Discovering gold in Turkey BOB FOSTER CEO - STRATEX INTERNATIONAL PLC

Transcription

1 Discovering gold in Turkey BOB FOSTER CEO - STRATEX INTERNATIONAL PLC One2One Forum Proactive Investors 28 February 2007

2 Important notice These presentation materials (Presentation Materials) in respect of Stratex International Plc (Company) are being issued on a strictly private and confidential basis to, and only to, Investment Professionals as defined in Section 19 of the Financial Services and Markets Act (Financial Promotion) Order 2001, and are only available to and are only being made to such persons who have professional experience in matters relating to investments and those persons who do not have such experience should not act upon or rely on these Presentation Materials. The Presentation Materials do not constitute or form part of any offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the Company nor shall they or any part of them form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any decision in connection with the proposed subscription for or purchase of shares in the Company must be made solely on the basis of the information contained in the prospectus to be issued by the Company. Accordingly, neither the Company nor its directors makes any representations or warranty in respect of the contents of the Presentation Materials. The Presentation Materials are being supplied to you for your own information and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose whatsoever. In particular, they must not be distributed to persons with addresses in Canada, Australia, Japan or the Republic of Ireland, or to persons with addresses in the United States of America, its territories or possessions, or to any national or resident of Canada, Australia, Japan, the Republic of Ireland or the United States or to any corporation, partnership, or other entity created or authorised under the laws thereof. Any such distribution could result in a violation of Canadian, Australian, Japanese, Irish or United States law. Hanson Westhouse is not acting on behalf of any reader or recipient of the Presentation Materials and will not be responsible to any such person for providing the protections afforded to its customers or for advising any such person in connection with the Company or the Presentation Materials. January 2007

3 Overview AIM-listed gold and exploration company focused on Turkey Why Turkey? mining history; geological potential; mining code; new mine production; infrastructure; bourgeoning economy led by foreign investment; EU candidacy Important gold discovery Inlice, with high gold grades ( g/t gold in first drillhole) and resource drilling now underway Multiple other similar targets in surrounding volcanic terrain; first one to be drilled in April Muratdere porphyry Au-Cu-Mo occurrence identified by exceptional metal contents in soils drilling to commence in March/April Highly experienced three-man senior management team with 80+ years of combined experience Strategic alliance with founder shareholder Teck Cominco Ltd, providing technical support and capability for fast-tracked production

4 Corporate development I. PRIOR TO LISTING August: Stratex Exploration Ltd incorporated October: Muratdagi agreement signed with Teck Cominco Strategic Alliance concept agreed with Teck Cominco 2005 RAB Special Situations financing secured 100% owned Turkish subsidiary established incorporated June Strategic Alliance signed with Teck Cominco Limited Reconnaissance exploration work commenced April Key discoveries- Karaagac, Inlice, Dikmen, and Muratdere December: completion of listing procedures listed on 4 January 2006 ( 1.87M gross)

5 Corporate development II. POST LISTING End-March: drilling commenced on Inlice; resource now in sight Hasancelebi licences acquired; subsequently Karapınar + Altunhisar Karaagac: RNS on early results in September August: 1.175M financing via HB and HNW shareholders Excellent response to Mines & Money exposure Exercised 100% option on Muratdagi from TCL and met commitments on Biga properties, permitting opportunity for 100% earn-in during 2007 Share price peaked at 9.125p early Dec, ending year at 8.75p uplift of 75%

6 Exploration highlights: Inlice Grassroots gold discovery High-grade drill intercepts Resource drilling underway On basis of intercepts Stratex has considerable confidence in outcome of resource drilling... and this is only the first step multiple targets in surrounding Konya volcanic belt Konya lookalikes Hasancelebi and Altunhisar - Karapınar Strong project pipeline Karaagac gently undulating near-surface gold resource already partially drilled Muratdere large porphyry gold-copper-molybdenum system to be drilled in Q2 Further acquisitions

7 Location of the Inlice Prospect Belen Ergama Karapınar & Altunhisar

8 Inlice: Discovery Outcrop 500 m Discovery Outcrop

9 Inlice: Discovery Outcrop Gold-bearing silica ledges 1.9 g/t Au, 16.2 g/t Ag 0.4 g/t Au 2.7 g/t Au, 14.8 g/t Ag 1.4 g/t Au

10 Inlice Ana Zone 500 m Ana East Discovery outcrop

11 Ana East outcrop 8 g/t gold

12 Inlice the bigger picture 500 m Merkez Zone Ana West Ana East Batι Zone Discovery outcrop

13 Inlice: view south-east Ana West Ana East Discovery Outcrop Valley gap Batı Zone Scale of alteration and mineralization +/- 3 sq. km.

