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- 1. Corporate Presenta,on March 22, 2011
- 2. Cau,onary Statement Theinformation in this document has been prepared as of February 9, 2011. Certain statements contained in this document constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information under the provisions of Canadian provincial securities laws. When used in this document, the words “anticipate”, “expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify forward-looking statements or information. Specifically, this presentation contains forward looking statements regarding the results and projections contained in the February 2011 technical report of the Haile Gold project, including the expected mine life, recovery, capital costs, cash operating costs and other costs and anticipated production of the described open pit mine, the projected internal rate of return, the projected payback period, the availability of capital for development, sensitivity to metal prices, ore grade, the reserve and resource estimates on the project, the financial analysis, the timing for completion of the revised feasibility study on the Haile Gold project, the timing and amount of future production, the timing of construction of the proposed mine and process facilities, capital and operating expenditures, the timing of the receipt of permits, rights and authorizations, communications with local stakeholders and community relations, availability of financing and any and all other timing, development, operational, financial, economic, legal, regulatory and political factors that may influence future events or conditions and expected drilling activities. In addition, this presentation also contains updated resource estimates contained in the February 2011 technical reports. Scientific and technical information referred herein has been extracted from and are hereby qualified in their entirety by reference to the aforementioned 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 Wittwer, P.E. are responsible for preparing the Technical Reports. Each of the above referenced persons is a “qualified person” as defined in National Instrument 43-101 — Standards of Disclosure for Mineral Projects. Such forward‐looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any aother of Romarco’s public filings, and include the ultimate determination 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 conditions, 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 opposition and legal challenges, and the ultimate ability to mine, process and sell mineral products on economically favorable terms. While Romarco considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Actual results may vary from such forward‐looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Romarco filings at www.sedar.com. Forward‐looking statements are based upon management’s beliefs, estimate and opinions on the date the statements are made and, other than as required by law, Romarco does not intend, and undertakes no obligation to update any forward‐looking information to reflect, among other things, new information or future events Cautionary Note to United States Investors Concerning Estimates 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 regulations, however, the United States Securities 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, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned 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 cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable. 2 All figures are US$ unless otherwise indicated
- 3. Introduc,on to the Haile Gold Mine Project FEBRUARY 2011 § Feasibility completed $275 million § One of lowest capital cost projects in industry $379/oz § One of lowest operating cost projects in industry ($347/oz first 5 years) 2.06 g/t § One of highest grade open-pit projects in industry 3
- 4. Romarco – Company Overview Company Descrip,on § Romarco is a gold development company focused on produc,on primarily in the U.S. § The Company’s flagship project is the Haile Gold Mine in South Carolina ê Feasibility study completed Project Loca,on ê Permits Pending NORTH Charlotte CAROLINA ê System remains open in all direc6ons at depth Haile Mine § Experienced board, management & technical team Myrtle SOUTH Beach Columbia Capitaliza,on Summary CAROLINA Exchange/ Symbol TSX:R Share Price(1) C$2.44 Shares Outstanding (Basic)(2) 502.1M GEORGIA Atlantic Ocean FD Shares Outstanding (TSM)(2) 516.5M Market Capitaliza6on(1) C$1.22B 52 Week High / Low C$2.88 / C$1.53 Cash Balance (February 28, 2011) C$84M (1) As at close on March 1, 2011 (2) Calculated using treasury stock method. Includes 14.4mm op@ons at average strike price of C$0.60 and C$1.04 respec@vely as of February 28, 2011 4 181 Bay St. Suite 3630, Toronto, ON, M5J 2T3 │Email: info@romarco.com │Office: 416.367.5500 │Fax: 416.367.5505 │Website: www.romarco.com
