A Fresh Approach to Porphyry Exploration in South AmericaCorporate Presentation April 2011 Verde Resources Inc.
Forward-Looking Statements andDisclaimersThis presentation IS CONFIDENTIAL and contains certain "forward-looking statements",including but not limited to, the statements regarding the Company’s overall objectives andstrategic plans, future commercial production, project targets, timetables, operating costs,capital expenditures, work programs, exploration budgets and targets, mineral reserve andresource estimates and outlook, and safety and sustainability initiatives. Forward-lookingstatements express, as at the date of this presentation, the Company’s plans, estimates,forecasts, projections, expectations or beliefs as to future events or results. Forward-lookingstatements involve a number of risks and uncertainties, many of which are beyond theCompany’s control, and there can be no assurance that such statements will prove to beaccurate. Therefore, actual results and future events could differ materially from thoseanticipated in such statements. Risks and uncertainties that could cause results of futureevents to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in themarket price of precious metals, mining industry risks and hazards, uncertainty as toestimation of mineral reserves and resources, requirements of additional financing risk, risksof delays in construction, production or obtaining permits and other risks. The reader iscautioned not to place undue reliance on these forward-looking statements. The Companydoes not undertake to update any forward-looking statement that is contained in thispresentation. Verde Resources Inc. 2
Verde Resources PresentationWhy copper - FactoidsStrategy - Existing projects - Projects coming onWho we are - TeamProjects - Peru - Chile - GenerativeFinancials - Share structure - Cash - Burn rate - Pre IPO - IPOUse of funds - Caballerias - Potreros - Escalones Norte - FutureDelivered and Deliverables Verde Resources Inc. 3
Why are we doing this?Global Copper Demand- US demand alone = additional 140Mt Cu/a = 35 new producing porphyry copper mines by 2025 (Singer & Menzie: GSA, Oct 2009)- China is building 10 “New York” Cities by 2025Copper Supply- 70% of producing mines > 20 years old- 30% of producing mines > 50 years oldCopper Price- Macquarie estimate 550,000-Mt deficit in 2011 pushing prices to $5/lb (DEC2010)- B of A Merril Lynch mid 2012 copper price forecast (Nov2010): $5.90/lb Verde Resources Inc. 4
StrategyFind & Develop Porphyries:“Giant homogeneous money makers”- Experienced geologists’ target concepts- Acquisition via corporate management networks- Prioritize areas around world class systems with potential for >500Mt @ > 0.5% Cu Verde Resources Inc. 5
Experienced and Driven BoardDirectorsJohn Gray, President, CEO & Director (Based in Chile) – Principal role raising $20M as former CEO African Aura Resources (TSX- V:AUR) – Founder: Basti Resources (Spanish gold) & Northern Minerals (Swedish base metals) – 20 years exploration in Americas-Africa-Europe with Homestake/Noranda/RayrockWilliam Murray, Independent Director – 35 years experience of construction, operation and management of mines – Anglo American, Denison Mines, Polymet Mining, Baja Mining, Aura Minerals, South American Silver & Prospero SilverJohn-Mark Staude, Founder & Independent Director – Founder & CEO: Riverside Resources (TSX-V:RRI) – 20 years of exploration experience with Magma Copper, BHPB, Teck, RTZ – Principal role in raising $30MDarren Klinck, Founder & Independent Director – Principal role in raising $300M for Au & Cu projects in Mexico and Australasia – VP, Corporate & Investor Relations Oceana Gold Corp (TSX-V:OGC) Verde Resources Inc. 6
