11

J. Mazumdar, MS Geo, MS Min EconJ. Mazumdar, MS Geo, MS Min EconAlexandra Bukacheva, MS, CFAAlexandra Bukacheva, MS, CFA

Haywood Securities, CanadaHaywood Securities, Canada

Golden OpportunitiesGolden Opportunities

Investor Conference:Investor Conference:Calgary, 27 April 201Calgary, 27 April 201

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DisclaimersDisclaimersThis report is neither a solicitation for the purchase of securities nor an offer of securities. Our ratings are intended only for clients of Haywood Securities Inc., Haywood Securities (USA) Inc., and those of Haywood Securities (UK) Limited and such clients are cautioned to consult the respective firm prior to purchasing or selling any security recommended or views contained in this report. Haywood Securities (UK) Limited (“HSUK”) is a wholly owned subsidiary of Haywood Securities Inc. authorized and regulated in the UK by the Financial Services Authority as a stock broker and investment adviser and is a member of the London Stock Exchange. Estimates and projections contained herein, whether or not our own, are based on assumptions that we believe to be reasonable. The information presented, while obtained from sources we believe reliable, is checked but not guaranteed against errors or omissions. Changes in the rates of exchange between currencies may cause the value of your investment to fluctuate. Past performance should not be seen as an indication of future performance. The investments to which this report relates can fluctuate in value and accordingly you are not certain to make a profit on any investment: you could make a loss.Haywood Securities, or certain of its affiliated companies, may from time to time receive a portion of commissions or other fees derived from the trading or financings conducted by other affiliated companies in the covered security. Haywood analysts are salaried employees who may receive a performance bonus that may be derived, in part, from corporate finance income.Haywood Securities, Inc., and Haywood Securities (USA) Inc. and Haywood Securities (UK) Limited do have officers in common however, none of those common officers affect or control the ratings given a specific issuer or which issuer will be the subject of Research coverage. In addition, the firm does maintain and enforce written policies and procedures reasonably designed to prevent influence on the activities of affiliated analysts. Dissemination of ResearchDissemination of ResearchThis report is prepared by Haywood Securities Inc. for use by Haywood Securities Inc., Haywood Securities (USA) Inc. and Haywood Securities (UK) Limited and their clients. Research reports are disseminated either through electronic medium or in printed copy.  Clients may access reports on our website, or receive publications directly via email.  Haywood strives to ensure all clients receive research in a timely manner and at the same time.  It is against our policy for analysts to discuss or circulate their recommendations internally prior to public distribution. This policy applies equally to recommendation changes, target changes and/or forecast revisions.For Canadian residents: Haywood Securities Inc. is a Canadian registered broker-dealer and a member of the Investment Industry Regulatory Organization of Canada, the Toronto Stock Exchange, the Toronto Venture Exchange and the Canadian Investor Protection