- 5. Mining Friendly Jurisdic,on with Excellent Infrastructure Haile Project Loca,on § South Carolina is a mining friendly state Kentucky with a history of gold mining West Virginia ê Loca6on of 1st gold rush (before California) Tennessee ê Carolinas led U.S. gold produc6on un6l 1848 ê 2nd U.S. Mint in CharloSe, North Carolina Russell Mine ê Original 49ers came from east coast Reed Mine Howie Mine North Carolina ê Significant gold produc6on in 80s – 90s Haile Mine Brewer Mine ê Mining part of local history/community Dorn Mine Ridgeway Mine ê 500 ac6ve mines in South Carolina Magruder Mine Bante Mine Tathom Mine South Carolina § Romarco controls 9,000+ acres of 100% Columbia Mine private land Georgia ê Surface, mineral and water rights 5
- 6. Investment Highlights § Near term, low cost gold producer with strong project economics § Located in a mining friendly jurisdic6on with excellent infrastructure § Large resource with significant remaining explora6on upside poten6al § Strong board, management and technical team § Clear plan to bring Haile into produc6on § Solid cash posi6on (~US$84 million), no debt – as of February 28, 2011 § 11 drill rigs -‐ 172,000 meters drilling scheduled for 2011 (~US$30 million) § Haile system remains open in all direc6ons at depth 6
- 7. Resource Summary In-‐Shell Resource / Reserve Project Resource Gold Name Category Tonnes Grade Contained 000 s Mt g/t M oz Haile P&P(1) 30.509 2.06 2.018 M&I(2)(3) 53.378 1.82 3.123 Inferred(2) 24.944 1.34 1.072 (1) As per press release dated February 9, 2011; at US$950 gold (2) As per Technical Report dated December 14, 2010; at US$1200 gold (3) Includes Proven & Probable Reserve $950 Pit Feasibility $1200 Resource Shell N $950 Pit area accounts for less than 10% of the Haile property. 7
- 8. US$950 Gold -‐ Reserve Pits § Mineraliza,on exists outside & below US$950 reserve pits § Feasibility does not include Champion ê Horseshoe ê Snake Deep 601 ê West LedbeSer Chase Hill Ledbeher ê West South Pit ê 601 Small Horseshoe South Snake 8
- 9. Near Term, Low Cost Gold Producer § Posi,ve feasibility study on Haile Summary of Haile Feasibility Study (US$950 Gold) announced on Feb. 9, 2011 2 P Gold Reserves ( 000 oz) 2,018 § Strong project economics with robust Recovery Rate (%) 83.7 IRR and NPV at conserva,ve gold Net Recoverable Gold ( 000 oz) 1,681 prices Annual Mill Throughput ( 000 t) 2,555 ê Low cash cost opera6on Daily Mill Throughput (tpd) 7,000 ê Manageable, low cost capital requirements Mine Life (years) 13.25 § Posi,ve feasibility study does not Overall Strip Ra6o (waste:ore) 7.2:1 include Average Feed Grade to Mill (LOM) (g/t) 2.06 ê Horseshoe zone Average Produc6on (year 1) ( 000 oz) 172 ê Snake Deep Average Produc6on (years 1 -‐ 5) ( 000 150 oz) ê West LedbeSer Cash Costs (year 1-‐5) (US$/oz) 347 ê West South Pit Cash Costs (LOM) (US$/oz) 379 ê 601 Ini6al Capital Expenditures (US$M) 275.5 ê Inferred resources within US $950 Pit Sustaining Capital Expenditures (US$M) 119.2 § Open all direc,ons and at depth Net Present Value (5% discount) § 2011 economic studies Pre-‐Tax (US$M) 279 ê Underground at Horseshoe Internal Rate of Return ê Expansion Pre-‐Tax (%) 19.6 9 ê Trade off
- 10. NPV & IRR Sensi,vity to Gold Price Pre-‐tax NPV and IRR Sensi,vity to Gold Price ($ Millions, except gold price) Gold Price PAYBACK NPV @0% NPV @ 5% NPV @ 10% IRR % Per oz. YEARS $1500 $1,426 $930 $621 47.0% 2.0 $1400 $1,259 $811 $534 42.3% 2.2 $1300 $1,092 $693 $447 37.6% 2.4 $1200 $925 $575 $359 32.7% 2.7 $1100 $758 $457 $272 27.6% 3.1 $1000 $591 $339 $185 22.3% 3.8 $950 $507 $279 $141 19.6% 4.2 $800 $257 $102 $10 10.7% 7.6 $700 $90 -‐$16 -‐$77 4.0% 9.4 10
- 11. Favourable Posi,on on the Cash Cost Curve Average Cash Cost lowest quartile Q3 2010 (1) § Haile life of mine cash costs of US$379/oz § Compares favourably with industry average cash costs of US$572/oz in Q3 2010(1) § Posi,ons Romarco within the lowest quar,le on the cash cost curve Industry ROMARCO Lowest Quar6le Average LOM Average (2) Average Q3 2010 (1) Q3 2010 (1) (1) Source: GFMS presentation, Gold Survey 2010 Update (2) Announced February 9, 2011 11
- 12. Clear Plan to Bring Haile Into Produc,on Design Overflow & Process Descrip,on § Conven,onal opera,on Design Overflow Process Descrip,on § Simple flowsheet § Robust “Simple” § Off-‐the-‐shelf Crush Æ Grind Æ Flota,on Flowsheet technology § Proven Technologies Regrind Flot Con Æ Leach Con § Ability to expand project scale to include § Flexible, Expandable Leach Flot Tail Æ Recover both addi,onal resource discoveries § Non-‐Refractory CN Detox Æ Tail Storage Facility § Off-‐The-‐Shelf Standard Carbon Elu,ons, EW Technology § No Long Lead Time Units 12
- 13.