Experienced and Driven ManagementExploration and Advisory TeamRon Luethe, Geologist (Chile) – Based in Chile; expert on Peruvian, Chilean and Argentine copper deposits – 25 years Exploration and Senior Manager (Xstrata, BHPB, Phelps Dodge, Magma Copper)Artemio Chirre, Exploration Manager (Peru) – 15 years regional & project specific porphyry-skarn-epithermal exploration experience (Tintaya, Las Bambas, Yanacocha & Antamina in Ancash, Tacna, Apurimac, Ica & Cajamarca)Paul Troiano, CFA CPA, Investment Banking, Scarsdale Equities LLC – New York based; 7 years experience in corporate finance and asset management in the mining exploration and development sectorRobin Longe (B.Sc UBC, Juris Doctor UofT), Corporate Lawyer, Bull, Housser & Tupper LLP – Five years experience in M & As and corporate governance with a focus on the mining sector Verde Resources Inc. 7
Porphyry Copper & Skarn, South Peru Caballerias project - Option to acquire 100% of high grade porphyry + skarn - Deal: US$500,000 plus US$1.5M payment; 2% NSR - Targetting >US$10bn Cu metal - Open in all directions - Skarn grabs @ >10% Cu & 0.44g/t Au - Porphyry grabs up to 0.5% Cu Skarn - Supportive local community - Last mined in ‘80s & drilled in ’90s Porphyry - Good access and infrastructure Other projects in the Yauri-Andahuaylas belt Copper PorphyryHaquira 3.7Mt Cu metal First QuantumConstancia 277Mt @ 0.43% Cu, HudbayTrapiche (12km 500Mt @ 0.5% Cu Buenaventura 2.5 KmESE) (Early stage) Verde ResourcesCaballerias Verde Resources Inc. 8
Porphyry Gold, Maricunga, Chile Potrero project - Option to earn 70% through US$6M workplan - On trend with multiple producing mines - Best RC drilled grades from 3 holes: - 126m @ 0.44g/t Au - 4m @ 0.40g/t Au - 12m @ 0.51g/t Au - Best outcrop grab sample: 7g/t Au Work PlanDue Dates Exploration Ownershi Spend pBy 31 March, 2012 $1,000,000 51%Year ending 31 March, 2013 $1,000,000 51%Year ending 31 March, 2014 $2,000,000 51%Year ending 31 March, 2015 $2,000,000 70%Total: $6,000,000Verde Resources Inc. 9
Porphyry Copper, Central Chile Escalones Norte Project - Option to earn 70%: $1M expenditure → 51% + $1.5M expend → 70% - Same district as world class El Teniente Mine - Abundant Cu oxides at surface - Surface grab samples grade 0.29-1.0% Cu 0.12-0.15g/t Au - Drilling at Escalones has proven a resource and Norte is undrilledVerde Resources Inc. 10
Use of funds Period 2010 Q4 - 2011 Q3 2011 Q4-2012 Q3 2012 Q4-2013 Q3 2013 Q4-2014 Q3 2014 Q4-2015 Q3 TOTALS Financings Pre IPO & IPO Finance Proceeds $2.5M + $10M $12,500,000 Overhead 180,000 390,000 420,000 420,000 420,000 1,830,000 IPO on TSXV 450,000 0Phase 1 Caballerias 43-101 reporting 120,000Exploration Potrero 43-101 reporting 120,000 Escalones N Permitting, 43-101 reporting 200,000 Early stage Remote sensing, mapping, sampling 35,000Phase 2 Caballerias Diamond drill 4,000m 650,000Exploration Potrero RC drill 3,000m 1,000,000 Escalones N Drill 1,000m 300,000 Early stage Trench, Map, Sample, DDH 1,000m 320,000Phase 3 Caballerias Drill 5,000m 1,000,000Exploration Potrero Drill 5,000m 1,000,000 Escalones N DDH 2,000m 1,000,000 Early stage Drill 3,000m 600,000Phase 4 Caballerias Infill drill 10,000m 1,000,000Exploration Potrero Infill drill 10,000m 1,000,000 Escalones N Infill drill 5,000m 500,000 Early stage Drill 7,000m 1,400,000Phase 5 Pre Caballerias Pre feasibility 1,000,000Feasibility Potrero Pre feasibility 1,000,000TOTAL $14,075,000 Verde Resources Inc. 11
Delivered and DeliverablesAugust 2010 – January 2011• Peruvian & Chilean subsidiaries established• Peruvian and Chilean porphyry deals signed• Pre-IPO financing for sophisticated investors• Advisory Board elected and invested• Peruvian Chief Geo signed• IPO lead counsel appointedFebruary 2011 – July 2011• 43-101 initiated on lead projects• Documentation for IPO initiated• CFO engaged• Hiring senior Chilean technical staff Sampling the skarn at Caballerias• Exploration commenced at Caballerias Verde Resources Inc. 12
A Fresh Approach to Porphyry Exploration in South AmericaContact us: John Gray, President & CEO firstname.lastname@example.org +56 (9) 9577 5307 (Chile)John-Mark Staude, Director Darren Klinck, Directorjohnmark@verdecopper.com email@example.com+1 604 338 7742 (Canada) +61 420 981 119 (Australia) www.verdecopper.com Verde Resources Inc.