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ROMARCO Corporate Presentation - May 2013

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  • 1. May 2013CORPORATE PRESENTATIONW W W . R O M A R C O . C O M
  • 2. WWW.ROMARCO.COMTSX:R2    The  informa-on  in  this  document  has  been  prepared  as  of  March  13,  2012.  Certain  statements  contained  in  this  document  cons-tute  “forward-­‐looking  statements”  within  the  meaning  of  the  United  States  Private  Securi-es  Li-ga-on  Reform  Act  of  1995  and  forward  looking  informa-on  under  the  provisions  of  Canadian  provincial  securi-es  laws.  When  used  in  this  document,  the  words  “an-cipate”,  “expect”,  “es-mate”,  “forecast”,  “will”,  “planned”,  and  similar  expressions  are  intended  to  iden-fy  forward-­‐looking  statements  or  informa-on.    Specifically,  this  presenta-on  contains  forward  looking  statements  regarding  the  results  and  projec-ons  contained  in  the  March  13,  2012  technical  report  of  the    Haile  Gold  project,  including  the  expected  mine  life,  recovery,  capital  costs,  cash  opera-ng  costs  and  other  costs  and  an-cipated  produc-on  of  the  described  open  pit  mine,  the  projected  internal  rate  of  return,  the  projected  payback  period,  the  availability  of  capital  for  development,  sensi-vity  to  metal  prices,  ore  grade,  the  reserve  and  resource  es-mates  on  the  project,  the  financial  analysis,  the  -ming  for  comple-on  of  the  revised  feasibility  study  on  the    Haile  Gold    project,    the  -ming  and  amount  of  future  produc-on,  the  -ming  of  construc-on  of  the  proposed  mine  and  process  facili-es,  capital  and  opera-ng  expenditures,  the  -ming  of  the  receipt    of  permits,  rights  and  authoriza-ons,  communica-ons  with  local  stakeholders  and  community  rela-ons,  availability  of  financing  and  any  and  all  other  -ming,  development,  opera-onal,  financial,  economic,  legal,  regulatory  and  poli-cal  factors  that  may  influence  future  events  or  condi-ons  and  expected  drilling  ac-vi-es.    In  addi-on,  this  presenta-on  also  contains  updated  resource  es-mates  contained  in  the  March  13,  2012  technical  reports.    Scien-fic  and  technical  informa-on  referred  herein  has  been  extracted  from  and  are  hereby  qualified  in  their  en-rety  by  reference  to  the  aforemen-oned  technical  reports  (“Technical  Reports”).    Joshua  Snider,  P.E.,  Thomas  L.  Drielick,  P.E.,  Lee  “Pat”  Gochnour,  M.M.S.A.,  John  Marek,  P.E.  and  Derek  Wiwer,  P.E.  are  responsible  for  preparing  the  Technical  Reports.    Each  of  the  above  referenced  persons  is  a  “qualified  person”  as  defined  in  Na-onal  Instrument  43-­‐101  —  Standards  of  Disclosure  for  Mineral  Projects.    Such  forward-­‐looking  statements  are  based  on  a  number  of  material  factors  and  assump-ons,  including,  but  not  limited  in  any  manner,  those  disclosed  in  any  another  of  Romarco’s  public  filings,  and  include  the  ul-mate  determina-on  of  mineral  reserves  and  resources,  availability  and  final  receipt  of  required  approvals,  licenses  and  permits,  sufficient  working  capital  to  develop  and  operate  the  proposed  mine,  access  to  adequate  services  and  supplies,  economic  condi-ons,  commodity  prices,  foreign  currency  exchange  rates,  interest  rates,  access  to  capital  and  debt  markets  and  associated  cost  of  funds,  availability  of  a  qualified  work  force,  lack  of  social  opposi-on  and  legal  challenges,  and  the  ul-mate  ability  to  mine,  process  and  sell  mineral  products  on  economically  favorable  terms.  