AFRICAN-FOCUSED Explorer, Developer & Operator

February 2012

Disclaimer

2

This document is not a disclosure document nor does it constitute the provision of financial product advice. No representation or warranty is made as to the accuracy, completeness or reliability of the information. The information is provided expressly on the basis that recipients will carry out their own independent inquiries into the matters contained herein and make their own independent decisions about the affairs, financial position or prospects of the Company which reserves the right to update, amend or supplement any information at any time in its absolute discretion.

COMPETENT PERSONS STATEMENT The information in this report that relates to Mineral Resources is based on information compiled by Hennie Theart, BSc (Hons), MSc, PhD, Pr. Sci. Nat (SACNASP 400069/88), FSEG, FGSSA, FAAG; Shaun Crisp, BSc (Hons), Pr.Sci.Nat. (SACNASP 400076/09); and Brent Barber, BSc (Hons), MPhil, AusIMM (222559), AAPG (59319-8).

Hennie Theart and Shaun Crisp are registered with the South African Council for Natural Scientific Professions (SACNASP), a JORC Recognised Overseas Professional Organisation "ROPO" and Brent Barber is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). They have experience which is relevant to the style of mineralisation, type of deposits under consideration and to the activity which they have undertaken, to qualify them as a Competent Persons, as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves'. At the time of preparation all were full-time employees of SRK Consulting but Shaun Crisp and Brent Barber have since left the company. Hennie Theart continues to be employed by SRK and consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

The information in this release that relates to the Exploration Process is based on information compiled by A Johnstone who is a member of the Australian Institute of Geoscientists (AIG). Andrew Johnstone provides exploration management consulting services to Gulf Industrials Ltd and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which Andrew Johnstone has undertaken to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Andrew Johnstone consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Corporate Snapshot

Directors:

Sir Sam Jonah KBE OSG (Chairman)

Wayne Kernaghan (CFO)

Mike Brook (non exec)

Jonathan Best (non exec)

Chris Innis (non exec)

Bobby Jurd (non exec)

Officers:

Mark Arnesen (Acting CEO)

Wayne Kernaghan (CFO)

Rob Guest (COO)

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Market Cap: AUD 16.8 M

Cash on Hand: AUD 5.1M (31 Dec 11)

Shares on Issue: 930.3 M

Options (listed) 436.4 M (31 Dec 12)

52.6 M (31 Mar 13)

Options (unlisted) 111 M

Major Shareholders:

Richmond Capital 17.4%

African Lion 3 16.9%

Jonah Capital BVI Ltd 12.7%

Contango Asset Management 7.1%

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Sir Sam Jonah Non-Executive Chairman Sir Sam Jonah is internationally recognised as one of Africa’s leading businessmen. Between 1986 and 2004 he was the Chief Executive Officer of Ashanti Goldfields Company Limited. Here he championed for the transformation of Ashanti from a one mine operation into a multinational gold miner and the first African gold miner to list on the New York Stock Exchange. Sir Sam is currently a member of the United Nations Secretary-General’s Global Compact Advisory Council. He received an honorary knighthood by Her Majesty Queen Elizabeth II, the Star of Ghana, in recognition of his achievements as an African businessman and a leading business executive from the Commonwealth. Wayne Kernaghan Chief Financial Officer & Company Secretary Wayne Kernaghan is a member of the Institute of Chartered Accountants in Australia with over 20 years experience in various areas of the mining industry. He is a Fellow of the Australian Institute of Company Directors and a Chartered Secretary. During the past three years Mr. Kernaghan has held the following listed company directorships - Cullen Resources Limited from 11 November 1997, FarmWorks Australia Limited from 19 February 2009 to 24 August 2010, Orpheus Energy Limited from 7 September 2006 to 24 November 2008. Mr. Kernaghan was appointed company secretary on 30 June 2005. Mike Brook BSc (Mining Geology), CEng MIMMM MAusIMM Fund Manager, African Lion Non-Executive Director Mike Brook has extensive experience in the mining industry having worked for 30 years since graduating with a Bachelor of Science in Mining and Geology in 1981. He started as a mine geologist for MIM Holdings and soon progressed to Chief Geologist for the company’s copper mining operations. In 1993, Mr. Brook joined Stockbrokers J B Were & Son as a resource analyst specialising in emerging resource companies in the gold, base metal and mineral sands sectors. He was later awarded the prestigious Best Junior Company Research Award from the Australian Gold Council. Mr. Brook joined Lion Selection group in 2001 and became and executive director of Lion Manager Pty Limited in 2004. Jonathan Best Non-Executive Director Jonathan Best has extensive experience in senior management, leadership and business strategy in the mining industry, including the Anglo American and De Beers groups. Among other senior management positions, he served as the executive director and Chief Financial Officer for AngloGold Ashanti from 1998 to 2005. He currently has a number of Independent Non-Executive Directorships, including AngloGold Ashanti Holdings Plc and JSC Polymetal.

