Sabanilla, Atlantico - ColombiaJanuary 2012

Magnetite Mining and Processing Project

Disclosure

This presentation is intended for the use of the individual or entity to which it is addressed and may contain information that is confidential or privileged under law.

Horeb Mining ConcessionOverview

The concession owned by Invervalores America S.A is in a privileged strategic position along Colombia’s northern Caribbean coast, enabling it to serve both international markets by sea and domestic markets via the Magdalena River (principal river of Colombia). This area has exceptional access to the major port and airport of Barranquilla, excellent infrastructure of roads, utilities coverage and access to industrial facilities.

The concession is just 15 minutes from Barranquilla on the Via al Mar (Way to the Sea), Colombia's fourth most populous city and one hour drive from Cartagena. Cartagena is a world famous beach resort and designated a UNESCO World Heritage Site.

Colombia’s Caribbean coast depicted a 52% increase in arrivals of cruises in 2011 and has become an important destination for tourists from all over the world. This clearly shows the safety of the area.

Safety, Location, Potential!

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HOREB MINING CONCESSION INFORMATIONMining Registry HDL-08091-X

Concession Validity Contracted for 30 years from October 30, 2008 respectively

Concession Area HDL-08091X 26.48km2Total Area: 2.648.5Ha

UseExploration and exploitation of iron (magnetite), titanium (titanium dioxide) and other grantable minerals

Previous Investment USD 1.8 million/7 years

Reserves

The calculation of proved reserves is based on sampling analyzed by Colombian Mining Company in November 2008 and SGS Colombia in March 2005. Sediments in this terrain have a natural restoration process throughout the area.Depth

in meterArea

in SQ meterDensity ton/m3

Reserves In MT

Exploitable reserves

3 26’648.000 2.70 215’848.800 PROVE10 26´648.000 2.70 719’496.000 PROVABLE30 26´648.000 2.70 2,158’488.000 POSSIBLE

caCa

Horeb Mining Concession

Magdalena River

Port of Barranquilla

Caribbean Sea

DIMAR (Maritime Directorate) Quarantine Zone for Cargo Ships

Military Base

Ernestos Cortissoz International Airport

Barranquilla

Horeb Mining Concession Location

Long shore drift from the Mouth of the Magdalena River

Horeb LicenseReserves test at 3 meters done by CMC associates of Vector Australia with the guidance of engineers from Australian company, JORC (Joint Ore Reserves Committee)

Exploration Works Magnetic Survey Bathymetry profile Sampling/ Assays

- Preliminary Results- Elementary Analysis- Magnetic Separation and X-Ray Diffraction analysis- Scanning Electron Microscopy Analysis

Metallurgical Analysis

Magnetic Survey Performed by AngloGold Ashanti Colombia Type of survey: Aero-transported Equipment used

- Aircraft: Bell 206- Magnetometer: Geometrics G823 cesium vapor with sensibility of 0.001 nT- GPS: MID-TECH R400P- Information processing: OASIS montaj v7.0

Total length: 1850 km with 200 mts distance between flight lines of the grid

Total Cost of the Magnetic survey: USD$500,000

Magnetic Survey Design

*Surveyed and Processed by AngloGold Ashanti

Horeb Concession - Magnetic Survey Results

Barranquilla

Bathymetry

Sampling The sampling program was performed by Andrew Storrie, a

Mining Engineer with over 20 years of experience in the resource sector and Rudi Smithwick, Senior Project Geologist with over 20 years of experience in the resource sector specialized in Joint Ore Reserve Committee “JORC”.

Sediment samples were collected throughout the project area from beach scarps and over wash zones in the preliminary Feasibility Analysis phase of the project.

Seven License Areas were targeted due to the visual abundance of heavy minerals deposits noted on the beach faces of these License Areas.

A grid was established to determine the location and the number of samples to be collected. More than 250 samples were taken from the surface down to three meters depth using different methods: hand, vibracore and ponargrab.

