years 2008 production targeting 2,100t Cu,37,000oz Ag Tschudi Underground Mine Historical resource base 1.5%Cu, 15g/t Ag Initial campaign to mine reserve of Cu, 15g/t Ag Expected mine life >4 years 2008 production targeting 3,150t Cu,100,000oz Ag 9

10 Growth Project: The Tschudi Open Pit 10

11 Growth Project: The Tschudi Open Pit Resource base 1.4%Cu, 15g/t Ag Minimum open pitable reserve 1.2% Cu Based on minimum reserve, expected mine life >5 years First production targeted 2009/2010 Targeting production 7,000tpa Cu Drilling underway to infill drill to JORC (by mid-2008) Complete feasibility study in 2008 Source: RSG Global study, October 2006 Underground development Long section above shows Cu mineralisation > 1% Cu. Gaps between colours denote where no drill data is available. 11

12 Growth Project: The Berg Aukas Zinc Mine Zinc, lead & vanadium mine Closed & flooded in 1978 Basic above ground infrastructure available Historic reserve: 17%Zn, 5.0%Pb, 0.6% V 2 O 5 Forecast mine life >5 years First production targeted 2010 New concentrator capacity ,000tpa Targeting concentrate production: 40,000tpa Zn 12,000tpa Pb 1000tpa V 2 O /8: Dewater mine workings Verify reserves & resources Complete feasibility study 12

13 Cu tonnes 30,000 Based on growth projects Forecast Mine Production Growth Berg Aukas (Zn, Pb, V 2 O 5 ) Tschudi Open Pit 20,000 Gross Otavi Tschudi Kombat 10,000 Otjihase Matchless Tsumeb West Q Q

14 Our Smelting Business & Growth Potential 14

15 Namibian Custom Smelters 2008 Forecast 35,000t Cu 1 Geographical Opportunity 2 Expansion Opportunity 3 Lucrative Complex Concentrates 4 Dumps and Residues 15

16 Geographical Opportunity Major regional smelter, 1 of 4 operating copper smelters in Africa Strategically located Road corridor from DRC, Zambia & Botswana Proposed rail to southern Angola, close to Walvis Bay Walvis Bay: Rail from Tsumeb Major Atlantic coast port Ideal for access to Europe & N.American markets 16

17 Expansion Opportunity Smelter has considerable mothballed capacity that can be re-activated for modest capital Permitted brownfield expansion to ~110,000tpa capability Benefits from tax free Export Free Zone (EPZ) Tsumeb Smelter Incremental Cu Blister capacity (98.6% Cu) Operating Reverb furnace ,000tpa Ausmelt furnace expansion 50,000tpa Construction underway Commissioning Q Full production targeted Q Capacity increase reduces fixed costs Reverb furnace 2 (inactive) ~110,000tpa (Directors estimate) Lead blast furnace and refinery (inactive) 17

18 Opportunity to Treat More Profitable Complex Concentrates Smelter has long-term arsenic agreements Evergreen concentrate supply agreement with Dundee: Up to 35,000tpa, with options to increase, concentrate from Chelopec in Bulgaria Capital cost: $8-10 million Currently tolling: Guelb Mogrein (First Quantum Minerals, Mauritania) Chibuluma (Metorex, Zambia) 18

19 Dumps & Residues Weatherly owns large inventory of dumps & residues that can be exploited Kombat tailings, Luanshya tailings, blast furnace slags Pilot project commencing with Tsumeb Tailings Dump Historical resource*: %Cu, 0.9%Pb, plus Ag JV with AIM-listed AIC who will complete feasibility AIC to spend $4.6m to earn-in 50% Pilot plant construction due to commence in Q * Non JORC compliant 19

20 Weatherly International Delivering Production Growth Against Backdrop of Strong Fundamentals Identified & fully funded growth Doubling smelter capacity People & Capability to deliver Mine production doubling in 2008 Potential to increase resources 20

21 Delivering Production Growth Against Backdrop of Strong Fundamentals Profitable permitted producer with integrated mining & smelting assets Offers natural hedge in concentrate vs. smelting capacity Namibian production growth self-funded Doubling of mine production to 20,000t Cu in 2008 Smelter expansion increases Cu production to 35,000t in 2008, 50,000t on annualised basis Smelter expansion will reduce operating costs to rank competitively Potential to grow current resource of 690,000t copper further Team has proven African record to develop and operate assets Delivered Tschudi underground on schedule & within budget Namibian assets provide springboard for growth 21

22 Disclaimer This presentation may contain forward-looking statements that reflect the Weatherly s current expectations regarding future events, its liquidity and results of operations and its future working capital requirements and capital raising activities. Forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors, including the success of the Company s development strategies, the ability of the Company to obtain additional financing for its operations and the market conditions affecting the availability and terms of such financing. 22