Colombia Gold Mining Project

Colombia Gold Mining Project

xxx Limited (the Company) is the owner of three gold mining licenses in Colombia, South America covering 10,564 hectares and has completed its exploration program and now is embarking on the construction of a gold production facility at the mining site to produce in excess of 100,000 ounces of gold per year. An add-value by-product from this gold mining facility is the confirmed presence of platinum in the target area. Platinum production is forecast to be 12,000 ounces per year, in addition to the gold produced.

The Managing Director of xxx, xxx xxx has been involved in the Colombian business community
for the past decade and has gained an in‐depth understanding of the political and economic
environment there. He has also developed an impressive Colombian business network that has
helped mature this exciting mining project.

The Management of xxx have approved a robust business plan and financial forecasts that requires
investment of US$55,199,880 USD on capital equipment for the development of a substantial gold
production processing plant on its mining concessions in Chocó province of Colombia.

xxx is financing this project with loans and new collateral totalling $55,000,000 US dollars. The
following is the funding scenario.

New Capital $4,000,000
Through loan available from HSBC Bank in Colombia $51,000,000
The loan from HSBC bank in Colombia is secured in the long term against financial guarantees
issued by the USA Ex-Im Bank related to the project and in the short term by leased Standby Letter
of Credit collateralised credit lines with HSBC.

The new capital amount $4,000,000 is required to cover the cost of the leased collateral and related
company expenses. This amount can be either as a loan to the company or as equity in exchange
for shares in xxx

The asset value of the developed project facility will be $44,000,000. In addition to this plant
collateral the certified appraisal of the in-ground assets in the concession area shows an asset value
of $142,995,356. This appraisal is not shown in the forecast balance sheet as is the requirement to
comply with international financial reporting standards and is therefore in addition to the net
assets indicated in the forecasts attached but never the less it is a substantial benefit to the

The business plan shows that the project loan will be fully repaid within 60 months from the
beginning of operations.

The Company has an experienced management team with the necessary skills and experience to
ensure business success. The principal staff and consultants have extensive experience relating to
the core business of the company and the management is very confident of achieving or exceeding
the financial forecasts.

It is intend that xxx will be producing gold and platinum from the project and be cash flow positive
within nine months of implementation of the project loan. This project is very much seen as stage
1 of the development of the concession areas and the goal is to further develop the facilities to
reach a production is excess of 1 million ounces per year within the next 3‐5 years. It is anticipated
to do this by debt funding without any further dilution of shareholding.

We invite you to review our detailed information relating to this project.