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A MINE OF OPPORTUNITIES
TSX-V:GQ
Corporate Presentation November 2012
Disclaimer
This presentation contains forward-looking statements or forward-looking information within the meaning of applicable securities legislation (hereinafter collectively referred to as "forward-looking statements") concerning the Company's plans for its properties, projects, operations, subsidiaries and other matters. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management regarding operations of the Company which are subject to a variety of business and market risks, including political and regulatory risks associated with mining and exploration in Mali.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements.
These forward-looking statements are based on certain assumptions which the Company believes are reasonable, however, forward-looking statements are subject to a variety of business and political risks and uncertainties. Some of the important risks and uncertainties that could affect forward-looking statements are also described in the Company's continuous disclosure filings made with Canadian securities regulatory authorities, which are available at the SEDAR website and on the Company’s website. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, they may adversely affect the Company’s business and prospects and actual results may vary materially from those described in forward-looking statements. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, other than as required by applicable laws. Investors are therefore cautioned against placing undue reliance on forward-looking statements. The technical information in this presentation has been reviewed by Jed Diner, MSc. P.Geol., a qualified person as defined by National Instrument 43-101.
2
Tilemsi Phosphate – GQ Flagship Project
3
Advancing Tilemsi Phosphate Project
• 50 million tonnes inferred resource
• High natural grade 24.3% P₂O₅
• Significant upsizing potential
• Strategic source of phosphate for direct application fertilizer or as a NPK component
PROJECT HIGHLIGHTS
4
SHARE INFORMATION TSX-V: GQ
SHARES OUTSTANDING 44.7 m
-OPTIONS 3.8 m
-WARRANTS 0.7m
FULLY DILUTED 49.3 m
52-WEEK LOW/HIGH $0.62/$3.71
3-MONTH AVG. VOL. 17,675
52-WEEK MARKET CAP. $28.1/173.6m
DIRECTORS & OFFICERS 9%
As of November 15, 2012
Investment Highlights
5
• Phosphate deposit regarded as strategic to solve regional food security issues in the Sahel Region, West Africa (AGRA, IFDC) STRATEGIC DEPOSIT
• Effective fertilizer product with low OpEx and CapEx expectations
• Strip minable – Near surface deposit (<10 meters on average)
• Simple production process proven by characterization tests POSITIVE ATTRIBUTES
• 3 phosphate concessions with total surface of 1,206km²
• Only 26 km² drilled to date (Drilling program - Phases 1 and 2, out of 4) UPSIZE POTENTIAL
• Fast growing population (>2% pa) drive food demand in West Africa
• Large agribusiness investments in West Africa MARKET POTENTIAL
• Proximity to key agricultural markets in West Africa (<1,000 km radius)
• Ability to offer low farm-gate price thanks to market proximity LOGISTICAL ADVANTAGE
• Strong combined management and board expertise in mineral exploration in Africa and the global phosphate and fertilizer industry EXPERTISE
Board and Management
6
Management
Joel Jeangrand President, CEO and Director
Former CEO of Pan American Hydro and VP Corporate Development of Spur Ventures
with a phosphate project in China.
Jayram Hosanee Chief Financial Officer
Former CFO at Mineral Hill and Golden Dawn Minerals. Holds a CGA.
Mohammed Bouhsane Chief Operating Officer
Former Project Engineer in the Moroccan mining and metallurgy industries working for
the ONA Group and OCP.
Candice Font Investor Relations Manager
Former Media Project Manager for Africa Investor, a specialised publication; and IR
Consultant at Silver Bull Resources.
