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Geovic Mining Corp.









Geovic Mining Corp. aims to be the world’s largest cobalt mining company through its 60% ownership of Geovic Cameroon PLC ("GeoCam"). Geovic Cameroon’s Mine Permit covers 1,250 square kilometers in Cameroon, Africa, and provides exclusive production rights to seven large cobalt-nickel-manganese deposits. The first and second of the seven deposits, Nkamouna (pronounced ka-moon-ah) and Mada (directly adjacent to Nkamouna), are currently under development.

Nkamouna’s proven and probable ore reserves are 54.7 million tonnes at average grades of 0.25% cobalt, 0.69% nickel, and 1.33% manganese. This reserve yields 11.7 million tonnes of concentrates grading 0.74% cobalt, 0.99% nickel, and 3.78% manganese suitable as a feedstock for the Company’s unique processing facility. Additionally, GeoCam has 323 million tonnes of inferred resources at Nkamouna and Mada with grades of 0.21% cobalt, 0.61% nickel, and 1.25% manganese. Total measured and indicated resources increased by 97% due to the 2008-09 drilling program, with updated proven and probably reserves expected to be completed simultaneously with the updated Feasibility Study in December 2010.

A September 2008 Optimization Study to a 43-101 Technical Report dated January 17, 2008 estimated that the Nkamouna Project will deliver after-tax cash flow (discounted at 8%) of US $1,024 million (or $614 million net to Geovic's 60% interest), an IRR of 44%, and a payback of 1.9 years based on 100% equity financing and 3-year average metal prices (ended June 2008) of $26.57/lb cobalt and $12.39/lb nickel, respectively. Average operating costs during the first 19 years of production are estimated at $2.04 per pound of saleable cobalt, net of nickel and manganese byproduct credits.

The strength of the estimated project economics are attributed to the unique physical properties of these specific laterite deposits, and should be enhanced further by the addition of a circuit to process byproduct manganese.

During 2009-10, Geovic performed bench and pilot-scale tests aimed at increasing cobalt yields, reducing capital and operating costs, and lowering overall process risks. Based on the successful results of such tests, as well consideration of potentially manufacturing intermediate (instead of finished) cobalt and nickel products, Geovic Cameroon now anticipates reduced risks and capital costs. In January 2010, a Feasibility Study Update (FSU) commenced, headed by Australian engineering group Lycopodium Minerals Pty. Ltd., targeting completion in December 2010. Following completion of the FSU, Geovic Cameroon aims to immediately target the securing of project financing and commencement of plant/mine construction.

Additionally, in December 2009 Geovic engaged the U.K.-based Standard Chartered Bank as Financial Advisor to help it secure such financing, either in the form of a traditional debt/equity Project financing or via alternatives methods such as strategic partnerships or joint ventures.

Cobalt has many diverse applications, including rechargeable batteries for cell phones, computers, and hybrid electric vehicles, super-alloys for jet engines, chemicals, wear resistant alloys, catalysts, and magnets. Global cobalt demand in 2009 was 56,000 tonnes compared to 31,000 tonnes in 1997, and in mid-2010 cobalt prices were trading roughly in line with their 15-year average of $20/lb.

Geovic is committed to sustainable development and social responsibility. Our long-term success is directly related to the welfare of the people and communities where we operate. Consequently, the Company has developed its GeoAid program to ensure that sustainable and high quality environmental and socio-humanitarian standards are an integral and essential component of our mining projects.


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