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Tanzania Royalty Exploration Corporation Busolwa – Buziba Joint Venture Proposal
To Raise Financing for Development / Construction of Commercially Minable Gold Deposit
February 2014
Deal Highlights
• Tanzanian Royalty Exploration Corporation (TSX: TNX / NYSE MKT LLC: TRX) and Allied Gold Corp. (“AGC”) of Dubai announced signing of letter of intent to accelerate development of a commercially producing mine on the area known as Buziba / Busolwa in Tanzania.
• Through its Buckreef Gold Company Limited (BGCL) JV with Stamico, the Company will hold 40% interest in New JV with AGC holding remaining 60%.
• JV will Accelerate development and Financing of 2 Significant
Mineable Gold Deposits.
• TRX RELIEVED OF RAISING ADDITIONAL FINANCING
Project Highlights
• The combined Buziba / Busolwa Project contains significant National Instrument 43-101 compliant gold resources now being compiled for inclusion in Pre Feasibility study nearing completion.
• Integrated project results in significant synergies for Low-cost early Production maximizing shareholder value.
• Increased gold resource potential from significantly expanded license area and limited depth drilling to date.
• Only minimal start up cash investment by TRX as Capital Funding to be arranged by Allied.
• Allows TRX to accelerate and focus resources on development of Buckreef Main and other key Projects in the pipeline
• Allied to seek funding in early 2014 to conclude Feasibility Study and all project Financing.
• tal
Operations
• JVC to be funded in proportion to
equity holdings with minimal initial
capital injection
• Executive Management Team from
Allied responsible for Financing.
Proposed Structure
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Buziba License
Joint Venture Company
Allied and BGCL Busolwa Licenses
Funding and Mine Development
Assets
• Signed Letter of Intent Allied, TRX and
Stamico
• Sign Definitive Contract
• Establish Joint Venture Company and
issue shares
• BCG vends Buziba license into JVC
and Allied vends Busolwa licenses
into JVC
Allied to Arrange financing
BG
C
Profile Allied Gold Corp
• Allied Gold Corp. is a gold exploration and development company focused on Sub-Saharan Africa. The company is part of the Allied Resources Group, a natural resources group with offices in Dubai and Sydney. Allied Gold Corp's business model involves building value by identifying and acquiring gold resources, developing these into reserves and then producing gold.
• The Company's Head Office is in Dubai. African operations are run from an office in Dar es Salaam in Tanzania.
• Allied Gold Corp. invests in projects worldwide but its current focus is on Sub-Saharan Africa and Tanzania.
• The Company has been actively involved in Tanzania for years with established operating facilities and Experienced staff.
• Key relationships extend to Sovereign Wealth Funds and large financial institutions in the Middle East, Europe and United States.
Management
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Allied Management Team
Mr Justin Dibb
Justin began his career in an advisory capacity with HSBC. His entire career has been focused on Africa, during which
time he has been engaged in both a principal and advisory capacity in the petroleum and mining sectors. Justin founded
Dominion Petroleum Limited and in his capacity as Managing Director acquired seven assets for Dominion in
Tanzania, Uganda and the Democratic Republic of the Congo. Dominion was listed on the AIM market of the London
Stock Exchange in 2006 with a market capitalisation of US $240 million and raised US $140 million.
