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Creating South AmericaCreating South America’’ss Largest Diamond ProducerLargest Diamond Producer

April 2010April 2010

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This presentation contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, information concerning the proposed business combination between Tiomin and Vaaldiam and matters relating thereto. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Assumptions upon which such forward-looking information is based include, without limitation, that the shareholders of Vaaldiam will approve the Transaction, shareholders of Tiomin will approve the issuance of shares in connection with the Transaction, that all required third party, court, regulatory and governmental approvals to the Transaction will be obtained and all other conditions to completion of the Transaction will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of Tiomin and Vaaldiam and there is no assurance they will prove to be correct.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include, among others, risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; changes in project parameters as plans continue to be refined, future prices of resources; possible variations in reserves, grade or recovery rates, accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities as well as those risk factors discussed in the Annual Information Form for the year ended December 31, 2008 for each of Tiomin and Vaaldiam available at www.sedar.com. Although Tiomin and Vaaldiam have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Tiomin and Vaaldiam undertake no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

Cautionary StatementCautionary Statement

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We are realWe are real…………..

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What’s the Plan and Where are we?

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• March 15th: Tiomin & ‘Old’ Vaaldiam merged• Why?

Take two ‘dead’ companies........Reorganize synergistic assets……..Create a new, healthy diamond company in Brazil with:

– Production and cash flow by Q3!!– Growth potential– Clean balance sheet– Experienced board and management– Excellent exploration pipeline

• Good timing: diamond prices are up• Brazil is now a proven mining venue• Production growth plus blue sky!!

A New Diamond ProducerA New Diamond Producer

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• Tiomin:Cash: approx $15.1Investments: Listed - $2.5mm; Unlisted - $5.3mmNSR and cash payments from Peru: $13mm to $40mmPending sale of Kenya assets (not complete):

– $3mm cash– Gross royalty: $3.7mm to $6.5mm

• ‘Old’ Vaaldiam (Brazil)Two prior producing alluvial diamond mines: restartingExcellent advanced-stage diamond exploration portfolioSome gold production plus good exploration potentialStrong management in BrazilDamaged by global crisis: owed $6.5mm to creditors etc

Turnaround IngredientsTurnaround Ingredients……

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• Resume productionGenerate sustaining cash flow ASAP

• Focus on:BrazilDiamonds & goldAlluvial and hard-rock

• Increase diamond & gold resources:Existing diamond mines & exploration sitesProperty acquisition

• Lean & mean, hire well, tight controlNo absentee management, COO in Brazil

• Continue to dispose of non-core assets• Energetic investor education:

Unknown & unloved

StrategyStrategy

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Good Locations, InfrastructureGood Locations, Infrastructure

CHAPADA MINE

BRAÚNA & AROEIRA PROJECTS

CATALÃO PROJECT

Vaaldiam Projects in Brazil

DUAS BARRAS MINE

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Why Brazil?Why Brazil?

• Long history of high quality diamond production

• Similar diamond geology to southern Africa and Canada

• Under-explored

• Low exploration & development costs

• Excellent infrastructure

• Low political risk

• Stable mining & environmental code

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Strong Diamond DemandStrong Diamond Demand

• Rough diamond prices strong

• Analysts see continued tight supply

• Growing demandRise of the middle classes in Asia Pacific & IndiaAsia Pacific: 32% of population vs 6% of sales(1) India: 17% of population vs 2% of salesChina’s market share to double in next six yearsAsia & India 40% vs US 35%

• No large, new mines planned

• Old mines in South Africa & Australia closing

(1) Source: IDEX Online Research, World Bank, PRB, 2006

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Improving SentimentImproving Sentiment

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Diamond Exploration SpendingDiamond Exploration Spending

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• Achieve self-sustaining cash flow• Increased diamond resources

Duas Barras & Chapada regionsBrauna project:

– Diamonds and gold• Position to expand production:

20,000 carats in 201080,000 carats in 2012

• >$5mm cash balance at Dec 31• Completed disposition of non-core assets:

Kenyan titanium projectCanadian kimberlite assetsListed assets: Western Standard, Freegold Ventures

• Re-engage investor community

2010 Targets2010 Targets

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Share Structure & Ownership

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mm• Common shares, basic: 71.7• Options & warrants up to $1.25: 4.7• Options & warrants >$1.25: 9.9

86.3

• Cash from O&W up to $1.25: $3.0• Cash from O&W >$1.25: $53.2

$56.2

• Market capitalization: $21mm

Equity StructureEquity Structure

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%• Jinchuan Group 12.4• Management & Board 6.7• Brazilian investors 4.5• Fidelity 2.8• Antwerp investors 0.9

ShareholdersShareholders

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Board & Management

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• JC Potvin, Chairman (Geologist, 35 years)Started Pangea Goldfields, sold to Barrick for $200mmFormer top-ranked gold analyst

• Lee Barker (Geologist, 35 years)Former Executive VP of SouthernEra Resources

• Roland Bertin (Investment Banker, retired)Ex-Director of Research, Burns Fry (BMO Nesbitt Burns)

• Peter Bojtos (Geological Engineer, 35 years)Ex-Noranda, Desert Sun (Director)

• Mario Caron (Miner, 30 years)CEO of Axmin, Chairman of Orosur (Uraguay Minerals)

• Mr. Lu (Jinchuan)• Robert Jackson (CEO)• Sam Randazzo (CA, 33 years)

CEO of Uramet

Board of DirectorsBoard of Directors

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• Robert Jackson, CEO (Miner, 33 years)Ex-Falconbridge, co-founder of Jaguar MiningDirectly and indirectly raised >$1blnM.SC. (Mining), P.Eng., MBA, CFA

• Ken Johnson, EVP & COO (Geologist,32 years)Diamond specialistGlobal exploration & production experienceB.Sc. (Geology), P.Geo.

