1. Brazilian
Imperial
Topaz
Project
1

2. Brazilian
Imperial
Topaz
Project
Highlights
• Biggest
Imperial
Topaz
producer
and
world-­‐class
gems
project;
• Only
region
in
the
world
with
occurrence
of
Imperial
Topaz;
• Alluvial
deposit
with
gems
of
great
quality,
colors
and
size;
• Low
CAPEX
and
low
OPEX;
• Fashion
(low
quality
stones)
-­‐
Up
grade
• Project
licensed
and
granted;
• Pre
producKon
stage
since
Jan/2012;
2
• Project
with
high
generaKon
of
shareholder
value.

3. Market
Overview
• The
total
producKon
of
eye-­‐clean
ware
is
100
k
ct/y;
• A
majority
of
the
imperial
topaz
producKon
goes
to
customers
in
Japan
and
the
United
States;
• The
premier
source
is
near
Ouro
Preto
in
Brazil’s;
• The
region
has
become
the
only
one
capable
to
provide
the
world
market
with
this
mineral.
3

4. Market
Overview
• Brazilian
Imperial
Topaz
mines
are
under
pressure
due
to
Kghtened
requirements
by
Brazilian
environmental;
• The
world's
enKre
supply
of
Imperial
Topaz
is
mined
from
two
mines
at
Ouro
Preto
in
Brazil,
where
the
deposit
will
be
exhausted
very
soon.
4

5. Overview
• The
40
́s
–
Topaz
being
used
by
children
for
scratching
car
glasses
and
schools;
• The
90
́s
–
Invasion
of
gold
washers
in
the
regions
with
Topaz
occurrence;
• June
2005
–
surface
́s
acquisiKon
by
the
current
owners
and
expulsion
of
the
pick
golders
;
• September
2006
-­‐
Research
ApplicaKon
filed
with
the
DNPM
(
Brazilian
Mining
Rights
InsKtute).
5

6. Overview
• April
2007
–
Brazilian
Mining
Rights
InsKtute
-­‐
DNPM
issues
the
Research
Permit
/
GranKng
of
Water
Use-­‐
issued
by
Brazilian
Water
InsKtute
-­‐
IGAM;
• September
2009
-­‐
User
Guide
issued
by
DNPM;
• August
2011
–
Research
Report
approved
by
DNPM;
• August
2012
–
Economic
Viability
Report
-­‐
PAE
filed
at
the
DNPM;
• January
2012
–
Project
Start
Up.
6

7. Location
&
Infrastructure
PRATINHA
Alto
Paranaíba
Alkaline
Province
Imperial
Topaz
Project
Location
Distance
Ouro
Preto
(MG)
23km
Infrastructure
installed
:
Belo
Horizonte
(MG)
67km
• Electricity
7
Vitória
(ES)
564km
Rio
de
Janeiro
(RJ)
• water
supply
456km
São
Paulo
(SP)
605km
• Pavements
roads

8.
Current
Process
Flow
8

9. Pictures
-­‐
Raw
Stones
9

10. Resources
Statement
10

11. Balance
Production
-­‐
Year
2012
11

12. Base
Case
Average
price
and
production
of
Imperial
Topaz
COSTS
(US$/ct)
31,88
31,88
31,88
12

13. Base
Case
-­‐
370.000
m3
• Beginning
of
OperaKon
:
2013
• LifeKme
:
20
years
• Discount
rate
:
9%
• Stripping
raKo
(m3/m3)
:
3.65
• Total
ProducKon
(peak)
:
77,000
ct
per
year
• ROM
:
18,500
m3
• Average
content
:
4.17
ct/m3
(Marketable)
13

14. Valuation
• PROJECT
NPV:
US$
134.6
M
• EBITDA:
US$
23.6
M
• Margin
EBITDA:
90.4%
• PV
of
Investments:
US$
7.2
M
• Project
NPV
/
PV
of
Investments:
18.8
14

15. FASHION
(low
quality
material)
Base
Case
-­‐
370,000
m3
Average
content
:
34,52
ct/m3
15

16. Valuation
+
Fashion
16

17. Summary
• Biggest
Imperial
Topaz
producer;
• World-­‐class
gems
project;
• Low
CAPEX
and
low
OPEX;
• Fashion
Up
grade
• Project
licensed
and
granted;
• Pre
producKon
stage
since
Jan/2012;
17

18. Brazilian
Imperial
Topaz
Project
18