BEHRE DOLBEAR GROUP INC.

STATEMENT OF QUALIFICATIONS

CORPORATE OVERVIEW

SCOPING, PRE-FEASIBILITY, AND
FEASIBILITY STUDIES








Behre Dolbear Group Inc.
Statement of Qualifications
Corporate Overview



Behre Dolbear
2
Behre Dolbear Group Inc. (Behre Dolbear or the Company) is one of the oldest, continuously
operating, mineral industry advisory firms in the world. Since 1911, we have specialized in
studies for commercial and multilateral financial institutions, mining companies, governments
and governmental agencies, legal firms, and other parties with interests in the minerals industry.
Behre Dolbears global experience covers the full spectrum of technical, operational, and
financial issues in a broad range of commodities including base and precious metals, coal,
industrial minerals, diamonds and gemstones, ferrous metals, and construction materials.

Our worldwide network of offices allows us to be a truly global company. Behre Dolbear
operates from offices in 12 of the mining worlds most important cities:

Denver Chicago Beijing Guadalajara Hong Kong London
New York Santiago Sydney Toronto Ulaanbaatar Vancouver

We design each project team to specifically meet our clients needs, using professionals with the
specific experience needed to successfully complete assignments. For this reason, each office can
draw upon personnel from the other offices to assure that the best-qualified professionals are
assigned to a client.

Behre Dolbear is known internationally as a businessmans consultant. Our people have first-
hand experience in senior management and executive-level positions, giving them practical and
insightful knowledge and skills. They are commercially experienced mineral industry
professionals.

The Company possesses unparalleled credibility with the worlds major finance organizations
and is familiar with the intricacies of project development, financing, mergers, acquisitions, and
privatizations. The international mining and financial communities recognize our reports as
being among the most accurate and reliable documents in the industry. By engaging Behre
Dolbear, our clients gain access to a world-class consulting group, whose studies and reports
have international credibility and acceptability.


Behre Dolbear Group Inc.
Statement of Qualifications
Corporate Overview



Behre Dolbear
3
Behre Dolbear brings to every project a breadth and depth of experience that encompasses the
technical, financial, and managerial aspects of the industry. Some examples of Behre Dolbears
advisory and consulting services follow:

Technical Advisory
Services
Financial Advisory
Services
Management and Business
Advisory Services

Conceptual, scoping,
prefeasibility, and feasibility
studies

Planning and monitoring of
mineral exploration programs

Technical evaluations and
consulting for:
! Resource and reserve
reports
! Mine plans, including
equipment selection
! Metallurgical and
mineral processing flow
sheets and equipment
! Chemical facilities

Environmental and
sustainability program
development and evaluation

Optimization reviews of
operations to identify
opportunities for productivity
improvements and cost
reductions

Expert witness testimony for
technical issues

Due diligence reviews in
support of financings,
investment decisions,
acquisitions, dispositions,
and mergers

Valuation of mineral
properties, reserves,
mines, mineral processing
facilities, and chemical
plants

Independent and owners
engineer services

Preparation of technical
documents required for
listings on the various
global stock exchanges,
including the U.S.,
Canadian, London, AIM,
Australian, and Hong
Kong stock exchanges

Preparation of pro-forma
cash flow projections

Risk assessments,
including political,
financial, and technical

Privatization of
government-owned
mining companies

Strategic business plans
for mining companies and
individual operations

Development of
corporate, operating,
engineering, and human
resource policies,
procedures, and
organizational structures

Development and
restructuring of national
mining laws

Market surveys for
mineral products

Strategy formulation in
connection with
preparation or negotiation
of contractual
agreements, such as
mergers, acquisitions, and
mineral sales contracts


We Know the Business of Mining

Behre Dolbear Group Inc.
Statement of Qualifications
Scoping, Pre-feasibility, and Feasibility Studies



Behre Dolbear
4
Behre Dolbear and our Associates have extensive backgrounds in the management, preparation,
and review of scoping, pre-feasibility, and feasibility studies. We understand the important role
feasibility studies play in securing both debt and equity financing, and we have a strong
understanding what the financial community requires of a bankable document. Our extensive
background in conducting due diligence audits and technical reviews of feasibility studies also
gives us insight into the requirements of a feasibility study.

Conceptual or scoping-level studies tend to have levels of accuracy of 50 percent, while final,
bankable feasibility studies tend to have levels of accuracy of 10 to 15 percent. Regardless of
the variation in the level of accuracy between the different levels of study, each study generally
encompasses the same disciplines, which include:

geology, mineral resources and reserves;
mining systems, mine plan(s), mine capital and operating costs;
processing systems, flow sheets, plant capital and operating costs;
infrastructure requirements and capital costs;
markets and pricing for the product(s) produced;
manpower requirements and organization;
environmental permits and issues;
financial analysis; and
risk analysis.