- 14. Site Layout US$950 Pits Overburden Tailings Facility Mill Site 14
- 15. Located in Mining Friendly Jurisdic,on § Strong State and local support for Haile Strong Community Rela,ons (July 4, 2010 Parade) ê Drill permits received in <2 weeks (650 holes) ê No Federal, State or local opposi6on to date ê State offered tax incen6ves • $3M in annual savings • Tax reduc6on from 10% to 4% § Permiung ê Federal (404) -‐ SUBMITTED • Wetlands ê State (South Carolina) • Mining / opera6ng permit – SUBMITTED - Water treatment permit - Storm water permit - Air permit • Water (401) – SUBMITTED From leU to right: Diane GarreX (CEO, Romarco), John SpraX (South Carolina Congressman), Mick Mulvaney (South Carolina State Senator), Jack Estridge (City Counsel) 15
- 16. Located in Mining Friendly Jurisdic,on § Romarco con,nues to build strong local rela,onships and support ê High local unemployment ê Romarco hires locally • 102 employees + 50 contractors ê $1 million/month spent locally § Outstanding Business Award (2010) Ongoing Community Involvement Strong Community Support 16
- 17. Resource / Reserve Growth § Track record of con,nuing to grow resource base, con,nuity, and quality of ounces § 2010 Explora,on Highlights ê Discovered Horseshoe, con6nuity between Snake & Horseshoe, high-‐grade Snake Deep, high-‐grade West LedbeSer, high-‐grade Mill Zone – extension of South Pit § Haile remains open in all direc,ons and at depth § 2011 – largest drill program to date * 2010 Resources are within a US$1200 Shell (1) Note: All ounces stated in the table 3 above are contained ounces (1) Non 43-101 Historical Reserve in technical report filed July 17, 2007 17
- 18. Poten,al Mineral Deposits § Drill targets for 2011 Poten,al Mineral Deposits (1) Scenario A Scenario B Case A Case B Zone Tonnes x 1000 Tonnes x 1000 g/t g/t Horseshoe 16,511 13,956 3.39 2.09 LedbeSer 21,772 17,582 2.37 0.86 Snake 3,966 3,426 1.99 1.17 Chase Hill 1,633 1,515 1.06 0.93 Mill Zone 1,814 1,573 1.47 1.30 Small 5,039 4,149 0.65 0.62 601 Area 6,666 5,416 0.89 0.82 Champion 6,654 4,968 0.96 0.82 TOTAL 64,056 52,585 2.11 1.18 (1) The resulting potential ranges of quantities and grades listed below are conceptual in nature based on geologic knowledge, interpretation and wireframes. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in any of the targeted areas being delineated 18 as a mineral resource. The Company currently plans to focus on further exploration drilling within these potential mineral deposits during 2011 and beyond.
