South American Silver Corporate Presentation, Q1, 2011


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South American Silver Corporate Presentation, Q1, 2011

  1. 1. A Growth Focused Exploration & Development Company<br />Growing and advancing one of the world’s largest <br />undeveloped silver and indium resources.<br />TSX: SAC, US OTC: SOHAF<br />Corporate Presentation<br />Q1 2011<br /><br />
  2. 2. Forward Looking Statements<br />Certain statements contained herein constitute “forward-looking statements.” Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “intends,” anticipates,” “should,” “estimates,” “expects,” “believes,” “indicates,” “targeting,” “suggests,” “potential,” and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. <br />TSX:SAC<br />US OTC:SOHAF<br />
  3. 3. Investment Highlights<br />South American Silver Corp.<br /><ul><li>Experienced management team with track record of successful project development and value creation
  4. 4. Two large-scale deposits in South America
  5. 5. Malku Khota: one of the world’s largest silver-indium resources
  6. 6. Escalones: high potential copper-gold deposit
  7. 7. Well definedbusiness plan to drive shareholder value
  8. 8. Leveraged to silver with nearly $40 of silver value per $1 invested
  9. 9. Attractive investment value relative to peers at low value per oz
  10. 10. Exposure to the high-tech indium market
  11. 11. Potential value from new copper-gold resource
  12. 12. Strong focus on community relations
  13. 13. Well financed into feasibility</li></ul>TSX:SAC<br />US OTC:SOHAF<br />1<br />
  14. 14. World-Class Deposits<br />Two large-scale assets in South America <br /><ul><li>Malku Khota, Bolivia, silver-indium project
  15. 15. 100% owned, bulk mineable open-pit, sediment hosted deposit
  16. 16. Low capital and operating costs as a heap leach or milling operation
  17. 17. Resource expansion potential with only 4 km of 50 sq km </li></ul> property drill tested<br /><ul><li>PEA and resource update in end of Q1-2011
  18. 18. Pre-Feasibility process to start in 2011 & Feasibility in 2012
  19. 19. Potential to be one of the top producing silver and indium mines
  20. 20. Funded into Feasibility
  21. 21. Escalones, Chile, copper-gold project
  22. 22. 100% controlled, large scale target in world-class mining district near El Teniente
  23. 23. Exploration program and geophysics to start Q1-2011
  24. 24. Resource definition program in 2011
  25. 25. Potential significant copper, gold, silver deposit</li></ul> <br />Malku Khota<br />Escalones<br />TSX:SAC<br />US OTC:SOHAF<br />2<br />
  26. 26. Share Capitalization2<br />TSX:SAC, US OTC:SOHAF<br />Issued & Outstanding<br />Warrants<br />Options<br />Fully Diluted1<br />98.3M<br />114.8M<br />8.4M<br />8.1M<br />Major Shareholders <br /><ul><li>Zamin—19.7%
  27. 27. Private Swiss investors--19%
  28. 28. SAC Management1 --15%</li></ul>Institutional Ownership<br /><ul><li>Sprott Asset Management
  29. 29. Front Street
  30. 30. K2 funds
  31. 31. Kudu Partners
  32. 32. U.S. Global Investors
  33. 33. ~$200 million Market Capitalization
  34. 34. Average trading volume 500,000 shares/day
  35. 35. Well financed with +$30 million estimated in cash at year end1
  36. 36. Potential NYSE-AMEX listing to increase visibility and liquidity</li></ul>As of November 8, 2010 with proposed $28 million financing<br />(1)On a fully diluted basis<br />(2) As of February 21, 2011<br />3<br />
  37. 37. Zamin Group - Strategic Investment<br />A Key Regional Player<br /><ul><li>Well funded regional player in South American resources industry with major projects in Brazil, Uruguay, Bolivia, and Chile
  38. 38. Strategic 19.7% investment positions SAC in strong financial and operational position to advance projects to feasibility
  39. 39. Track record of successfully facilitating South American project development through relationships with national and state governments in the region
  40. 40. Portfolio of South American projects with strong government support in permitting, rail and port infrastructure
  41. 41. Bamin Project-Brazil
  42. 42. Valintine Project-Uruguay
  43. 43. Acquiring assets in Bolivia over past year</li></ul>TSX:SAC<br />US OTC:SOHAF<br />4<br />