14 Inlice: drilling of Ana Zone Ana West Zone Ana East Zone

15 Inlice: Ana Zone Ana West Ana East

16 Ana East: early drilling success INDD g/t Au inc g/t Au g/t Au INDD g/t Au g/t Au g/t Au Vertical depth of system proven to at least 160 m

17 Inlice Ana Zone Ana West INDD g/t Au Ana East INDD g/t Au

18 Inlice Ana Zone Ana West Ana East

19 Inlice: drilling the gap INDD-1 & 9 INDD-10 INDD-13 INDD-12

20 Inlice Ana Zone Ana West 13 Ana East

21 Ana: high gold grades INDD-13 TOTAL INTERSECTION OF 68.4 METRES GRADING 2.96 g/t Au From 43 m vertical depth from drill collar to 105 m. Intersection Includes 27.6 m grading 5.4 g/t Au to 83 m grading 6.25 g/t Au N.B. whole section not shown 8 g/t gold 83 to 85 m grading 8.55 g/t Au 85 to 87 m grading 6.24 g/t Au N.B. Whole section not shown

22 Inlice Ana Zone Ana West Ana East

23 Inlice - Ana Zone 500 m Ana West Ana East 600 m of potentially economic strike down to at least 150 m Drilling to generate preliminary JORC resource by 04/2007

24 Inlice - Ana Zone 500 m Merkez Zone Ana West Ana East Batι Zone Discovery Outcrop

25 Konya Volcanic Complex KVC Prospects Doganbey Inlice Doganbey Mineralized corridor 50 km x 20 km 31 licences (375 km 2 ) over multiple key prospects At least 3 prospects high priority 10 km Similarities to Maricunga Belt, Chile pre-discovery and now +40M oz after 20 years exploration

26 Doĝanbey volcanic setting The presence of the Doganbey porphyry gold centre is conceptually important for exploration elsewhere in the Konya volcanic belt (Sillitoe, Nov 2006)

27 Other Konya-type prospects Belen Ergama Karapınar & Altunhisar

28 Moose pasture? NO!!!

29 Karaagac Thrust-associated gold mineralization Oxidized pyritized limestone Gently undulating thrust sheet extending over c. 3.5 km 2 - three gold-enriched sectors Gold grades commonly g/t; up to 9.7 g/t Silicified limestone

30 Karaagac W +/- 50m E Thrust zone commonly g/t Au Silicified limestone g/t Au 2,000m Gently undulating thrust zone + mineralized limestone tens of metres in thickness Extends over 3.5 km 2 at least three gold-enriched sectors identified to date Mapped, and outcrops systematically chip sampled Gold values commonly >0.5 g/t gold Sediment-hosted gold signature As, Sb, and Zn. High-tonnage low/med-grade gold prospect Open pittable, potentially good leaching characteristics Core and RC drilling programme required to define resource Drilling commenced first results g/t gold

31 Muratdere MTA drill site 0.2% Cu & 0.02% Mo Porphyry copper-molybdenumgold deposit exposed at surface MTA rock samples to >1% Cu, 1.2 g/t Au Altered porphyry to 248 m; mineralized over 194 m Max 0.65% Cu, 0.04% Mo, 0.16 g/t Au Potential for metal enrichment zones beneath leached cap Drilling to commence Q Oxidized mineralized porphyry A porphyry system 3,700m x m Extensively oxidised

