Ensurge, Inc. (OTCBB: ESGI; Twitter: $ESGI)


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Ensurge, Inc. (OTCBB: ESGI; Twitter: $ESGI) is a U.S. based resource company focused on developing gold properties in southwestern Brazil. This is a geographic area where crude techniques have historically been employed in traditional gold mining operations. Ensurge first obtains contractual agreements with owners of tailings at existing or abandoned mines to re-process the tailings. The company will then construct gold recovery plants applying both modern technology and capital to extract the gold. Initial projects are located in the Cuiaba Gold Belt region between Cuiaba and Pocone in the State of Mato Grosso.

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Ensurge, Inc. (OTCBB: ESGI; Twitter: $ESGI)

  1. 1. Ensurge, Inc. March 2011 Investor Presentation ESGI.OB
  2. 2. Forward Looking StatementsCertain of the statements in this presentation constitute Forward-LookingStatements within the meaning of the Private Securities Litigation Reform Act of1995. These forward-looking statements contain projections of Ensurge future resultsof operations, financial position or state other forward-looking information. In somecases you can identify these statements by forward-looking words such as anticipate, believe, could, estimate, expect, intend, may, should, will, and would or similar words. You should not rely on forward-lookingstatements because Ensurge actual results may differ materially from those indicatedby these forward-looking statements as a result of a number of important factors.These factors include, but are not limited to: general economic and businessconditions; our business strategy for expanding our presence in our industry;anticipated trends in our financial condition and results of operation; the impact ofcompetition sand technology change; existing and future regulations effecting ourbusiness, and other risks and uncertainties discussed under the heading Descriptionof Business - Risk Factors in Ensurge reports as the company files with theSecurities and Exchange Commission from time to time. Ensurge does not intend toand undertakes no duty to update the information contained in this presentation. 2
  3. 3. Ensurge Overview•  Gold recovery company focusing on re-processing tailings in Brazil•  Apply modern technology and capital to gold resources•  Low risk strategy: –  eliminates exploration risk –  shortens time from investment to cash flow –  reduces cost to produce gold (mining and crushing already done by others)•  Attractive production economics•  Ample supply of gold tailings allows for years of growth 3
  4. 4. Key Facts and Stock Data•  U.S. based company operating in Brazil•  Stock Symbol: ESGI.OB•  Price 3/15/11: $2.00•  Shares Outstanding: 29.63 million•  Market Capitalization: $59 million•  Insider Ownership: 10% 4
  5. 5. Recent Developments•  In 2010: –  new CEO –  redefined strategy to focus on gold re- processing in Brazil –  raised $2.3 million to fund current operations•  Initiated first four gold recovery projects•  Four additional projects in initial discussion phase 5
  6. 6. Why Brazil?•  Excellent geological environment for gold –  Significant historic production –  Large, fragmented industry of small, independent miners (garimpeiros) –  Garimpeiros typically lack access to capital and technology•  Under-explored and under-developed with respect to mining•  Indigenous sources of geologic and metallurgical support, as well as mining/processing equipment•  Friendly to foreign investment in mining•  Significant tax advantages for mining/processing in remote, rural areas 6
  7. 7. Target Area: Mato Grosso, Brazil•  Mato Grosso, in the southwest region, is an historic gold mining region•  Cuiaba Gold Belt, 150 km between Cuiaba and Pocone with hundreds of garimpeiro operations and an estimated 300 million tons of tailings 7
  8. 8. Operating Strategy•  Obtain contractual agreements in Brazil with owners of existing or abandoned mines to recover gold from tailings•  Absorb costs of assessing gold content and conducting recovery feasibility studies•  Construct modular and portable gold recovery plants at an estimated capital cost of $13 million each---positive cash flow within first year of operation•  Apply modern processing techniques to recover the estimated 50% of gold that has been discharged to tailings•  Estimated production costs (including capital costs) of $375-450/oz. gold•  A 5,000 ton per day plant operating at capacity estimated to generate $18 million revenue/$7 million net income/$9.5 million cash flow annually to Ensurge 8
  9. 9. Campos Project•  MINERAÇÃO NOVA ESPERANÇA (MNE) –  Pocone, Mato Grosso, Brazil –  Active mining underway at Tuiuiu –  Estimated Current Gold Recovery – 45%•  ESGI will construct/own/operate a Tailings Gold Recovery Plant (TGRP) •  pay for all geological assessment, process engineering and design and all capital costs ($13 million) •  retain 50% of net income from TGRP •  estimated annual gold production 15,000 ounces •  estimated annual net income to ESGI $7 million ($9.5 million cash flow) 9
  10. 10. Mining at Tuiuiu (MNE) 10
  11. 11. Partial View of Existing Processing Mill 11
  12. 12. Rodui Project•  Pay for all geological assessment, process engineering and design and all capital costs ($13 million)•  Retain 50% of net income from TGRP•  Estimated annual gold production 15,000 ounces•  Estimated annual net income to ESGI $7 million ($9.5 million cash flow) 12
  13. 13. Nascimento/Salinas Project•  Pay for all geological assessment, process engineering and design and all capital costs ($13 million)•  Acquire rights to process tailings, retain 100% of net income•  Estimated annual gold production of 16,000 ounces•  Estimated annual net income to ESGI $11.5 million ($14 million cash flow) 13
  14. 14. Key Managers•  Jordan Estra, President & CEO –  Wall Street Analyst & Investment Banker (1986-2010) •  Merrill Lynch, UBS, Deutsche Bank, Oppenheimer –  Completed $10 Billion of financing for metals & mining companies, globally –  VP Corp. Development AMAX, Inc. (1971-1985) –  Completed numerous acquisitions while at AMAX, put AMAX into gold mining•  Jeff Hanks, CFO –  Significant CFO and operational experience in small cap high growth companies –  12+ years experience with publicly traded companies –  Deloitte & Touche (1991-1996), 18 years as a Certified Public Accountant•  Janio Quadros Neto –  Brazilian Representative, University of London –  Staff positions with several Brazilian Senators and Congressmen•  Michael Quadros Mulcahy –  Director of Business Development in Brazil, Cambridge University UK –  Consultant to AT&T, IBM, Microsoft, BASF, entities in Brazil 14
  15. 15. Key Professional Advisors•  Technical –  Amazon GeoServices, Ltd. Belo Horizonte (geology & mining) –  MQes, Inc. San Francisco (process metallurgy)•  Legal –  Randall K. Edwards, PLLC (Salt Lake City) –  Victor Schwarz (SEC Counsel) –  Gaia Silva Gaeda & Associados (Sao Paulo, Brazil) 15
  16. 16. Summary & Outlook•  Identified an attractive niche gold development opportunity in Brazil•  Low risk strategy and favorable economics•  Expect to raise up to $45 million in 2011 to fund construction of three gold recovery plants•  Gold production and cash flow estimated to begin in 2012•  Plan to add 3-5 new projects annually for the next several years•  Grow while minimizing shareholder dilution—balance equity/debt financing•  Longer term, plan to list shares on the NYSE-AMEX, TSX and Bovespa 16
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