Total investment of USD$500,000 in the sampling program

Sampling ResultsOxide Analysis Sample

FeO (%) 19,39Tio2 (%) 15,52

Fe2O3(%) 40,75

Mineralogical Analysis SampleMagnetite (%) 67Ilmenite (%) 6,4

Magnetite + Ilmenite (%) 26,6

Metallurgical Analysis

Metallurgical Analysis Results

Mineral TestingAtomic absorption testing conducted by SGS on March 8, 2005 for the Horeb concession.

Results were: Fe2O3 – 81.31%

TiO2 – 8.98

Mineral Analysis

594 821 596 599SAMPLE Al2O3 K2O MnO Na2O

DESCRIPTION % % % %M-CLM-1 1,47 0,31 0,28 0,31

597 540 2855 2501SAMPLE P2O5 TOTAL Ba Ce

DESCRIPTION % % ppm PpmM-CLM-1 0,21 96,91 11,5 175,5

2859 2861 2842 2506SAMPLE Co Ga Hf Ho

DESCRIPTION ppm ppm ppm PpmM-CLM-1 10 7 84 1,2

2507 2862 2864 2511SAMPLE La Pb Rb Sm

DESCRIPTION ppm ppm ppm PpmM-CLM-1 84 <5 1,6 11,6

2870 2869 2549 2872SAMPLE Sn Tl U V

DESCRIPTION ppm ppm ppm PpmM-CLM-1 3 <0.5 7 215

2871 2531SAMPLE W ZrO2

DESCRIPTION ppm ppmM-CLM-1 <1 469038,5 5,5 105 3470

ppm ppm Ppm PpmY Yb Zn Zr

2873 2514 2874 2875

ppm10,3 2 1,2 39 0,7ppm ppm Ppm Ppm

2513Sr Ta Tb Th Tm

2867 2868 2512 2550

19,51 14 71 5

Prppm ppm Ppm Ppm ppmLu Nb Nd Ni

2508 2844 2509 2863 2510

ppm15 6,7 3,8 0,7 9,7

ppm ppm Ppm Ppm

2505Cu Dy Er Eu Gd

2860 2502 2503 2504

<14,64 <0.01 15 -1,79

Ag% % % % Ppm

SiO2 SrO TiO2 LOI592 8590 595 475 2865

%<0.01 0,77 <0.01 75 0,71

% % % %

593BaO CaO Cr2O3 Fe2O3 MgO542 588 590 586

CERTIFICATE COMMENTS : "ATTN: DANIEL SARMIENTO/JOHN FLÓREZLOREZ PROJECT : " " DATE RECEIVED : 08-OCT-2001 # of SAMPLES : 1

CLIENT: "COLMINERAL LTDA. “

“ INVERVALORES AMERICA S.A.”

A0126418 – CERTIFIED

Atomic absorption and chemical testing conducted by ALS Chemical on October 8, 2001 for the Horeb concession.

Results were: Fe2O3 – 75% TiO2 – 15%

* The mineral elements’ qualities have been determined by laboratory tests made by the international firms SGS and ALS SHEM.

Competitive Advantage Lower Cost Basis - This project operating in inland waters has many advantages: the charge could be made directly to

ships at sea, without using ground transportation over long distances or ports, since the operating area is adjacent to the quarantine zone in the Port of Barranquilla - Lower costs compared to inland concessions as extraction, production, transportation and cargo can

all be done in the sea Quality- Quality of minerals allows for a higher quality of iron and steel in comparison to using scrap metal for processing Lower Shipping Costs - Shipping from Port of Barranquilla is more price competitive with respect to the following markets:

China: via Panama Canal, closer than Brazil and AfricaJapan: via Panama Canal, closer than Brazil and AfricaS. Korea: via Panama Canal, closer than Brazil and AfricaUS: via Gulf of Mexico, closer than Brazil, Africa and AustraliaGermany: via Atlantic, closer than Australia and South Africa

Mineral Replenishment- Given the off-shore location of the minerals, as they are extracted from the seabed, the natural

currents from the Gulf of Mexico heading towards the Colombian coastline will replenish some of these

extracted minerals. A control plan will be utilized to ensure optimization of mineral content in extraction zones

