BSC Resources on the Brink of Discovery? Slide 2 FORWARD LOOKING
STATEMENTS This presentation, contains certain forward-looking
statements ("statements"). All statements, other than statements of
historical fact, that address activities, events or developments
that BSC Resources (Pty) Ltd (BSC or the Company) believes, expects
or anticipates will or may occur in the future (including, without
limitation, statements regarding mineral resources, potential
mineral deposits, potential mineralization, exploration results,
the Companys objective of identifying or confirming in the short
term significant National Instrument 43-101 (NI 43-101) compliant
mineral resources, and the Companys other exploration and
development plans and objectives) are forward-looking statements.
These forward-looking statements reflect the current expectations
or beliefs of BSC based on information currently available to BSC.
Forward- looking statements are subject to a number of significant
risks and uncertainties and other factors that may cause actual
results to differ materially from those discussed in the
forward-looking statements, and even if such actual results are
realized or substantially realized, there can be no assurance that
they will have the expected consequences to, or effects on, BSC.
Factors that could cause actual results or events to differ
materially from current expectations include, but are not limited
to, imprecision in the historical resource estimates, the
possibility that future exploration results will not be consistent
with the Companys expectations (such that any future mineral
resource estimates are materially less than the Companys
expectations),uncertainties relating to the availability and costs
of financing needed in the future, changes in commodity prices,
changes in equity and/or debt markets, risks arising from operating
in South Africa (including political developments in South Africa,
changes to regulations affecting the Companys activities, surface
rights, foreign currency fluctuations and delays in obtaining or
failures to obtain required regulatory approvals), the
uncertainties involved in interpreting exploration results and
other geological data, volatility of and sensitivity to market
prices for copper, nickel and/or PGMs (market or otherwise),
exploration costs varying significantly from estimates, delays in
the exploration and development of the project, inability or delays
in procuring the required capital equipment and/or operating parts
and supplies, equipment failure, unexpected geological conditions,
success of future exploration and development initiatives,
environmental and safety risks including increased regulatory
burdens, seismic activity, weather and other natural phenomena,
changes in government regulations and policies, including tax and
trade laws and policies, risks relating to labour, and other
exploration, development and operating risks involved in the
mineral exploration and development industry. Any forward-looking
statement speaks only as of the date on which it is made and,
except as may be required by applicable securities laws, BSC
disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or
results or otherwise. Although BSC believes that the assumptions
inherent in the forward-looking statements are reasonable,
forward-looking statements are not guarantees of future performance
and accordingly undue reliance should not be put on such statements
due to the inherent uncertainty therein. Historical resource
figures included in this presentation are estimates based on
historic reported data completed by Falconbridge at the Insizwa
Complex, who explored the area and which results pre-date the
guidelines stipulated by NI 43-101. These historical estimates are
referred to only to indicate the results of past exploration on the
Insizwa Project and are relevant to the extent that they indicate
the presence of a nickel sulphide mineralization and the
approximate size of the target for future exploration These
historical estimates are not compliant with NI 43-101 and therefore
should not be relied upon. The Company has not done any work to
classify the historical estimate as a current mineral resource as
defined in section 1.2 of NI 43-101 and are not treating it as
such. No assurances can be given that the indicated amount of
copper, nickel and/or PGMs will be proven or produced. Estimates
made at a given time may significantly change when new information
becomes available, including as a result of future exploration
activity. Resource estimates are imprecise and depend, to a certain
extent, upon statistical inferences which may ultimately prove
unreliable. If the resource estimates are inaccurate or are reduced
in the future, this could have a material adverse impact on BSC.
Any future mineral resource estimates for the Insizwa Ni-Sulphide
Project may be materially different than the historical estimates
referred to in this presentation. The geological and related
technical information in this presentation was prepared under the
supervision of Dave Dodd P.Geo Geo, the Chief Geologist of the
Company. The information contained in this presentation has been
prepared by BSC and is being presented for informational purposes.
