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Forward Looking Statements
This presentation contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “aim”, “endeavour” and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to the Company. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking. Should one or more risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this presentation. These factors should be considered carefully and prospective investors should not place undue reliance on these forward-looking statements. Although the forward-looking statements contained in this presentation are based upon what management currently believes to be reasonable assumptions, prospective investors cannot be assured that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and will not be updated or revised except as may be required by applicable securities law.
3Source: Mining Engineer Vol. 61 #6 June 2009Based on US Kaolin Sales
Also used in pharmaceuticals, bricks, ceramics, cosmetics
Kaolin Market Facts
• One of the most common
industrial minerals
• Produced in 60 countries
• Primarily used in
the paper industry
• Coating• Filling
62%
7% 5%
3%5%
Primary uses for kaolin in the paper industry
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Consumption increase from 2003-2007
Average office worker uses
2.5 lbs of paper per week
Demand growth greater than population
growth
8%
Market Drivers
US consumption for kaolin is over 44 lbs per person per annum
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•92% of US production comes from Georgia
•Produced in 8 other US states
Worldwide Kaolin Production
2007
tonnes annual world wideproduction26M
USA China Brazil UK Korea
29%
13%
10%
7%
4%
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Supplying paper grade kaolin to the Upper Great Lakes region
The Upper Great Lakes paper mills require in excess of 1M tonnes of kaolin per year
The Opportunity
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2. High quality kaolin
3. Mining friendly
1.Access to an established market
Our Advantage
Minnesota River Valley
• 22 paper mills in Upper Great Lakes region
• Lower transportation costs
• Better colour and printability
• Local community support through Coalition for Kaolin
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indicated resources with cut-off grade of 87 GEB brightness
• 838 acres• 6 pre-production leases• 3 near surface targets• 185 core drill holes• 8 bulk samples
Tests at the University of Maine
0Mtonnes1
Current Assets
• Improved runability• Better sheet gloss• Improved printability• Easier calendering surface
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Optimized and Efficient Operations
Open Pit Mine
Degrit
Pump Slurry to Plant
Fine Sizing
Brightness Treatment
Delamination
Slurry Conditioning Slurry Conditioning
Tanker Transport Tanker Transport 9
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Project Development Timeline
MilestonesQ4
2009/2010 2011 2012
Complete NI 43-101 (Confirm historical data)
Infill drilling (200 foot spacing)
EIS
Build Lab
Lab Operations
Pilot Plant Construction
Mine Plan and Test Pit Development
Commercial Plant Design and Engineering
Test Market
Mine and Plant Design
Plant Construction
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Management
Dr. Milt ChildersConsulting Geologist
Dr. Kenneth ReidPresident & Chief Executive Officer
Edward Chapin, Jr.Chief Financial Officer
D. Quentin Smith Chief Operating Officer
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Value Proposition•Transportation Advantage•High Quality Assets•Simple Extraction Process•Established and growing market
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