Balatoc Gold Tailings Project

Sta. Cruz Nickel Project

Benguet Corporation, with 107 years of history, has

pioneered modern mining in the Philippines:

1903 - rich gold lodes of the underground Antamok Mines in the famous Baguio Mineral District

1927 - rich gold lodes of Acupan Mines also in the Baguio Mineral District

1934 - Masinloc Refractory Chromite Mine in Zambales, Western Luzon

1971 - gold-rich Dizon Porphyry Copper Mine in Zambales

The Company

BenguetCorp Mineral Properties

1. ACUPAN GOLD MINE

2. ANTAMOK GOLD MINE

3. AMPUCAO COPPER PORPHYRY

PROSPECT

4. BALATOC GOLD TAILINGS

PROJECT

5. ILOCOS AND APAYAO FTAA

6. LIMESTONE PROSPECTS

7. PANTINGAN GOLD

PROSPECT

8. SURIGAO COAL PROJECT

9. KINGKING COPPER-GOLD

PROJECT

10. KINGKING EPITHERMAL

GOLD PROJECT

Ilocos Norte FTAA

Kalinga Apayao

FTAA

Acupan Gold Mine

Antamok Gold Mine

Balatoc Tailings

Project

Sta. Cruz Nickel

Project

Surigao Coal

Project

“THE RECOVERY OF RESIDUAL

GOLD FROM TAILINGS”

BALATOC GOLD RESOURCES CORP. (BGRC)

BALATOC GOLD TAILINGS PROJECT

In compliance with NPCC directive – BenguetCorp built three (3) tailings dams which up to 1992 had accumulated some 16.7 Million tonnes of mill tailings.

Barangay Virac

Benguet Province

Tailings Pond # 1

Tailings Pond # 2

Tailings Pond # 3

PROJECT LOCATION

TAILINGS RESOURCE

TAILINGS POND TONNAGE

GRADE (gAu/MT) (MT)

I 4,649,483 0.87

II 6,266,130 0.56

III 5,787,142 0.56

TOTAL/AVE. 16,702,755 0.65

MINEABLE RESERVE

TAILINGS POND TONNAGE

GRADE (gAu/MT) (MT)

I 3,952,061 0.87

II 5,326,210 0.56

III 4,919,071 0.56

TOTAL/AVE. 14,197,342 0.65

Mineral Processing Permit (MPP) No. 13-2010-CAR Environmental Compliance Certificate

(ECC) 0811-033-2721 issued June 11, 2009

Board of Investment Incentives with 6 years BOI exempted tax holiday issued December 16, 2009

Reclamation of Tailings Reclamation by SMALL HYDRAULIC SUCTION DREDGE.

Reclamation rate of 3,000 TPD on the first 3 years

and 5,000 TPD on years 4 to 10.

Pre-production dredging of about 2 million DMT from

the downstream of Tailings Pond #1 and to be

stockpiled in Tailings Pond #2 and upstream of

Tailings Pond #1.

During production, dredging of tailings material

starts at Pond #1 and material conveyance via slurry

pumping.

Dredging facilities will be installed in the

tailings pond for mining.

Metallurgical Process

Metallurgical researches were done in the

laboratories of BenguetCorp, MGB and Beijing

General Research Institute of Mining and

Metallurgy (BGRIMM) of China.

The planned mill capacity is 3,000 TPD for the

first 3-years and expanded to 5,000 TPD on years

4 to 10.

The selected metallurgical process is a

combination of concentration by flotation,

ultrafine grinding and CIP/CIL.

Metallurgical Process

Test results showed about 84.3% & 70% gold

recoveries from flotation and CIP/CIL,

respectively. Combined gold recovery is about

60%.

Option: roasting will improve gold recovery to

70% and production of about 90,000 tons of

sulfuric acid per year.

By-product: Pyrite concentrate will be sold in the

market.

The mill plant will be constructed at the old

Acupan mill site overlooking Tailings Pond #1.

