Objective Capital Rare Earths, Speciality and Minor Metals Investment Summit Focus on rare earths projects around the world Exploring for rare earths in Namibia 18 March 2010 by Don Burton, Etruscan Resources

1. Investment Conferences
RARE EARTHS, SPECIALITY
& MINOR METALS
INVESTMENT SUMMIT
3.45 – 4.10
Focus on rare earths projects around the world
Exploring for rare earths in Namibia
Don Burton – Vice President, Etruscan Resources
THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 18 MARCH 2010
www.ObjectiveCapitalConferences.com
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2. Rare Earth Element Potential of the Lofdal Carbonatite
Complex, Namibia - An Investment Opportunity
(March 2010)
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3. Cautionary Statement
This presentation may contain certain forward-looking statements which involve known and
unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of Etruscan to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements.
Forward-looking statements may include statements regarding exploration results or
budgets, mineral reserve or resource estimates, work programs, capital expenditures, mine
operating costs, production targets and timetables, future commercial production, strategic
plans, market price of precious metals or statements that are not statements of fact.
Although Etruscan believes expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to have been correct.
Various factors that may affect future results include, but are not limited to: fluctuations in
market prices of precious metals; foreign currency exchange fluctuations; risks related to
mining exploration and development including reserves estimation and costs and timing of
commercial production; requirements for additional financing; political and regulatory risks,
and other risks and uncertainties described in Etruscan’s annual information form filed with
Canadian Securities regulators on SEDAR (www.sedar.com). Accordingly, undue reliance
should not be placed on forward-looking statements.
2

4. Etruscan is Restructured and
Refocused on Gold
• New ownership (55% Endeavour Financial), board & management
• Restructured project debt
• Completed equity financing
• Stabilized gold mine operations, optimizing gold development
projects and streamlined exploration programs & initiatives in
West Africa
• Divested of diamond assets in South Africa
• Corporate head office relocation to London underway
“GOLD IN WEST AFRICA”
3

5. Background of Etruscan in Namibia
• Etruscan entered Namibia in 2005 with the objective of
exploring for IOCG deposits
• Major ground positions were established east of Windhoek and
in the north near Khorixas
• Ground in the north was taken in part because of numerous Cu
occurrences and a known REE occurrence at Lofdal farm
• There is an association of REEs with IOCG deposits
• No IOCG systems have been identified but exploration of the
REE occurrence at Lofdal has provided strong evidence for the
potential discovery of a world class REE deposit that could be
enriched in the more valuable heavy rare earths
4

6. The Investment Opportunity
• REEs have captured the interest of a very specific sector of the
investment community which understands their high tech and
green applications, creating a window of opportunity
• Legitimate REE projects (especially those with enrichment in
heavy rare earths) having a serious production potential are
scarce and the market is dominated by the Chinese (+/-95%)
• Recent changes in control and management at Etruscan have
affirmed that the strategic objectives for the Company are to
be focused on gold in West Africa
• The Board of Etruscan has mandated that a suitable
means/vehicle for value creation of the REE project be
determined
5

7. Creation of a New Rare Earth
Company
• Early exploration results from Lofdal have demonstrated the
viability of the project and Etruscan’s exploration expertise,
Namibian infrastructure and experience would allow for growth
in the REE space in Namibia
• The Namibian assets will be rolled into a private company
within the next 3 months, with a subsequent IPO to be
completed within 12 months
• Creation of the private company presents an investment
opportunity for qualified investors
• NewCo will be focused on discovery and resource delineation
• Strategic alliances with rare earth industry leaders are being
considered
6