Board
John A. Clarke – Chairman Former CEO of Nevsun Resources and
Executive Director of Ashanti Goldfields
Joel Jeangrand – Director Former CEO of Pan American Hydro; VP Corporate Development
of Spur Ventures with a phosphate project in China
Victor Jones – Director 30 years of experience in senior executive and board positions
in public mineral exploration and technology companies
Ehud Levy – Director Phosphate manufacturing industry consultant with
a 30-year career with Bateman Engineering and Rotem
Gordon Peeling – Director President of Mining Association of Canada (MAC) with 30 years
of mining experience in the public and private sectors
Jed Richardson – Director Former VP Corporate Development at Verde Potash and
Institutional Equity Research Analyst at Cormark Securities
David Shaw – Director Worked as Senior Mining Analyst at Yorkton Securities; initiated and developed Resource Research Group at Charlton Securities
Deposit Attributes
With a high average phosphate grade and significant exploration
upside, the Tilemsi deposit has the potential
to become a world-class phosphate resource
7
TILEMSI PHOSPHATE
INITIAL INFERRED RESOURCE 50 million tonnes
AVERAGE PHOSPHATE GRADE 24.3% P₂O₅
CONCENTRATE GRADE 25-38% P₂O₅
CONCENTRATE QUALITY Low levels of contaminants
(ie. cadmium)
BENEFICIATION Easy separation and treatment
DEPOSIT DEPTH Near surface
Strip-minable potential
Drilling Program to Expand Resource
Map of Tilemsi phosphate project showing our concessions
on remote sensing and drilling program (completed and planned)
8
5 km
Phases 1 and 2 of Drilling Program completed
Product Development
GQ has successfully been conducting characterization tests
to determine the effectiveness of the potential product
9
Test Results Impact
BENEFICIATION Screening at 850 microns to
achieve P2O5 grades of 36.8%
Via simple screening process, the product can easily beneficiated to up to 36.8% P2O5 % P₂O₅
SOLUBILITY
71.1% soluble P2O5 in citric acid
62.5% soluble P2O5 in formic acid
The rock solubility shows that it is able to compete with other chemical fertilizers, as fertilizers’ effectiveness is based on
immediate availability of the nutrients
GRANULATION Successfully produced granules sized 1-4mm
The product can easily be granulated, allowing the product to withstand transportation and be used as a component of NPK
blended fertilizer
Characterization tests indicate:
Tilemsi natural phosphate (TNP) meets or exceeds market specifications for beneficiation, solubility and granulation.
TNP can be used as either as very low cost phosphate component for blended NPK fertilizer or as a direct application fertilizer.
Path to Product
10
SSP: Single Superphosphate – TSP: Triple Superphosphate – MAP:Mono-Ammonium Phosphate - DAP: Di-Ammonium Phosphate NPK: Nitrogen, Phosphate, Potassium
4. Primary use
1. Raw Material
2. Beneficiation
3. Transformation
to Final Product,
incl. Granulation
Phosphate Ore
Phosphate Rock Concentrate
DAP/MAPTSPSSP
Direct Application Direct Application or Custom Mix Fertilizer
NPK
Sulfuric Acid PlantPhosphoric Acid/
Nitrophosphate Plant
PotashNutrient Additives Ammonia
Target Markets and Infrastructure
GQ is well positioned to supply West Africa’s key
agricultural markets in high grade natural phosphate:
12
Why is W. African agriculture dynamic ?
13
•Only 23-30% of arable land in W. Africa is currently cultivated
•Low fertilizer usage (9kg/ha vs. 101kg/ha in the rest of the world)
1. Africa - the next agricultural frontier to feed the world
•Fast growing population (>2% pa) in West Africa lead to higher food demand
•Dynamic and growing agribusiness sector attracting large foreign agribusiness investments
2. Growing food demand require higher agriculture yields
•West Africa’s soils generally fragile and unfertile
•Acidic soils require more phosphorus for higher agricultural productivity
3. Poor soil quality requires mineral fertilizers
• Most phosphate are imported from overseas long lead time, added costs
• High farm gate prices (up to 80% above world retail prices) due to high transportation costs, market inefficiencies, taxes,…
4. Need for a local, low cost phosphate supplier
Regional Agricultural Activity
14
The use of fertilizers should be increased to 50 kg/ha by 2015 (Africa Fertilizer Summit, 2006). The present use of fertilizers in Sub-Saharan Africa is only about 9 kg/ha of arable land, compared to a world average of 101 kg/ha. (FAOSTAT, 2009)
GQ target markets: Principal production
and food crop locations Source: Bureau Issala, JL Chaleard and SWAC
Development of cash crops in West Africa (1980-2006)
Source: FARM 2008
Closing the (yield) gap in West Africa
15 Source: FAO
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
0
500
1000
1500
2000
2500
3000
3500
4000
1961 1966 1971 1976 1981 1986 1991 1996 2001 2006
World
West Africa
000s o
f h
ecta
res kg/ha
Gap between actual and potential maize yields
Source: Jayne et al. 2009
Cereal yield growth vs. area harvested
These 2 graphs support the case for more fertilizer use in Africa, for higher agricultural yield.