  44. 44. Comparative Resources in the Americas<br />Second largest development stage silver resource<br />$1.50<br />Millions of Silver Ounces & Enterprise Value Per Oz<br />$0.58<br />$7.26<br />$2.88<br />Millions of Silver Ounces<br />$2.51<br />$2.21<br />$6.55<br />$2.05<br />$5.09<br />$15.03<br />$12.43<br />$32.71<br />Mexico<br />El. Salvador<br />Mexico<br />Mexico<br />Mexico<br />Peru<br />Mexico<br />Yukon<br />Argentina<br />Nunavut<br />Peru<br />Guatemala<br />Bolivia<br />Chile<br />Source: CanaccordReport as of January 11, 2011<br />Note: All companies have projects in South and/or North America<br />5<br />
  45. 45. Enterprise Value per Resource Oz <br />Producers<br />Average >$14/oz<br />By project development stage<br />Advanced Development Stage Average >$7/oz<br />Development Stage <br />Average >$3/oz<br />*<br />*<br />Source: Canaccord Report January 17, 2011<br />Share prices as of February 8, 2011,<br />Note: All companies have projects in South and/or North America<br />*EV/oz truncated to $20<br />6<br />
  46. 46. Development Stage Value Curve<br />Potential value growth with project advancement<br />Production<br />Average Enterprise Value per Oz of Silver by Stage<br />Take-Over offers or Partnerships common at this stage<br />$14/oz<br />Construct<br />Increased value through resource expansion <br />Increasing Market Value<br />Permits<br />FS<br />$7/oz<br />PFS<br />Resource<br />Definition<br />PEA<br />$3/oz<br />Advanced<br />Development Stage (Reserves)<br />Early Stage<br />Exploration & Development<br />Production<br />Discovery<br />Increasing value with project advancement<br />Source: Recent average enterprise value per ounce of silver at various development stages for North and South American based projects. Canaccord, Wellington West and Company reports.<br />7<br />
  47. 47. Current Silver Company Valuations by Stage<br />Circle size represents EV/oz<br />Source: Canaccord Report January 17, 2011<br />Intierra, February 8, 2011<br />Share prices as of February 831, 2011,<br />Note: All companies have projects in South and/or North America<br />8<br />
  48. 48. Silver Supply/Demand<br />Surging investment demand plus improving industrial consumption suggests continued demand growth with flat total supply<br />Total Global SilverSupply<br />Total Global SilverDemand<br />& ETFs<br />Source: GFMS World Silver Survey 2010<br />9<br />
  49. 49. Silver Fundamentals Positive<br />For continued higher prices<br /><ul><li>One of the only precious metals not yet to hit all-time nominal highs from the 1980’s ($35/oz and $50/oz 1980)
  50. 50. Bullish supply/demand outlook
  51. 51. Continued increase in investment and industrial demand for silver
  52. 52. Annual mine production vs total demand remains in short-fall
  53. 53. Few new major deposit discoveries
  54. 54. Projected new production by analysts have failed to have </li></ul> been realized<br />TSX:SAC<br />US OTC:SOHAF<br />10<br />
  55. 55. Indium—a key strategic metal<br />Rapidly growing market for high-tech uses <br />Uses<br /><ul><li>Indium-tin oxide (ITO) a key component of flat panel displays (FPDs) and touch screens
  56. 56. High-efficiency thin film solar panels (CIGS Photo-Voltaics), and LED lighting
  57. 57. Fiber optics, specialized and transparent semiconductors</li></ul>Supply<br /><ul><li>Global indium use growing rapidly and could surpass available supply from by-product zinc refining at current price range
  58. 58. One of the most scarce strategic metals due to low recycling and few primary producers</li></ul>TSX:SAC<br />US OTC:SOHAF<br />11<br />
  59. 59. Indium Fundamentals<br />Compelling supply/demand dynamics<br />Indium Supply/Demand dynamics<br /><ul><li>Indium highlighted in UN and US DOE studies as a critical technology metal in potential shortage, along with several key rare earth metals, due to rapidly increasing growth, low recycling rates and low primary production
  60. 60. China is largest producer and consumer of indium and has imposed export quotas and tariffs like other key high-technology specialty metals
  61. 61. Zinc market growing at 1-3% annually with indium market estimated to be 15-20% annual growth
  62. 62. Current price ~$600/kg with five-year prices from $400/kg to over $1000/kg</li></ul>Malku Khota Annual Indium Production<br /><ul><li>Malku Khota projected to be one of the worlds largest indium producers