8. The Lofdal Rare Earth Project
Lofdal Carbonatite
Complex
450 km northeast of Windhoek
Paved highway to the town of
Khorixas then 20 km by gravel
road
Lofdal EPL covers 1,000 km2
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9. History at Lofdal is Very Recent –
This is an Emerging Exploration Story
• Carbonatite dykes discovered in 1980s
• Mapping by the Geological Survey of Namibia (“GSN”)
delineated the main carbonatite intrusion in 2007; recognition
of the economic potential of the HREE-enriched dykes by the
GSN in 2008; discovery of the second carbonatite intrusion by
the GSN in 2008
• Etruscan is the first company to explore the area for rare
earths and has conducted two field campaigns since 2008,
collecting over 3,000 rock samples from a 25 km2 area
• Classic “boot and hammer prospecting” approach being
merged with an outstanding government database
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10. Project Geology
The alkaline intrusive complex at Lofdal is comprised of carbonatites,
syenites and nepheline syenites that have intruded highly
metamorphosed gneisses and schists of the +/-1700 Ma Huab
Metamorphic Basement Complex which is bounded by Damara Sequence
sediments to the north and south.
The carbonatite dykes and intrusions clearly cross-cut all of the other
rocks and represent the youngest intrusive event. REE mineralization
has been dated coeval with nepheline syenites at +/-764 Ma.
This age is very distinct from the younger (+/-135 Ma) rift-related
magmatism of other alkaline and carbonatite complexes in the region
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11. Project Geology
Area Explored to
date
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12. Carbonatites are Very Distinctive Rocks
Dyke Low Grade Plug
High Grade
Carbonatites are intrusive or extrusive igneous
rocks defined by mineralogy that comprises more
than 50% carbonate minerals. Carbonatites may
be confused with marble or limestone.
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13. First Pass Prospecting and Mapping
Highlights
• Mapping and rock grab sampling has covered approx. 25km²
• First 1,426 grab samples have returned an average grade of 0.7%
TREE+Y (database now in excess of 3,000 samples)
• 602 samples >0.5% average 1.3% TREE+Y
• 292 samples >1% average 2% TREE+Y
• The highest individual sample graded 8.9% TREE+Y and the
highest heavy rare earth (HREE) enriched sample graded 1.75%
HREE
12

14. Exploration at Lofdal:
Surface Sampling Over 25 Km2
Only 2 press releases:
- October 2008
- January 2009
Main Intrusion (n = 1,426 samples)
Emanya Plug Short campaign from
November to December
2009 continued surface
sampling with similar
Main Intrusion results
(n > 3,000 samples)
Emanya Plug
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15. Rare Earth Deposits are “Polymetallic”
with High Value in the Heavies
The value per tonne is
determined by the mix
of REEs in a deposit.
Heavy rare earths are
much more valuable
than light rare earths
Most REE deposits are
predominantly enriched
in light rare earths
At Lofdal there is a
complete suite with
significant enrichment
in heavy rare earths and
yttrium
14

16. Lofdal is Real and It Has Heavies
Rare Earth Element Distribution of Lofdal Dykes Compared to Some Major Rare Earth Deposits
(percent distribution calculated from oxides)
Lofdal Dykes Emanya Mountain
1 2 3 4 5
Element Atomic Carbonatite Mt. Weld Pass Hoidas Lake
Symbol (%) (%) (%) (%) (%)
Lanthanum La 25.9 28.8 21.9 33.0 19.8
Cerium Ce 40.9 43.9 46.4 49.0 45.8
LREE
Praseodymium Pr 3.9 4.3 4.9 4.0 5.8
Neodymium Nd 12.0 13.4 17.3 13.0 21.9
Samarium Sm 1.8 1.6 2.5 0.5 2.9
Europium Eu 0.6 0.4 0.6 0.1 0.6
Gadolinium Gd 2.1 1.6 1.7 0.2 1.3
Terbium Tb 0.3 0.2 0.2 Insig 0.1
Dysprosium Dy 1.6 0.7 0.9 Insig 0.4
HREE
Holmium Ho 0.3 0.1 0.1 Insig Insig
Erbium Er 0.9 0.4 0.3 Insig 0.2
Thulium Tm 0.1 0.1 0.1 Insig Insig
Ytterbium Yb 0.7 0.4 Insig Insig Insig
Lutetium Lu 0.1 0.1 0.0 Insig Insig
Yttrium Y 9.0 4.1 3.1 Insig 1.3
Total % 100.0 100.0 99.9 99.8 99.9
1
Etruscan Resources 1,208 samples of carbonatite dyke
2
Etruscan Resources 218 samples of the new carbonatite intrusion
3
Lynas Corporation Website
4
Molycorp Website
5
Great Western Minerals Website
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17. Lofdal is Real and It Has Heavy
Rare Earth Elements
LOFDAL ‐ All Dykes >1%
1000000
LOFDAL ‐ Emanya Plug >1%
100000
Mountain Pass, California
(Chondrite Normalized
Chinese laterite ore
10000
REO/C1
1000
100
10
Light Rare Earths Heavy Rare Earths
1
La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu
Rare Earth Elements
16