• Frances Kwong, VP & CFO (CA)Extensive international experienceDeloitte: auditorGE: financeCable & Wireless:

– Finance and systemsimplementation– Project management & strategic planning

Senior ManagementSenior Management

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Mines and Development Project Pipeline

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DuasDuas Barras Diamond MineBarras Diamond Mine

Duas Barras Mine, Jequitinhonha River

• Diamond revenue of $5.7 M on 39,350 carats (Sept 07 to Oct 08)

• Gold revenue of $1.5 M on 1,737 oz. of by-product gold production

• Resources (43-101 compliant):Indicated : 287,195 caratsInferred : 161,730 carats

• Average diamond sales price of US$165 per carat (pre-July 2008)

• Average operating cost of US$85 per carat

• Potential to produce by-product aggregates and decorative stone

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ChapadaChapada Diamond MineDiamond Mine

• Diamond revenue of $9.6 M on 23,173 carats produced in 2007 and H1-2008

• High average diamond value of over US$490 per carat

• Diamonds up to 33 carats recovered

• 2010 focus on expansion of NI 43-101 compliant resources

• Targeted to re-start mining operations in Q1-2011

Sales Value of 2 stones = US$278,600

or US$6,340 per carat

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BraBraúúnana Diamond & Gold ProjectDiamond & Gold Project

Diamonds – 20% Interest (with buy - back to 49%)

21 kimberlite occurrences

South America’s first kimberlite diamond mine

High quality diamonds recovered from bulk samples including valuable pink diamonds

Gold – 100% Interest

Small-scale gold production by garimpeiro operators

Gold zone untested by modern exploration

Situated in the Rio Itapicuru Greenstone Belt which hosts Yamana’s Fazenda Brasiliero Mine and the C1 Santa Luz deposit

1. Not NI 43-101 compliant. Requires completion of bulk sampling program (on-going)

KimberliteKimberlite OccurrenceOccurrence

Gold ZoneGold Zone

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BraunaBrauna: diamonds & gold: diamonds & gold

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CatalãoCatalão KimberliteKimberlite Diamond ProjectDiamond Project

100% interest in current pipes

Property entire kimberlite cluster

Nine pipes discovered to date

Diamond grades of 23.55 cpht from 3.6 tonne mini-bulk sample by Rio Tinto

History of large >100 ct diamonds

Rio Tinto retains 60% back-in rights with VAA retaining a 40% carried interest in any new discovery

Excellent infrastructure – 280 km south of Brasilia, the Capital of Brazil

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Peru: Copper/Gold RoyaltyPeru: Copper/Gold Royalty

• 2 bln lbs Cu & 500,000 oz gold

• Identical targets on property

• $8mm at production

• 1% - 2% NSR

• $13mm – $40mm NPV

• 4-year horizon

Huancavelica

Pukaqaqa Sur

PukaNorte

Mina Marta

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Projected Production & Revenues

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ChapadaDuas Barras

2010 2011 2012 2013

Car

ats

(x 0

00)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

30 K

59 K58 K

29 K

40 K

15 K20 K

8987

55

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Sustainable

Diamond ProductionProduction Profile

Production Growth From:

• Braúna Kimberlites

• Chapada/Duas Barras Expansion

• Catalão Kimberlites

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ChapadaDuas Barras

0.0

1.9

4.1 4.2

2.2

4.5

6.3 6.6

2010 2011 2012 2013

Ope

rating

Rev

enue

(U

S$M

)

0.0

5.0

10.0

15.0

Source: Vaaldiam management estimates

2.2

10.810.4

6.4

Sustainable

Diamond Revenue ProfileDiamond Revenue Profile

Revenue Growth From:

• Braúna Kimberlites

• Duas Barras Expansion & Aggregate Sales

• Catalão Kimberlite Development

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• Complete sale of Kenya assets: Q2, 2010• Restart production in Brazil: Q3, 2010

– Cash flow!!!• Property acquisitions: Q3,4• Complete diamond bulk sample: Q4, 2010

Potential resource announcement• Commence gold exploration: Q4, 2010• Sell listed investments: Q4, 2010• Additional prod’n/asset sale: Q1, 2011• Sell royalties, opportunistic: >2011

No rush

Stock Price CatalystsStock Price Catalysts

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• New, clean company• Good balance sheet, cash in hand• Production & cash flow• Disposing of non-core assets for cash• Good location, management & board• Production & resource growth• Unloved and unknown – opportunity!!

SummarySummary

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