YEAR TAILINGS POND TONNAGE GRADE

(gAu/MT) Oz. Au

(MT)

1 I & III 985,500 0.96 18,250.29

2 I & III 985,500 0.96 18,250.29

3 I & III 985,500 0.81 15,398.69

4 I 1,215,450 0.70 16,412.59

5 I 1,642,500 0.73 23,129.71

6 I & II 1,642,500 0.75 23,763.40

7 II 1,642,500 0.56 17,775.03

8 II 1,642,500 0.56 17,775.03

9 II 1,642,500 0.56 17,775.03

10 II 1,642,500 0.56 17,775.03

TOTAL/AVE. 14,026,950 0.69 186,305.08

ANNUAL MILL PRODUCTION SCHEDULE

EQUITY

DEBT

Issue size Approximately P333 million ($7.24M), equivalent to an

economic ownership stake to be negotiated with BGRC

Instrument

Common Equity Shares with a par value of P1.00

Instrument

Philippine Peso-denominated Term Loan

Issue Size

P600 million ($13M)

Maturity

Seven years inclusive of a three- year grace period

on principal repayments

Principal

Amortizations

In equal quarterly or semi-annual principal payments

commencing on the third year after initial drawdown

- This pioneering approach by BenguetCorp will open up similar ventures for other gold mill tailings in the country with BenguetCorp obtaining an edge technically and commercially.

- Conducted Pre-Feasibility Study on the same

approach for Antamok Tailings.

“ENHANCING RESOURCE

UTILIZATION, UPGRADING VALUE

OF PRODUCT”

• MPSA No. 226-2005-III

• Environmental Compliance Certificate

(ECC) 0806-015-2140

• The Sta. Cruz deposit consists of two claim groups covered by:

Insular Chromite Reservation #3 (ZMCR-3) 1,317.7653 hectares

Guisguis Claim Group (ZR 1-10) 88.9709 hectares

Total 1,406.7362 hectares

Exploration Work Performed

No. of Test Pits sunk 1,355 TPs

Total Length of Test Pits Sunk 9,023m

Test Pit Grid 100m x 100m

Test Pit Average Depth 8m

No. of Auger Holes Drilled 101 holes

Total Length of Auger Holes Drilled 817m

No. of Drillholes 975 holes

Total Length of Drillholes 10,355 m

Total Length of Test Pits and

Drillholes 19,378 m

Test Pit Sampling Method Vertical Channel cut on two (2) opposite sides

sampled @1m interval

Drilling Program

The drilling program from

2008 up to mid 2010 had

completed a total of 975

holes with an aggregate

depth of 10,355 meters.

Preliminary Resource Estimate

Grade Group Tonnage % %Ni

1.0 – 1.3% Ni 7,486,663 47.9 1.14

1.3 – 1.5% Ni 3,227,309 20.7 1.40

1.5 – 1.8% Ni 4,000,248 25.6 1.62

>1.8% Ni 904,197 5.8 1.96

TOTAL 15,618,417 100 1.37

Assaying Condition:

Grade = 1.55% Ni

Moisture Content = 0%

± 1.80% Ni

Ore:

Grade = 1.55% Ni

Moisture Content = 35%

Crystal Water = 14%

Ni Metal = 1.55 g

Crystal Water = 0 g

Other Elements = 84.45 g

Total Wt. = 86 g

DRY (105 °C)

PELLETIZATION PROCESS

(±900 °C)

At assaying condition, the crystal water (14%) is

NOT measured.

Ni Metal = 1.55 g

Total Wt. = 100 g

% Ni = 1.55%

In 100 g, Ni metal is 1.55 g and 14 g crystal water.

During pelletization, crystal water is removed decreasing

the total weight to 86 g.

Thus Ni pellet grade = [(1.55/86) * 100] = 1.80% Ni

Ni Metal = 1.55 g

Total Wt. = 86 g

% Ni = 1.80%

ORE PELLET

LME (US$/MT) 15,000 15,000

% Ni 1.55 1.8

% Moisture 35 5

% Discount Factor 15.5 18

% Combined Water 14 0

Selling Price (US$/MT, FOB) 23.42 46.17

Market Situation No Buyer Sellable

BUYER’S SAVINGS

Freight Cost (US$/Shipment of 50K MT) 500,000 350,000

Savings (US$/Shipment) 150,000

SELLER’S SAVINGS

Hauling Cost (US$0.14/t/km, 23km) 161,000 112,700

Savings (US$/Shipment of 50K MT) 48,300

Comparative Advantage of Upgrading

the Ore to Pellets

DEBT OR EQUITY

1 SINTERING PLANT P706M ($15.35M)

2 INFRASTRUCTURE DEVELOPMENT P340M ($7.39M)

3 EXPLORATION P554M ($12.04M)

4 TOTAL P1600M ($34.78M)