This presentation has not been independently verified and the
information contained within is subject to updating, completion,
revision, verification and further amendment. BSC On the Brink of
Discovery? Slide 3 This presentation does not purport to contain
all information that a prospective investor may require. While the
information contained herein has been prepared in good faith,
neither the Company nor its shareholders, directors, officers,
agents, employees, or advisors give, has given or has authority to
give, any representations or warranties (express or implied) as to,
or in relation to, the accuracy, reliability or completeness of the
information in this presentation, or any revision thereof, or of
any other written or oral information made or to be made available
to any interested party or its advisers (all such information being
referred to as Information) and liability therefore is expressly
disclaimed. Accordingly, neither the Company nor any of its
shareholders, directors, officers, agents, employees or advisers
take any responsibility for, or will accept any liability whether
direct or indirect, express or implied, contractual, tortuous,
statutory or otherwise, in respect of the accuracy or completeness
of the Information or for any of the opinions contained herein or
for any errors, omissions or misstatements or for any loss,
howsoever arising from this presentation. In furnishing this
presentation, the Company does not undertake or agree to any
obligation to provide you with access to any additional information
or to update this presentation or to correct any inaccuracies in,
or omissions from, this presentation which may become apparent.
Information contained in this presentation is confidential
information and the property of the Company. It is made available
strictly for the purposes referred to above. This presentation and
any further confidential information made available to any
recipient must be held in complete confidence and documents
containing such information may not be reproduced, used or
disclosed without the prior written consent of the Company. This
presentation shall not be copied, published, reproduced or
distributed in whole or in part at any time without the prior
written consent of the Company. By accepting delivery of this
presentation, the recipient agrees to return it to the Company at
the request of the Company. This presentation should not be
considered as the giving of investment advice by the Company or any
of its shareholders, directors, officers, agents, employees or
advisors. Each party to whom this presentation is made available
must make its own independent assessment of the Company after
making such investigations and taking such advice as may be deemed
necessary. In particular, any estimates or projections or opinions
contained herein necessarily involve significant elements of
subjective judgment, analysis and assumption and each party should
satisfy itself in relation to such matters. Neither the issue of
this presentation nor any part of its contents is to be taken as
any form of commitment on the part of the Company to proceed with
any transaction and the right is reserved to terminate any
discussions or negotiations with any prospective investors. In no
circumstances will the Company be responsible for any costs, losses
or expenses incurred in connection with any appraisal or
investigation of the Company. This presentation does not
constitute, or form part of, any offer or invitation to sell or
issue, or any solicitation of any offer to subscribe for or
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of its distribution, form the basis of, or be relied upon in
connection with, or act as any inducement to enter into, any
contract or commitment whatsoever with respect to such securities.
The delivery or distribution of this presentation to persons in
certain jurisdictions may be restricted by law and persons into
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about, and observe, any such restrictions. Any failure to comply
with these restrictions may constitute a violation of the laws of
the relevant jurisdiction. In addition, other than to a limited
number of persons reasonably believed to be qualified institutional
buyers (as defined in Rule 144 144Aunder the U.S. Securities Act of
1933, as amended) or accredited investors (as defined in National
Instrument 45-106 of the Canadian Securities Administrators),
neither this presentation nor any copy of it may be taken or
transmitted into the United States of America or Canada or
distributed directly or indirectly, in the United States of America
or Canada, or to any resident thereof except in compliance with the
applicable securities laws. Any failure to comply with these
restrictions may constitute a violation of applicable U.S. or
Canadian securities laws. By viewing this presentation, you
represent and warrant that you are a person to whom this
presentation may be made without a violation of the laws of any
relevant jurisdiction. This presentation is not to be disclosed to
any other person or used for any other purpose and any other person
who views this presentation should not rely or act upon it. BSC On
the Brink of Discovery? Slide 4 South Africas Junior Mining
Landscape Mineral and Petroleum Resources Development Act (MPRDA)
came into force in May 2004 with the following consequences: Use it
or lose it principle unlocked non-strategic assets by majors.
