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A Global Resource Investment Company and Merchant Bank
Own a Piece of Our Experience
TSX:AAB
April 2011 A Forbes & Manhattan Group Company
OTCPS:AABVF
TSX:AAB
This presentation contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forwardlooking information includes without limitation, statements regarding the proposed use of the proceeds of the financing, the receipt ofall necessary approvals, the outcome of legal proceedings, the issue of permits, the size and quality of the company’s mineralresources, progress in development of mineral properties, future production and sales volumes, capital and mine production costs,demand and market outlook for metals, future metal prices and treatment and refining charges, the financial results of the companythe future financial or operating performance of the Company, the prospective mineralization of the properties, planned explorationprograms, anticipated production schedule and terms and the availability and likelihood of future acquisitions. Generally, forwardlooking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "isexpected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations ofsuch words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "beachieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause theactual results, level of activity, performance or achievements of the Company to be materially different from those expressed orimplied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical andsocial uncertainties; the actual results of current exploration activities; acquisition risks; and other risks of the mining industry.Although the Company has attempted to identify important factors that could cause actual results to differ materially from thosecontained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materiallyfrom those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. TheCompany does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
This presentation does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. Thesecurities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act")or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S.Securities Act and applicable state securities laws or an exemption from such registration is available.
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TSX:AAB 3
Global resource investment company / merchant bankFocused on private, micro- and small-cap resource companies
Unique, value-added approach to investingActively builds companies to unlock value targeting triple digit returns over 2-5 yearsLeverages Forbes & Manhattan’s infrastructure and deal flow
Broad investment mandate in resource sectorFirst Class Performance (2 Yr =258% )*Significant exposure to gold in current portfolio Exciting investments in other resource sectors
*Jan. 31, 2011 results
TSX:AAB
~$123.7MInvestment PortfolioMarket Value (Jan 31/11) ~C$1.43* /share
1.
*Excludes value of two gold royalties
Aberdeen’s Shareholders Own:
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TSX:AAB 5
Dividend – newly initiated2.
3. Gold Royalties paid quarterly
5. Ongoing high quality deal flow Supporting next generation of investments
4. Private & Performance Driven Upside
• Taking companies public to improve portfolio liquidity/value
• Bonus shares that will vest at No Cost upon performance milestones
>$500K
Dividend of $0.02/year to be paid semi-annually on March 31st and September 30th
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83%1 Year
258%2 Year
115%3 Year
TSX:AAB
F&M Provides Industry Leading Technical Knowledge& Accomplished Financial Markets Professionals
• Over 25 engineers• Over 25 geologists• Expertise in all
mining, energy & agriculture products
• 5 full-time securities lawyers
• Over 30 people with expertise in– M&A– Investment banking– Corporate
development– Investor relations
• Over 15 accounting and administration staff
TechnicalTeam
LegalTeam
FinancialTeam
Admin / Accounting
7
FinancingMarketing
M&AWorld class team Proven track
record
Actively building companies and creating value
TSX:AAB 8
Merchant BankingShort-term investmentsBridge financingFee income
Royalty RevenueProvides upside to higher gold pricesBacked by 8 Moz reserves and 25 Moz resources
PrivateMicro-cap
Seed financingsActive role in management & BODSupport financially in early stages
Active Investment+100%
From initial investment
+10% pa
+ Warrants
$2.0M -$2.5M
pa
Targets
TSX:AAB
Source high potential resource deal
“Seed financing”
AAB provides managed risk capital
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Develop business plan
Build management team/BOD
AAB acts as care taker management
Identify capital requirements
Early-stage (pre-IPO) financing
AAB participates
Execute business plan
GO PUBLIC
Actively creating value for shareholders
-”S.A. Platinum”-Pitchblack
-Temujin Mining
-Black Iron-Potash Atlantico
-Forbes Coal-Aguia Minerals
TSX:AAB 10
Our Active Strategy Lowers The Risk
1. We invest at “seed” level when valuation is at its lowest• Often we are involved structuring the deal for ourselves• Keep large warrant positions and/or debt for upside and
protection
2. We maintain active role as a company partner• Assist management in early stages• Leverage F&M network to recruit key operational people• Retain board seat(s)
3. We offer diversification• Diversified over number of investments (commodity exposure,
stage of development, etc.)• Maintain financial flexibility for new opportunities while giving
shareholders good upside exposure to our successes.