Milestones and Catalysts
16
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Prospecting license of Tilemsi phosphate concession granted
Sale of Kenieba gold concession to Avion Gold (now Endeavour)
Phosphate exploration permit granted for Tilemsi & Tarkint Est
Phase I of Exploration Program completed on Tilemsi & Tin Hina
Phase II of Exploration Program completed on Tarkint Est
Tilemsi Phosphate project receives 32.6Mt initial resource estimate
Project area extended to 1,206km² with new concession of Aderfoul
Characterisation tests indicate high grade & reactivity of the rock
Increase of 17Mt of inferred mineral, totalling 50Mt
Complete PEA
Pre-Feasibility Study
Feasibility Study
Project Financing
Market Development During Construction
Launch Hyper Phosphate Production
2015 20162010 2011 2012 2013 2014
Tilemsi Project - Positive Attributes
17
High grade phosphate
deposit
Potential for significant upsizing
Proximity to markets
Low cost product
expectation
Growing market needs
18
Appendices
Resource Estimate
The NI 43-101 mineral resource reports provide
an inferred mineral resource estimate of 50 million tonnes
at a grade of 24.3% P2O5 (at a cut-off of 10% P2O5)
19
Drilling
CampaignTarget Zone
Cut-Off
Grade (%)
Tonnes
(000's)
Average Grade
(P₂O₅ %)Strip Ratio
Phase I Alfatchafa 10 12,538 22.16 15:01
Phase I Tin Hina 10 20,000 24.24 4.5:1
Phase II Tarkint Est 10 17,436 25.87 5.7:1
Phase I and II TOTAL 10 49,974 24.29 -
Tilemsi Exploration Program
20 * Historical results have not been confirmed
STATUSPermit
Name
Drilling
ProgramTarget Name
# of Holes and Total
Meters Drilled
Resource
Estimate
Average Grade
(P₂O₅)
12.17 km²
141 holes totalling 1,717m
128 holes totalling 3,218m
Drilled Surface
6.75 km²
6.7 km²
PLA
NN
ED
Phase I
Phase III
23.4 km²
Tilemsi
Tarkint Est
Tarkint Est
Tilemsi
Ader Foul
Tin Siriden
Phase IV
Ader Foul
Chemanaguel
Tarkint Est
CO
MP
LETE
D
Alfatchafa
n.a
55 km²
Historical samples*
0.60-1.25m @ 28%375 holes totalling 5,625m
0.9m @ 22.0%
5 km² but holes were
drilled along 3.7 km of line
11.3 holes were drilled
along 9.1 km of line
n.a n.a
n.a
48 holes drilled over
these 3 targets totalling
608m
55 km²
Holes were drilled along
11.1 km of line
13.2 km²
Tin Hina
Phase II
Chemanaguel
Tin Siriden
Chemanaguel
Tagit
N'Ouarane
Tin Hina
Tin Siriden
Alfatchafa
17.4 Mt
32.6Mt
198 holes totalling 2,970 m
n.a
n.a
n.a
n.a
Historical samples*
1- 1.15m @ 26%
n.a
n.a
n.a
128 holes totalling 1,920 m
180 holes totalling 2,700 m
125 holes totalling 1,875m
1.4m @ 24.2%
25.87%
Global Phosphate Industry
21
• Essential nutrient to plant and animal life
• One of 3 key components of NPK fertilizers
• 90% of phosphate is used in fertilizers
• No substitute for phosphorus in agriculture
• Moroccan phosphate rock regarded as standard
About phosphate
• Phosphoric Acid
• Nitro Phosphate Fertilizers
• Basic Fertilizers (SSP, TSP)
• Direct Application
Fertilizer uses of phosphate rock
• 65 billion tonnes estimated global phosphate rock reserves
• Phosphate reserves depleting globally
• Global consumption expected to grow by 2% annually
Key industry facts
China
USA
Morocco
Russia
Other