  63. 63. Potential to represent 10% or more of global mine supply</li></ul>TSX:SAC<br />US OTC:SOHAF<br />13<br />
  64. 64. Indium Demand<br />Growing demand in high-tech markets<br />5 year projected demand growth <br />End-use Market Demand (tonnes)<br />2010 total indium production level<br />Growth assumptions based on data from Displaybank in LCD TV Association “LCD TV Matters”-Volume 3, Issue 2, February 2010 , Strategies Unlimited, August 2009 , Solarbuzz, Photon International, GFMS , Nanomarkets, and the US Department of Energy Critical Minerals Strategy Report<br />14<br />
  65. 65. Indium Fundamentals<br />Global Zinc Production vs. U.S. Indium Demand<br />U.S. Indium Demand (tonnes)<br />Global Zinc Production (Millions of tonnes)<br />Source: U.S Department of Energy: Critical Materials Strategy, December 2010; <br />Global Zinc Production USGS Historical Statistics for Mineral and Material Commodities in the United States<br />15<br />
  66. 66. Key Metal Consumption vs Reserves<br />Remaining Years of Supply <br />Years of Supply<br />INDIUM<br />16<br />
  67. 67. Opportunity in Bolivia<br />An emerging resource based economy<br /><ul><li> Bolivia experiencing its besteconomy in 30 years
  68. 68. Member of Mercosur Regional trade organization with Brazil as largest trading partner
  69. 69. One of the world’s premier silver districts with billions of ouncesof historical production
  70. 70. Planned $32 billion 5-7 year infrastructure build-out by Bolivian government for new rail and road corridors and hydropower generation
  71. 71. Three Major silver mines built within last four years by Pan American Silver, Coeur D’Alene, and Sumitomo
  72. 72. Substantial resource industry investments in Bolivia
  73. 73. Jindal Steel of India investing US$2.3 billion for 50% interest in El Mutun iron ore deposit
  74. 74. Petrobras of Brazil—Latin America’s largest publicly traded oil company – investing US$1 billion of new capital into the Bolivian gas fields
  75. 75. Repsol of Spain investing $1.6 billion to increase gas production in Bolivia</li></ul>TSX:SAC<br />US OTC:SOHAF<br />17<br />
  76. 76. Silver Mines in Bolivia<br />One of the world’s premier silver mining districts<br /><ul><li>Historical district production of billions of ounces of silver
  77. 77. Highly prospective & under-explored
  78. 78. Increase from 9th largest global silver producer to 5th largest with completion of three major silver mines in past four years:
  79. 79. Pan American Silver – San Vincente
  80. 80. Coeur D’Alene - San Bartolome
  81. 81. Sumitomo - San Cristobal</li></ul>TSX:SAC<br />US OTC:SOHAF<br />18<br />
  82. 82. Malku Khota Project<br />One of the world’s largest silver-indium resources<br />Indicated: 145 M oz of silver &845 tonnes of indium<br />Inferred: 178 M oz of silver & 968 tonnes of indium<br /><ul><li>50 square km, 100% owned, road accessible project, long life open pit mine
  83. 83. low capital and operating costs and high internal rate of return
  84. 84. Potential to be one of the top primary silver and indium producing mines
  85. 85. Located on the Bolivian Altiplano at around 3,800-4,200m elevation</li></ul>TSX:SAC<br />US OTC:SOHAF<br />19<br />
  86. 86. Established Infrastructure<br />Low projected capital and operating costs<br /><ul><li>Open pit, bulk mineable
  87. 87. Accessible by road
  88. 88. Commercial power within 15km
  89. 89. Access to water</li></ul>TSX:SAC<br />US OTC:SOHAF<br />20<br />
  90. 90. Mineralization<br />Open pit, bulk mineable deposit <br />Host rock sandstone with disseminated <br />silver, indium, gallium, lead, zinc and copper<br />Enrichment starts at surface <br />Average grade first ten years:<br /><ul><li> Silver: 38.6 g/t (60 g/t Ag Eq)
  91. 91. Indium: 8.1 g/t
  92. 92. Economic cut-off grade <10 g/t(at $15/oz Ag)</li></ul>TSX:SAC<br />US OTC:SOHAF<br />21<br />
  93. 93. Mineralization<br />High Grade Sandstone1160 g/t Silver<br />Geological formations looking south from Limosna<br />Malku Khota<br />Sandstone<br />Aroifilla Fm<br />WaraWara<br />Sandstone<br />TSX:SAC<br />US OTC:SOHAF<br />22<br />
  94. 94. Malku Khota Drilling<br />Grade thickness map<br /><ul><li>75 drill holes in current resource with updated resource for Q1-2011
  95. 95. 2010 program focused on in-fill & confirmatory drilling