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Fund and accepts responsibility for the dissemination of this report. Any Canadian client that wishes further information on any securities discussed in this report should contact a qualified salesperson of Haywood Securities Inc.For U.S. residents: Haywood Securities (USA) Inc. is a wholly owned subsidiary of Haywood Securities Inc., registered with the U.S. Securities and Exchange Commission, and is a member of FINRA and the Securities Investor Protection Corporation (SIPC). Haywood Securities (USA) Inc. as a U.S. registered broker-dealer accepts responsibility for this Research Report and its dissemination in the United States. Any U.S. client that wishes further information on any securities discussed in this report should contact a qualified salesperson of Haywood Securities (USA) Inc. Haywood Securities Inc. Research Analysts are considered Foreign Research Analysts to the USA and are not registered/qualified as Research Analysts with the NYSE and/or the NASD. As these analysts are considered Foreign Research Analysts they may not be specifically subject to NASD Rule 2711 and NYSE Rule 472 restrictions on communications with a Subject Company, Public Appearances and trading securities held by a Research Analyst Account.This report is intended for institutional investors and may be distributed to all non-institutional US clients.For U.K. residents: Haywood Securities (UK) Limited (“HSUK”) is a wholly owned subsidiary of Haywood Securities Inc. authorized and regulated in the UK by the Financial Services Authority as a stock broker and investment adviser and is a member of the London Stock Exchange. This report has been approved by HSUK for the purposes of section 21 of the UK’s Financial Services and Markets Act 2000.If you wish to contact HSUK please email Michael Sweeney at msweeney@haywood.com. If you are a UK resident retail customer and you propose to do business with Haywood Securities Inc., please take note of the following:Haywood Securities Inc. or its subsidiaries or respective officers, directors or employees have or may have a material interest in the securities to which this report relates. Any investment services undertaken on your behalf by Haywood Securities Inc are not covered by the rules and regulations made for the protection of retail investors in the UK. This means that you will not have the benefit of rights designed to protect investors under the Financial Services and Markets Act 2000 and under the rules of the Financial Services Authority (“FSA”).In particular, you will not benefit from the following UK protections:(a) the right to claim through the UK’s Financial Services Compensation Scheme for losses resulting in the unlikely event of our default; (b) in the event of a dispute, access to the UK’s Financial Ombudsman Service; (c) protection of money held on your behalf under the FSA’s Client Money Rules.

I, Joe Mazumdar, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Analyst CertificationAnalyst Certification

SynopsisSynopsis

• Gold MarketGold Market– Last decade, Supply/Demand, What to Last decade, Supply/Demand, What to

Watch for in 2011Watch for in 2011

• Investments ProposalInvestments Proposal– Small Cap Gold, Stages of Development, Small Cap Gold, Stages of Development,

Risk/RewardRisk/Reward

44

55

Long May You RunLong May You Run10 year bull trend…10 year bull trend…

Source: Capital IQ

$273 $277 $343

$417 $438 $513

$636

$837 $865

$1,104

$1,410

$0

$250

$500

$750

$1,000

$1,250

$1,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

USD

per

oun

ce

+20%+20%

+15%+20%

+30%

+25%

+25%

Long May You RunLong May You Run10 year bull trend…10 year bull trend…

• Inflation hedge -> Store of valueInflation hedge -> Store of value

• Safe Haven -> DiversificationSafe Haven -> Diversification

• Debasement of fiat currencies -> Debasement of fiat currencies -> Store of valueStore of value

66

DiversificationDiversificationCorrelationsCorrelations

77Source: World Gold Council – Over 3 years ending 2010 based on weekly returns

-1.00

-0.75

-0.50

-0.25

0.00

0.25

0.50

0.75

1.00

USD Oil CRB/UBS Comm Index

S&P 500 US Treasury Index

MSCI World ex-US

DiversificationDiversificationRisk versus ReturnRisk versus Return

88Source: World Gold Council , Bloomberg, Barclays Capital

DiversificationDiversificationEmerging Markets Emerging Markets

99

0%

10%

20%

30%

40%

50%

Advanced Economies

Developing Asian Economies

Central/ Eastern Europe

Middle East/ North Africa

Sub-Saharan Africa

Other Western Hemisphere

Source: World Gold Council

Small Increases in Holdings would have significant impacts on gold market

DemandDemandInvestment/JewelleryInvestment/Jewellery

1010Source: World Gold Council

57 Moz

12 Moz

44 Moz

17 Moz

66 Moz

14 Moz

43 Moz

10 Moz

0

500

1,000

1,500

2,000

2,500

3,000

Jewellery Technology Investment Other

Gol

d (t

onne

s)

2009 2010

Shift in Demand to Physical Holdings

SupplySupplyChange in Official SectorChange in Official Sector

1111Source: World Gold Council

75 Moz

54 Moz

1 Moz

82 Moz

53 Moz

(3 Moz)

-500

0

500

1,000

1,500

2,000

2,500

3,000

Mine Supply Scrap Official Sector

Gol

d (t

onne

s)