67% of global production concentrated in just 3 countries
Source: FAO
Phosphorus deficiency symptoms in rice (on the right)
Source: INPI
GQ Gold Concessions
22
•3 gold concessions located in the productive Mali Birimian Gold Belt in western Mali:
•Sanoukou 24 sq. km
•Bourdala 16 sq.km
•Dabia Ouest 100 sq.km
GQ Gold
•A prolific gold belt with 14 deposits and >30m Oz of gold discovered to date
•Mali – 3rd largest gold producer in Africa
Background - Birimian Belt
•Producing gold mines in the same area:
•Randgold Loulo + Gounkoto
•Avion Gold Segala + Tabakoto
•Anglogold/Iamgold Sadiola + Yatela
Mali Operational Gold Mines
About Mali
23
LOCATION
• Located in the heart of West Africa
• Vast landlocked country 1.2m km²
• 14.5 million people
• Well connected to other West African nations (paved roads and rail) and major maritime hubs of Abidjan and Dakar
GEOLOGY
• Favorable geology dominated by the Birimian gold belt
• Several operating gold mines in Mali incl. Endeavour, IAMGold…
• Third largest gold producer in Africa
• Large phosphate occurrences in northeastern Mali known since 1927-35 (IFDC)
• Tilemsi phosphate recognised by several organisations (AGRA, IFDC) for its agronomic potential
INVESTMENT CLIMATE
• September 3, 2012 Mali Ministry of Mines invited GQ and other mining companies to formally reassure them of the attractiveness of doing business in Mali despite the current political situation
• Amongst top sub-Saharan Africa performers on the World Bank’s ‘Doing Business Survey’ 2012
• According to same survey – Mali outperformed its neighbours incl. Niger, Mauritania, Burkina Faso and Guinea
Mali Mineral Policy
Mali mineral law is based on the French civil law.
The mining code was revised in 2012.
24
• Exclusive right to carry out prospecting activities
• Valid for a period of 3 months
• Renewable once for 3 months
EXPLORATION LICENSE
(Autorisation d’Exploration)
• Awarded for 3 years
• Covers 8 km²
• Renewable once for same period
PROSPECTING LICENSE
(Autorisation de Prospection)
• Valid for specified commodities (called “Arrêté”) • Granted for 3 years • Renewable twice for an additional 2 years each time
RESEARCH PERMIT
(Permis de Recherche)
• Granted for 30 years
• Renewable for 10 years each time, until depletion of the ore reserves
MINING PERMIT
(Permis d’Exploitation)
Management Bios
25
Joel Jeangrand President, CEO and Director
Mr. Jeangrand has more than 20 years of global experience in marketing, business and corporate development in the natural resource sector and renewable energy business. Prior to joining Great Quest, he held the role of President and CEO of Pan American Hydro Corporation from 2008 to 2012. Previously, Mr. Jeangrand served as VP Corporate Development of Spur Ventures Inc., a publicly traded Vancouver-based fertilizer company with a phosphate project in China. He also spent 11 years in roles of increasing responsibility with the Eramet Group and worked in locations such France, Hong Kong and Taipei. He holds an Executive MBA from Simon Fraser University in Vancouver (2005), and earned a Bachelor of Commerce (equivalent) from Ecole Supérieure de Commerce de Toulon, France (1989).
