global energy & commodities private investment firmprivate

Global Energy & Commodities Private Investment Firm Global Energy & Commodities Private Equity Firm

October 2011

1

Global Energy and Commodities Private Equity

Denham Offices

Houston

São

Paulo

Short

Hills

London Boston

Singapore

Denham Capital Management

• Founded by Stu Porter, who began the Denham investment program in May 2000 as a portfolio manager at Harvard Management Company

• Four original partners have been investing together for four funds

• $4.1 billion of committed capital across five fund vehicles

• Aggregate portfolio gross IRR and MOI of 27.2% and 1.8x (net IRR of 18.3%) on 43 investments with invested capital of $2.8 billion

• Realized gross IRR of 47.2% and a 2.6 MOI on 20 investments with invested capital of $974 million

• Low leverage – approximately 28% debt to equity across unrealized portfolio

•

Operational Expertise

• Four of five partners have direct operating experience

• Industry experience of investment professionals is over 570 years

• Denham’s realized deals outperform tracking indices by 121% due to de-risking, development skill and operational expertise

Global Reach

• 29 investment professionals; total team size of 66 people

• Invested $812 million outside the U.S. (out of $2.8 billion in total capital invested since July 2004)

• Gross MOI of 2.9x on $248 million of capital invested in realized deals outside the U.S.

Integrated Investment Platform

• First known dedicated Risk team in private equity

• Theme-based approach to identifying target areas of investment and sourcing opportunities

• Portfolio Services Group (PSG) adds value throughout deal lifecycle

Denham Fund VI • Targeting $2.5 billion of capital commitments

This presentation sets forth an introduction to Denham Capital. No security is offered herby. Please see the accompanying Notice to Recipients for important information.

All figures as of June 30, 2011. Please see Notes on investment performance in the Appendix.

2

A Decade of Performance

All figures in US$ millions, as of June 30, 2011. Please see Notes on investment performance in the Appendix.

Five funds since 2000

$4.1 billion of committed capital across five fund vehicles

Funds I, II, III 2000-05 HMC legacy funds – fully invested

Fund IV 2005 $1.24 billion – fully invested

Fund V 2008 $2.0 billion – ~66% invested/committed

High-quality and loyal investor base

• 80% are endowments, foundations and family offices

• 94% of Fund IV LPs invested in Fund V, including all top 25 LPs

Denham Portfolio

Number of Investments

Capital Invested

Proceeds & Value Multiple

of Capital Invested 2

IRR

Realized Proceeds

Unrealized Value 1 Total 1 Gross 2,3 Net 4

Realized 5,8 20 $974 $2,188 $348 $2,536 2.6 47.2%

Unrealized 23 1,832 180 2,222 $2,402 1.3 10.1%

All 8 43 $2,806 $2,368 $2,570 $4,938 1.8 27.2% 18.3%

Denham Funds I-V

3

• Conventional and unconventional E&P

• Midstream and transportation assets under tariff and bilateral fees

• Oilfield services and equipment with technological edge

Realized Gross MOI: 3.7x

Realized Gross IRR: 255.7%

• Project development and resource expansion

• low-cost production with access to infrastructure

• Steelmaking materials and other industrial commodities



• Conventional and renewable power generation

• Project and platform development

• Geographies with low reserve margins



663

821

$0 mm $400 mm $800 mm

Fund IV

Fund V

Investment Sectors

All figures as of June 30, 2011. Committed capital includes non-legally binding amounts that represent Denham’s best estimate and are subject to change. Please see Notes on investment performance in the Appendix.

Oil & Gas

Metals & Mining

Power & Renewables

Total Invested and Committed by Sector ($ mm)

218

516

$0 mm $400 mm $800 mm

Fund IV

Fund V

Total Fund Performance 2,3

4

Global Platform

Global Opportunity

• Wider opportunity set prevents “hammer looking for nail” syndrome

• Developing countries present fertile ground for our de-risking and resource expansion expertise

• Capitalizes on Denham’s ability to distinguish perceived political risk from on-the-ground operating risk

Local Origination & Execution

• Deal sourcing and subsequent portfolio support requires local knowledge, presence and partnerships

• $812 million of investments outside the U.S.

