Slide 1: Rusoro Mining Corporate Presentation – August 2011
August RML : TSX.V 2011 1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation may contain forward-looking statements relating to the future performance of Rusoro Mining Ltd. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ mat
Slide 3: Rusoro Mining at a Glance
Rusoro Mining at a Glance PRODUCTION & GUIDANCE : 100,000 oz Au 2010 90,000 oz Au 2011 150,000 oz Au 2012 CASH COSTS : Targeting under US$500/oz when at full production 2012 GOLD SALES: Venezuelan policy adjusted to allow off shore gold sales for first time ever GROWTH : Preliminary Assessment shows
Slide 4: Rapid Growth to a Mid-Tier Gold Producer: Company Milestones
Rapid Growth to a Mid-Tier Gold Producer Company Milestones PRE-RUSORO : Operated in Venezuela as private Grupo Agapov between 2001 and 2006. Established gold production and presence as socially and environmentally responsible mining company. >175,000 metres drilling of key Projects to outline gold
Slide 5: Strong Political Ties between Russia and Venezuela
Strong Political Ties between Russia and Venezuela From Time Magazine: Sept. 2008 Making New Friends “After a face-to-face meeting, Venezuelan President Hugo Chavez and Russian President Dmitri Medvedev said their countries would work more closely together on energy and foreign policy”. From Reuters
Slide 6: Current Situation For Rusoro In Venezuela
Current Situation For Rusoro In Venezuela RML proven ability to operate in the current political environment Government: supportive of RML, named “Partner of Choice”, with the formation of Isidora and Camorra “mixed enterprise” company. Rusoro Chairman Vladimir Agapov with President Hugo Chavez
Slide 7: RML Capital Structure
RML Capital Structure Share Capital (millions): Basic: 529.8 Market Cap : US $100 M Sym : RML - TSX Venture Exchange 24.1% Gold Fields 38.1% 26.4% Rusoro Mgmt & Insiders Institutional 13.5% Individual Investors On conversion of debt Lenders would own 10% of RML Insiders, primarily the Agapov fam
Slide 8: Operational Overview
Operational Overview Venezuelan Producer: Produced 100,000 oz in 2010 : Guidance 90,000 2011 Rusoro Operations: include the Choco 10 and Isidora mines processing ore through the Choco 10 Mill and the La Camorra Mill respectively Choco Expansion Feasibility Study Initiated: following up on posi
Slide 9: Achieving Targets and Goals
Achieving Targets and Goals Cash Cost Production Reduction Growth 9
Slide 10: Consolidated Gold Production vs. Expansion Production Guidance
Consolidated Gold Production Consolidated Gold Production vs. Expansion Production Guidance 600,000 Gold Ounces 400,000 150,000 558,000 62,895 99,663 100,000 200,000 0 2007 2008 Actual 2009 Actual 2010 Actual 2014 PEA Actual Guidance Previous Ownership Rusoro Ownership Past Production vs. Expansion
Slide 11: Undervalued Relative to Junior Producers
Undervalued Relative to Junior Producers: Superior Ounces at Lowest Entry Point 21,000 Total Gold Resource Ounces 17,500 18,000 Ounces 000’s 15,000 12,000 8,300 10,000 9,000 4,900 5,600 6,400 4,700 6,000 2,700 3,000 4,100 3,000 - *Q2 2010 EET KGI SMF AGI JAG ARZ HRG RBI GAM RML *See website for NI43
Slide 12: 10.7 M oz M&I; 6.8 M oz Inferred and growing
Resources and Reserves *See website for NI43-101 Reports Total NI43-101 Resources M&I 168 Mt @ 2.0 g/t – 10,730,000 oz Au Inferred 127.5 Mt @ 1.7 g/t – 6,805,000 oz Au Includes P&P 19.0 Mt @ 3.9 g/t – 2,400,000 oz Au Drilling 3604 Holes / 482,453 m CHOCO 10 NI43-101 Resources INCREIBLE 6 NI43-101 Re
Slide 13: Production Highlights
Production Highlights Gold Production steady over last 3 yrs: 2008,100k oz; 2009, 150k oz and; 2010, 100k oz. Stabilization of gold sales policy in country should see production above 2009 levels in 2011 Production from Increible 6 to commence in 2011 SREP continues to be moved towards future
Slide 14: Production & Development Focus