Jay Hosanee Chief Financial Officer
Mr. Hosanee is a General Certified Accountant who brings over 20 years of senior management experience in corporate finance, auditing and internal control. Prior to joining Great Quest, he held the position of CFO at Mineral Hill and Golden Dawn Minerals Inc.. His international experience include multi-currency group consolidation, overseeing financial reporting and regulatory compliance of several public listed companies. He also held the position of CFO at Loita Group, an investment banking firm focused on Africa. This role gave him tremendous exposure to sub-Saharan markets. Mr. Hosanee is fluent in French and holds a CGA qualification as well as an Internal Auditor certification.
Mohammed Bouhsane Chief Operating Officer
Mr. Bouhsane brings 20 years of experience in project management and engineering in the Moroccan mining, hydrometallurgical, and metallurgy industries. He spent most of his time at a mining subsidiary of the ONA Group, where he served as project director and project manager of two major projects. Most recently, Mr. Bouhsane was Project Manager at Nareva Holding, managing construction and financing of an irrigation network. Mohammed is a member of the Quebec Order of Engineers.
Candice Font Investor Relations and Communications
Ms. Candice Font comes to GQ with a wealth of experience working in Africa. As a regional manager for Africa Investor, a specialized publication focused on business in Africa, Ms. Font was based in Abidjan, Cote d’Ivoire and Libreville, Gabon from 2008 to 2010. Between 2005 and 2008, she worked as a project manager producing business reports on the growth opportunities in emerging countries such as Russia, Nigeria, and Qatar. Prior to joining Great Quest, Ms. Font worked in Investor Relations at Silver Bull Resources, Inc. perfecting her expertise in streamlining information flow, cultivating relationships with stakeholders and enhancing companies public profiles. She holds a Bachelor's degree in International Business from the University of Plymouth (UK) and is fluent in English and French.
Directors Bios
26
John A Clarke Chairman
Mr. Clarke brings considerable experience in exploration, acquisition and development in the gold mining sector in Africa. He has held roles as Vice Chairman and CEO of Nevsun Resources and Executive Director of Ashanti Goldfields Company Ltd. He holds B.Sc. in metallurgy from University College Cardiff, a Ph.D. in metallurgy from Cambridge University and MBA from Middlesex Polytechnic.
Joel Jeangrand Director
Mr. Jeangrand has more than 20 years of global experience in marketing, business and corporate development in the natural resource sector and renewable energy business. Prior to joining Great Quest, he held the role of President and CEO of Pan American Hydro Corporation from 2008 to 2012. Previously, Mr. Jeangrand served as VP Corporate Development of Spur Ventures Inc., a publicly traded Vancouver-based fertilizer company with a phosphate project in China. He also spent 11 years in roles of increasing responsibility with the Eramet Group and worked in locations such as Gabon, Paris, Hong Kong and Taipei. He holds an Executive MBA from Simon Fraser University in Vancouver (2005), and earned a Bachelor of Commerce (equivalent) from Ecole Superieure de Commerce de Toulon, France (1989).
Victor Jones Director
Mr. Jones has over 30 years of experience in senior executive and board positions in public mineral exploration and technology companies. He has been active on projects across North America and Africa on financings and JV and acquisition negotiations. Mr. Jones received both his B.Sc and MBA from McGill University.
Ehud Levy Director
Mr. Levy is a phosphate manufacturing industry consultant, based in Israel. Ehud formed his consulting firm following a 30-year career in Israel with Bateman Engineering and Rotem. At Bateman, he was the managing director of the chemical technologies, directing project initiation and new processes for sophisticated applications of phosphates.
Gordon Peeling Director
Mr. Peeling has been the president of Mining Association of Canada (MAC) since 1997 and has over 30 years of mining experience in the public and private sectors. Prior to MAC, he served as Vice President at the International Council on Metals and the Environment and Director General at both the Mineral Commodities Branch and Mineral Strategy Branch at Natural Resources Canada.