18. Rare Earth Element Minerals
Identified to Date
Light Rare Earth Minerals:
Bastnaesite, parisite, synchysite, monazite,
allanite
Heavy Rare Earth Minerals:
Xenotime, aeschynite
17

19. Putting Grade into Perspective:
Lofdal is an exploration stage project. There is no ore body yet, and extraction and
processing characteristics would be key factors in determining economics. The economic
significance of the preliminary data from Lofdal is related to the mix of REEs present,
which shows certain samples are extremely enriched in heavies.
TREE+Y Lights Heavies Rare Earth Element Lanthanum Cerium Praseodymium Neodymium Samarium
% % % La-ppm Ce-ppm Pr-ppm Nd-ppm Sm-ppm
Mt. Weld Central Zone 13.80 13.50 0.25 Mt. Weld Central Zone 35,328 63,121 7,480 25,696 3,367
(2.5 TREO % cutoff) ( 2.5 TREO % cutoff)
Mountain Pass 8.48 8.46 0.03 Mountain Pass 28,050 41,650 3,400 11,050 425
( 5% TREO cutoff) ( 5% TREO cutoff)
Lofdal Dykes (n = 292) 1.86 1.62 0.12 Lofdal Dykes (n = 292) 4,882 7,874 771 2,289 353
(1% TREO+Y Cutoff) (1% TREO+Y Cutoff)
Selected Samples: Selected Samples:
ERN15768 2.58 0.36 0.86 ERN15768 632 1,200 149 631 938
ERN15746 3.40 0.16 1.18 ERN15746 250 450 53 220 583
ERN15425 2.72 0.26 0.83 ERN15425 525 1,030 124 523 392
ERN 18198 7.67 6.88 0.41 ERN 18198 22,000 33,700 3,110 8,780 1,220
ERN15451 6.63 6.27 0.20 ERN15451 19,950 31,300 2,840 7,760 823
ERN15444 7.92 7.40 0.31 ERN15444 21,000 37,200 3,510 10,600 1,690
ERN15424 8.85 8.31 0.31 ERN15424 22,400 44,200 4,120 11,100 1,290
LREE Enrichment?
Average Grades Crustal Abundance 35 70 8 30 7
“Lights”
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20. Putting Grade into Perspective:
Europiuim and gadolinium concentrations seem equally concentrated in both populations,
with yttrium enrichment favouring the HREE population. Dykes at Lofdal are potentially
economic but early exploration focus is on the discovery of an intrusive plug with the same
HREE concentrations as found in the dykes.
Rare Earth Element Europium Gadolinium Terbium Dysprosium Holmium Erbium Thulium Ytterbium Lutetium Yttrium
Eu-ppm Gd-ppm Tb-ppm Dy-ppm Ho-ppm Er-ppm Tm-ppm Yb-ppm Lu-ppm Y-ppm
Mt. Weld 759 1,339 124 221 14 28 0 14 0 511
(2.5 TREO % cutoff)
Mountain Pass 85 170 0 0 0 0 0 0 0 0
@ 5% TREO cutoff
Lofdal Dykes (n=292) 107 409 56 278 51 133 17 92 12 1,267
( 1% TREO+Y cutoff)
Selected Samples: HREE ENRICHMENT?
ERN15768 551 1,805 421 2,610 511 1,390 178 978 123 13,650
ERN15746 524 1,910 547 3,730 790 2,150 303 1,655 219 20,600
ERN15425 280 1,140 370 2,770 603 1,680 221 1,135 137 16,300
ERN 18198 403 1,630 232 1,045 167 396 38 178 20 3,810
ERN15451 201 952 90 353 64 184 17 87 11 1,660
ERN15444 364 1,485 156 587 93 240 21 106 12 2,140
ERN15424 328 1,500 149 567 96 272 26 136 15 2,300
Eu-Gd CONSISTENT?
Crustal Abundance 1 7 1 6 2 4 1 4 1 35
“Heavies” and Yttrium
19