While  Romarco  considers  these  assump-ons  to  be  reasonable  based  on  informa-on  currently  available  to  it,  they  may  prove  to  be  incorrect.  Actual  results  may  vary  from  such  forward-­‐looking  informa-on  for  a  variety  of  reasons,  including  but  not  limited  to  risks  and  uncertain-es  disclosed  in  other  Romarco  filings  at  www.sedar.com.  Forward-­‐looking  statements  are  based  upon  management’s  beliefs,  es-mate  and  opinions  on  the  date  the  statements  are  made  and,  other  than  as  required  by  law,  Romarco  does  not  intend,  and  undertakes  no  obliga-on  to  update  any  forward-­‐looking  informa-on  to  reflect,  among  other  things,  new  informa-on  or  future  events      Cau-onary  Note  to  United  States  Investors  Concerning  Es-mates  of  Measured,  Indicated  and  Inferred  Resources:  Certain  tables  may  use  the  terms  “Measured”,  “Indicated”  and  “Inferred”  Resources.  United  States  investors  are  advised  that  while  such  terms  are  recognized  and  required  by  Canadian  regula-ons,  however,  the  United  States  Securi-es  and  Exchange  Commission  does  not  recognize  them.  “Inferred  Mineral  Resources”  have  a  great  amount  of  uncertainty  as  to  their  existence,  and  as  to  their  economic  and  legal  feasibility.  It  cannot  be  assumed  that  all  or  any  part  of  an  Inferred  Mineral  Resource  will  ever  be  upgraded  to  a  higher  category.  Under  Canadian  rules,  es-mates  of  Inferred  Mineral  Resources  may  not  form  the  basis  of  feasibility  or  other  economic  studies.  United  States  investors  are  cau-oned  not  to  assume  that  all  or  any  part  of  Measured  or  Indicated  Mineral  Resources  will  ever  be  converted  into  Mineral  Reserves.  United  States  investors  are  also  cau-oned  not  to  assume  that  all  or  any  part  of  a  Mineral  Resource  is  economically  or  legally  mineable.    All  figures  are  US$  unless  otherwise  indicated      Cautionary Statement
  • 3. WWW.ROMARCO.COMTSX:RProven gold mine development, finance, permitting and operations experience Romarco has the team in place to bring Haile into production Experienced Board of Directors Strong Management &TechnicalTeamLeendert Krol, Chairman§  Former NewmontDiane R. Garrett§  Former Dayton Mining, US Global InvestorsJames R.Arnold§  Former Freeport, Gold Fields – Richards Award WinnerDon MacDonald§  CFO KGHM International (formerly QuadraFNX), formerNovaGold, DeBeers, Dayton MiningJohn Marsden§  Consultant, former Freeport – Richards Award WinnerPatrick Michaels§  Portfolio Manager – Zuri-invest, SwitzerlandGary A. Sugar§  Former RBC Capital MarketsRobert van Doorn§  Former Mundoro, Rio Narcea, Morgan StanleyDiane R. Garrett, Ph.D., President & CEO§  Former Dayton Mining, US Global InvestorsJames R.Arnold, Sr.VP, COO§  Former Freeport, Gold Fields – Richards Award WinnerStan Rideout, Sr.VP, CFO§  Former Phelps DodgeDavidThomas, VP, General ManagerJames Berry, Chief Geologist & Regional Exploration Manager§  Former BarrickBrent Anderson, Mine Manager§  Former Quadra, FreeportMike Gleason, Construction Manager§  Former FreeportJim Wickens, Process Manager§  Former BarrickJohnny Pappas, Director of Environmental Affairs§  Former FreeportRamona Schneider, Environmental Manager§  Former KinrossDan Symons, Vice President, Investor Relations§  Former Renmark FinancialSTRONG BOARD, MANAGEMENT& TECHNICAL TEAM3  