Interest in Exploration by foreign juniors. First time
participation of Black South Africans in the ownership and
development of the mineral resources of South Africa. Slide 5 The
Creation of BSC Resources Ltd Incorporated in November 2005.
Granted prospecting rights of 39000ha within 6 months (Currently
have 77 000ha at the Insizwa project). Raised ZAR18.2m (South
Africa, Canada, USA). Granted prospecting permit for historic
Musina Copper Dumps and Oxide caps (September 2007). Completed
Scoping study on the Musina Copper Dumps and Oxide Caps (January
2008). Raised ZAR 16m (South Africa, Canada and USA) February 2008.
Completed a competent persons report on the Insizwa Nickel Project
(October 2008). Granted exploration permits on 8 farms in the
Northern Natal (KZN) coalfields (October/November 2008). Entered
into a joint venture agreement with Vale to further explore the
Insizwa Nickel Project, where 20 million USD will be spent on
exploration (including option payments of US $1.65 million to be
paid over a five year period). Slide 6 Strategic Overview Hands on
Management Team. Focusing on acquiring and developing brownfields
projects. Currently building a substantial coal portfolio in the
Natal region, close to the Richards Bay port. Capitalise on 2009
MPRDA deadline (Use it or Lose it) to partner with majors. Slide 7
Medium Term Strategy Aggressively seek out new projects either at
scoping study stage or pre-BFS and use these projects as our going
public projects BSC to break-even on a monthly basis by charging
fees to our JV partners for work being done at our various
projects. Continue to increase our land package at our Musina
Copper project and target an inferred resource of 14 million tons @
1.2% copper by October 2011. Strengthen our board and management
teams as we prepare to list the company by year end. Slide 8 Our
Point of Difference Our Ability to acquire, explore and develop
mining projects in Southern Africa. Our Ability to raise the
necessary finance in South Africa and North America. Our
Managements Ability to successfully convert projects. Our
comprehensive geological database. Slide 9 Musina Copper Project
Burgersfort Nickel Project Insizwa Nickel Project KZN Coal Project
Project Localities Slide 10 Insizwa Ni-Cu-PGE project High quality
magnetotelluric anomalies to follow-up with ground geophysics and
later to drill test. Drilling estimated to start in September 2011.
Burgersfort Disseminated visible Ni-sulphides intersected
sporadically over ~20 m, ~ 110 m (finely disseminated) and 80 m in
three boreholes. Assay results are pending and further drilling is
ongoing. KZN Coal Potentially large tonnage, high quality coal
resources have been estimated from historic data. The validation of
the historic data with new drilling is planned to start this month
(March, 2011). Mussina Modeling of historic data shows potential to
discover substantial Cu resources. Currently looking for a partner
to fund the drilling. Project Generation Actively looking to
acquire new projects in SA and neighbouring countries. BSC Projects
Slide 11 Burgersfort Project BSC/Pangea Partnership Slide 12
Burgersfort Ni-Cu-PGE Project Geology Map Target modelled on the
Nkomati Ni mine A B Burgersfort Ni-Cu-PGE Project Locality Nkomati
Ni- Cu-PGE Mine Burgersfort Project Genetic Similarities to Nkomati
Ni Mine Slide 13 Burgersfort - Projects History MD12 intersected