  96. 96. 2011 program to target conversion from resources to reserves & expansion drilling
  97. 97. Mineralization begins at surface
  98. 98. Deposit open along trend and down dip with excellent potential for expansion
  99. 99. New discovery of higher grade zones and down dip expansion of surface mineralization</li></ul>TSX:SAC<br />US OTC:SOHAF<br />23<br />
  100. 100. New Exploration Results<br />Discovery of broad continuous mineralization horizon<br />LMD048: 286 meters grading 76 g/t Ag Eq Grade thickness values of over 21,500 g-m AgEq<br />TSX:SAC<br />US OTC:SOHAF<br />24<br />
  101. 101. Malku Khota Deposit<br />Only 4km of 50 sqkm property drill tested<br />Wara Wara Area<br /><ul><li>2010 program focused on in-fill and confirmation drilling for PEA Update
  102. 102. Excellent potential to expand resources</li></ul>Sucre Area<br />Limosna Area<br />Continuation of favourable sedimentary host rocks<br />TSX:SAC<br />US OTC:SOHAF<br />25<br />
  103. 103. Production Processes<br />From ore to metal<br />Open Pit Mining<br /><ul><li>Large scale shovel and truck open pit mining operation
  104. 104. Ore crushed in preparation for leaching
  105. 105. Acid-chloride leaching in captures silver, indium, copper, lead, zinc, gallium and gold
  106. 106. Metal recovery in several steps:
  107. 107. Acid recovery
  108. 108. Silver-gold-copper cementation
  109. 109. Indium-gallium precipitation
  110. 110. Lead and zinc sulfides
  111. 111. Downstream processing to metal products</li></ul>Crushing<br />Leaching<br />Metal Recovery <br />& Processing<br />Silver bars<br />Indium ingots<br />Lead and Zinc concentrates<br />TSX:SAC<br />US OTC:SOHAF<br />26<br />
  112. 112. Summary of PEA 2009<br />Updated PEA with expanded throughput for Q1 2011<br />Pincock, Allan and Holt<br />Heap Leach Operation – 20,000 Tonnes per Day <br />Base Case Silver Price: US$13.30/oz<br />Base Case Indium Price: US$530/kg<br />In US dollars, March 2009, PEA by Pincock Allan and Holt. Updated study utilizing higher production levels and new cost estimates anticipated Q1-2011<br />First ten years of production<br />27<br />
  113. 113. Advancing to Production<br />Development Timeline<br />The project is at the PEA stage and may change substantially in terms of size and cost<br />as further exploration, engineering and metallurgical testing are completed <br />2013-14<br />2012<br />2011<br />Pre-Feasibility Studies<br />Feasibility <br />Study<br />Projected<br />Mine Development<br />TSX:SAC<br />US OTC:SOHAF<br />28<br />
  114. 114. Near Term Mine Development Projects<br />SAC one of largest near-term producers at 20,000 tpd<br /><ul><li>Annual estimated potential silver production of new development projects anticipated in the next 2-4 years</li></ul>Barrick<br /> 25<br />Bear Creek<br />Millions of Ounces<br />So American Silver<br />Alexco Resource Corp<br />Fresnillo Plc<br />Pan American<br />Gold Resource<br />Andean Resources<br />Wildcat Silver Corp<br />Bear Creek<br />Minmetals, Jiangxi Copper<br />Fortuna Silver<br />Augusta Resource<br />Silvermex Resources<br />Greystar Resources<br />Yukon Zinc Corp.<br />Antofagasta plc<br />Gabriel Resources<br />CobarConsilidated<br />China Minmetals<br />Norsemont Mining<br />Chariot Resources<br />Jinchuan Group<br />Antofagasta plc<br />Intrepid Mines<br />Oxiana<br />Vale<br />29<br />Source: CPM Silver Yearbook 2010<br />
  115. 115. Global Silver Industry Cash Cost Curve<br />Anticipated low-cost silver production<br />Cumulative Percentile of Silver Mine Production Cost<br />Malku Khota<br />6.4 Mozs/yr<br />~ $3.75/oz<br />Total Cash Cost Per Ounce of Silver<br />Industry AverageCash Cost<br />$5.25/oz<br /> Source: GFMS World Silver Survey 2010<br />30<br />
  116. 116. Escalones-Copper-Gold project, Chile<br />High potential, large-scale target<br /><ul><li>70 square km,100% controlled, road accessible, large scale system
  117. 117. Located in world-class copper mining district near El Teniente
  118. 118. Historic drilling shows >1% copper grades at surface and untested porphyry system grading 0.6% copper
  119. 119. Additional significant gold, silver and molybdenum credits
  120. 120. Exploration drill program targeted for Q1 2011
  121. 121. Resource estimate targeted for 2nd half of 2011</li></ul>TSX:SAC<br />US OTC:SOHAF<br />31<br />