32 Management Team Three senior managers with extensive technical experience in gold and base metal exploration worldwide: David J. Hall Chairman 24 years industry experience, six years in Turkey & C. & E. Europe & Middle East. Chief Geologist Europe & Asia for Minorco discovered Gumushane gold deposit in Turkey. AngloGold Exploration Manager South America. Highly experienced in high sulphidation gold systems including Pueblo Viejo, Chelopech, Cerro de Pasco, Lahoca, Goldfields, Colquijirca & Esperanza. Dr. Bob Foster C.E.O. 33 years worldwide experience with focus in Africa and Central Asia. Member of four man management team that established Ayrshire open pit gold mine in Zimbabwe. Managed Pan African joint venture exploration and drilling programme identifying 1 million ounces gold resource in Central Zimbabwe. Bahri Yildiz General Manager,Turkey 26 years extensive mineral exploration experience throughout Turkey. Previously 7 years as Senior Geologist and then 4 years as Exploration Manager Turkey for Inco Ltd. Dr Richard Sillitoe - Consultant World renowned economic geologist in all types of ore bodies and geological terrains. Dr. Stewart Redwood Consultant Recognized epithermal gold geologist. Experienced in Andean high- and low-sulphidation gold systems and porphyry/skarn deposits. Former Chief Geologist with AngloGold South America and Project Manager of Antamina Cu-Zn-Ag mine.

33 Technical strategy in 2007 Inlice resource defined by early Q2 Add value to Inlice by identification of additional mineralized zones and delineate new resources Identify additional resource potential in wider Konya area by combination of drilling (Doganbey) and exploration Confirm Muratdere as significant discovery and complete substantial exploration drilling programme Consolidate Karaagac drill results and possibly seek JV partner to take project forward to feasibility and ultimately production(?) Demonstrate that Hasancelebi and Karapınar + Altunhisar areas have similar exploration potential to Konya; define high-priority drill targets Define potential of Biga properties and either drill or relinquish New Konya-type acquisitions

34 2007 budget Total expenditure 400, ,000 Expenditure by month Overheads UK exploration related Turkey 300, , , ,000 Turkey Intensive drilling anticipated Q3/Q4 100,000 50, month 2.4M 300, , , ,000 Turkey project expenditure Other Ongoing Dikmen Muratdere Karaagac Doganbey Inlice 100,000 50, Month

35 Strategic alliance with Teck Cominco Teck Cominco Limited is a founder shareholder in Stratex and currently holds % equity in Stratex International Plc. Regional focus on Europe, Middle East, and Africa: Au, Cu, Ni, Zn (diamonds) All opportunities reviewed by joint Stratex Teck Cominco Advisory Committee, which aims to minimize risk and expenditure, and maximize potential for success Teck Cominco can earn in to 51% working interest in Stratex properties by spending 2x Stratex s expenditure. Teck Cominco s earn-in right only effective once Stratex has expended $2.5M Teck Cominco has option to earn back 60% working interest in Karaagac and Dikmen prospects by spending 1.5x and 2.5x Stratex s expenditure respectively, following acquisition by Stratex. Up to $2M cash payback when Karaagac option exercised

36 Key Facts Key Events Major Shareholders Date Event Shareholder % Held October 2005 January 2006 March 2006 July 2006 August 2006 Cash Flow Company incorporated Admission to AIM. Raised 1.87m. Drilling commences at Inlice Drilling commences at Karaagac Raised 1.175m RAB Special Situations (Master) Fund Limited Teck Cominco & Subsidiaries David Hall 8.05 Rock (nominees) limited 7.00 Orion Trust Limited 5.86 Paul Foord 4.33 Robert Foster 4.33 Year to 000 s Aug 04 Dec 05 6 months to 30 th Jun Net cash from Operations (247) (227) Net Interest received (10) (29) Depreciation 2 3 Employee services for issue of share options - 13 Exchange (loss)/gain 1 (18) Change in Working Cap (8) 29 Net cash outflow from operating activities (262) (229) Net cash used in investing activities (75) (152) CIM Special Situations Fund 3.75 Fidelity International Ltd 2.94 Financial Calendar Date Event Year end 31 st December Interims 31 st July Finals May 2007 Financing 515 1,540 Movement in cash 337 1,159 Cash at start of period Cash at end of period 178 1,337

37 Stratex We have the right people and have a clearly defined BUSINESS model We have already made a significant new discovery with shortterm production potential We have an extensive portfolio at various stages of development We have a strong and resource-hungry strategic partner We are in the right jurisdiction and We believe we are going to play a significant role in what was described at Mines & Money 2006 by one prominent economic geologist, Prof. Ian Plimer, as an important new gold province