•29% of total investments since May 2000

• Gross MOI of 2.9x on $248 million of capital invested outside the U.S.

Integrated Investment

Platform

All figures as of June 30, 2011. Please see Notes on investment performance in the Appendix.

GNPower

MEG

ALTA MESA

Denham Office

Select Denham Portfolio Investments

Deal Teams

Risk Group

Portfolio Support Group

Business Operations

Legal &

Investor Relations

Integrated Investment Platform

5

Investment Committee

(5)

Regional Heads (2)

Investment Professionals

(19)

Geer Blalock

Risk Group (3)

Portfolio Services Group, Advisors & Operating

Partners (8)

Investment Management Services (5)

Denham Team

Don Schissel

Senior Advisor Houston

Ind. Exp: 35 yrs

Adam Carte

Operating Partner Boston

Ind. Exp: 17 yrs

Barney Rush


Ind. Exp: 36 yrs

Michael Sigman

Managing Director Boston

Ind. Exp: 28 yrs

Larry Vielhaber

Director Houston

Ind. Exp: 27 yrs

Koenraad Driessens

Director Houston

Ind. Exp: 19 yrs

Brent Willson

Director Houston

Ind. Exp: 14 yrs

Bevin Ronayne

Director Boston

Ind. Exp: 12 yrs

John Collins

CFO Paul Winters

General Counsel Wallace Varga

Tax Tim Smith

Investor Relations Joe Casey

Strategy

Jordan Marye

Managing Director Houston

Ind. Exp: 8 yrs

Jeff Gutke

Director Houston

Ind. Exp: 16 yrs

Tyler Crabtree

Director Houston

Ind. Exp: 12 yrs

Justin DeAngelis

Director Short Hills

Ind. Exp: 15 yrs

Rick Dowd


Ind. Exp: 27 yrs

Juliet Wallace

Director Short Hills

Ind. Exp: 21 yrs

Bert Koth

Director London

Ind. Exp: 16 yrs

Saurabh Anand

Vice President Houston

Ind. Exp: 9 yrs

Tulika Raj-Joshi Vice President

London Ind. Exp: 7 yrs

Riaz Siddiqi Managing Partner

Singapore Ind. Exp: 32 yrs

Bill Zartler

Managing Partner Houston

Ind. Exp: 24 yrs

Scott Mackin

Co-President Short Hills

Ind. Exp: 25 yrs

Todd Bright

Managing Director London

Ind. Exp: 19 yrs

Victor Muñoz

Managing Director São Paulo

Ind. Exp: 21 yrs

Louis van Pletsen

Senior Advisor London

Ind. Exp: 25 yrs

Oil & Gas

Metals & Mining

Power & Renewables

Two-year Associate Program:

Marc Wrase William McMullen Jonathan Scheiner Greg Streiff Spencer Soh Steven Smith Jack Howell Steve Mandel

Geer Blalock

Vice President Houston

Ind. Exp: 5 yrs

Bob Warburton


Ind. Exp: 33 yrs

Carl Tricoli Co-President

Houston Ind. Exp: 31 yrs

Stu Porter

CEO & CIO Boston

Ind. Exp: 24 yrs

Caroline Donally

Director Houston

Ind. Exp: 15 yrs

Ken Friedman

Director Houston

Ind. Exp: 12 yrs

Sam Meador

Director Houston

Ind. Exp: 20 yrs

6

Independent, but integrated

• Dedicated group that reports directly to Chief Investment Officer

• Comprehensive interrogation of themes, transactions and capital allocation

• Proprietary quantitative modeling complements Deal teams’ operational expertise

• Proactive hedging plan for portfolio companies and funds

Risk Group

Themes

• Evaluate dislocations

• Industry-level analysis

• Region or country risk

“Classify”

Deals

• Quantitative rigor

• Qualitative assessment

• Company-specific hedging

“Analyze”

Portfolio Construction

• Diversification objectives

• Risk aggregation

• Capital competition

“Manage”

7

Value Drivers

Exclusive Operating Partners

Bob Warburton 33 years experience

Adam Carte 17 years experience

Barney Rush 36 years experience

Don Schissel 35 years experience

To be Announced Senior Advisor-Power

• VP Operations - InterGen Energy

• Director of Power Marketing - US Generating Co.