  122. 122. Escalones<br />Exploration<br />Ownership: 100% through Lease<br />Location: 35km E of El Teniente<br />Elevation: 3800m<br />6,889 hectares <br />Escalones porphyry prospect located 97 km southeast of Santiago in central Chile<br />12,666m drilled in 30 DDH <br /><ul><li>10,159m in the skarn
  123. 123. 500m in the porphyry</li></ul>SAC property<br />Gas pipeline<br />Access Road<br />32<br />
  124. 124. Drill Results Grade Thickness Map<br />Large-scale porphyry system<br /><ul><li>Open in all directions
  125. 125. Strong historic results</li></ul>TSX:SAC<br />US OTC:SOHAF<br />33<br />
  126. 126. Escalones<br />Geological cross-section<br /><ul><li>Enriched zones with high grades at surface at over >1% copper with significant gold and molybdenum
  127. 127. Large scale porphyry target intercept of 176 m @ 0.6% copper with additional gold, silver and molybdenum</li></ul>Alto<br />Bajo<br />TSX:SAC<br />US OTC:SOHAF<br />34<br />
  128. 128. Community Relations<br />A key to successful project development<br /><ul><li>Assistance of BSR* to develop proactive community relations strategy
  129. 129. Two full-time indigenous community relations officers working in region
  130. 130. Objectives to facilitate economic development in communities</li></ul>*Business for Social Responsibility, San Francisco, CA<br />35<br />
  131. 131. Project Milestones<br />Value drivers over the next 6-12 months<br /><ul><li>Malku Khota Silver and Indium Project, Bolivia
  132. 132. Updated resource estimate targeted Q1 2011 & PEA at higher throughput Q1-2011
  133. 133. Pre-feasibility targeted to begin in Q2, 2011 and feasibility in 2012
  134. 134. Escalones Copper and Gold porphyry project, Chile
  135. 135. Exploration and Geophysics program beginning early 2011
  136. 136. Target for initial resource estimate in 2nd half of 2011
  137. 137. Potential for significant deposit of copper, gold and silver</li></ul>TSX:SAC<br />US OTC:SOHAF<br />36<br />
  138. 138. Leveraged to Silver<br />Value of silver per dollar invested<br />Silver value per $1 invested<br /> SAC has some of the best leverage to silver of any development stage company with nearly $40 of silver value per $1 invested<br />Average value of silver <$8 of silver per $1 invested*<br />Source: Canaccord as of January 17, 2011, Share prices updated February 8, 2011<br />Note: all companies have projects in South and/or North America<br />Calculated using $25/oz Ag. Dollar value of silver per $1 invested = (silver resource/shares outstanding) x $25/oz silver) divided by share price<br />Value only shown for silver with no contribution from other metals<br />37<br />
  139. 139. Why South American Silver?<br />Investment highlights<br /><ul><li>World-class scale projects with excellent expansion potential
  140. 140. Track record of discovery and successful project development
  141. 141. Growing shareholder value through resource expansion and advancing projects up the development value curve toward feasibility
  142. 142. Leveraged to silver with nearly$40 of silver value per $1 invested
  143. 143. Attractive investment value relative to peers at low value per oz
  144. 144. Exposure to rapidly growing Indium high-technology market
  145. 145. Potential new value from copper resource definition and expansion
  146. 146. Continued investor outreach to broaden market awareness of Company
  147. 147. Potential near-term NYSE-AMEX listing in the U.S.</li></ul>TSX:SAC<br />US OTC:SOHAF<br />38<br />
  148. 148. TSX: SAC<br />OTC: SOHAF<br />Phone: 604.681.6926<br />1.855.681.6926<br /><br />Greg Johnson<br />President & CEO<br />TSX:SAC<br />US OTC:SOHAF<br />39<br />
  149. 149. Relative Stock Performance<br />SAC outperforming key silver & gold indices<br /><ul><li>Trading liquidity increasing with average volume of 500,000 shares/day
  150. 150. SAC undervalued relative to peers at <$0.50/oz vs average of more than $1.70/oz for early stage resources and >$3.00/oz for >200Moz resources</li></ul>TSX:SAC<br />US OTC:SOHAF<br />
  151. 151. Management Team<br />A track record of success<br />Ralph Fitch, Executive Chairman<br /><ul><li>Co-founder of South American Silver, High Desert Gold, and General Minerals
