Overview

• NI 43-101 compliant resource: 3.24 Bt at 34.3% Fe
• 1.89 Bt of resource (magnetite BIF) classified as indicated (NI 43-101 compliant)
• Management Target: >3.5 Bt total resource
• Ownership: 38.5% Mano River Holdings, 61.5% Severstal Group
• Licence size: 425 km²
• Target: Haematite/Magnetite deposit with a strike of 13km
• Status: 70,000km drilling programme completed. Extended by a further 19,000m before the end of 2011
• Favourable metallurgy: Modelled iron recoveries of up to 95%, with concentrate grades of up to 70%. Low levels of deleterious materials (<0.3% Al2O3, 1-4% SiO2). Mass recoveries of 42%
• 120Km proposed rail line to coast, with favourable topography
• Two potential deep water ports are being assessed either side of Greenville
• 25-year renewable Mineral Development Agreement (MDA) ratified in September 2010
• No free carried interest
• 4.5% royalty
• 25% corporate tax

Current Programme and Targets

• Increase level of indicated resource by the end of 2011, with a further 19,000m drilling programme
• 1Q 2012: Complete Pre-Feasibility Study
• 1Q 2013: Complete Definitive Feasibility Study. Recently accelerated from 18 months to 12 months
• 2015: First production
• Putu (and Nkout) Well-located Relative to other African Iron Ore Projects

Map of Putu, Detailing Drilling Programme

Putu (and Nkout) Well-located Relative to other African Iron Ore Projects

Infrastructure

The Putu project lies 120km from the Liberian coast line, a relatively short distance compared with many other West African iron ore projects. The proposed rail line also runs along favourable topography. The natural drainage of Liberia runs perpendicularly to the coast, in the same direction the rail line would take. Therefore, the rail link would require fewer bridges and less in-filling, than other similar projects. Early studies suggest that the rail capex could be approximately $2.5m per line kilometre comparing favourably to other nearby projects. There are two options for a deep water port, either side of Greenville.

Putu (and Nkout) Well-located Relative to other African Iron Ore Projects

Resource Estimate

In total, SRK has estimated for the Putu Project an Indicated Mineral Resource of 1.89 billion tonnes ("Bt") grading 33.9% Fe, 44.5% SiO2, 0.98% Al2O3 and 0.07% P and an additional Inferred Mineral Resource of 1.36 Bt grading 34.7% Fe, 43.3% SiO2, 1.37% Al2O3 and 0.07% P. Of this, 224 million tonnes ("Mt") grading 36.8% Fe lies within surface oxidized zone, 1.13 Bt grading 34.3% Fe lies within the fresh magnetite itabirite zone.

Notes:

(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability

(2) The effective date of the Mineral Resource is 7 July 2011

(3) The Mineral Resource Estimate for the Putu deposit was constrained within lithological and grade based solids and within a Lerchs-Grossman optimised pit shell defined by the following assumptions; metal price of USD1.40/dmtu; slope angles of 44º in the oxide and fresh material; a mining recovery of 97.5%; a mining dilution of 2.5%; a base case mining cost of USD1.40/t and an incremental mine operating costs of USD0.05/t/10 m below the 100 m reference RL and USD0.05/t/10 m above the 100 m reference RL; process operating costs of USD2.68/t crushed in the oxide zone and USD5.67/t crushed BIF ore; and G&A costs of USD 2.921/t crushed ore.

Mineral Development Agreement (MDA)

The Putu Project MDA was granted by the Government of the Republic of Liberia on 2nd September 2010, and was subsequently ratified by the Legislature of the Republic of Liberia on 9th September 2010. The MDA provides for the development and construction of the Putu Project for a period of twenty-five years and includes a two year extension for exploration until 30th September 2012. The Agreement set the fiscal regime and social contributions. The highlights are: there will be no free carried interest for the Government, the royalty rate will be 4.5% and a corporate tax rate 25%.

Background

The Putu Iron Ore Project is located in the south-east of Liberia in Grand Gedeh County, approximately 320 km to the south-east of the capital city of Monrovia. The Project is a jointly owned between the Company (38.5%) and Severstal (61.5%). Severstal earned in its percentage of the project with $30m in 2008. The original target was for a resource of 900 Mt. The $30m from the deal was expended by November 2010, from which point on, the expenditure has been financed by both companies in proportion to their shareholding. The licence is held by Putu Iron Ore Mining Inc. ("PIOM").