Gulf Board & Management

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Chris Innis

Non-Executive Director

Chris Innis is a professional manager with a background in strategy, marketing and finance and has worked across a number of industries including

investment banking, media and mining in senior positions including Chairman and Board Director. He specialises in growing businesses and is skilled

in re-engineering business strategies and implementing and managing growth plans. Previous experience includes Chairman of Mining

Communications where he initiated, led and arranged the management buy in, achieving an exit of approximately nine times money for original

investors and twenty two times for management. Mr. Innis was previously a director of London listed Angus & Ross and Blackthorn Resources

Limited where he assisted in raising $30 million in London. He has also served on the management board of EMAP plc and was an Associate Director

at Hambros Bank plc where he worked in corporate finance. Mr. Innis is currently Chairman of Intierra Pty Ltd, a global competitive intelligence

service for the mining industry and Edge Custom Media, a content agency for multiple media channels.

Bobby Jurd

Non-Executive Director

Bobby Jurd is experienced in all facets of the mining industry from operations to corporate finance. He served as an executive for TransNatal Coal

Corporation, Goldfields, Gencor (which merged into BHP Billiton), as well as Head of Resources – Investment Banking Division at ABSA Corporate and

Merchant Bank for nine years.

Mark Arnesen

Acting Chief Executive Officer & Chief Financial Officer

Mark Arnesen has extensive expertise in the resources sector and the development of mining operations in Africa. He has over 20 years’ experience

in the international resources industry, including roles with the Billiton/Gencor group companies where he was a corporate Treasurer; Ashanti

Goldfields Company Limited as Managing Director International Treasury; Equinox Minerals Limited where he oversaw the financing of the Lumwana

Project; and Moto Goldmines where he held the position of Finance Director. He has also been a Non‐Executive Director of Natasa Mining Limited

and Asian Mineral Resources and is currently a Non Executive Director of Centamin Egypt Limited which is listed on the London Stock Exchange and

the Toronto Stock Exchange.

Rob Guest

Chief Operating Officer

Rob Guest is a mining engineer with more than 30 years experience in developing and operating mining projects in the emerging economies of Africa

and SE Asia. Holding senior roles with Paragon Resources, Chase Resources, Highlands Pacific and as Chief Executive of Asian Mineral Resources, he

has been the driving force behind the feasibility, development and construction of numerous base and precious metal projects in remote and

culturally challenging locations. He has held key positions in industry representative groups championing dialogue with numerous governments and

brings with him principles of good governance and safety as well as responsible stewardship of the environment.