  • 4. WWW.ROMARCO.COMTSX:R4  Current Status –Haile Gold Mineu Currently in EIS Permitting processu 2012 detailed engineering goal met•  Over 75% completeu Continuous review of mine plan, alternatives, expansion studies,underground reviewu $46M in cash (at May 1, 2013)u Strong institutional supportu Permitted, built and accredited assay lab on schedule and underbudget
  • 5. WWW.ROMARCO.COMTSX:R5  Haile checks all the right boxesü Locationü Private Landü No royaltyü Low operating costü Low capital costü High gradeü World class orebodyü Operating team in placeü 76% detailed engineering completeü Solid cash positionü Strong institutional shareholder basePermitsFully FinancedProductionCAROLINA SLATE BELTTennesseeKentucky WestVirginiaNorth CarolinaGeorgiaSouth CarolinaBuzzardElmHickoryIronwoodBayberryLocustRussell MineReed MineHowie MineBrewer MineRidgeway MineDorn MineBante MineTathom MineColumbia MineMagruder MineHaile Mine
  • 6. WWW.ROMARCO.COMTSX:R•  404 Wetlands Permit only•  USACE is sole decidingregulatory body•  All other agencies arecooperating or commentingagencies only – EPA, US Fishand Wildlife, Catawba Nation,DHEC, SCDNR etc.•  401 Water Quality Certification•  Mine Operating Permit•  Air Quality Permit•  NPDES Permit•  OthersFederal – USACE* State – DHEC*** US Army Corps of Engineers** South Carolina Department of Health and Environmental Control HGM PERMITTING6  
  • 7. WWW.ROMARCO.COMTSX:RRecord  of  Decision  (ROD)  on  404  Wetlands  permit  Final  EIS  filed  Dra=  EIS  comment  period  closes  Dra=  EIS  Public  Hearing  Dra=  EIS  filed  and  comment  period  opens  PreparaCon  of  Dra=  EIS  Scoping  Comment  Period  Closed  –  Nov.  28,  2011  Public  Scoping  MeeCng  –  Oct.  27,  2011  30  day  noCce  period  NoCce  of  Intent  Federal  Register  –  Sept.  23,  2011  Contractor  (3rd  Party)  SelecCon  –  Sept.  2,  2011  (announced  Sept.  26,  2011)þþþþþENVIRONMENTAL IMPACTSTATEMENT PROCESS7  CURRENTSTAGE*Note: On May 23, 2012, the Company announced a schedule pertaining to the EIS for its Haile Gold Mine project as provided by the US Army Corps of Engineers (Corps). Adjustments to this schedule, as appropriate, will be posted on the Corps EIS website: www.hailegoldmineeis.com 45 DAY NOTICE PERIOD30 DAY COMMENT PERIOD
  • 8. WWW.ROMARCO.COMTSX:RAERIAL OF HAILE 8  
  • 9. WWW.ROMARCO.COMTSX:RHORSESHOEPALOMINOMUSTANGCHAMPION SMALL SOUTH PIT LEDBETTER SNAKE3.5 km274 m610 mDEPTH(m)HAILE GOLD MINEFEASIBILITY STUDY HIGHLIGHTS9  u  Feasibility Study does not include deep mineralization:Ø  Horseshoe, Mustang, Palomino and Snake Deep deposits
  • 10. WWW.ROMARCO.COMTSX:RRESOURCES RESERVES10  OPEN PIT UNDERGROUNDMEASURED + INDICATED RESOURCES AT US$1,200 GOLD (1)METRIC TONNES(000s)g/t CONTAINED ozAu (000s)MEASURED 36,894 1.79 2,125INDICATED 34,277 1.74 1,914MEASURED + INDICATED 71,171 1.77 4,039INFERRED 20,125 1.24 801RESERVES AT US$950 GOLD (1)METRIC TONNES(000s)g/t CONTAINED ozAu (000s)PROVEN RESERVE 19,592 2.19 1,382PROBABLE RESERVE 10,917 1.82 636PROVEN PROBABLERESERVE30,509 2.06 2,018(1)  From March 13, 2012Technical Report filed on www.sedar.com on March 19, 201220112010
