Successfully investing in Copper Mining & Smelting in Namibia - A Case History

1. Namibian International Investment Conference Rod Webster, CEO 1st November 2007 Successfully investing in Copper Mining & Smelting in Namibia - A Case History

2. Introduction • Background to Weatherly’s involvement in Namibia • The Turnaround • Weatherly International Today • Future Prospects • Conclusion: Fundamentals of a successful partnership

3. Ongopolo Status 2006 • 1 mine (Otjihase) operating @ 200t Cu per month • No cash with 1,000 employees awaiting pay • Company insolvent with outstanding debts of N$540 million • Virtually no available mine reserves • Unsafe work conditions, poor management and work practices • Ongoing capital requirements est. at N$200 million

4. The Choices faced by the GRN • Allow the company to go into liquidation • Not an option because of the financial and social consequences • Continue to fund the company • Not an option as company already beyond sustainable debt levels • Bring in a new investor. Weatherly’s proposal was the only viable solution delivering: • New Management • New equity to re-capitalize company • Extinguishment of existing debt • Platform for future growth

5. The Weatherly Proposal 1. Interim Funding ($N40 million) to be provided 2. Weatherly to assume interim management 3. Weatherly to subscribe for new shares to acquire 50% for US$20m 4. Conversion of Debt to Equity whereby creditors acquire 47% in Weatherly shares 5. GRN to extend existing guarantees to cover the difference in value between Weatherly shares and original guaranteed debt 6. Payment of trade creditors in full over time. 7. All outstanding taxes to be paid in full

6. Delivering on Undertakings Since taking over interim management in April 2006, Weatherly has: • Invested N$140m in new equity • Invested a further N$95m through parent loans In addition Weatherly has met its obligations resulting from previous management defaults namely: • Paid GRN N$35m in back taxes • Reduced GRN’s environmental liability by approx. N$50m • Paid trade creditors N$40m in old debts • Paid employee Pension Fund N$4m in back payments Weatherly remains a cornerstone for important parastatals such as: • Nampower, Namport, Transnamib & Namwater

7. Weatherly Today • Profitable copper producer • Weatherly Mining Namibia • 5 mines & 3 concentrators in production • Resource base underpinning sustainedoperations • Set to deliver 20,000 tonnes in 2008 • Namibia Custom Smelters • Operating furnace rebuilt in 2006 • Second furnace expansion 30% complete • New growth prospects

8. B A Future Prospects Tschudi Open Pit Berg Aukas Zinc Mine • Resource base 43Mt @ 0.8%Cu, 15g/t Ag • First production targeted 2009/2010 • Targeting production 7,000tpa Cu • Infill drill to JORC by mid-2008 • Complete feasibility study in 2008 • Historic reserves 1.7Mt @ 17%Zn, 5.0%Pb, 0.6% V2O5 • Forecast mine life >5 years • First production targeted 2010 • Complete feasibility study in 2008

9. Major regional smelter, 1 of 4 operating copper smelters in Africa Strategically located Road corridor from DRC, Zambia & Botswana Proposed rail to southern Angola Smelting Opportunities Walvis Bay: • Rail from Tsumeb • Major Atlantic coast port • Ideal for access to Europe & N.American markets

10. Progress to date: A credible employee share scheme Training & Career development Payments based on productivity Flexible working arrangements Improving safety 114 new employees hired 123 new jobs created Increased workforce pay by approx. 25% Basic wage increased by 14% Productivity payments & allowances 11% 8% wage increase negotiated for 2007 - 2008 Committed to Our Employees

11. Investors Latest technology Best practice Risk capital Key People Government Good infrastructure Mining law Security of tenure Attractive fiscal regime Supportive government Flexible labour laws Power     Fundamentals of a Successful Partnership In a Globally Competitive Business     