Gulf Board & Management

History of Gulf

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• 30 June 2005 Gulf Incorporated

• 10 Aug 2006 listed on the ASX as a mineral explorer. Strategies focused on projects capable of providing an early cash flow

• 26 May 2009 acquired Namekara from Rio Tinto for US$1M (due 31 March 2012)

• July 2009 SRK Consulting confirmed JORC inferred resource of 14.7Mt of contained vermiculite (>180um) at Namekara

• Sep 30 2009 Mining license transferred to Gulf

• Feb 2011 committed to expansion of Namekara to 30,000tpa

• 4 Oct 2011 commenced 3,500m diamond drill program

• 15 Oct 2011 commissioning and ramp-up of 30kt plant commenced

• Nov 2011 US$1M purchase price paid in full to Rio Tinto

Corporate Structure & Projects

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ASX: GLF GULF

INDUSTRIALS

UGANDA Gulf Resources

Uganda

NAMEKARA BUKUSU

MADAGASCAR Soalara

Calcaire SARL

SOALARA Vermiculite Magnetite

Vermiculite Copper

Iron, Zircon Phosphate Rare Earths

Limestone Illmenite

AMBOVOMBE

What is Vermiculite?

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“Hydrated Magnesium Aluminium Silicate”

Naturally occurring laminar mineral, a product of weathering of ‘phlogopite’ and only occurs to a depth of 40-50m below surface

Unique Properties - Exfoliation

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When heated above 800ᴼC the interlayer moisture is transformed into steam. The pressure forces the silicate layers apart and the flake forms an elongated concertina-like particle up to 20 times its original thickness.

Bulk density: 640-1120kg/m3

Bulk density: 64-160kg/m3

Lightweight Inorganic Incombustible Compressible Highly absorbent Non-reactive

Uses of Vermiculite

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Agriculture

Industrial Construction

Manufacturing

Horticulture

Supply & Demand

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0

100,000

200,000

300,000

400,000

500,000

600,000

2002 2003 2004 2005 2006 2007 2008 2009

Others

Zimbabwe

Brazil

Russia

USA

China

South Africa

0

50,000

100,000

150,000

200,000

250,000

Americas AsiaPacific

Europe CIS Africa MiddleEast

2006

2007

2008

2009

Supply dominated by South Africa (at the moment…)

Market dominated by Developed Economies

(at the moment…)

• South Africa cutting back • USA phasing out • Brazil & Uganda expanding • China?

• America/Europe effected by GFC • Japan & Korea growing • East Africa?

Palabora Mining Company

As presented to The Vermiculite Association

April 2011

Large Medium & Fine grade production reducing

Coarse grade production unable to fully meet

the current unprecedented market demand

Superfine production also struggling to meet the

current unprecedented demand

Micron grade production meeting demand

Initiatives are in hand to improve process

recoveries and volumes in the plant

Namekara vs. World Market

• World demand: 650-800ktpa (Roskill, Dupre)

• World production: ~500,000tpa (Roskill)

• Shortfall: 300ktpa (Dupre)

Consumption dictated by supply

• Market recognises 6 size fractions: Premium, Large, Medium, Fine, Superfine & Micron

• But limited supply of larger fractions = premium prices

• The coarse component of Namekara is almost 30% and it has the capacity to dominate world production in the larger, higher priced, end of the market

Large Vermiculite Crystal Namekara

Bukusu – Project Location

Namekara BUKUSU Carbonatite

Road Kampala – Bukusu 230kms Bukusu - Mbale 38kms Bukusu – Tororo 28kms Bukusu – Nairobi 472kms Nairobi – Mombasa 483kms

Rail Nearest siding (Tororo) 28kms Nearest track to site 9kms

Power Grid Connection at Namekara

Namekara – Key Features

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World’s largest vermiculite resource (>10Mt)

Unusually coarse grades (29% of product)

Excellent exfoliation properties

Demonstrated market acceptance (sales to Europe)

Huge growth potential (USA, Asia)

Unique opportunity to develop East African regional retail market (large coffee, cut flowers sectors)

Marketing - DUPRE MINERALS

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• World wide distributor of Namekara brand product

• Wholly owned subsidiary of the Goodwin Group PLC UK.