• Director of Operations - J. Makowski Co.

• CFO - The Trigen Companies

• VP & Treasurer - Texas-New Mexico Power Co.

• CEO - Mirant Europe

• CEO – H2Gen Innovations

• Chairman - Bewag

• EVP - Oxbow Power

• SVP - Lehman

• Sr. Exec. - BHP Billiton

Exploration Manager, Russia and Kazakhstan

Global Search Leader, Diamonds and Nickel/PGMs

• Senior Geologist - Manville Corporation

• World leader in creating independent power industry

• Developed multi-billion dollar power projects in Europe and the Middle East

• Proven entrepreneur

•Board Participation

•Interim Management

•Operational Improvements

•M&A and Corporate Development

Portfolio Services Group

NIOTANNIOTAN

Business Plan Development

Define & Monitor Performance

Metrics

Direct Portfolio Engagements

Conduct Quarterly Portfolio

Review

NIOTANNIOTAN

http://www.gradientresources.com/index.html

http://www.gradientresources.com/index.html

8

Investment Approach Theme Approval

Current Investment Themes

• Development capital for North American E&P projects

• Development capital for conventional international E&P projects

• Technologically enhanced E&P projects

• Midstream infrastructure for shale development

• Oilfield services for unconventional projects

• Oilfield services with technological advantages in expanding or low cost basins

• South American copper and zinc

• Regional sub-themes in southern Africa

• Seaborne thermal coal in select geographic areas

• Steel-making materials in select geographic areas

• Clean power at grid parity cost

• Renewables driven by feed-in tariffs and long-term PPAs

• Competitive power for high-growth, capacity-short economies

• Generation at cheap beta/low entry cost

North America & Latin America

Oil & Gas Metals & Mining Power & Renewables

Latin America, Africa & Australasia U.S. , Europe & Rest of World

Periodic

Review

Investment Committee Approval

Risk Assessment

Theme

Development

9

• Proprietary sources for over 95% of transactions

• Rigorous diligence to seek teams and companies with enduring edge

• Operating Partners provide relationships and insights that aid deal flow and analysis

• Balance risk / reward for each deal through stress testing, structuring and hedging

• Risk group produces independent reports and recommendations

• Value-creation through operational and commercial initiatives

• Constant focus on management and board quality

• PSG provides depth of expertise and network

• Exit planning occurs across investment lifecycle

• Proactive assessment of exit options and timing

Investment Approach Transaction Review

DCM

Auction

Oil & Gas

Metals & Mining

Power & Renewables

Source of Opportunity

Optimize Investment

Exit

Harvest Operational

Alpha

Risk Management

Opportunity

Sourcing &

Analysis

Auction 7%

Auction 13%

Originated by DCM

87%

Auction 0.3%

Originated by DCM 99.7%

Originated by DCM

93%

10

Committed capital includes non-legally biding amounts that represent Denham’s best estimate and are subject to change. Please see Notes on investment performance in the Appendix. Totals may not sum due to rounding.