1.23% Ni over 7.63m at ~173m and MD12 C (deflection) 0.76% over 10m
as well as 0.5% Ni over 50 m. Slide 14 Burgersfort Target Resource
Talvivaara Ni Deposit in Finland (Owned by Talvivaara Mining
Company) ~1Billion tonnes (measured and indicated) at a cut-off of
0.07% Ni with an average grade of 0.22% Ni (also has Zn and Co
credits). Turnagain Ni Deposit in Canada (Owned by Hard Creek
Nickel Corporation) ~1.1 Billion tonnes (measured, indicated and
inferred) at a cut-off of 0.1% Ni and an average grade of ~0.2% Ni
(also has Co credits). LOM is 24.4 years with an NPV of US $ 715
million (at a discount of 8%) and an IRR of 10.7%. 55% Ni Recovery
from the Mill and 96 % Refinery Recovery. Burgersfort Ni Project
(BSC/Pangea Joint Venture) Assay results pending, handheld
spectrometer shows values of 0.3 to 0.5% Ni where no sulphides are
visible and up to 3.5 % Ni directly over sulphide blebs. (Historic
reports refer to PGEs no assay values given) Ni Deportment Study
shows a potential for high recoveries as sulphides consist almost
entirely of pentlandite. Slide 15 Burgersfort - Work Programme/
Infrastructure Tarred Road Railway line Permit Boundaries in Red
Area of VTEM Study R7.5 Million Work Programme involving VTEM,
ground IP, Ni Deportment Study and drilling Slide 16 AP-03 shows
significant sporadic mineralisation between 29.21-51.85 m (over
~20m). AP-04 Finely sporadic disseminated sulphides from 80 198 m
(over 110 m) Burgersfort Borehole Interceptions AP-05 and holes in
the south show no significant visible sulphides AP-06 shows
sporadic disseminated sulphides from 33 to 112 m (currently still
drilling) and in mineralisation) AP-05Broadly spaced, finely
disseminated sulphides from 0 220 m Slide 17 Burgersfort Core
Photos Slide 18 Mineralised Intersections In other large, low grade
Ni resources the sulphides are not always visible. At Burgersfort
three boreholes have intersected visible sulphides with grades
comparable or better than Talvivaara and Turn Again. There is
sufficient area at Burgersfort to obtain a similar tonnage of about
1 billion tonnes. The true grade, percentage Ni recoverable and
extent of the mineralisation will be confirmed as the programme
proceeds to confirm its economic viability. Burgersfort Target
Resource Slide 19 Insizwa Ni-Cu-PGE Project BSC/Vale Partnership
Target Massive Sulphide at base of Insizwa Mountains. Has 10km
strike of sulphide showings along exposed prospective horizon. High
tenor sulphides up to ~12% Ni Slide 20 Deep seated massive sulphide
accumulation expected to be close to mouth of feeder dyke Theory is
that sulphides formed at depth and have been brought up with the
magma APPROXIMATELY 7 KM Insizwa Project Conceptual Targets
Theoretical Cross-Section ~ 5 km View looking west at the Insizwa
Lobe showing approximate position of the mineralised footwall
contact in red Slide 21 Ground Geophysics Complete and High Quality
Conductors have been Identified which will be drill tested after
further Ground Geophysics. Slide 22 MT Lines Overlying Insizwa DTM
Slide 23 Musina Cu Project Slide 24 Musina Geology, Boreholes and
Soil Geochem Historic mining took place here between 1905 and 1993
(about 100 years) extracting 750 000t of Cu but ended with
resources still left in the ground Slide 25 Musina Soil Geochem 15
km of largely mineralised strike extent. Extensive dataset of
historic borehole, assay, soil geochem and geological mapping.