  152. 152. Key role in discovery of Collahuasi copper porphyry , Malku Khota, Vizcachitas, and Escalones deposits</li></ul> Greg Johnson, President and CEO<br /><ul><li>Co-founder of NovaGold, key role in growing company from $50 million to $2 billion market capitalization
  153. 153. Recognized for discovery and advancement of the 40 M oz Donlin Creek gold deposit for NovaGold and Barrick</li></ul>William Filtness, Chief Financial Officer<br /><ul><li>Chartered Accountant with twenty plus years of financial experience, including Manager, Corporate Development at Aurizon Mines</li></ul>Felipe Malbran, Vice President of Exploration<br /><ul><li>Extensive experience in exploration management in Bolivia, Chile, Peru and Argentina
  154. 154. Key role in discovery of MalkuKhota, Vizcachitas, and Escalones deposits</li></ul>Phillip Brodie-Hall, Vice President of Project Development<br /><ul><li>Global industry experience in engineering construction and project development experience covering nearly every aspect of evaluation, feasibility studies and project development in the mining and mineral processing industries</li></ul>David Dreisinger,Vice President of Metallurgy<br /><ul><li>Professor and Industrial Research Chair in Hydrometallurgy at the University of British Columbia (UBC)
  155. 155. Actively involved in developing and commercializing hydrometallurgical process at a number of operating mines in Australia and Southeast Asia.</li></ul>Richard Doran, Vice President and corporate secretary<br /><ul><li>Former VP Investor Relations for General Minerals and Marketing Manager for Chevron Resources</li></ul>Andrew Clark,Manager of Project Implementation<br /><ul><li>Global industry experience in the design and management of industrial, mining, materials handling, chemical and petrochical projects from feasibility studies through to commissioning and handover of completed facilities. </li></ul> Xavier Gonzales Yutronic,General Manager Compañía Minera Malku Khota S.A.<br /><ul><li>Mining Industry experience in finance, accounting, logistics, human resources and community relations at Comsur S.A., SinchiWayra (Glencore) from 2005-2007, and CompañíaMinera Malku Khota S.A. from October 2008 to date</li></ul>TSX:SAC<br />US OTC:SOHAF<br />
  156. 156. Board of Directors<br />Strong industry and financial experience<br />Ralph Fitch, Executive ChairmanGreg Johnson, President and CEO<br />Antonio Canton, Director - Mr. Canton is an independent consultant for international companies in marketing, finance and real estate. He is a director of a number of Swiss companies and brings to the board extensive experience in accounting and finance.<br />Peter Harris, Director - Mr. Harris is an engineer with over 40 years of mining industry experience including as Senior VP and Chief Operating Officer at Nova Gold Resources Inc., and Senior VP of Project Development at Placer Dome Inc. He has been involved in the construction and operation of over 20 different mines in North and South America, Africa, Australia and Papua New Guinea. <br />William Murray, Director - Mr. Murray is an engineer in the mining industry with over 33 years of experience in construction management and project evaluation in North America and Africa. He currently serves as the executive chairman and director of Polymet Mining Corp. Mr. Murray has been involved in numerous successful projects while working at Fluor Daniel, Denison Mines, Optimum Project Services and Anglo American Corp. in South Africa. <br />Paul Haber, Director - Mr. Haber is a Chartered Accountant and a Certified Public Accountant with a strong background in US/Canadian accounting and finance. Presently manages Haber & Co. Ltd. Has previously been Chief Financial Officer and Corporate Secretary of a TSX Venture listed company. <br />John Watson, Director - Mr. Watson has been the President of a TSX Venture Exchange listed company since 2002. He is also the manager/member of a limited liability corporation that owns and manages commercial real-estate.<br />Tina Woodside, Director - Ms. Woodside is currently the head of the corporate finance department in Gowlings’ Toronto office and a member of the firm’s National Executive Committee. Ms. Woodside practices corporate and securities law with particular emphasis on corporate finance, mergers and acquisitions and corporate governance matters. <br />TSX:SAC<br />US OTC:SOHAF<br />