Investment Performance

Fund Vintage

Year Investments

Capital Proceeds & Value Multiple of Capital Invested 2

IRR

Invested Committed Realized

Proceeds Unrealized

Value 1 Total 1 Gross 2,3 Net 4

DCPF I-III 6,7

2000 to

2005

Realized 5 $593 - $1,450 $103 $1,554 2.6x 47.3%

Unrealized 293 - 91 245 337 1.1x 3.3%

All 886 - 1,541 348 1,890 2.1x 32.4% 26.4%

DCPF IV 7 2005

Realized 5 238 - 393 220 613 2.6x 38.7%

Unrealized 774 83 57 1,176 1,233 1.6x 17.2%

All 1,012 83 450 1,396 1,846 1.8x 23.7% 14.9%

DCPF V 7 2008

Realized 5 142 - 345 25 370 2.6x 102.4%

Unrealized 765 441 31 801 832 1.1x 4.3%

All 908 441 376 826 1,202 1.3x 17.5% 6.8%

All Funds

Realized 5,8 974 - 2,188 348 2,536 2.6x 47.2%

Unrealized 1,832 524 180 2,222 2,402 1.3x 10.1%

All 8 $2,806 $524 $2,368 $2,570 $4,938 1.8x 27.2% 18.3%

As of June 30, 2011 - US$ millions

11

APPENDIX

12

Opportunity Summary

• Denham has the opportunity to partner with one of Africa’s premier mining entrepreneurs to form a new African mining platform that will target deals across all stages of a project’s life cycle

• Management will focus on de-risking and developing low cost, long life assets across most of Africa which will be divested at the individual project level

Expected Close: 4Q 2011

Expected Size: $200+ million

Geography: Continental Africa (West, East and South)

Structure: Start-up Management Team Denham will have control

Theme/ Transaction

Identification

• Steelmaking materials • Platinum group metals • Seaborne thermal coal

Source • Denham sourced this opportunity during a search process for

qualified management teams in Africa

Proposed Investment Structure

• Common equity alongside Management • Denham will have Board control

Value Enhancement

& Risk Mitigation

• Management intends to create value by de-risking and expanding mineral resources in an undercapitalized environment, by seeking low execution risk opportunities to first cash flow and by exploiting different perceptions of political risk

• Company will seek to mitigate risk by focusing on assets in lower half of the cost curve and through the team’s strong political connections

Potential Exit • Selling individual project assets to strategic buyers or by

spinning individual assets out as public junior mining companies

African Mining Focused Management Team

Strictly Confidential – Denham Proprietary Information

13

Opportunity Summary

• Denham has partnered with a proven and operational experienced management team to acquire, explore for and develop acreage in the Rocky Mountain region

• Management will utilize its operational and geologic expertise to cost-effectively acquire and develop out-of-favor conventional assets

• Management has a deep network of relationships within the Rockies that should provide significant proprietary deal flow


Expected Size: $100 million

Geography: Rocky Mountain Region


Theme/ Transaction

Identification

• Growth capital for conventional E&P companies • Unconventional expertise in conventional basins

Source • Denham sourced this opportunity through an internal

relationship with the management team



Value Enhancement

& Risk Mitigation

• Management intends to create value by acquiring and developing Rocky Mountain acreage and assets and applying their proprietary expertise to grow and optimize those assets

• Company may hedge its commodity price risk as appropriate

Potential Exit • E&P MLPs, strategics and the public market

Cascade Petroleum


14

Opportunity Summary

• Denham is partnering again with the Ursa team who realized significant success for Denham in Ursa Resources I, which recently monetized its position in the Bakken Shale

• The Team will initially focus its efforts on conventional, gas-weighted opportunities primarily in South Texas

• Management should have a competitive edge via their industry relationships, operational expertise and extensive knowledge of conventional and unconventional oil and gas plays in the United States


Expected Size: $200 million

Geography: South Texas


Theme/ Transaction

Identification

• Growth capital for conventional E&P companies • Unconventional expertise applied to conventional basins

Source • Ursa II is a repeat team that was originally introduced to

Denham through an industry contact



Value Enhancement

& Risk Mitigation

• Management intends to utilize new imaging, drilling and completion technologies to optimize, exploit and explore for long-lived conventional assets in emerging and mature plays

• Company may use leverage and hedge its commodity price risk as appropriate

Potential Exit • E&P MLPs, strategics and the public market

Ursa Resources II


15

Managing Partners and Regional Heads

Experience

Office Years Institutions Qualifications

Stu Porter IC Chief Executive Officer Chief Investment Officer

Boston 24 Harvard Management Co. Bacon Investments Goldman Sachs Chicago Board of Trade Cargill Inc.