Jed Richardson Director
Mr. Richardson graduated from University of Toronto with B.A.Sc. in mineral and geological engineering. He worked for Alcan as an engineer, and RBC and Cormark as research analyst. He is currently a director and the VP Corporate Development of Verde Potash (formerly Amazon Mining). Jed is the founding principal of Javelin Partners, consulting firm for junior resource companies.
David Shaw Director
Mr. Shaw has worked both in the technical and financial communities in the resource industry. He initiated and developed Resource Research Group at Charlton Securities, worked as Senior Mining Analyst at Yorkton Securities and as a technical expert at Chevron Resources. He is well connected within European financial institutions and the mining sector.
Great Quest Comparables
27
As of September 4, 2012 Sources: Yahoo Finance, Capital IQ and Company Reports DFS: Definitive Feasibility Study; PEA: Preliminary Economic Assessment
Aguia Resources Ltd AGR:ASX AUD 0.15 0.74 0.12 51,007 $15.94 Drilling Brazil – 21.3 4.6%
Arianne Resources Inc DAN:TSXV CAD 0.90 2.48 0.80 58,575 $58.68 Pre-Feas Completed Canada 347.7 462.0 5.5%-6.5%
Celamin Holdings CNL:ASX AUS 0.14 0.39 0.13 29,647 $11.10 Drilling Tunisia Algeria – – –
Eagle Star Minerals Corp EGE:TSXV CAD 0.12 0.18 0.07 19,889 $7.28 Drilling Brazil – – –
Great Quest Metals Ltd GQ:TSXV CAD 1.14 3.71 0.68 22,891 $48.80 PEA Underway Mali – 32.6 23.4%
Legend International Holding LGDI:MKT USD 0.11 0.48 0.06 434,612 $24.90 Feasibility Completed Australia 202.8 516.1 14%-15%
MBAC Fertilizer Corp MBC:TSX CAD 2.82 3.30 2.16 88,472 $275.57 Production Target 2012 Brazil 58.8 119.0 5.01%-5.27%
Minbos Resources Ltd MNB:ASX AUD 0.21 0.40 0.14 112,356 $18.80 Scoping Study Underway Angola, DRC – – –
Minemarkers Ltd MAK:ASX AUD 0.14 0.40 0.13 284,044 $32.70 Pre-Feas Completed Australia, Namibia 399.5 1,561.9 18%-20%
Plains Creek Phosphate PCP: TSXV CAD 0.03 0.12 0.02 n/a $9.69 Pre-Feas Completed Guinea Bissau 83.8 83.8 29.6%
Rio Verde Minerals RVD:TSX CAD 0.20 0.55 0.18 48,024 $24.32 Scoping Study Underway Brazil 1.9 1.9 11.7%-20.3%
Rum Jungle Resources Ltd RUM:ASX AUD 0.23 0.41 0.19 436,854 $37.00 Drilling Australia 13 13.0 15.0%
Stonegate Agricom Ltd ST:OTC CAD 0.41 1.27 0.32 5,855 $59.19 Pre-Feas Completed Peru, US 61.8 446.2 9%-30.6%
Strata Minerals SMP:TSXV CAD 0.08 0.08 0.08 4,700 $4.30 Drilling Australia – – –
Sunkar Resources Plc SKR:LSE GBP 0.04 0.09 0.03 334,516 £7.08 Feas. Study Underway Kazakhstan 293 475.3 11.0%
UCL Resources Ltd UCL:ASX AUD 0.12 0.37 0.01 35,385 $9.70 DFS nearing completion Australia, Namibia 96.5 779.9 18.9%
Market
Cap (m)Project Stage Project Location
Share
Price
Stock
Ticker
3m Avg
Vol
52-week
High LowCurrency
Ore Resources
M&I
(Mt)Total Grade P₂O₅
28
Great Quest Metals Ltd
TSX-V: GQ
Suite 515, 475 Howe Street Vancouver, BC, V6C 2B3
WWW.GREATQUEST.COM
IR Candice Font Tel +1 604.689.2882 Toll Free 1.877.325.3838 Fax +1 604.684.5854 Email info@greatquest.com
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