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Aberdeen’s recent success:
$0.26
$1.75
$0.48Avg Cost
$0.05
$1.35
$0.57Avg Cost
Forbes & Manhattan success:
3,750% return in 4 years 4,500% return in 3 years
Desert Sun Mining (Gold) Consolidated Thompson (Iron Ore)
$735M sale price to Yamana Gold Production commenced Q1 2010
$0.14
$1.56
$0.34Avg Cost
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Asset Class
Cash
Public Equities
Warrants Gold & Precious Metals
Energy
Public Equities & Warrants By Commodity
*March 31, 2010
TSX:AAB 13
F&M “Forbes” Coal (FMC-TSX)
Export grade coal from two mines Excellent infrastructure close to ports Potential to TRIPLE production in 2-3 years, strong financial position Diverse product lines – both thermal and metallurgical markets Future growth projects in Southern Africa Thermal Coal Prices up 57% in the last 6 months
$0
$50
$100
$150
$200
$250
$300
Jan-
07
Mar
-07
May
-07
Jul-0
7
Sep-
07
Nov
-07
Jan-
08
Mar
-08
May
-08
Jul-0
8
Sep-
08
Nov
-08
Jan-
09
Mar
-09
May
-09
Jul-0
9
Sep-
09
Nov
-09
Jan-
10
Mar
-10
May
-10
Jul-1
0
Sep-
10
Nov
-10
Jan-
11
(US$
/ton
ne)
Richards Bay Thermal Coal Spot Price McCloskey/Xinhua Infolink's Coking Coal Price
TSX:AAB 14
Temujin Mining World class licenses covering 3 of the most
exciting advanced projects on Oyu Tolgoi copper-gold belt in Mongolia
80 km strike length of strong copper and gold anomalies on 6 licenses
Limited drilling, no work done since 2005, vastly improved geopolitical climate
Drilling started August 2010 - $1.5 MM program underway
TSX:AAB 15
Aberdeen’s recent success:
$0.7M $1.0M
$0.7M
$2.4M
Cost base $0.26
Current Price $0.37
Cost base $0.11
Current Price $0.37
Performance Shares Vested
Performance Shares Vested
Performance Shares Vested
$2.6M
$6.1M
$2.6M
$10.1M
Cost base $1.55
Current Price $3.60
Cost base $0.94
Current Price $3.60
$0.2M $1.4M $0.9M
$8.3M
Cost base $0.10
Current
Current Price $0.92
Cost base $0.10
Current Price $0.92
Current Current
TSX:AAB 16
Valuation (discount) and size are limiting factors to our business modelFor our business model, AUM of $250 MM - $500 MM is optimal
• Establish new fund(s) to raise money at NAV and be paid as an asset manager
• Transition into fund management business
• Work on reducing discount to point where we can raise money for accretive growth
• Continuation of current business model
• Continue to maximize current asset base through steady returns
• Sell royalty assets• Vest performance
warrants
Also will use share buybacks and dividends to further return value to shareholders
TSX:AAB 17
Aberdeen compares favorably with the “better-known” resource investment companies
Sprott ResourceCorp.
Pinetree Capital
• Large size, well financed, brand name mgmt
• 40% in cash and gold• Equity accounting
(private holdings) means revaluation events are rare
• Heavily weighted to agriculture and energy
• Expensive management fees
5-10 positions 20-30 positions 400+ positions
1.2x Shareholders’ Equity (adj. Oct 31) 0.5x SE (est.) 1.0x SE (est. Dec 31)
• Large size, liquidity• Holds many passive
minority positions, marked-to-market quarterly (good visibility)
• Shareholders’ equity tracks TSXV index
• Little to no impact for individual positions
• Small market cap• Combination of liquid
public, private holdings, gold royalties
• ACTIVELY participates with management to optimize value and protect interests
• Big investment wins have a material impact to shareholders
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Portfolio Leveraged To Gold And Junior Market
Private Holdings To Deliver And Unlock Value 2 companies in process with IPO’s coming in the next 12 months (Potash
Atlantico, Private Oil & Gas Company to merge with Sagres Energy) Temujin will continue to incubate for huge potential Brazil Potash: drilling world-class resource in Amazon Basin
New investments in iron ore, coal, agri-minerals and energy set to continue the momentum in 2011
Unique access to seed financings on great resource assets
Performance Shares To Deliver Huge Upside Over Next 2 years Aguia first resource in mid 2011 would trigger shares to vest Forbes Coal on track to meet first EBITDA target by mid 2011
David SteinPresident & [email protected]
Contact Details
Mike McAllisterInvestor [email protected]
A Forbes & Manhattan Group Company Follow us on Twitter: AberdeenAAB
TSX:AAB 20
TSX:AAB 21
Share Structure Major Shareholders
Management & Directors
US GlobalTD Asset MgmtLuxor Asset MgmtSprott Asset Mgmt
17%
Shareholders’ Equity (Q4) = $1.57/share
Share Price (April 13, 2011) $0.82 Market Capitalization $70.9M 52 week High/Low $1.02/$0.32
TSX:AABShares Issued & Outstanding 86.2MWarrants (Exercise price $1.00, Expiry Date June 6, 2012)
37.5M
Options 7.6MFully Diluted 131.3M
8%
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George Faught, C.A. Chief Executive Officer
David Stein, CFA, MSc.President & Chief Operating Officer
Ryan PtolomyChief Financial Officer
Advisory Board
Board of Directors
Strong management w ith a DEPTH of experience in the resource sector and a PROVEN track record at building companies from the seed level through to highly successful ex its
Management Team
Bruce HumphreyChairman of Investment Committee
Stan Bharti, P.Eng.Executive Chairman
George Faught, C.A.Director
David Stein, CFA, MSc.Director
Hon. Pierre S. PettigrewDirector
Bernard Wilson, C.A.Director
Mike Hoffman, P.Eng.Director
Jean-Guy Lambert, MBADirector
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Our Active Strategy Lowers The Risk
Sulliden – owned for 2+ yrs, addedselectively to position
Castillian – legacy position, Aberdeen led restructuring and refinancing with conv. deb ($0.06 share + ½ wt $0.10). Unrealized gain of 267%
Alexis – did not own it
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Gold Royalties
Investment Portfolio
Cash
1% gold NSR
Buffelsfontein Mine(Simmers & Jack)Mine Waste Solutions(First Uranium)
8 Moz reserves
25 Moz resources
US$2.2MCurrent net over next 12 months
C$124M
Value at (Jan 31, 2011):1. Sulliden Gold2. Forbes Coal3. Macusani Yellowcake4. Allana Potash5. Temujin (Private)
20other investmentsAgricultureOil & GasMining
C$1-5M
Always evaluating new investments. Typical entry point:
Top 5 holdings
Top 5 holdings = 47% of Portfolio
TSX:AAB 25
GOLD
METALS
BULK COMMODITIES
AGRI MINERALS
ENERGY