Production & Development Focus Total NI43-101 Resources M&I 168.0 Mt @ 2.0 g/t – 10,730,000 oz Au Inferred 127.5 Mt @ 1.7 g/t – 6,805,000 oz Au Includes P&P 19.0 Mt @ 3.9 g/t – 2,391,000 oz Au Prod; 150k oz Au 2009 10 – 25k oz Au/yr additional 2011 Access Ramp Completed in Q1 2010 14
Slide 15: Choco 10
Choco 10 New gold sales policies and the permitting of the Increible 6 deposit will allow Company to aggressively pursue expansion plans of the Choco facilities 2010 production impacted by negative transitional gold sales policy (Q3 2009 –Q3 2010) and transition to dominantly hard rock ore. With
Slide 16: Development Highlights Increible 6
Development Highlights Increible 6 Resource includes 1.59 million ounces Indicated and an additional 1.10 million ounces inferred Indicated Resource to be included in on-going feasibility study New road construction connecting Increible 6 to Choco 10 was completed Q1 2011 Mine permitting com
Slide 17: Development Highlights Increible 6
Development Highlights Increible 6 Gold production from surface oxides at Increible 6 scheduled to begin in 2011 Additional oxide material expected to add 4-6 k oz Au/month until expansion at Choco Mill completed Engineering completed on roads, open pits, and waste dump Ore to be trucked eig
Slide 18: Choco 10 / Increible 6 3D Models
Choco 10 / Increible 6 3D Models Measured 34.7 Mt @ 2.2 g/t – 2,430,000 oz Au Indicated 105.2 Mt @ 1.7 g/t – 5,880,000 oz Au Inferred 59.2 Mt @ 1.5 g/t – 2,817,000 oz Au Choco 10 2464 Holes / 270,096m Increible 6 18
Slide 19: Feasibility Initiated to Advance Preliminary Assessment of Choco 10 and Increible 6
Feasibility Initiated to Advance Preliminary Assessment of Choco 10 and Increible 6 Preliminary Assessment (scoping study) completed by Micon International limited June 2009. The Assessment demonstrated positive economics on production of over 500,000 oz Au/yr at Choco 10, using a gold price of $7
Slide 20: Expansion Economics Vs Gold Price Leverage
Expansion Economics Vs Gold Price Leverage Economic Sensitivity to Gold Price* Au Price NPV8 IRR At US$700 gold, payback is estimated at ($US/oz) (000s $US) (%) 2.1 years (discounted at 8%) on a LOM of 450 (58,555) 3.7 12 years 500 50,624 12.0 550 154,075 20.8 US$700 gold the PA estimates a LOM
Slide 21: Capex per Annual Gold Ounces Produced
Capex per Annual Gold Ounces Produced (On Comparable Gold Mines Being Developed) $3.0 b 700k oz/yr $4,500 $4.4 b 1.25m oz/yr $4,000 $3,500 $3,000 $1.0 b 558k oz/yr $2,500 $844m $356m $789m 560k oz/yr 233k oz/yr $4286 $2,000 593k oz/yr $3584 $1,500 $239m $1,000 $1957 558k oz/yr $1330 $1507 $1529 $500
Slide 22: Mina Isidora - High Grade Gold Mine
Mina Isidora - High Grade Gold Mine Successfully turned around underground production at Isidora after difficulties under previous ownership Greatly increase efficiency and continuity of operation in 2009/2010 Greater than three years of ore currently outlined for future production Developme
Slide 23: Mina Isidora Expansion Potential
Mina Isidora Expansion Potential 40,000 m drilling /exploration program underway to expand resources and reserves Three drills current operating 23
Slide 24: Development Highlights – SREP/Alvarez Ramp
Development Highlights – SREP/Alvarez Ramp Since 2006 Rusoro has advanced SREP from discovery, through delineation, permitting and development and now into Production. Completed surface work, portal and 1.5 km underground access ramp completed Trucking of ore to Choco Mill has commenced Ramp
Slide 25: 2010-2011 Advancement at SREP (Mina Simon Bolivar)
2010-2011 Advancement at SREP (Mina Simon Bolivar) Ramp to access the main mineralized gold zones at 200m depth completed in 2010 / development on mineralized structures on-going Currently processing material at the Choco Mill 25
Slide 26: Rusoro Mining: Future Growth & Opportunities
Rusoro Mining: Future Growth & Opportunities Restore production to over 150k oz Au/yr 2012, target >500oz Au/yr in 2014 Prove the viability of significantly expanding production at Choco 10 to >500,000 oz Au/yr in the near term, by completing a positive Feasibility Report in 2011 Further explo