The accompanying table presents an outline of the level of detail for each type of study.

Behre Dolbears approach to performing feasibility studies is based on the internal capabilities
within the Company. Behre Dolbear does not claim to be an engineering and design firm;
typically, that work is sub-contracted to firms that specialize in such work. Our approach,
accordingly, is to oversee and manage the feasibility effort to assure that the work performed
meets accepted industry and financing standards. A senior-level professional from Behre Dolbear
is assigned to each discipline within the study to coordinate the work performed by Behre
Dolbear and sub-contracted professionals.

Recent feasibility-type studies undertaken and completed by Behre Dolbear include:

APDR Paz del Rio coal mine (851014)
Mustavaara magnetite, vanadium and ilmenite mine, Finland (848928)
Hollister gold mine, Nevada, United States (847943)
Sutter gold mine, California, United States (847388)
Anzas zinc project, Australia (846028)
Avebury nickel project, Tasmania (845346)
El Arco copper project, Mexico
Behre Dolbear Group Inc.
Statement of Qualifications
Scoping, Pre-feasibility, and Feasibility Studies



Behre Dolbear
5
Gallatin lime mine, Kentucky, United States (845470)
Golden Grove Mine, Australia (786680)
Gleneagles gold project, Australia (781181)
Sydvaranger iron ore mine, British Columbia, Canada (779308)
Amessmesa gold mine, Algeria (314078)
Atlanta gold mine, Idaho, United States (312600)
Angangueo silver, lead, zinc project, Mexico
Sunshine silver mine, Idaho, United States (847511)
Mount Emmons molybdenum project, Colorado, United States (845594)


Behre Dolbear Group Inc.
Statement of Qualifications
Scoping, Pre-feasibility, and Feasibility Studies



Behre Dolbear
6

Potential Areas of Investigation
for Scoping, Pre-feasibility, and Feasibility Studies
Property Information
Location, topography, and climate
Land ownership and royalties
Property history
Current status

Geology and Resources
Geological description
Mineralogy
Drilling, sampling, and assaying
Evaluation techniques
Mineral resource estimate

Mining
Ore reserve estimate
Mining method and plans
Mining equipment
Material handing
Material handling equipment
Historical and forecast production
Consumables
Mining capital estimates
Mining operating cost estimates
Processing
Ore sampling and test work
Processing method
Other required processes
Process equipment
Historical and forecast production
Consumables
Processing capital estimates
Processing operating cost estimates
Infrastructure
Industrial infrastructure facilities
Social infrastructure facilities
Utilities, power, and water
Infrastructure capital estimates
Infrastructure operating cost estimates
Management and Labor
_ Management organization requirements
_ Labor requirements

Products, Markets, and Sales
_ Products
_ Markets
_ Prices
_ Sales
Environmental and Permitting
_ Permit list
_ Environmental impact
_ Compliance costs
_ Compliance cost timing
_ Reclamation expenses
Financial Issues
_ Taxes
_ Royalties
_ Fees
_ Licenses
Development Costs and Schedule
_ Development cost estimate
_ Development schedule
_ Development methodology
Political and Social Considerations
_ Economic benefits and costs
_ Government considerations
_ Other issues

Project Economics
_ Economic parameters
_ Discount rate determination
_ Cash flows
_ Investor returns
_ Debt analysis
Sensitivities
Behre Dolbear Group Inc.
Statement of Qualifications
Scoping, Pre-feasibility, and Feasibility Studies



Behre Dolbear
7
Comparison of Scoping, Pre-feasibility, and Feasibility Study Content
Category
Conceptual
Study/Scoping
Study
Pre-feasibility
Study
Feasibility Study
Introduction
Location, Topography and
Climate
Site location map
Ownership and Royalties
Claims list
Claims map
Current Status and History
Historical chronology
Information on past
production, if any



Yes

No
No

No
No



Yes

No
Yes

No
No



Yes

Yes
Yes

Yes
Yes
Geology and Resources
Geological Description
Geological map
Geological cross-sections

Drilling, Sampling and Assaying
Parameters
Drill hole location map
Sampling/assaying flow
diagram and assessment
Assay check assessment
and graph

Mineral Resource Estimate
Resource methodology
determination and
approach
Geologic model limits
Lithology/tonnage
factors/code
Cumulative frequency of
samples verses grade
Variograms
Resource Estimate


Yes
No


Yes
Yes
No

No



Yes


Yes
No

No

No
Industry Standards
(SME, AUSMIN,
etc.)