• Over 60yrs experienced in vermiculite processing and marketing

• Purchase all of Namekara products F.O.B. Mombasa

• Provide financial & technical assistance (laboratory, QA & QC, R&D, etc.)

Committed to assist Gulf to advance capacity of Namekara to 130ktpa

Product Grade Distribution & Values

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Large 21%

Medium 43%

Fine 16%

Super fine 14%

Micron 6%

Expected Average Price

$329/t

Bukusu Carbonatite – Gulf Tenements

• 5 Exploration Licenses, 1 Mining Lease (Dec 2010) … >80sqkm

• EL’s have a 3-Year tenure with option to extend for 2 x 2yrs

• Must relinquish 50% each renewal (i.e. from Jan ‘14)

• Standard ‘use it or lose it’ requirement

10 kms

9 kms

Namekara

Palabora Carbonatite Complex (South Africa)

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5.6 kms

2 kms

1950 hectares

Vermiculite Resource

JORC Inferred Resource (Rio Tinto) =

54.9Mt

@ 26.7% >180μm = 14.7Mt of Vm

@ 18.8% >425μm = 10.3Mt of Vm

Marketing Grade Size (mm) Distribution Mt Vm Mt Vm Premium >9.5 8% 1.2 0.8 Large >5.6 <9.5 21% 3.1 2.2 Medium >2.0 <5.6 30% 4.4 3.1 Fine >1.18 <2.0 20% 2.9 2.1 S/fine, micron <1.18 21% 3.1 2.2 TOTAL 14.7 10.3

Resource Drilling (triple core)

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75% of 3,500m complete Excellent core recovery

Drill Plan

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Triple Core Drilling Program

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• Historic drill holes • Current drill holes 1. Sections

Plant

Pit

2 1

3 4

5

Drill results as at Dec 31, ‘11

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Hole ID

Survey Vermiculite

GPS_X GPS_Y EOH

Elevation Azimuth Dip From To Intersection

(metres) (deg) (deg) (metres) (metres) (metres)