2009 2010

SupplySupplyScrap – Swing SupplyScrap – Swing Supply

1212Source: World Gold Council and GFMS

Speculators & ETFsSpeculators & ETFs

1313Source: COMEX, ETFs and Standard Bank

• Net Speculative Position (Longs Net Speculative Position (Longs minus Shorts) is falling leaving minus Shorts) is falling leaving room for positive jumps in gold room for positive jumps in gold priceprice

• ETFs are representative of a buy & ETFs are representative of a buy & hold mentality are slowly hold mentality are slowly increasing after liquidations in increasing after liquidations in February 2011 after Japan CrisisFebruary 2011 after Japan Crisis

Gold Q1/11Gold Q1/11Every Which Way But LooseEvery Which Way But Loose

1414Source: World Gold Council

Current Levels US$1,500/oz – “…there is at least a 1 in 3 likelihood that it could lower its long-term rating on the US within 2 years” S&P Ratings Agency

Gold MarketGold MarketWhat to Watch ForWhat to Watch For

1515

Inflation in the emerging markets – Impact of commodity prices, specifically oil, on essentials driving up CPI globally

US Recovery – Monitor US job (less) recovery, stagflation, Federal Reserve reactions, misery index = unemployment rate + inflation

Geopolitical – MENA crisis, impact on oil prices and global inflation

China growth – Impacts of raising interest rates to slow economy and on commodities, inflation rates

Japan crisis – Knock on impacts on supply chain and demand of raw materials in the short term

Euro Zone Debt – Impacts on Euro/USD exchange rate

Other- ??

80

90

100

110

120

130

140

150

Inde

x 10

0 =

Jan

2010

Gold Price, USD Gold ETF HUI USD (DXY) S&P/TSX Gold

Investment ProposalInvestment ProposalSmall Cap - High BetaSmall Cap - High Beta

1616Source: Capital IQ and Haywood

Junior Gold Miners Have High Betas to Gold

0

20

40

60

80

100

120

Investment ProposalInvestment ProposalSmall Cap - RewardSmall Cap - Reward

1717Source: Haywood Securities

Grassroots Exploration -> Advanced Exploration Development ->Production

Production -> Growth

Southern Arc – TSXV:SARevolution Res. – TSX:RV

Midway Gold – TSXV:MDW, MDW-USAndean American Gold – TSXV:AAGAndina Minerals – TSXV:ADMCarpathian Gold – TSX:CPN

Orvana Minerals – TSX:ORV

Risk LoverGeology, Potential Upside, Prior Success, Mgmt,Analogues

Risk AverseDev. Eng., Timeline, Permitting, Prior Success, Mgmt, Underpromise and over deliver

Risk AverseOperators, Quarterly, Mgmt,, Guidance

Investment ProposalInvestment ProposalSmall Cap - RiskSmall Cap - Risk

1818Source: Haywood Securities

Orvana Minerals – TSX:ORV

Risk AverseOperators, Quarterly, Mgmt,, Guidance

Investment ProposalInvestment ProposalSmall Cap - ExplorationSmall Cap - Exploration

1919Source: Haywood Securities

$9.5M $17.6M

1.44Moz$10M

$24M

1.98Moz

2.93Moz

6.62Moz

New CEO

New CFO and VPD

$15.5M

9.8Moz

$25M

Timeline/recovery revised

0

2

4

6

8

10

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

Volum

e, Millions

AD

M S

hare

Pri

ce, C

$

Volume

Price

Credit Shock

Financing Project Related

Management Changes

Investment ProposalInvestment ProposalSmall Cap - DevelopmentSmall Cap - Development

2020Source: Haywood Securities

Investment ProposalInvestment ProposalSmall Cap - DevelopmentSmall Cap - Development

2121Source: Haywood Securities

Investment ProposalInvestment ProposalSmall Cap - ProducerSmall Cap - Producer

2222Source: Orvana Minerals

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