BA University of Michigan MBA University of Chicago

Scott Mackin IC Co-President

Head of Power & Renewables Short Hills 25

Ogden Energy Waypoint Energy Covanta Energy Corporation The Chatham Group

BA Hons Villanova University JD University of Michigan Law School

Carl Tricoli IC Co-President Head of Oil & Gas

Head of Metals & Mining

Houston 31 Koch Producer Services Enron J. M. Huber NationsBank Capital Markets Black Hawk Resources

BA University of Texas MBA Cass Business School

Riaz Siddiqi IC Managing Partner Head of Portfolio Services Grp

Head of Singapore Office

Singapore 32 Georgia Power Company Capstone Global Energy Southern Company Cinergy Capital and Trading Electric Power Research Inst.

BS EE Pakistan University of Energy & Technology MBA Mississippi State

Bill Zartler IC Managing Partner Oil & Gas – Midstream

Houston 24 Dynegy Solaris Energy Services Dow Chemical

BS University of Texas MBA Texas A&M University Exec Prog Stanford Business School

Todd Bright Managing Director Head of London Office

London 19 Conectiv Energy Waypoint Energy Lars Energy Statoil Enron MEGA

BS University of Richmond MBA George Washington University

Victor Muñoz Managing Director Head of Latin America

São Paulo 21 PSEG Global Chase Securities Enron

BS Los Andes University MBA Harvard University

IC Member of the Investment Committee

16

Investment Professionals

Experience


Jordan Marye Managing Director

Houston 8 UBS Investment Bank Huron Consulting Group

BS Louisiana State University

Tyler Crabtree Director

Houston 12 El Paso Corporation Wachovia Jefferies & Company

BA Princeton University

Justin DeAngelis Director

Short Hills 15 Pace Global Energy Delmarva Power PG&E National Energy Waypoint Energy

BS Drexel University MBA Drexel University

Ken Friedman Director

Houston 12 SFC Energy Partners Credit Suisse Battery Ventures Wasserstein Perella & Co.

BS Indiana University ‘s Kelley School of Business

Jeff Gutke Director

Houston 16 Exxon Jefferies & Company J. M. Huber Aquila

BS Brigham Young University MBA Tulane University

Dr. Bert Koth Director

London 16 BHP Billiton ING Barings Deutsche Bank

BA/MBA University of Economics, Vienna, Austria PhD University of Economics, Vienna, Austria

Juliet Wallace Director

Short Hills 21 Fieldstone Private Capital Dexia Structured Finance BNY Capital Markets PWC Corporate Finance Mitsubishi Finance Security Pacific

BBA University of Texas MBA University of Texas

Caroline Donally Director

Houston 15 Rand Merchant Bank Investec Bank Limited BDO Spencer Steward

B Com University of Witwatersrand (S.A.) B Acc University of South Africa

Samantha Meador Director

Houston 20 Shell Corporation Ryder Scott Company EIG Arco Oil and Gas

BS Colorado School of Mines

17

Investment Professionals Continued

Experience Office Years Institutions Qualifications

Saurabh Anand Vice President

Houston 9 GE Energy Financial Services BS EE Punjab University MBA Indian Institute of Management

Geer Blalock Vice President

Houston 5 Jefferies & Company BBA University of Texas

Tulika Raj-Joshi Vice President

London 7 BP Alternative Energy Schlumberger

BT Indian Institute of Technology Delhi MBA London Business School

Jack Howell Associate

Houston 2 Credit Suisse BA University of Texas

Steve Mandel Associate

Short Hills 2 Citigroup BS Lehigh University

William McMullen Associate

Houston 3 UBS Investment Bank BA Hons Harvard University

Jonathan Scheiner Associate

Houston 4 Bank of America Merrill Lynch Petrie Parkman & Co

BBA University of Miami (FL)

Steven Smith Associate

Houston 3 GulfStar Group Evercore Partners

BBA Texas A&M University

Spencer Soh Associate

Singapore 4 Ernst & Young Standard Chartered Bank

BA Nanyang Technological University

Greg Streiff Associate

Short Hills 4 Bank of America Merrill Lynch BA Washington University in St. Louis