Untested soil anomalies and mineralised intersections warranting
follow-up work. Oxides were not previously mined and many of the
sulphide bodies are left un-mined. Mollytoo represents a target
with a modelled resource showing potential for between ~13 and 43.5
million tonnes. Slide 26 Musina Datamine Modelling Completed to
Date Slide 27 H8 H7 H6 H5 H4 BH. 0-306. 330-335.5m 4.5m(TW)@2.7%Cu
BH. 0-306. 419-446m 15.3m (TW) @3.23%Cu H5 H4 BH.0-313.104-112m
[email protected]%Cu H7 H6 H5 H4 H5 BH.NCH3. 101-120m [email protected]%Cu
MOLLYSHAFT 4 LEVEL 6 LEVEL- 180n -600m EXTRAPOLATION BASED ON
ARTONVILLA MINE MODEL Modelled Sulphide Lenses and Selected Cu
Interceptions Slide 28 NORTH DOWE TOKWE WRENCH FAULT DOWE-TOKWE
WRENCH FAULT -600m VD H1 H2 H3 H4 H5 H6 H7 H8 -600m VERT DEPTH
SURFACE ALTERATION Oblique View of Modelled Sulphide Lenses Slide
29 Levels of Confidence in Modelled Data Red = Borehole
Interception Pink = Known Mineralisation from underground
Development (not yet mined out) Blue = Possible Extent of
Prospective Horizon Slide 30 PRIORITY AREAS EXTRAPOLATED FROM
HISTORICAL BOREHOLE ASSAYS MINERALIZED HOST ROCK DEFINED FROM BH
INTERSECTIONS UNDERGROUND DEVELOPMENT, SURFACE TRENCHING AND
GEOLOGICAL MAPPING UNEXPLORED HOST ROCK EXTENSIONS H1 H2 H3 L4 H4
H5 H6 H7 H8 CONTOURS EVERY 20m MINED OUT Slide 31 LENS NUMBER
PROJECTED VERTICAL DEPTH (m) VOLUME m DENSITYTONS RED,PINK BLUE
TONS MINERALIZED RED & PINK TONS RED
H1300899,1752.652,393,2341,574,839562,633
H2300147,3912.65394,552312,742214,137 H3600282,8512.7771,983
455,629 H46005,081,8132.713,725,4909,659,2874,472,297
H56005,645,5642.715,281,06810,991,9576,543,353
H63002,679,4612.77,185,4343,526,3281,096,075
H7300780,1912.72,078,409582,3756,555
H8300693,3672.651,846,233935,639475,754
TOTALS16,209,81643,676,40628,355,15213,826,434 Potential Tonnage to
be Explored Weighted Ave of 1.40% Cu with values ranging from 0.55%
Cu to 4.84% Cu over widths of 1.6 to 19 m (averaging 8.4 m) Slide
32 Musina Exploration Target Untested Substantial Soil Anomaly
Mollytoo Sulphides Modelled potential for ~13 to 43 million tonnes
plus untested areas of alteration around shaft 280 000 t Oxide Cap
Remaining Boreholes with mineralised intersections need further
follow-up drilling Other historic shafts with sulphides remaining
Slide 33 KZN Coal Projects BSC/Bright JV Slide 34 Application
Status Permits granted across all five of the KZN coalfields - Klip
River, Utrecht, Vryheid and Somkele Coalfields. 49 Mt potential on
Elandsberg All permits close to good infrastucture Slide 35 Large
Tonnage, Good Quality, Potential For JVs, Adjacent to historic
mining Elandsberg RDCVAshVolFix C 1.628 - 30 ~ 13 ~ 850 - 77 Mine
Name:Longridge Colliery Coal Type:Anthracite Method:Underground
(Board & Pillar) Seam:Dundas ProductCVAshVolFix CSulph
30.2412.310.974.90.83 3110.69.278.30.68 Pea31.110.510.976.60.81
grain31.79.711.277.30.71 Alfred14 000 000 Dundas35 000 000 Total
Tonnages49 000 000 Seam Thickness Alfred1m Seam Thickness Dundas2m
Slide 36 Conclusions/ Way Forward Strong, experienced technical,
financial and legal team able to identify, acquire, fund and
evaluate projects. Drill test extent of disseminated mineralisation
at Burgersfort. Validate historic coal borehole data. Validate
modelled Musina data and test strike extent of mineralisation (once
project is funded). Drill Test Insizwa Geophysical Targets. Acquire
additional projects