21. What is the Relationship Between
Dykes and Intrusive Plugs at Lofdal?
20

22. Potential Area of Interest Covers
125 km2
Carbonatite complex
responds well to
airborne radiometrics
Additional ground to
be prospected
21

23. Pending News on Lofdal
Etruscan Resources/NewCo
• Additional rock samples
• Geophysical targeting
• Preliminary mineralogy
Geological Survey of Namibia
Initiatives
• Hyperspectral airborne
• VTEM airborne
• PhD thesis
• Undergraduate theses
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24. Next Steps at Lofdal
1. Continued Regional Exploration:
i) Mapping/sampling covering entire thorium anomaly
ii) Detailed airborne high resolution radiometric and magnetic
coverage of entire prospective area
iii) Study and interpretation of hyperspectral data, integration of
all geophysical and geological databases to identify additional
carbonatite plutons/dykes at shallow depth
2. Detailed Exploration
i) Mapping, channel sampling and trenching of the highest grade
carbonatite dykes and Emanya plug
ii) Scintillometer surveys to delineate HREE-enriched portions of
dykes and plugs
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25. Next Steps at Lofdal (continued)
3. Mineralogy:
i) General characterization of REE minerals (oxides,
phosphates, silicates)
ii) Focused study of the samples with potential economic grade
iii) Grain size characteristics, preliminary extractive issues
4. Drilling
5,000 to 10,000 meters of diamond drilling based on surface
results and mineralogical characteristics
24

26. Working in Namibia:
Why Lofdal can Succeed
• Political stability and support for the mineral sector
• Mining history
• Infrastructure
• An outstanding government commitment to geoscience and the mineral
sector with high quality regional mapping, airborne geophysical and
specialized remote sensing (hyperspectral) data available to the public
• Strong cooperation with the Geological Survey of Namibia with continued
mapping and REE focused studies at Lofdal
• Lofdal database includes 200 m airborne magnetics and radiometrics,
Quickbird, Landsat and Aster imaging, hyperspectral survey completed in
2009 and VTEM survey to be made available in 2010
• Surface sampling rock database (outcrop) now in excess of 3,000 samples
25

27. Working with an Outstanding
Database Towards Discovery
Airborne Radiometrics
Thorium
Main Intrusion
Rock
Emanya Plug Sampling
km
20
26

28. Working with an Outstanding
Database Towards Discovery
Hyperspectral
Coverage over Lofdal
km
20
27

29. Working with an Outstanding
Database Towards Discovery
Hyperspectral
Coverage over Lofdal
Rock
Sampling
km
20
28

30. Working with an Outstanding
Database Towards Discovery
Hyperspectral Image
Processing Ongoing
km
20
29

31. Working with an Outstanding
Database Towards Discovery
Hyperspectral Image
Processing Ongoing
Rock
Sampling
km
20
30

32. Working with an Outstanding
Database Towards Discovery
1 km
1 km
Using hyperspectral imaging to
map carbonatite dykes
1 km
31

33. Working with an Outstanding
Database Towards Discovery
1 km
Combining hyperspectral imaging
with magnetics to search for
plugs
1 km
+ =
1 km
32

34. The Lofdal Carbonate Complex:
Potential for the Discovery of an Economic
Source of Heavy Rare Earths
Ideal Target:
300 m diameter
plug >25MT…
Rock
Sampling
km
20
33

35. Rare Earth Element Potential
of the Lofdal Carbonatite Complex,
Namibia – An Investment Opportunity
• District scale potential for a heavy rare earth discovery
• Backed up by an extensive, high quality database comprising recently
acquired airborne geophysical surveys coupled with complete REE suite of
over 3,000 rock samples
• Ready for detailed follow up in most prospective areas (trenching and
channel sampling) and then drilling
• Corporate mandate to fund in a new vehicle
• Early stage investment opportunity in a legitimate heavy rare earth
exploration project
• Subsequent opportunity within 12 months via IPO
34

36. Rare Earth Element Potential of the Lofdal Carbonatite
Complex, Namibia - An Investment Opportunity
“Thank You for Your Attention”