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DE BEERS MARINE NAMIBIA

De Beers Marine Namibia

The journey continues…

Mission :To prospect for & mine marine diamonds in a sustainable manner to the benefit of our shareholders & stakeholders

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

Shareholder St ructure in N amibia

GRNGRN DBCDBC

N AMDEBNAMDEB

DBMDBMNAMI BI AN AMI BI A

50%50% 50%50%

30%30%70%70%

ShareholdersShareholdersOperat ingOperat ingcompaniescompanies

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Distribution of Namdeb’sdeposits

River deposits

Linear Beaches

Pocket Beaches

Deflationdeposits

Windblowndeposits

OMD

Lüderitz

Elizabeth Bay

Chameis

Submerged Beaches

NAMIBIA

RSA

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

PRODUCTION HAS GROWN BY 82%SINCE MIGRATION FROM RSA

Motto :Innovation . . . challenging the boundaries

Atlantic 1 - Production Performance

400450500550600650700750800850900950

1,000

2000 2001 2002 2003 2004 2005 2006B

CA

RA

TS (0

00's

)

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

AR

EA (m

² 000

'S)

C A R A TS A R EA

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DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

DBMN – LARGEST DIAMOND MINER IN 2005

922 00052%

DBMN – A1

55 0003%

Other - marine

798 00045%

Namdeb – DA1

1 775 000100%

Motto :Innovation . . . challenging the boundaries

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

DBMN Fleet (2005 – 922 000 carats)

Atlantic

201k

Ya Toivo

138k

Grand Banks

186k

Pacific

152k

!Gariep

149k

CS = 96k

Vision :The largest diamond miner in Namibia ...forever

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DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

0

5

10

15

20

25

LTI's

0 . 0 0

0 .50

1.0 0

1.50

2.0 0

2.50

LTIF

R

LTI 's 21 11 7 13 7 7 4 7 4 5 6 2 2 1 4 0LTIFR 1.96 1.0 4 0 .77 1.27 0 .65 0 .41 0 .24 0 .28 0 .19 0 .2 0 .42 0 .13 0 .17 0 .0 8 0 .32 0

1991 1992 1993 1994 1995 1996 1997 1998 1999 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6

LTIFR TREND

OHSAS18001

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

TAILINGS PLUME

TOOL ACTION

ENVIRONMENTAL RESEARCH FOCUSENVIRONMENTAL RESEARCH FOCUS

Luderitz

H2S eruption

NATURAL VARIABILITY

Orange River floods

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DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

More than just a mining company

605 permanent employees

70% Namibian

N$15 million on training per annum

AA certified in 2003/4/5

Donations to the needy in the society

Training & Development is an integral part of overall strategy to ensure a competent & skilled workforce, & to support AA.

Teamwork Integrity Excellence Respect

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

More than just a mining company

HIV/AIDS.RESPONSE

ART programme

VCT programme

Education campaign

Free for employees &their life partners

Teamwork Integrity Excellence Respect

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DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

TOOL DEVELOPMENT

&

FUTURE CAPACITY BUILDING

AIRLIFT DRILL-SHIPKnown technology in Atlantic 1

Ongoing incremental improvements

Quantum improvement in 2005

CRAWLER MOUNTED DREDGERecent technology in Atlantic 1

Ongoing incremental improvement

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DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

New technology in Atlantic 1Quantum leap potential

Chameis trial - Jan 2005

Environmental sensitivity

Trial mining in Atlantic 1- Q1 2006

TRAILER SUCTION HOPPER DREDGE . . .future candidate?

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

0

50

100

150

200

250

300

1999 2000 2001 2002 2003 2004 2005 2006

Min

ing

Rat

e in

m2/

h

Enlargeddrill pipe

Wide Channel

Jet Water

DBE II

DBE 2.5

Enlargeddrill pipe

Wide Channel

Jet WaterJet Water

DBE IIDBE II

DBE 2.5DBE 2.5

DBMN RATE IMPROVEMENT HISTORY

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DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

DBMN PRODUCTIVITY IMPROVEMENT

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

900.00

1000.00

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06B

Car

ats

(000

)

0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700C

ts/m

2

Carats Recovered (000)

Grade Recovered (ct/m2)

ATLANTIC 1 HISTORY – CARATS & GRADE

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DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

2%0%

84%

2%5%

3%1%

1%2% 0%

PositioningEnvRASSea TrialsSteamingOther delaysA/Water del.U/Water del.WOWPMIn-portMining

Hours %Positioning 248 3%Env 198 2%RAS 55 1%Sea Trials - 0%Steaming - 0%Other delays 130 1%A/Water del. 178 2%U/Water del. 4 0%WOW 452 5%PM 185 2%In-port - 0%Mining 7,452 84%TOTAL 8,902 100%

GRAND BANKS 2005 UTILISATION

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

RESOURCE GENERATION EFFORTS

SAMPLINGN$113m

m.v. DOUGLAS BAY

m.v. CORAL SEA

GEOPHYSICAL SURVEYN$30m

m.v. DEBMAR PACIFIC

m.v. DEBMAR ATLANTIC

m.v. GRAND BANKS

m.v.YA TOIVO

m.v. !GARIEP

PRODUCTIONN$1 377m

ENVIRONMENTN$3.9m

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DE BEERS MARINE NAMIBIA

Zeal

ous

98

Spe

ncer

Bay

Meo

b B

ay

Zeal

ous

97

Zeal

ous

99

AUV

1517

10.58.5

7.9

1

Days to complete a mine support survey

CHALLENGING THE LIMITS

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

Bathymetry Pre 2000 Swath Bathymetry Today

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DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

