Ecuador is bordered by Colombia in the North and Peru in the South. ▪ Ecuador has recently opened up to foreign mining investment and there are significant opportunities in a vast country with plenty of promising geology. ▪ Ecuador’s economy is quickly moving from its historical petroleum production base to a new mining strategy. ▪ Modern constitutional framework, fiscal stability and a new Mining Code as at 2009. ▪ High rates of return by fiscal incentives that shape a competitive mining tax regime with royalties at 3%. ▪ A qualified workforce with strong mining heritage and low labour costs. ▪ Low extraction costs, together with an abundance of mining resources, represent an attractive potential for mining investment in Ecuador.

1. Ecuador
The next mining destination

2. Ecuador - The next mining destination 2
Ecuador
Capital: Quito
Cities: Cuenca, Guayaquil, Quito
Area: 256,370 sq km
Pop: 14.8 million
Language: Spanish
Currency: U.S. Dollar since 2001

3. Ecuador - The next mining destination
Location
3
Ecuador enjoys a modern infrastructure and expansive road network. It is presently
developing a project to establish an inter-oceanic corridor to connect the coastal city of
Manta with Manaos (Brazil) that will permit direct communication between the Atlantic and
Pacific Oceans.
The country has four state operated commercial ports: Guayaquil, Manta, Esmeraldas and
Bolívar. In addition it has 17 private ports and is presently constructing another port in
Posorja (Guayaquil). This port will be able to receive container transport including the great
Panamax vessels. Ecuador has two international airports, one in Quito and another in
Guayaquil. The latter airport has been categorised as the best airport in Latin America.
Ecuador is located in the north west of South America on the Pacific coast. It enjoys a
strategic position that provides direct access to East Asia markets as well as to the West
coast of the United States. Its proximity to the Panama Canal permits access to Europe, the
eastern coast of the United States, the Middle East and to the rest of Asia.
Infrastructure

4. Why is Ecuador next?
… enter Five Major Miners

5. Ecuador - The next mining destination | Why Ecuador is next
Economy
5
▪ According to the UN Economic Commission for Latin America, the Ecuadorian economy
is amongst the highest performing economies in Latin American.
▪ Investment and Consumption is driving 12 straight years of expansion.
▪ Inflation is at 3.5% - lower than the Latin American average.
▪ Ecuador has the best performing Sovereign Bonds in Latin America, returning 13% per
annum according to JP Morgan Chase.
▪ Dollarisation of the economy in 2000 provides confidence and greater ease to investors,
in as much as there is no risk of devaluation.

6. Ecuador - The next mining destination | Why Ecuador is next
Opportune timing for Ecuador’s mining sector
6
▪ Ecuador is bordered by Colombia in the North and Peru in the South.
▪ Ecuador has recently opened up to foreign mining investment and there are significant
opportunities in a vast country with plenty of promising geology.
▪ Ecuador’s economy is quickly moving from its historical petroleum production base to a
new mining strategy.
▪ Modern constitutional framework, fiscal stability and a new Mining Code as at 2009.
▪ High rates of return by fiscal incentives that shape a competitive mining tax regime with
royalties at 3%.
▪ A qualified workforce with strong mining heritage and low labour costs.
▪ Low extraction costs, together with an abundance of mining resources, represent an
attractive potential for mining investment in Ecuador.

7. Ecuador - The next mining destination | Why Ecuador is next
Enter five major mining companies
7
Kinross Canada Fluta del Norte Au Ag 2012
Int’l Minerals Canada Rio Blanco Au Ag FS
Ecuacorriente China Mirador Cu Au FS
Iamgold Canada Quimsacocha Au Ag PFS
Explocobres China San Carlos Cu EIA
EIA: Environmental Impact Assessment FS: Feasibility Study
PFS: Pre-Feasibility Study Date: Commencement
Company Origin Project Mineral Status

8. Ecuador - The next mining destination | Why Ecuador is next 8

9. Ecuminer Gold Mine
… ready to explore

10. Ecuador - The next mining destination | Ecuminer Gold Mine 10
▪ Overview
▪ Location
▪ Key Features
▪ Geology

11. Ecuador - The next mining destination | Ecuminer Gold Mine
Overview
11
Ecuminer is a high grade Gold mine project in motion, with its pre-feasibility and
environmental impact assessment completed in April 2011. The project is wholly owned by
a private investor who resides in Spain. The owner now seeks to advance the project by
way of a Joint Venture.
From an initial land title of 32 hectares, Ecuminer has 1,080 hectares to examine as per it’s
mining concession, plus preferential rights.
Ecuminer has great infrastructure, including grid power, and is easily accessed by sealed
road. Water is available and in abundance from an operational perspective.
The project now requires both know-how and a capital investment of approximately USD
$10M to produce an estimated 5840 ounces of gold in the first year.
Ecuminer can be viewed as a platform for further opportunity in what is a country with
plenty of promising geology. Ecuminer is compliant with the Mining Code 2009 and has
mineral deposits that can be readily explored.

12. Ecuador - The next mining destination | Ecuminer Gold Mine
Location
12

13. Ecuador - The next mining destination | Ecuminer Gold Mine 13
The project is located in the province of El
Oro which is situated southwest of the
Ecuador on the Andean cordillera and
near the Peruvian boarder.
Mining Concession with Registration
Number 300857 includes an area of 205
hectares for 25 years. Ecuminer holds
land title of 32 hectares known as
Camarones and has preferential rights to
an additional 875 hectares with a total
land package of 1,080 hectares.
The Mining Concession allows for the:
Prospecting, Exploration, Production,
Liquidation, Refinement and Export of all
types of natural resources and minerals
which form part of the concessional area.

14. Ecuador - The next mining destination | Ecuminer Gold Mine
Key Features
14
Ecuminer possesses the following attributes:
▪ Located within the highly mineralised metallogenic belt of South West Ecuador.
▪ Favourably placed for the logistics, infrastructure and provision of mining services with
very good accessibility to existing processing facilities in Portovelo.
▪ A complete Environmental Impact assessment has been approved.
▪ Pre-feasibility and Prospecting studies have been completed.
▪ Sampling has defined strong Gold findings with values of 5g/t at the surface to an
anticipated 20g/t at 400 meters.
▪ Project hosts numerous precious mineral veins which remain untested and located
along strike and at depth.

15. Ecuador - The next mining destination | Ecuminer Gold Mine
Geology
15
The Portovelo mining district covers an area with lots of veins that extend about 15 km in NS
direction, 4 km in EW direction and 1.6 km depth.
The type of system is made up of polymetallic hepitermales veins. The main minerals
observed in the mineralised zones are quartz, pyrite, sphalerite, chalcopyrite, calcite, iron
oxides and manganese.
Based on the geological survey of the mining area known as Camarones, it was found that
the mineralisation is of hydrothermal origin vetiforme type (fracture filling mineral solutions),
determining the presence of primary minerals such as pyrite, chalcopyrite, iron oxides, gold
and silver. Gangue minerals are quartz and calcite.
Based on field data obtained from mining operations and geochemical prospecting (sediment
sampling rocks and soil) has determined the presence of four mineralised structures, which
support the mining area. Sampling of surface veins returned values of 5g/t Au.
Numerous high grade structures remain untested and the potential to discover new veins is
considered high.

16. This document has been prepared by Magellan Australia to provide prospective clients with information in relation to the investment in Ecuminer and may not be
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17. For more information, please contact:
Fernando Rodriguez
M: +61 413 866 766
E: fernando@magellanaustralia.com