Exploration/Drilling Programme

As of March 20, 2011 a total 44,176m (116 holes) had been drilled at Putu. Three rigs are onsite and another rig is in Monrovia and on route to site. The four drill rigs will target 19,000m of drilling including in-fill drilling. As at March 20, 2011 43,581m of core has been logged, 19,979m cut with 10,211 samples collected and 8,972 samples dispatched to SGS lab from 94 drill holes. Only three baseline studies are left to be completed -- butterfly, large mammals and hydrogeology. A tender process is underway for a feasibility study on the construction of a paved road between Greenville and Zwedru in accordance with the MDA. The total Budget for 2011 is $35.7 million with the Company's share being $13.7 million.

Putu Resource Potential

The Putu model is open at depth and SRK recognises that there is potential to increase the Mineral Resource Statement by targeting material that falls below the optimised pit shell but remains potentially economic. This material, based on a metal price of USD1.40/dmtu is considered by SRK to be potentially economic, should sufficient exploration data be collected that confirms the geometry and continuation of the mineralisation and that enables a classified resource to be estimated.

SRK has identified that an additional 0.5 to 1.0 Bt lies below the optimised pit shell used for constraining the Inferred Mineral Resources. The potential quantity of tonnes is conceptual in nature as there has been insufficient exploration or demonstration of economic viability to report these in the Inferred Mineral Resource category at the current time. It is uncertain if further exploration will result in these targets being defined and reported in a future Mineral Resource Estimate. These potential tonnages reflect a range of material within SRK's wireframe solid models outlining the interpreted down dip extent of mineralisation.

Geological Modelling, Resource Estimation Assumptions, Parameters and Methods

Putu can be divided into two main areas, Montroh and Jideh. The former is east-west trending, and the latter is north-northeast/south-southwest trending. Both areas are comprised of magnetite Banded Iron Formation ("BIF") with oxidized caps of dominantly haematite mineralisation. SRK created a geological model based on the lithological logging and magnetic susceptibility data enabling a dominant antiform structure, to be modelled and a three dimensional solid to be created. A statistical review of the validated drill hole data enabled a domain to be created within the oxidized cap. Internal waste domains were created within the BIF being based on lithology logging, magnetic susceptibility data and Fe assay grades.

Map of the Putu Licence -- Grand Gedeh County, Liberia

A 5 m composite file was used in a geostatistical study (variography and Quantitative Kriging Neighbourhood Analysis, "QKNA") that enabled Ordinary Kriging ("OK") to be used as the main grade interpolation method. The interpolation used an elliptical search and data unfolding techniques to follow the predominant dip and dip direction of the geological domains. The results of the variography and the QKNA were utilised to determine the most appropriate search and estimation parameters.

The interpolated block model was validated through visual checks and a comparison of the mean input composite and output model grades. SRK is confident that the interpolated block grades are a reasonable reflection of the available sample data.

Putu Metallurgical Test Work

As previously announced, metallurgical test work was conducted on five samples from each of the main mineralisation units -- magnetite itabirite, epidote-chlorite magnetite itabirite, haematite itabirite, transitional magnetite itabirite, and weathered (predominantly haematite) itabirite. The test work was undertaken by Amdel Mineral Laboratories in Australia.

The test work results indicate that the unweathered magnetite itabirite should be amenable to conventional magnetite processing, that is, using several stages of Wet Low Intensity Magnetic Separation.

Given the high (60%) recovery achieved for the transitional itabirite sample in the Davis Tube tests, despite the low magnetite content of this material according to the Satmagan measurement, this material may be amenable to the same flow sheet as the unweathered magnetite itabirite, albeit with a lower recovery. The suitability of this material to such a flow sheet may also depend on the relative proportions of this material to unweathered magnetite itabirite in the resource.

For the weathered itabirite and haematite itabirite samples, a process route possibly consisting of a combination of gravity separation, magnetic separation and flotation is indicated. In all cases, further test work is required in order to firm up potential process flow sheets and optimise the conditions under which to achieve a combination of acceptable product quality and recovery.

Database Validation

The QA/QC program for Company's Putu project consists of alternating the insertion of a blank and duplicate sample on a regular basis within the sample train. All samples have been assayed at the accredited SGS Johannesburg laboratory in South Africa. SRK found that the results of the above described QA/QC program indicate that the Company's Putu assay databases were appropriate for Mineral Resource Estimation.

Data Verification

Howard Baker completed the verification of data on which the Putu Resource Estimate was based. This verification included an assessment of QA/QC data, sample preparation and assay methodologies, density data, data inputs and survey data used in the estimate. Data was validated by using field checks, statistical methods and evaluating the Company's protocols.

Putu Mineral Resource Classification

The Putu project has been classified as containing Indicated and Inferred Mineral Resources in the unweathered itabirite domain with the quantity of assay results and the quality of the estimated model being sufficient to support the Indicated category and Inferred Mineral resources being limited to deeper intersections with limited sample data and wider spaced drill sections. The oxidised domain has been limited to Inferred Mineral Resources due to the limited assay data that is currently available.