Objective Capital's Global Resources Investment Conference 2011 Stationers' Hall, City of London 27-28 September 2011 Day 1- Session 8: Africa focus Speaker: Christopher Goss, IFC

1. Closing Keynote: Investing in the African renaissance Christopher Goss – IFC

2. @Objectivelive GLOBAL RESOURCESINVESTMENT CONFERENCE 2011 Lead sponsor: Media partners: Other sponsors & participating organisations:

3. Mining, Africa and IFC; Opportunities, Risks, and Partnership Christopher Goss IFC Consultant

4. 4 Over the last 18 months, junior mining companies have raised over $6.3 billion for their African projects US$ million 35% spent on gold; 24% on iron-ore Data Source: Intierra

5. Debt Finance - About $22 billion raised in Africa Mining over the last 10 years Between 2000-2011, African Mining raised $22billion in debt financing 78% was for projects in Southern Africa (South Africa, Botswana, Namibia, Zimbabwe, Zambia, Mozambique) South-Africa alone accounted for 55%. High concentration on Gold projects, which raised $9.5 billion, or 43% of the total. Breakdown by African Region $m (2000-2011) Breakdown by Commodity $m (2000-2011) Where is the money going ? (IDA vs Non-IDA) 40% 60% Data Source - Dealogic 5

6. Summary IFC Investment in Africa $578m. in 30 transactions since 1999, or an average of just over two per year. But half of these transactions in the last three years: 4 in FY2011 (up to June 2011) 7 in FY2010 4 in FY 2009 Half investment volume in debt, half in equity But debt in only 6 transactions 6

7. Mining and Africa Major global investment flows into Africa mining as investors and companies take on the country risks in their hunger for resources But mining carries with it wide ranging investment risks, some of which are acute in many African countries. 7

8. Risks in the Metals and Mining Sector Ernst and Young released its annual report, “Business risks facing mining and metals” for 2011–2012 Through discussions with mining and metals leaders and from its global analysis of companies and projects, E&Y provides a snapshot of the most significant challenges currently facing the sector 8 Source: Ernst and Young, “Business risks facing mining and metals 2011 – 2012.” www.ey.com/miningmetals.

9. Challenges in Africa Mining Risks 1-4 and 10. in the previous slide, ie: Resource Nationalism Skills Infrastructure Social Licence Fraud and Corruption apply particularly in many African countries. Governance, Infrastructure and other challenges vary greatly across the continent. For example, by contrast: Governance and infrastructure standards in Botswana are high. The infrastructure challenges and investment needs for iron ore in West Africa are huge. 9

10. Challenges in Africa Mining (cont.) Where these risks are high, IFC can help; especially regarding the company’s social licence. Recent events in Guinea and DRC, which have involved IFC, have demonstrated our willingness to maintain our partnership and support in challenging circumstances. Infrastructure requirements, when large (risk 3.), are likely to need some form of project financing. This financing will be very challenging to raise, given the sums needed, country risks and current global financial stresses. It will probably need extensive involvement of IFIs such as IFC to succeed. 10

11. Examples of Large Infrastructure Requirements for Africa Mining Projects 11

12. The World Bank Group 12

13. Over $85 Billion Invested Since 1956 Largest multilateral source of loan/equity financing for the emerging markets private sector Founded in 1956 with 182 member countries AAA-rated by S&P and Moody’s Equity, quasi-equity, loans, risk management and local currency products Takes market risk with no sovereign guarantees Promoter of environmental, social, and corporate governance standards Resources and know-how of a global development bank with the flexibility of a merchant bank Holds equity in over 800 companies worldwide 13

14. IFC’s Global and Africa Reach 14 22 Country offices in Africa, including 4 regional hubs Moscow Almaty Washington Istanbul New Delhi Cairo Mexico City Hong Kong Dakar Port-of-Spain Bogota Nairobi Johannesburg São Paulo Buenos Aires IFC HQ/Hub Offices IFC Operational Centers IFC Country Offices