Concession Highlights Location- Perfect to serve international/national markets- Safe place (next to major city, tourist sites, international airport, main port and military

base) - all within a 45 minute drive- Simple logistics

- Ability to extract, process and load cargo in the open sea next to the mine- Concession is adjacent to the Dimar quarantine zone for cargo ships and the beach is just 7

miles from quarantine zone - Access to all public services- Concession next to the mouth of the Magdalena River

- Rich in minerals - Fast restoration process of extracted heavy minerals with all elements

Mine Characteristics- Iron mining by sedimentation – natural restoration process- Prove reserves of 215’848.800 MT of heavy minerals- Iron dioxide of high quality- Granulometry of 150-300 micras- 52% magnetite without any process Buyers- Long list of buyers ready to buy production of magnetite and future iron ore production- Clients willing to issue Irrevocable Corporate Purchase Orders (ICPO) once mine starts

production - High interest shown by buyers from China, Korea, USA and Germany

Short Term Work PlanExploitation of the Black Sands

Divided in four stages: 1. Permit process of the environmental license Update and adjust the Environmental Management

Plan (EMP), to obtain the environmental license from the Ministry. The project has received approval from the Maritime Directorate (DIMAR), an entity that has jurisdiction and control over maritime areas.

Update and adjust the mining Works and Infrastructure Program (WIP). In order to start the mine’s operation immediately, the only requirement its to announce INGEOMINAS (The Colombian Institute of Geology and Mining) that the operational phase of the concession contract begins, by the processing of the legal terms of reference.

*The average time to obtain the environmental license is 60 days.

2. Assembly and mining - (Simultaneously with the previous stage)

Assess and hire the mining operation. Our company has maintained contacts with international companies specialized in dredging, which we suggested as carriers for outsourcing, these are the Dutch companies:

Royal Boskalis Westminster N.V (www.boskalis.com)

Van Oord (www.vanoord.com) DOWNER EDI MINING www.mineraltechnologies.com.au

Royal Boskalis Westminster N.V

Short Term Work Plan3. Development of infrastructure Identify and acquire land to build silos

and future plant (approx. 60 hectares). Licensing of construction and operation.

Manage the adjustment of Land Management Plan (LMP).

Development of basic civil works.

4. Sales of black sands Sales of heavy minerals with all its

elements containing high quality magnetite with a concentration between 58% and 62% of iron ore (No separation of different minerals).

Short Term Projections0 - 6

months

7-12 month

12 -24 month

Environmental permit, hire international dredging company,

develop infrastructure

Drag, process and sell 50,000 tons/month of heavy minerals with

magnetite of 58% to 62% concentration of iron ore

Drag, process and sell 100,000 tons/month of heavy minerals with

magnetite of 58% to 62% concentration of iron ore

Future Plans1. Construction of plant to enable the separation of the

different elements from the black sands and produce iron ore with a concentration of 65% to 70%. Expected to be constructed in a 24 month period.

The projected production during the first two years is 300,000 tons/month of Fe (65% to 70%) and 20,000 tons/month of TiO2 (90% to 96%); the third year the production is increased to 500,000 tons/month of Fe and 35,000 of TiO2 and in the sixth year reach 1'000.000 tons/month of Fe and 70,000 tons/month of TiO2. In addition to other elements in the sand like zirconium, monazite and gold.

Fe with 65% to 70% concentration is around USD$180/ton

TiO2 with 90% to 96% concentration is around USD$500/ton.

2.Optional - Construction of steel mill for processing iron ore and steel production using a small modular steel electric arc furnace (start production in 6 months).

The price of processed iron is more than 4 times that of the bulk

Produce iron of first merger of 97% to 98% purity and steels with different characteristics. As a byproduct of this process, titanium slag with purity of 90% or more is obtained, which is marketed crushed and ground, at high prices.

*For the design, manufacture, assembly and operation of the mill, Invervalores has contacted Downer EDI Mining, (Australia), Eriez (Mexico) and Eral (Spain) because of their extensive international experience, particularly in environmental management.

Thank you