TOOL PERFORMANCE ASSESSMENT

1.5 x vertical exaggeration

Ya Toivo Minedground

DrillshipMinedground

Trench Tailings

Maximum trench depth: 6 m

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

ATLANTIC 1 RESOURCE AREAS

Low potentialLow information

Low informationHigh potential

Thick mud areasHigh potentialLow information

Moderate potentialLow information

Low information

Diminishing potential northwards

Diminishing potential offshore

Atlantic 1 Mining Licence- approx. 6100km2

new Global Resource Area-1432km2

4m overburden contour

Primary Exploration Areas

Areas of low interest

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2004 - celebrate successGLOBAL RESOURCE ESTIMATE - CALCULATIONS

Cut-off (cts/m²)

Area (km²) Mcts Ave grade

(ct/m²)

0.000 1,402 63.5 0.045

0.025 868 60.0 0.069

0.050 574 52.2 0.091

0.075 385 43.7 0.113

0.100 263 35.9 0.137

0.125 185 29.6 0.160

0.150 133 24.4 0.184

0.175 98 20.3 0.208

0.200 75 17.2 0.231

0.225 58 14.8 0.254

0.250 46 12.8 0.277

0.275 37 11.2 0.299

0.300 30 9.7 0.321

0.325 24 8.4 0.344

0.350 20 7.4 0.368

0.375 17 6.6 0.390

0.400 15 6.0 0.410

0.425 13 5.4 0.430

0.450 11 4.9 0.450

0.475 9 4.4 0.474

0.500 8 4.0 0.494

Profitability of Present Resource - July 2005

0

1

2

3

4

5

6

7

8

Reserve Indicated InferredM

ct

non-profit profitable

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

Existing Fleet (N$889m +163k Existing Fleet (N$889m +163k ctscts pa)pa)DP, DA, GP ConversionDP, DA, GP Conversion500NB to 600NB500NB to 600NBTreatment Plant replacementTreatment Plant replacementPower generating upgradePower generating upgrade

New VesselsNew VesselsAMV2 AMV2 -- N$1.4b + 392k N$1.4b + 392k ctscts papaDredge TrialDredge Trial

R & D (N$48m)R & D (N$48m)AMS Phase 2AMS Phase 2Technology DevelopmentTechnology Development

Future VesselsFuture VesselsNEVNEVAMV3AMV3

Investing in the future . . . Strategic projects

Teamwork Integrity Excellence Respect

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DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

Combined marine & land productionFuture Scenarios

Teamwork Integrity Excellence Respect

0

500

1 ,000

1 ,500

2 ,000

2 ,500

3 ,000

3 ,500

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Years

'000

c

To ta l Most L ike lyTota l B lue Sky

Capital = N$10.32b

Capital = N$5.29b

0

200

400

600

800

1000

1200

1400

1600

1800

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Car

ats

('000

'

MARINE SBP SCENARIOS – MOST LIKELY

Mission :To prospect for & mine marine diamonds in a sustainable manner to the benefit of our shareholders & stakeholders

N$3.27b

Current Fleet Improvements

AMV2

Current Fleet

14

0

500

1000

1500

2000

2500

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Car

ats

('000

'

Other Vessels

MARINE SBP SCENARIOS – BLUE SKY

Vision :The largest diamond miner in Namibia ...forever

N$6.20b

Current Fleet

Current Fleet Improvements

AMV2

AMV3

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

Marine contribution in the Namdeb context . . .

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

000

crts

MARINELAND

Marine includes mid-water and Beach & marine

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DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

-500

0

500

1000

1500

2000

2500

2004 2005 2006 2007 2008 2009 2010

N$

mill

ions

A1 DredgeDA1Atlantic 1

Profits to Namdeb(before royalties & taxes)

While land production continues for years, noteprofit declines and marine potential growth

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

RISKS & CHALLENGES

Resource development: suitable ground & grade

Skills to meet expansion

US$/N$ exchange rate

Financing for AMV2/3

Midwater

Motto :Innovation . . . challenging the boundaries

DBMN runs a full active risk management programme

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DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

Short termN$250 million profit to Namdeb for 2005

Was exceeded. Actual = N$338m

Medium term1 million carats from existing fleet by 2007

Long term10 million carats (Sea + Land) 2006-2010

BHAG

Motto :Innovation . . . challenging the boundaries

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

CONCLUSION

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DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

STRATEGIC ALIGNMENT

Motto :Innovation . . . challenging the boundaries

GRN De BeersVision 2030

6% ANNUAL ECONOMIC GROWTH

Drivers:• Education & skills development• Infrastructure• Fiscal policy• Beneficiation• New mines

Chapter 2

US$2.4 BILLION EBITDA BY 2009

7 strategic levers:• Demand growth• PPG• Value creation through the DTC• Cost efficiencies• Partnerships• Consumer confidence &reputation • Organisational effectiveness

DBMN & Namdeb BHAG: 10 million carats by 2010

People PPG Resource Development Communications

DE BEERS MARINE NAMIBIADE BEERS MARINE NAMIBIA

Sustainability

Risk management programme in place

Annual SBP & reviews – to 2020

Subscribes to and complies with BPP

Certifications: ISO14001, OHSAS18001, ISM, NOSA

O & C Review

Vision :The largest diamond miner in Namibia ...forever

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The journey continues…Thank you

Questions/discussions