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Sabanilla, Atlantico - Colombia

January 2012
Magnetite Mining and Processing
Project
Disclosure

This presentation is intended for the
use of the individual or entity to which
it is addressed and may contain
information that is confidential or
privileged under law.

Horeb Mining Concession
Overview
The concession owned by
Invervalores America S.A is in a
privileged strategic position along
Colombias northern Caribbean
coast, enabling it to serve both
international markets by sea and
domestic markets via the Magdalena
River (principal river of Colombia).
This area has exceptional access to
the major port and airport of
Barranquilla, excellent infrastructure
of roads, utilities coverage and
access to industrial facilities.

The concession is just 15 minutes
from Barranquilla on the Via al Mar
(Way to the Sea), Colombia's fourth
most populous city and one hour
drive from Cartagena. Cartagena is
a world famous beach resort and
designated a UNESCO World
Heritage Site.

Colombias Caribbean coast
depicted a 52% increase in arrivals
of cruises in 2011 and has become
an important destination for tourists
from all over the world. This clearly
shows the safety of the area.

Safety, Location, Potential!











HOREB MINING CONCESSION INFORMATION
Mining Registry HDL-08091-X
Concession Validity
Contracted for 30 years from October 30,
2008 respectively

Concession Area

HDL-08091X 26.48km2
Total Area: 2.648.5Ha

Use
Exploration and exploitation of iron
(magnetite), titanium (titanium dioxide)
and other grantable minerals
Previous Investment USD 1.8 million/7 years



Reserves
The calculation of proved reserves is
based on sampling analyzed by
Colombian Mining Company in
November 2008 and SGS Colombia in
March 2005. Sediments in this terrain
have a natural restoration process
throughout the area.
Depth
in meter
Area
in SQ meter
Density
ton/m3
Reserves
In MT
Exploitable
reserves
3 26648.000 2.70 215848.800 PROVE
10 26648.000 2.70 719496.000 PROVABLE
30 26648.000 2.70 2,158488.000 POSSIBLE
caCa
Horeb Mining
Concession
Magdalena
River
Port of
Barranquilla
Caribbean
Sea
DIMAR (Maritime Directorate) Quarantine Zone for Cargo
Ships
Military
Base
Ernestos Cortissoz International
Airport
Barranquill
a
Horeb Mining Concession
Location
Long shore drift from the Mouth of
the Magdalena River
Horeb License
Reserves test at 3 meters
done by CMC associates
of Vector Australia with
the guidance of
engineers from
Australian company,
JORC (Joint Ore
Reserves Committee)
Exploration Works
Magnetic Survey
Bathymetry profile
Sampling/ Assays
- Preliminary Results
- Elementary Analysis
- Magnetic Separation and X-
Ray Diffraction analysis
- Scanning Electron Microscopy
Analysis
Metallurgical Analysis
Magnetic Survey
Performed by AngloGold Ashanti Colombia
Type of survey: Aero-transported
Equipment used
- Aircraft: Bell 206
- Magnetometer: Geometrics G823 cesium vapor
with
sensibility of 0.001 nT
- GPS: MID-TECH R400P
- Information processing: OASIS montaj v7.0
Total length: 1850 km with 200 mts distance
between flight lines of the grid
Total Cost of the Magnetic survey: USD$500,000
Magnetic Survey Design
*Surveyed and Processed by AngloGold Ashanti













Horeb Concession - Magnetic Survey
Results
Barranquilla
Bathymetry
Sampling
The sampling program was performed by Andrew
Storrie, a Mining Engineer with over 20 years of
experience in the resource sector and Rudi
Smithwick, Senior Project Geologist with over 20
years of experience in the resource sector
specialized in Joint Ore Reserve Committee JORC.
Sediment samples were collected throughout the
project area from beach scarps and over wash zones
in the preliminary Feasibility Analysis phase of the
project.
Seven License Areas were targeted due to the visual
abundance of heavy minerals deposits noted on the
beach faces of these License Areas.
A grid was established to determine the location and
the number of samples to be collected. More than
250 samples were taken from the surface down to
three meters depth using different methods: hand,
vibracore and ponargrab.
Total investment of USD$500,000 in the sampling
program