  • 11. WWW.ROMARCO.COMTSX:RPLANT SITE –HAILE GOLD MINE11  CRUSHERSAG BALLMILLFLOTFINE GRINDCARBONSTRIPREFINERYCILCNDESTRUCTMINE SHOPMILL SHOPREAGENTWATERTREATMENTADMIN
  • 12. WWW.ROMARCO.COMTSX:REQUIPMENT ~ 1/3CONSTRUCTION ~ 1/3OTHER ~ 1/3TOTAL PROJECT $320M•  +75% of equipment is locked in•  Mills, haul trucks, shovels, loadersdelivered in SC•  Updated commodity pricing•  $30 million in contingency•  $17 million for inflationComponent of CAPEX $320 million Capital CostsCAPITAL COSTS BREAKDOWN12  
  • 13. WWW.ROMARCO.COMTSX:REQUIPMENT 13  
  • 14. WWW.ROMARCO.COMTSX:RLOW CAPITAL COSTS14  u  Excellent existing infrastructure at Haileu  Not building local/regionalØ  Power plantØ  Dams for water suppliesØ  Many kilometers of roadsØ  Employee campu  Constructing plant, buildings, tailings dam onlyu  Engaged Barclays Bank as advisor – in advanceddiscussions with several banks on project financing
  • 15. WWW.ROMARCO.COMTSX:RFINANCING ALTERNATIVES15  u  Funding sourcesu  Debt – targeting ~40-60%Ø  Project FinancingØ  LeasingØ  ConvertibleØ  High yieldu  Equipment leaseu  Other :Ø  EquityØ  Royalty streamØ  Forward saleØ  Strategic Investoru  Engagement with BarclaysBank PLCu  Barclays engaged asfinancial advisor forpotential debt financingu  Independent reviewcomplete (Pincock,Allen Holt)
  • 16. WWW.ROMARCO.COMTSX:RBlackRockSunValley GoldVan EckFranklin Templeton InvestmentsOppenheimer FundsColonial First StateNorgesToquevilleJ.P. MorganFidelityTDBaker SteelSprottDeGroof BanqueGamco Investors Inc.70% Institutional Ownership16  TOP15SHAREHOLDERSOF OUR SHARES AREINSTITUTIONALLYOWNED
  • 17. WWW.ROMARCO.COMTSX:RTARGET PRICENBF $2.00Paradigm $2.00Euro Pacific $1.50Cormark $1.25RBC $1.25BMO $1.10ANALYST COVERAGE17  
  • 18. WWW.ROMARCO.COMTSX:RExchange/ Symbol TSX:RShare Price(1) C$0.42Shares Outstanding (Basic) 585.5MFD Shares Outstanding (TSM)(2) 586.1MMarket Capitalization(1) C$244M52 Week High / Low(1) C$1.40 / C$.395Cash Balance (May 1, 2013) US$46M(1) As at close on May 3, 2013(2) Includes 0.6M “in-the-money” options at an average strike price of C$0.17 as of May 3, 2013Capitalization SummaryCAPITAL STRUCTURE18  
  • 19. WWW.ROMARCO.COMTSX:RLast Time the MARKET CAPwas Below $250M 19  •  Increased MI resource 186%•  Discovered Horseshoe zone•  62.5m of 9. 6 g/t•  Discovered high grade at Mill zone•  30.1m of 16.1 g/t•  Discovered Mustang zone•  117m of 5.5 g/t•  Discovered Palomino zone•  70.1m of 5.5 g/t•  Established OperatingTeam•  Completed Positive Feasibility Study•  Submitted permit applications•  Secured key long-lead equipmentAugust 12, 2009Since
  • 20. WWW.ROMARCO.COMTSX:RROMARCO Value at $0.42 share price 20  Cash (1) = $0.08 per shareLandValue (1) = $0.14 per shareEquipment (1) = $0.045 per shareAll else = $0.265 per shareor $155 million(1) March 31, 2013 book values per share
  • 21. WWW.ROMARCO.COMTSX:RROMARCO Value at $0.42 share price 21  Current share price = $0.42(1)- $0.265 (cash, land equipment)$0.155or $91 million•  4.0 million ounces MI @ 1.77 g/t•  801,000 inferred ounces @ 1.24 g/t•  Positive Bankable Feasibility Study•  Progress on Permits•  Operating Team in place$0.155 or $91M(1) At May 8, 2013
  • 22. W W W . R O M A R C O . C O M70 University AvenueSuite 1410Toronto, Ontario M5J 2M4Tel: 416.367.5500Fax: 416.367.5505Email: info@romarco.comDan SymonsVice President, Investor Relationsdsymons@romarco.comCONTACT INFORMATION