ND01 639641 92737 63.0 1220 26 -50 17.6 63.0 45.4

ND02 639728 92918 60.6 1223 27 -50 14.4 57.7 43.3

ND03 639824 92945 40.1 1223 24 -50 None None -

ND05 639585 92978 47.6 1223 202 -50 21.9 46.6 24.7

ND06 639637 92957 50.0 1227 207 -49 14.7 49.4 34.7

ND07 639725 92912 71.0 1226 205 -50 13.8 66.7 52.9

ND08 639789 92818 73.2 1227 22 -50 17.3 71.3 54.0

ND11 639483 92934 53.0 1213 26 -50 22.8 49.2 26.4

ND12 639540 92899 53.0 1214 26 -55 12.5 49.3 36.8

ND13 639677 92989 62.0 1224 26 -50 None None -

ND14 639696 92645 62.0 1214 206 -50 29.8 59.2 29.4

ND15 639787 92811 50.9 1226 202 -50 16.8 50.8 34.0

ND18 639481 92931 58.9 1211 206 -55 18.8 55.7 36.9

ND19 639538 92896 90.0 1214 206 -55 14.5 44.9 30.4

ND20 639725 92747 65.1 1219 26 -50 19.5 62.4 42.9

ND23 639423 92866 62.1 1215 42 -50 8.1 56.7 48.6

ND24 639489 92803 50.1 1215 26 -50 13.3 36.4 23.1

ND25 639550 92748 59.1 1216 26 -51 21.9 56.2 34.3

ND26 639724 92741 58.7 1218 206 -50 25.5 55.8 30.3

ND29 639424 92837 67.9 1214 212 -49 21.7 62.4 40.7

ND30 639488 92798 58.9 1215 206 -50 10.8 51.6 40.8

ND31 639534 92719 62.0 1214 26 -50 21.7 52.3 30.6

ND32 639639 92731 61.5 1220 207 -50 20.0 57.8 37.8

ND33 639698 92649 57.7 1214 26 -50 26.2 54.5 28.3

ND35 639515 93033 51.1 1222 27 -50 23.8 56.0 32.2

ND36 639692 92814 60.4 1219 26 -55 12.1 47.5 35.4

ND37 639514 93028 57.2 1221 206 -50 26.5 51.4 24.9

ND38 639532 92708 70.9 1217 206 -50 16.9 64.1 47.2

ND39 639691 92809 103.1 1219 197 -55 14.8 56.4 41.6

ND40 639605 92650 59.0 1215 30 -50 14.1 54.6 40.5

ND41 639604 92643 67.9 1213 210 -50 19.9 63.9 44.0

ND42 639508 92639 65.1 1212 26 -50 14.4 53.7 39.3

ND43 639585 92985 50.0 1223 22 -52 None None -

ND44 639823 92940 56.3 1228 204 -50 20.2 56.3 36.1

Budget: 3,500m (~41 holes)

Holes completed: 34

Meters drilled: 2,080m

Av. depth: 61m

Av. intersection: 37m

639

100

E

639

100 E

639

200

E

639

200 E

639

300

E

639

300 E

639

400

E

639

400 E

639

500

E

639

500 E

639

600

E

639

600 E

639

700

E

639

700 E

639

800

E

639

800 E

639

900

E

639

900 E

640

000

E

640

000 E

92500 N 92500 N

92550 N 92550 N

92600 N 92600 N

92650 N 92650 N

92700 N 92700 N

92750 N 92750 N

92800 N 92800 N

92850 N 92850 N

92900 N 92900 N

92950 N 92950 N

93000 N 93000 N

93050 N 93050 N

93100 N 93100 N

ORE_%

[0,20]

[20,30]

[30,40]

[40,50]

[50,60]

[60,100]

0 25 50 75 100 125 150 175

Grade Distribution (Visual)

High value zones?

High value zones? High value

zones?

Vermiculite Process Flow diagram

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1.15t Bulk Bags

Crushing Mag Sep Drying

Screening

Winnowing

Screening

• Large • Medium • Fine • Superfine • Micron

Magnetite

Namekara Mine Pit/Quarry

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Feasibility Schedule

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

30kt/y OperationFinal 30kt refinements

Steady state operation

Feasibility - additional 50kt/yCore drilling program

Analyses of samples

Resource estimation

Reserves & mine planning

Sterilisation drilling

Regional exploration

Process & engineering

Transportation & logistics

Marketing

Environment & community

Govt development agreement

Financial modelling & report

Development decision

Plant Expansion – Modular Concept

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Logistics – Current (30,000tpa)

By road

1.15t bulk bags

50% carried by high-sided trucks

50% using tipper trucks

All ‘back loads’ from import traffic

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Logistics – Site to Mombasa

36

ROAD $66/t

Back-loading, open & tip trucks

Namekara - Mombasa 970kms

RAIL $29/t

Plus trucking to siding (28kms)

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Bukusu – Exploration Targets

Iron

Geochem Soil Sampling

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Namekara – Copper Anomaly (~1950 data)

39

Recently Discovered Vermiculite Showings

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Namekara

New Showings

Phosphate

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• Phosphate mine operated at Busumbu from 1944 to 1963.

• In 1993 Ugandan Geo. Survey (DGSM) and UN estimated (Kato):

Resource: 8.5Mt @ 11-15% P2O5

‘Reserves’: ‘hard’ 332,000t @ 28.5 % P2O5

‘soft’ 2,468,000t @ 13.5 % P2O5

• Estimates were based on pit excavations limited to a depth of 6 m”

Busumbu

Madagascar

43

Ambatovy Nickel

Solara Limestone

Ambovombe Illmenite

Mark Arnesen

CEO & CFO mark.arnesen@gulfindustrials.com.au

Rob Guest COO

rob.guest@gulfindustrials.com.au

Thank You