15. IFC’s Mining Portfolio $507 million current portfolio comprising 36 projects in 24 countries Major commitment to Africa: Half of our total current portfolio in Sub-Saharan Africa Track record of long-life partnerships with companies Equity represents 54% of portfolio 15 By Product By Region Gold 43% Aluminum & Bauxite 9% Copper 18% Note: Data as of March 2011

16. IFC Value-Add in Mining 16

17. Financing & Sustainability Expertise Under One Roof IFC’s package deal brings together world-class talent, a global outlook and a social/environmental mandate to deliver sustainable business solutions; IFC’s team includes financial professionals, mining engineers, environmental specialists, development experts, and communications specialists 17 IFC Mining Integrated Solutions Combining Capital and Expertise

18. IFC: The Complete Package; African Examples 18 IFC Investment & Advisory Services

19. One Example Closer Up: Allana Potash, Ethiopia Allana Potash is a mineral exploration company focused on Ethiopia Key assets are three licenses in the Danakil Depression near the Eritrean border 19

20. When Does IFC Invest? IFC funds projects in all stages of development 20 IFC in the Project Life Cycle Project Discovery Project Finance Mature Production Value Early Exploration Senior Debts and Equivalents Equity/ Mezzanine Equity Time

21. A Broad Range of Financial Products 21 Equity Mezzanine / Quasi-Equity Senior Debts & Equivalents

22. IFC as a Strategic Partner: Equity Investments 22 General IFC Offerings and Criteria

23. IFC as a Strategic Partner: Debt Investments 23 General IFC Offerings and Criteria

24. Past IFC Investments 24 Ahafo $75,000,000 Senior Term Loan Mandated Lead Arranger Tanzania Chile South Africa Ethiopia Peru Ghana Guinea Peru Newmont / Yanacocha Escondida Copper Lonmin $32,300,000 Senior Term Loan Williamson Simandou/RioTinto Dallol MineraQuellaveco $94,600,000 Senior Term Loan $40,000,000 Senior Term Loan $100,000,000 Senior Term Loan $35,000,000 Equity $10,000,000 Equity $94,000,000 Syndicated Loan $42,000,000 Equity $15,000,000 Equity $50,000,000 Syndicated Loan $50,000,000 Equity $10,000,000 Equity $330,000 Equity Equity Investor Equity Investor & Lender Equity Investor Equity Investor & Lender Equity Investor Equity Investor & Lender Equity Investor & Lender 2011 2006 2006 1993 and 1999 1993-2011 2010 1989 and 1999 2006 Peru Morocco Anteres Minerals Achmmach Tin $12,800,000 Equity $5,700,000 Equity Equity Investor Equity Investor 2009 2010

25. Advisory Services IFC relies on 50+ years of experience of working in developing countries to develop practical, sustainable business solutions for its clients 25

26. IFC Africa and Global Mining Team 26 Tom Butler Global Head, Mining Washington DC +1.202.473.5989 tbutler@ifc.org Tom Bruington Chief Engineer Washington DC +1.202.473.0651 tbruington@ifc.org Africa Latin America Asia MENA / CEU Louis Vos Washington DC +1.202.458.5934 lvos@ifc.org Stephan Vermaak Johannesburg +27.11.731.3148 svermaak@ifc.org Brian McNamara Washington DC +1.202.473.0461 bmcnamara@ifc.org Robin Weisman Washington DC +1.202.473.0174 rweisman@ifc.org Christian Mulamula Washington DC +1.458.1218 cmulamula@ifc.org KarstenFuelster Jakarta +62.21.2994.8036 kfuelster@ifc.org GustafLilliehook Istanbul +46.708.559.338 glilliehook@ifc.org Juan Jose Rossel Lima +51.1.611.2520 jrossel@ifc.org

27. 27 Annex: IFC Deals In Africa

28. Deals Done in Africa: FY1999-2011 28

29. Deals Done in Africa: FY1999-2011 (Contd.) 29