Cautionary Statement

Transcription

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2 Cautionary Statement This presentation contains certain "forward-looking statements", including, but not limited to, the statements regarding each of Minera Andes Inc., US Gold Corporation, Lexam Explorations Inc., and VG Gold Corp. and their respective subsidiaries and affiliates (together, the Companies ) strategic plans, forecasts, projections, future financial or operating information, evolution of mineral resources and reserves, work programs, development plans, operating performance and plans, exploration budgets and plans, or other expectations or beliefs as to future events or results. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Companies each caution the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of the Companies to be materially different from the Companies estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of metals, mining industry risks, risks associated with foreign operations, risks associated with operations not controlled by the Companies, environmental risks and hazards, legislative, political or economic developments in the jurisdictions in which the Companies carry on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits, currency fluctuations, uncertainty as to calculation of mineral reserves and other risks. Reference is made to additional specific risk factors and uncertainties described in each of the Companies continuous disclosure record, a copy of which is available under Minera Andes Inc., Lexam Explorations Inc., and VG Gold Corp. s profile at or in the case of US Gold Corporation. The Securities & Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Certain terms in this presentation, such as "mineral resources" and measured, indicated and inferred mineral resources that are normally not permitted to be used in filings made with the SEC. Investors are cautioned not to assume that any part of the mineral deposits in such categories will ever be converted into reserves. Accordingly, information in this presentation containing descriptions of our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the disclosure requirements of the U.S. federal securities laws. The Companies each disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. All monetary amounts herein are stated in United States dollars unless otherwise noted 2

3 Today s Talk 1. Why You Should Own Gold / Silver 2. Central Bankers Who is Buying 3. Investing in Juniors Gold /Silver 3

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6 Gold: The Ultimate Currency Performance vs Major Currencies US Dollar Pound Rand RMB Euro Canadian Swiss Australian Present* +426% +390% +389% +318% +265% +244% +205% +196% Source: Bloomberg *As of March 17,

7 Gold is Money Currency Isn t 7

8 Gold vs Market 8

9 Follow the Gold Buyers Central Bank Gold Activities Sellers Late 1990 s - England, Portugal, Canada + Other Western Nations Buyers Today - China, India, Russia, Middle East

10 Gold Price x 10

11 The Run to the Top will be Powerful & Fast Gold Price Jan 1979 June x 11

12 Dow vs Gold Ratio 12

13 My Gold Price Predictions 13

14 Big Banks Seeing the Light Goldman Sachs 2011 $1,650 / oz Source: Goldman Sachs global commodibes, precious metals Oct

15 What to Buy, Gold or Shares? 15

16 Silver / Gold Exchange Ratio # of ozs Silver = 1 oz Gold 1980 Present Range

17 Its Happened Before High Debt Massive Monetary Stimulation Reduced Tax Base Heavy Spending 17

18 Germany: Pre WWI Rich, Powerful 18

19 Germany Post WWI Huge Debt Industrial Base Destroyed Creditors Stop Lending 19

20 Germany s Solution Print Massive Amounts Of Money 20

21 Impact of Solution # Marks to Buy 1 oz Gold Value US $20 Jan Nov ,000,000,000,000 21

22 USA 1980 Like Germany 1913 World s Largest Creditor Nation Strong Industrial Base Richest country 22

23 USA Today Like Germany 1920 World s Largest Debtor Industrial Base Outsourced Creditors Nervous 23

24 Industrial Base Outsourced GM Plant 24

25 Don t Wait Protect Yourself Research Earlier Periods of Monetary Debasement Read Inflation Nation Buy Gold + Silver Bullion & Stocks 25

26 The Western World s Solution Massive Bailouts Big Increase Social Spending Bound to Fail 26

27 Exploration Can Create Enormous Value! 27

28 Explorer to World s Largest Barrick Gold

29 My Personal Experience With a Discovery Goldcorp Inc. 29

30 Juniors: Greater Price Volatility As of March 21,

31 Junior Explorations Stocks Reasons for Volatility Market Liquidity Thin Treasury Small Future Financing - Dilution Discovery Not Assured 31

32 Life Cycle of a Mine 32

33 Rubicon Performance Investment $12 M Net Sale Proceeds $182 M Capital Growth 15 x 33

34 McEwen Capital Check List Near Major Discovery / Mine North / South America Focus (Certain Regions) Stories that can be Transformed Mgmt: Big Ownerships Preferred

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36 DANGEROUS BEHAVIOR What to Watch Out For Insider Selling Large Salaries & Bonuses High Premium Takeovers Overly Dilutive Financing 36

37 Example of Dilutive Growth Barrick Gold s Share Performance: 37

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39 Recent Top Performing Juniors July Present Ventana* Romarco Detour Gold Orko Silver International Tower Hill As of March 21, 2011 *Acquisition of Ventana by AUX Canadian Acquisition Inc. 2,722% 681% 384% 200% 197% 39

40 Rules for Investing in Juniors 1. Diversify Buy 4-5 or more Companies 40

41 2. Pay Attention to Details JV Partners Reputation Deal Terms Who Controls Spending Safeguards for your investment Management Ownership 41

42 3. Beware of Irrational Expectations & Regulatory Delays 42

43 4. Watch Out for Back-in Rights Atna Resources 43

44 Gold & Silver are Money Both Going Much Higher

45 US Gold Presentation Thursday 11:40 Booth# 24 Minera Andes Thursday 4:20 Booth #25