Yes
Yes


Yes
Yes
Yes

Yes



Yes


Yes
Yes

Yes

Yes
Industry Standards
(SME, AUSMIN,
etc.)


Yes
Yes


Yes
Yes
Yes

Yes



Yes


Yes
Yes

Yes

Yes
Industry Standards
(SME, AUSMIN,
etc.)
Behre Dolbear Group Inc.
Statement of Qualifications
Scoping, Pre-feasibility, and Feasibility Studies



Behre Dolbear
8
Comparison of Scoping, Pre-feasibility, and Feasibility Study Content
Category
Conceptual
Study/Scoping
Study
Pre-feasibility
Study
Feasibility Study
Mining
Ore Reserve Estimate
Reserve and resource
calculation parameters
Cutoff grade equations
Reserve and resource
estimate



Mining Method and Plans
Mining parameters

Hydrology/geotechnical
parameters
Mining equipment list
Consumables list
Material handling systems
Material handling
equipment
Personnel list


Surface mining
Final pit and dump
outlines
Incremental pit and
dump outlines
Underground mining
General mine
development
Mining approach
(stoping, cut & fill,
etc.)

Production Schedule
Historical production,
Annual ore and waste
tonnage and grade


Assumed Values

No
Industry Standards





Yes, minimal
engineering basis
No

No
No
No
No

No



Yes, simple
outline
No

Yes, general
outline

Yes, general
approach



Yes, if any
Yes, division of
total


Test-Based Values

Yes
Industry Standards





Yes, some
geotechnical data
Yes

Yes
Yes
Yes
Yes

Yes



Yes

Yes

Yes


Yes




Yes, if any
Yes



Test-Based Values

Yes
Industry Standards





Yes

Yes

Yes
Yes
Yes
Yes

Yes



Yes

Yes

Yes


Yes




Yes, if any
Yes

Behre Dolbear Group Inc.
Statement of Qualifications
Scoping, Pre-feasibility, and Feasibility Studies



Behre Dolbear
9
Comparison of Scoping, Pre-feasibility, and Feasibility Study Content
Category
Conceptual
Study/Scoping
Study
Pre-feasibility
Study
Feasibility Study
Mining Capital and Operating
Cost Estimates
Mining operating cost
estimates
Mining capital cost
estimates


Yes, factored
45%
Yes, factored
45%


Yes, 30%

Yes, from
engineering
manuals 30%


Yes, 15%

Yes, from vendor
quotes & take-offs
15%
Processing
Ore Sampling and Test work
Test work data

Processing Methods and Plans
Processing methods

Processing parameters

Equipment list
Consumables list
Personnel list
Material balance

Flow diagram
Site plan
General arrangement
drawings

Production Schedule
Historical production
Annual production
tonnage and grade

Off-site Processing Cost
Estimates
Concentration charges

Smelting and refining
charges
Other Charges



No, assumed
values

Yes, general
approach
Yes, minimal
engineering basis
No
No
No
No

Yes, simple block
diagram
No
No


Yes, if any
Yes, division of
total



No

No

No



No, preliminary
data


Yes
Yes

Yes
No
Yes
Yes

Yes

Yes
No


Yes, if any
Yes




Yes, preliminary
estimate
Yes, preliminary
estimate
Yes, preliminary
estimate


Yes



Yes
Yes

Yes
Yes
Yes
Yes

Yes

Yes
Yes


Yes, if any
Yes




Yes, quote

Yes, quote

Yes, quote

Behre Dolbear Group Inc.
Statement of Qualifications
Scoping, Pre-feasibility, and Feasibility Studies



Behre Dolbear
10
Comparison of Scoping, Pre-feasibility, and Feasibility Study Content
Category
Conceptual
Study/Scoping
Study
Pre-feasibility
Study
Feasibility Study

Material handling and
transport
Insurance and sales
charges


Processing Capital & Operating
Cost Estimates
Processing operating cost
estimates
Processing capital cost
estimates

No

No





Yes, factored
45%
Yes, factored
45%

Yes, preliminary
estimate
No





Yes, 30%

Yes, from
engineering
manuals 30%

Yes, quote

Yes, quote





Yes, 15%

Yes, from vendor
quotes & take-offs
15%
Infrastructure
Industrial Infrastructure
Facilities
Facilities list

Power and water
parameters
Full site plan
Social Infrastructure Facilities
Facilities list

Housing
Schools
Hospitals
Other

Infrastructure Capital &
Operating Cost Estimates
Consumables list
Personnel list
Infrastructure operating
cost estimates
Infrastructure capital cost
estimates