- 19. Poten,al Mineral Deposits 601 Poten6al Mineral Deposits (PMD) PMD Small Surface Mineraliza6on based on drilling PMD South Snake PMD Champion Chase Hill PMD PMD PMD Horseshoe Ledbeher PMD PMD 19
- 20. Significant Remaining Explora,on Upside Poten,al § 2010 drill program of 108,000m confirmed resource at Haile remains open along strike and at depth ê 40% of 2010 drilling focused on condemna6on drilling to locate suitable tailings site § M&I resources increased 44% § M&I grade increased 21% (to 1.82 g/t) § M&I tonnes increased 20% 2010 § Inferred resources declined 46% Highlights ê Conversion to indicated § Inferred grade increased 33% (to 1.34 g/t) § 2P reserves increased 54% 2008 2009 2010 2011 20
- 21. Significant Remaining Explora,on Upside Poten,al § Large district land package with numerous untested zones along Haile gold trend 601 Champion Small South Ledbeher Snake Horseshoe Haile Long Sec,on – Mineraliza,on based on drill data through September 30th 2010 US$950 GOLD 21
- 22. Significant Remaining Explora,on Upside Poten,al § Large district land package with numerous untested zones along Haile gold trend US$950 PIT Snake Horseshoe Resource within US$1200 Shell Horseshoe Measured & Indicated 380Koz Inferred 180Koz US$1200 SHELL Snake / Horseshoe Long Sec,on 22
- 23. Significant Remaining Explora,on Upside Poten,al 2010 Explora,on Findings Upside From Mineraliza,on Not Captured § Confirms underground potential § Zone not yet drill defined along strike and Horseshoe Deep down dip § Highest grade Horseshoe Discovery § Potential new zone may exist south of § Underground economic study (2011) Zone main Horseshoe/Snake trend § Extending to west and south § Mineralization encountered in down dip South Pit § Higher grades encountered Snake extensions of Snake deposit Deep § Areas lie beneath the resource shell Zone § Additional drilling is planned § Extending to west and at depth Ledbetter § Higher grades § Drill hole intercepts lie below the resource West shell Ledbetter § Extending at depth § Additional drilling is planned Snake § Higher grades Haile § Remains open West South § Strike extends beyond the resource shell Corridor Pit § Step-out drilling is planned to test extent § Connecting Horseshoe 23
- 24. Strong Board, Management and Technical Team § Proven gold mine development, finance, permiung and opera,ons experience ê Romarco has the team in place to bring Haile into produc6on Experienced Board of Directors Strong Management & Technical Team Edward A. van Ginkel, Chairman Diane R. Garreh, Ph.D., President & CEO § Consultant, former Noranda, Dayton Mining § Former Dayton Mining, US Global Investors Diane R. Garreh James R. Arnold, Sr. VP, COO § Former Dayton Mining, US Global Investors § Former Freeport, Gold Fields – Richards Award Winner James R. Arnold Stan Rideout, Sr. VP, CFO § Former Freeport, Gold Fields – Richards Award Winner § Former Phelps Dodge Leendert Krol James Berry, Chief Geologist § Former Brazuro, Newmont § Former Barrick Don MacDonald Brent Anderson, Mine Manager § CFO QuadraFNX, former NovaGold, DeBeers, Dayton Mining § Former Quadra, Freeport John Marsden Kevin Russel, Regional Geologist § Consultant, former Freeport – Richards Award Winner § Former Barrick Patrick Michaels Jim Wickens, Mill Manager § Porpolio Manager – Zuri-‐invest, Switzerland § Former Barrick Robert van Doorn Oh Jackson, Health & Safety § Former Mundoro, Rio Narcea, Morgan Stanley § Former Freeport Johnny Pappas, Environmental Manager § Former Freeport Ramona Schneider, Environmental Manager § Former Kinross Dan Symons, Manager Investor Rela,ons § Former Renmark Financial 24
- 25. Track Record of Achieving Milestones § Strong track record of achieving milestones and delivering shareholder returns 15-Dec-10: Appoints financial advisor for debt 02-Nov-10: financing for Haile Announces 01-Dec-09: updated in-shell 22-Feb-11: Announces resource estimate Files NI 43-101 initiation of at Haile feasibility study for 13-Apr-10: feasibility study at Completes public Haile Haile offering (61M shares @ C$1.97/ 28-Sep-09: share); proceeds Announces of C$120M acquisition of 662 acres of land 03-Mar-09: adjacent to Haile Completes private placement (72.1M units @ 13-Aug-09: C$0.37/unit); Completes private proceeds of C placement (52.3M $27M shares @ C$0.88/ share); proceeds of $46M 19-Mar-09: Files 43-101 feasibility 03-Feb-09: study for Haile Completes 11-Jan-11: 3-Feb-11: bankable Announces drill Announces 2011 feasibility results of 172,000 m drill study on 30.7m of 16.1 program and Haile g/t Au at Haile increased land 11-Jan-10: 19-Jan-10: holdings of 79,000 ac Announces Acquisition of expansion of 2010 additional property drill program at at Haile increasing 09-Nov-10: Haile land position by Announces 9-Feb-11: 53% conditional Completes feasibility approval for TSX study for Haile listing 25