Sampling Results

Oxide Analysis Sample
FeO (%) 19,39
Tio2 (%) 15,52
Fe2O3(%) 40,75
Mineralogical Analysis Sample
Magnetite (%) 67
Ilmenite (%) 6,4
Magnetite + Ilmenite (%) 26,6

Metallurgical Analysis
Metallurgical Analysis Results
Mineral Testing
Atomic absorption testing conducted by SGS on
March 8, 2005 for the Horeb concession.
Results were:
Fe
2
O
3
81.31%
TiO
2
8.98
Mineral Analysis
594 821 596 599
SAMPLE Al2O3 K2O MnO Na2O
DESCRIPTION % % % %
M-CLM-1 1,47 0,31 0,28 0,31
597 540 2855 2501
SAMPLE P2O5 TOTAL Ba Ce
DESCRIPTION % % ppm Ppm
M-CLM-1 0,21 96,91 11,5 175,5
2859 2861 2842 2506
SAMPLE Co Ga Hf Ho
DESCRIPTION ppm ppm ppm Ppm
M-CLM-1 10 7 84 1,2
2507 2862 2864 2511
SAMPLE La Pb Rb Sm
DESCRIPTION ppm ppm ppm Ppm
M-CLM-1 84 <5 1,6 11,6
2870 2869 2549 2872
SAMPLE Sn Tl U V
DESCRIPTION ppm ppm ppm Ppm
M-CLM-1 3 <0.5 7 215
2871 2531
SAMPLE W ZrO2
DESCRIPTION ppm ppm
M-CLM-1 <1 4690 38,5 5,5 105 3470
ppm ppm Ppm Ppm
Y Yb Zn Zr
2873 2514 2874 2875
ppm
10,3 2 1,2 39 0,7
ppm ppm Ppm Ppm
2513
Sr Ta Tb Th Tm
2867 2868 2512 2550
19,5 1 14 71 5
Pr
ppm ppm Ppm Ppm ppm
Lu Nb Nd Ni
2508 2844 2509 2863 2510
ppm
15 6,7 3,8 0,7 9,7
ppm ppm Ppm Ppm
2505
Cu Dy Er Eu Gd
2860 2502 2503 2504
<1 4,64 <0.01 15 -1,79
Ag
% % % % Ppm
SiO2 SrO TiO2 LOI
592 8590 595 475 2865
%
<0.01 0,77 <0.01 75 0,71
% % % %
593
BaO CaO Cr2O3 Fe2O3 MgO
542 588 590 586
CERTIFICATE COMMENTS : "ATTN: DANIEL SARMIENTO/JOHN FLREZ LOREZ
PROJECT : " "
DATE RECEIVED : 08-OCT-2001
# of SAMPLES : 1
CLIENT: "COLMINERAL LTDA.
INVERVALORES AMERICA S.A.
A0126418 CERTIFIED

Atomic absorption and chemical testing
conducted by ALS Chemical on October 8,
2001 for the Horeb concession.

Results were:
Fe
2
O
3
75%
TiO
2
15%





* The mineral elements qualities have been
determined by laboratory tests made by the
international firms SGS and ALS SHEM.
Competitive Advantage

Lower Cost Basis
- This project operating in inland waters has many advantages: the charge could be
made directly to ships
at sea, without using ground transportation over long distances or ports, since the
operating area is
adjacent to the quarantine zone in the Port of Barranquilla
- Lower costs compared to inland concessions as extraction, production,
transportation and cargo can all
be done in the sea

Quality
- Quality of minerals allows for a higher quality of iron and steel in comparison to
using scrap metal for
processing

Lower Shipping Costs
- Shipping from Port of Barranquilla is more price competitive with respect to the
following markets:

China: via Panama Canal, closer than Brazil and Africa
Japan: via Panama Canal, closer than Brazil and Africa
S. Korea: via Panama Canal, closer than Brazil and Africa
US: via Gulf of Mexico, closer than Brazil, Africa and Australia
Germany: via Atlantic, closer than Australia and South Africa

Mineral Replenishment
- Given the off-shore location of the minerals, as they are extracted from the seabed,
the natural currents
from the Gulf of Mexico heading towards the Colombian coastline will replenish some
of these extracted
minerals. A control plan will be utilized to ensure optimization of mineral content in
extraction zones