Yes, with
minimum detail
Yes, preliminary

No

Yes, with
minimum detail
No
No
No
No



No
No
Yes, factored
45%
Yes, factored
45%



Yes

Yes

Yes

Yes

Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary



Yes
Yes
Yes, 30%

Yes, from
engineering
manuals 30%



Yes

Yes

Yes

Yes

Yes
Yes
Yes
Yes



Yes
Yes
Yes, 15%

Yes, from vendor
quotes & take-offs
15%
Behre Dolbear Group Inc.
Statement of Qualifications
Scoping, Pre-feasibility, and Feasibility Studies



Behre Dolbear
11
Comparison of Scoping, Pre-feasibility, and Feasibility Study Content
Category
Conceptual
Study/Scoping
Study
Pre-feasibility
Study
Feasibility Study
Management, Labor and
Administration
Personnel
Personnel lists
Training requirements

Personnel Capital & Operating
Cost Estimates
Consumables list
Personnel operating cost
estimates
Personnel capital cost



No
No



No
Yes, factored
45%
Yes, factored
45%



Yes
Yes



No
Yes, 30%

Yes, 30%



Yes
Yes



Yes
Yes, 15%

Yes, 15%
Markets, Products and Sales
Markets, Products & Sales
Products
Volume
Prices
Sales organization

Sales Related Capital &
Operating Cost Estimates
Personnel list
Consumables list
Sales related operating
cost estimates
Sales related capital cost
estimates


Yes, preliminary
Yes, preliminary
Yes, preliminary
No



No
No
Yes, factored
45%
Yes, factored
45%


Yes
Yes
Yes
Yes, preliminary



Yes
No
Yes, 30%

Yes, 30%


Yes
Yes
Yes
Yes, preliminary



Yes
No
Yes, 15%

Yes, 15%
Behre Dolbear Group Inc.
Statement of Qualifications
Scoping, Pre-feasibility, and Feasibility Studies



Behre Dolbear
12
Comparison of Scoping, Pre-feasibility, and Feasibility Study Content
Category
Conceptual
Study/Scoping
Study
Pre-feasibility
Study
Feasibility Study
Environmental and Permitting
Environmental
Permit list
Environmental Impacts

Environmental Compliance Cost
Estimates
Personnel list
Environmental related
operating cost estimates
Environmental related
capital cost estimates


No
Yes, preliminary



No
Yes, factored
45%
Yes, factored
45%


Yes
Yes



Yes
Yes, 30%

Yes, 30%


Yes
Yes



Yes
Yes, 15%

Yes, 15%
Development Schedule and
Costs
Development Schedule
Development
methodology
Development schedule

Development Costs
Personnel list
Development related
operating cost estimates
Development related
capital cost estimates



Yes, preliminary

Yes, preliminary



No
No
No



Yes

Yes



Yes
Yes, 30%
Yes, 30%



Yes

Yes



Yes
Yes, 15%
Yes, from vendor
quotes and take-
offs 15%
Behre Dolbear Group Inc.
Statement of Qualifications
Scoping, Pre-feasibility, and Feasibility Studies



Behre Dolbear
13
Comparison of Scoping, Pre-feasibility, and Feasibility Study Content
Category
Conceptual
Study/Scoping
Study
Pre-feasibility
Study
Feasibility Study
Project Economics
Financial Issues
Taxes
Royalties
Fees
Licenses

Economic Issues
Economic parameters
Discount rate
determination
Cash flows
Investor returns
Debt analysis sensitivities


Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary


Yes, preliminary
Yes, preliminary

Yes, preliminary
Yes, preliminary
No


Yes
Yes
Yes
Yes


Yes
Yes

Yes
Yes
Yes, preliminary


Yes
Yes
Yes
Yes


Yes
Yes

Yes
Yes
Yes
Summary and
Recommendations
Operational Parameters

Title and ownership

Geology
Ore reserves
Mining and processing
rates
Development period and
mine life
Metal/mineral recoveries
Sales
Operating cost estimates
Capital cost estimates

Financial Parameters

Cash Flows

NPV, IRR & ROI




Mostly assumed
and factored
Yes
Yes
Yes

Yes

Yes
Yes
Yes
Yes



Mostly assumed
and factored
Yes




Some engineering
basis
Yes
Yes
Yes

Yes

Yes
Yes
Yes
Yes



Some engineering
basis
Yes




Some engineering
basis
Yes
Yes
Yes

Yes

Yes
Yes
Yes
Yes



Some engineering
basis
Yes





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