MINERAL WEALTH CONFERENCE 2013

Investing in Ugandas Flourishing Mining Industry

THE IMPORTANCE OF CLEAN TECHNOLOGIES AND POLICIES IN THE FUTURE AFRICAN MINING INDUSTRY Luisa Moreno, PhD Research Analyst

CLEAN OR GREEN TECHNOLOGIES

Examples:

CLEAN SOURCES OF ENERGY

CLEAN MANUFACTURING CLEAN CHEMICAL PROCESSES

EXAMPLES OF CLEAN TECHNOLOGIES

ENERGY Solar Wind Geothermal

CHEMICAL PROCESSING Alumina Titanium Dioxide Rare Earths Current Challenges

WHY ADOPT CLEAN TECHNOLOGIES

Reduce Energy Dependence Reduce Raw Materials Dependence Reduce Pollution (e.g. CO2) Reduce Landfill Waste Reduce Operating Costs
Water and Soil Contamination, Poor Air Quality Higher costs for water & food; disease; loss productivity; destruction of resources Higher operating costs; Lower Margins

Pollution

It makes economic sense

WHY ADOPT CLEAN TECHNOLOGIES

-Resources are limited -Operating costs likely to continue to rise -Current sources not sustainable
Oil consumption per capita (bbl/day per 1000 people)
1600 1400 1200 1000 People 800 600 400 200 0 -10 -200 0 10 20 30 40 Oil Consumption per capita 50 60 70 80

Not Sustainable

US Canada Russia China India

Source: People (in millions); Euro Pacific Canada

WHY ADOPT CLEAN TECHNOLOGIES

Oil consumption per capita; Source: indexmundi

AFRICAN MINING GOING FORWARD

Government commitment to CLEAN Technologies

Strong Mining Policies (Inc. Environment) Funding (project, education)

Resource Industry Needs to Adopt and Pursue Clean Chemical Process

License existing technologies Developed new technologies

Spur sustainable development/ Industrialization Strong Projects and Local Policies=Attract Funding from Capital Markets

Expand Qualified Labour

Develop Supply Chain

SUPPLY CHAIN OFTEN FORGOTTEN

Source: USDOE

NEXT CHALLENGE

CASE STUDY ORBITE PROCESS

Pros Clean By-products Vertical integration = security (e.g. Quebec and Russia) Low opex potential

Cons High energy consumption Requires cheap energy Requires off the shelf but advanced equipment Capex likely comparable to conventional

Source: Euro Pacific Canada Various Sources; Asian Metal

ORBITE PROCESS IMPLEMENTATION REQUIREMENTS

Resource Quality Energy Source Qualified Labour Funding Favourable Mining Policies

HOW TO ATTRACT FUNDING

Valuation Points: - Country / First Nations Risk - Tonnage and Grade - Infrastructure/Climate - Labour Availability - Management - Metallurgy Risk - Financing Risk - Partnerships/Off-takes - etc

FUNDING MAJOR CHALLENGE

Stock performance has been poor Equity and debt financing increasingly difficult Most companies with low cash position End Users/Governments must support the developed of key projects

Source: Proedgewire

STRONG AND CONSISTENT POLICIES LOWER COUNTRY RISK

Property Claims Reliable

Taxes, Royalties Well Defined, Reliable Environmental Policies - Firm

Local Community Involvement/Training

Identify Benefits for the Locals and the Country

AFRICAN MINING GOING FORWARD

Clean technologies are the future (protect environment, spur growth, etc) Development of new applications for domestic resources/materials (e.g. Brazil, China) Government Support ($$ Investments, policies, education) Investment from local entrepreneurs

Development of supply chains

Orbite Process and other processes should be considered once advanced

THE END

Thank you

ABOUT EURO PACIFIC CANADA

Euro Pacific Canada is an IIROC registered brokerage headquartered in Toronto, with offices in Montreal and Vancouver, specializing in foreign markets, precious and strategic metals investing. The firm offers an integrated platform of investment banking, institutional sales and trading, research, and private client services following the advice laid out by Euro Pacific Capital's Chief Global Strategist Peter Schiff, an internationally recognized and market strategist. Additional information is available at www.europac.ca.

ABOUT EURO PACIFIC CAPITAL

Founded in 1997 and headquartered in Westport, Connecticut, Euro Pacific Capital, Inc. is a full-service FINRA registered broker/dealer specializing in foreign markets and securities. Its CEO Peter Schiff is widely known for his outspoken views on global economics and the potential vulnerabilities of the U.S economy and the U.S. dollar. The firm operates from seven regional branches coast to coast and custodies more than $3 billion in private client assets via 40 investment consultants, a team of research analysts, and three divisions - Retail Brokerage, Wealth Management and Capital Markets.

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