Concession Highlights
Location
- Perfect to serve international/national markets
- Safe place (next to major city, tourist sites, international airport, main port and military base) -
all within a 45
minute drive
- Simple logistics
- Ability to extract, process and load cargo in the open sea next to the mine
- Concession is adjacent to the Dimar quarantine zone for cargo ships and the beach is just 7
miles from quarantine zone
- Access to all public services
- Concession next to the mouth of the Magdalena River
- Rich in minerals
- Fast restoration process of extracted heavy minerals with all elements
Mine Characteristics
- Iron mining by sedimentation natural restoration process
- Prove reserves of 215848.800 MT of heavy minerals
- Iron dioxide of high quality
- Granulometry of 150-300 micras
- 52% magnetite without any process
Buyers
- Long list of buyers ready to buy production of magnetite and future iron ore production
- Clients willing to issue Irrevocable Corporate Purchase Orders (ICPO) once mine starts
production
- High interest shown by buyers from China, Korea, USA and Germany



Short Term Work Plan
Exploitation of the Black Sands
Divided in four stages:
1. Permit process of the environmental license
Update and adjust the Environmental Management
Plan (EMP), to obtain the environmental license from
the Ministry. The project has received approval from
the Maritime Directorate (DIMAR), an entity that has
jurisdiction and control over maritime areas.
Update and adjust the mining Works and
Infrastructure Program (WIP). In order to start the
mines operation immediately, the only requirement its
to announce INGEOMINAS (The Colombian Institute
of Geology and Mining) that the operational phase of
the concession contract begins, by the processing of
the legal terms of reference.
*The average time to obtain the environmental
license is 60 days.

2. Assembly and mining - (Simultaneously with the
previous stage)
Assess and hire the mining operation. Our company
has maintained contacts with international companies
specialized in dredging, which we suggested as
carriers for outsourcing, these are the Dutch
companies:
Royal Boskalis Westminster N.V
(www.boskalis.com)
Van Oord (www.vanoord.com)
DOWNER EDI MINING www.mineraltechnologies.com.au


Royal Boskalis Westminster
N.V
Short Term Work Plan
3. Development of infrastructure
Identify and acquire land to
build silos and future plant
(approx. 60 hectares).
Licensing of construction and
operation. Manage the
adjustment of Land
Management Plan (LMP).
Development of basic civil
works.

4. Sales of black sands
Sales of heavy minerals with all
its elements containing high
quality magnetite with a
concentration between 58%
and 62% of iron ore (No
separation of different
minerals).







Short Term Projections



0 - 6
months
7-12
month
12 -24
month
Environmental permit, hire international
dredging company, develop infrastructure
Drag, process and sell 50,000 tons/month of
heavy minerals with magnetite of 58% to
62% concentration of iron ore
Drag, process and sell 100,000 tons/month
of heavy minerals with magnetite of 58% to
62% concentration of iron ore
Future Plans
1. Construction of plant to enable the separation of the
different elements from the black sands and produce
iron ore with a concentration of 65% to 70%. Expected
to be constructed in a 24 month period.
The projected production during the first two years is
300,000 tons/month of Fe (65% to 70%) and 20,000
tons/month of TiO2 (90% to 96%); the third year the
production is increased to 500,000 tons/month of Fe
and 35,000 of TiO2 and in the sixth year reach
1'000.000 tons/month of Fe and 70,000 tons/month
of TiO2. In addition to other elements in the sand
like zirconium, monazite and gold.
Fe with 65% to 70% concentration is around
USD$180/ton
TiO2 with 90% to 96% concentration is around
USD$500/ton.

2. Optional - Construction of steel mill for processing
iron ore and steel production using a small modular
steel electric arc furnace (start production in 6
months).
The price of processed iron is more than 4 times that
of the bulk
Produce iron of first merger of 97% to 98% purity
and steels with different characteristics. As a
byproduct of this process, titanium slag with purity of
90% or more is obtained, which is marketed crushed
and ground, at high prices.
*For the design, manufacture, assembly and
operation of the mill, Invervalores has contacted
Downer EDI Mining, (Australia), Eriez (Mexico) and
Eral (Spain) because of their extensive international
experience, particularly in environmental
management.

Thank you