- 26. Clear Plan to Bring Haile Into Produc,on § Strong balance sheet with approximately $84M in cash and no debt(1) § Well defined project schedule and clear development milestones Project Schedule Haile Milestones and Status Report 2010 2011 2012 2013 Milestone / Ac6vity Status Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Complete feasibility study Feasibility Study State opera6ng permit submiSed Op6miza6on 401/404 permit submiSed Permiqng Resource / reserve report Construc6on Complete Haile financials Produc6on Expand Haile & Horseshoe 2011 Explora6on Acquire other proper6es 2011 Explore regional targets 2011 26 (1) As at February 28, 2011
- 27. Well-‐Posi,oned in Peer Group § Romarco trades at a discount to its developer peers on a P/NAV basis(1) R-T (1) Source: Wellington West Capital Markets 27
- 28. Well-‐Posi,oned in Peer Group $300 Osisko Romarco § Romarco trades at a strong AMC(1)/oz mul,ple reflec,ng $300 Osisko ê Large resource base at higher t$250 verage grade han a Luna Romarco ê Rela6vely advanced stage of development with con6nued evidence of upside poten6al US Gold Corp $250 Luna Total Resources Gold Explorers Compe,,ve Landscape $200 Premier $300 US Gold Corp Queenston Weighted Average Gold Grade: 1.38 g/t Rainy River 25 Mozs $250 EV / Oz (US$/oz) $200 US Gold Corp Romarco Rainy River 15 Mozs EV / Oz (US$/oz) $150 Osisko Rainy River 5 Mozs $200 $150 Detour 1 Mozs AMC / oz (US$/oz) Torex Weighted Average: US$167/oz Keegan Geography Guyana GF $150 Fr Detour $100 Goldstone Keegan Volta Detour Keegan Int. Tower Hill West AFronteer frica, Australia, $100 Orezone Mexico $100 Goldstone Orezone Goldstone Victoria Klondex Amarillo Int. Tower Hill PMI Grayd Belo Sun Orezone Victoria North America, Exeter Riverstone $50 Grayd Chile, Brazil $50 Northern Gold Victoria Midway Volta Resources Belo Sun Rye Patch Andina Northern Freegold Temex Amarillo Peers Vior Cassidy Grayd Riverstone Resources Coral $50 Rye Patch Resources Volta Exeter Belo Sun Amarillo $0 Pediment Midway Riverstone Resources 0.0 0.5 1.0 Rye Patch 1.5 2.0 2.0 6.0 10.0 Cassidy Exeter Northern Freegold Vior Selected Peers Gold Grade (g/t) Pediment Midway Temex Vior Cassidy Source: RBC Equity Research, as of February 8, 2011 Northern Freegold Northern Gold 28 (1) Represents Adjusted Market Capitaliza@on (“AMC”) = Market Capitaliza@on plus Long-‐term Debt minus Working Capital $0 Northern Gold Temex 200 150 $0 Coral 0.3 Coral Andina 0.8 1.3 1.8 0.3 Andina 0.8 1.3 1.8 2.3 Gold G
- 29. Analyst Coverage § 6 Analysts Covering Romarco ANALYSTS 12 Month Target Price Paradigm Capital $3.40 BMO Capital Markets $3.25 GMP Securi6es $3.10 RBC Capital Markets $3.00 Wellington West Capital Markets $2.90 CIBC World Markets $2.50 29
- 30. Opportuni,es – Strip Ra,o § Current strip ra,o is 7.2:1 § If 5mt (1.1 g/t) of inferred within US $950 Pit is processed strip ra,o reduces to 6:1 § Further reduc,ons are possible through: ê Remaining saddles between deposits through addi6onal drilling Wheel Loader ê Connec6ng mineraliza6on at depth between deposits Haultruck Hydraulic Front Shovel 30
- 31. Opportuni,es – Expansion § 7000 tpd is PHASE 1 of Developing Haile § Expansion can come from: ê Expansion of current reserves ê Underground ê Open-‐pit and underground ê New deposit ê One of our other regional proper6es § Tailings & Plant Site are designed to scale 20,000 tpd opera,ons from 7,000 to 20,000 tpd mirror design of 10,000 tpd 14,000 tpd opera,on mirror design of 7,000 tpd 10,000 tpd opera,on requires minimal modifica,ons 7,000 tpd § § addi,onal crusher flota,on cells PHASE 1 SCALED FOR EXPANSION 31
- 32. Summary § Near term, low cost gold producer with strong project economics § Located in a mining friendly jurisdic6on with excellent infrastructure § Large resource with significant remaining explora6on upside poten6al § Expansion studies underway § Underground economic studies underway § Solid cash posi6on (~ US$84 million), no debt – as of February 28, 2011 § 11 drill rigs – 172,000 meters drilling scheduled for 2011 (~US$30 million) § Permits submiSed and pending 32
- 33. Contact Informa,on Head Office Informa,on Dan Symons Romarco Minerals Inc. Manager, Investor Rela6ons Brookfield Place dsymons@romarco.com 181 Bay Street, Suite 3630 Toronto, Ontario M5J 2T3 Tel: 416.367.5500 Fax: 416.367.5505 Email: info@romarco.com Website: www.romarco.com 33