Mr Phillip Shamieh
Phillip has over 15 years of capital markets experience in the natural resources sector, having raised and advised on over
$650m worth of equity, debt and convertible transactions. He has raised Capital for Adamus Resources, Sundance
Resources and many other mining companies. Phillip has a transaction record with Sovereign Wealth Funds, Industrial
Conglomerates, and Pension and Endowment Funds. He holds a BA in Commerce from Sydney and a post-graduate
degree in Applied Finance and Investments from the Securities Institute of Australia
Exploration
Dr Andrew Robinson
Exploration Greg Winch
Andrew has thirty years of experience in the mining and petroleum exploration and development industries and has
held key positions in Billiton, BP Minerals and BP Exploration where he worked on and ran exploration and development
projects including gold, base metals and uranium. He is a geologist of international repute with more than thirty
papers published in major scientific journals and three textbooks to his name and has been responsible for significant
advances in the fields of lead-zinc mineralisation and regional geology. In 2004, Andrew co-founded Dominion
Petroleum Limited with Justin Dibb, becoming Exploration & Production Director. He holds a BA in geology from Oxford
University and post-graduate degrees from Toronto and Reading Universities
Geologist with 22 years of experience, 17 in Africa. Senior geologist at Golden Pride Mine (Tanzania), exploration
manager and Director for Equinox (Zambia) and Centamin (Ethiopia)
East Africa’s Large Gold Belt - Tanzania
1.5 Moz/year mined
Africa’s third largest gold producer
Numerous major producing mines
25-30 Moz of gold immediately around BUSOLWA/BUSIBA within the same Greenstone Belt
Bulyanhulu
Buzwagi
Tulawaka
Buckreef
30km from the largest gold mine in Africa (Geita)
Tanzania has many significant undeveloped gold properties with Resources that could be brought to production quickly
Many explorers underfunded leading to deal flow
ADVANCED GOLD PROJECT - TANZANIA
Geita 25 Moz
Bulyanhulu 20 Moz
Golden Pride 2 Moz
Nyanzaga 4 Moz
North Mara 4 Moz
Tulawaka 3 Moz
Buzwagi 4 Moz
BUSOLWA
Lake Victoria Goldfield, Tanzania
Scale (km)
0 100
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Mineralization Continues at Depth
• 17 out of 1,134 holes drilled to >150m (around 130m below surface)
• Deepest drill hole 200m
• 15 had significant intersections below 120m
Open at depth
Drilling and Resource previously limited to around 110m below surface
PROJECT GROWTH 9
Assets – Combined
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Licensing Joint Venture Company 100%
Logistics
Airstrip, offices, 25 person camp established Further infrastructure development supported by control of
surrounding licenses. total area 93km2
Space to mine: total license holding 98km2
Economics Scale: one management team, one camp, one plant
Capacity to incorporate into Ausenco Pre-Feasibility Study Due March 2014
Value Drivers Geology
Tenure Map
Integrated development maximises value
5 km
Significant Exploration Upside Near Mine
Ample Space for Mine
Busolwa / Buziba Cost Advantages • Mining
– Simple open pit
– Ore to surface – no pre-stripping
– Contract mining model
• Logistics
– Limited resettlement
– Area not remote
– Support industries available locally
– Limited camp requirement – live in Geita
• Overheads
– Dedicated Management focused on costs
• Metallurgy
– Low reagent usage
– High recovery
– 50% of gold recoverable by gravity
– Second-hand plant available in Tanzania
COMMERCIAL PROJECT
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2013 Busolwa Drilling
Significant depth potential with limited depth drilling to date
Ex-IAM Gold camp
Secure – guards currently on site
Accommodation for around 25 people
Office space
Core store
Fuel store
Airstrip
3 hours’ drive from Mwanza; 45 minutes from Geita
Core store Geology office
Accommodation
Busolwa camp
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Path to a Profitable Gold Mine • Phase 1 – Mine the existing resource and process by Heap-
Leach or Carbon-in-Pulp
– Many of the world’s gold production processed by Heap-Leaches
– Simple technology, low-cost
– Allows commercial processing of very low-grade ore
– Definitive Feasibility Study, financing, construction 2014-2015
– Gold production end-2015
ADVANCED GOLD PROJECT - TANZANIA
Phase 2 – Project growth (Carbon-in-Leach)
Higher recovery, higher capex processing
Option to finance largely from cash flow
Design, cost and evaluate plant
Grow Resource
Infill drilling
Deeper drilling
Satellite deposits
Definitive Feasibility Study, financing, construction
Reprocess leached heaps – no loss of recovery
2013 Metallurgical Drilling
Fresh core from 2013 drilling
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