Marc Wrase Associate

São Paulo 6 Patria Investimentos Stratus Group

BBA Ibmec Business School

18

Experience


Risk Team

Michael Sigman Managing Director

Boston 28 Capstone Global Energy Cantor Fitzgerald ABN Amro Swiss Bank Corp

BS Wharton School, University of Pennsylvania

Koenraad Driessens Director

Houston 19 Capstone Global Energy Canam Inc. Christensen Associates

BS University of Wisconsin (Green Bay) MS Marquette University

Dr. Larry Vielhaber Director

Houston 27 Capstone Global Energy Marathon Oil Co. Tractebel USA

BBA University of Toledo MA Bowling Green State University PhD Texas A&M University

Portfolio Services Group

Bevin Ronayne Director

Boston 12 PricewaterhouseCoopers BA Stonehill College CPA Certified Public Accountant

Brent Willson Director

Houston 14 PricewaterhouseCoopers Ernst & Young

BS University of Louisiana at Lafayette MBA Rice University CPA Certified Public Accountant

Rick Dowd Operating Partner

Boston 27 Wellspring International The CanFibre Group Mapletree Networks Kidder Peabody Donaldson, Lufkin & Jenrette Credit Suisse First Boston

BS Clarkson University MBA Sloan School at MIT CFA Chartered Financial Analyst

Dr. Louis van Pletsen Senior Advisor

London 25 Eskom International Nomura International Credit Suisse First Boston Industrial Development Corporation (IDC)

Bcom University of the Free State (S.A.) Mcom University of the Free State (S.A.) DCom Rand University (S.A.) MBA Univ. of Notre Dame Business School HDLaw Witwatersrand University (S.A.) ADP London Business School

Don Schissel Senior Advisor

Houston 35 BHP Billiton Manville Corporation Ovoca Gold

BA Amherst College MS University of Montana

Bob Warburton Operating Partner

Boston 33 InterGen Waypoint Energy Babcock & Wilcox J. Makowski Co. City of Colorado Springs Utilities Dept.

BS Worcester Polytechnic Institute MBA University of Colorado RPE Registered Professional Engineer

Adam Carte Operating Partner

Boston 17 Fairlead Advisors Trigen Texas-New Mexico Power NRG Energy

BA Earlham College MBA University of Minnesota CFA Chartered Financial Analyst

Barney Rush Operating Partner

Boston 36 H2Gen Innovations Mirant Europe Bewag Oxbow Power Lehman Brothers U.S. Department of State

BA Harvard College MA Princeton University

Investment Professionals Continued

19

Investment Management Services

Experience


Business Operations

John Collins Managing Director, Chief Financial Officer

Boston 21 Capital Resource Partners Advent International

BA Norwich University MBA Salem State University

Legal Paul Winters

Managing Director, General Counsel

Boston 18 Latham & Watkins LLP The Winters Company

BSFS Georgetown University JD Georgetown University

Tax Wallace Varga

Managing Director Boston 17

Deloitte & Touche BISYS Alternative Inv. Ernst & Young

BS Merrimack College MS Suffolk University (accounting) MS Bentley College (taxation)

Investor Relations

Tim Smith Managing Director

Boston 25 Boston Ventures The Pioneer Group The Boston Company

BA Lake Forest College

Strategy Joe Casey

Managing Director Boston 24

Boston Ventures Venrock Associates Intel Xerox

BA Holy Cross College MBA Harvard Business School

20

Summary of Investment Performance

• All figures in US$ millions, as of June 30, 2011. Past performance is no guarantee of future results. Gross IRR does not reflect all advisory fees, funding fees, “carried interest,” taxes, transaction costs and other expenses to be borne by certain and/or all investors, which reduce returns and, in the aggregate, are expected to be substantial. Please see the notes below for additional detail regarding investment performance, and the Notice to Recipients for additional important information

• This summary represents the combined performance results for all funds managed by Denham from May 2000 through June 2011. From May 2000 to June 2004, such investments were made on a proprietary basis within Harvard Management Company. From July 2004 to July 2007, the Denham investment vehicles bore the name “Sowood”

• While the performance of the first three Denham Funds are reflected in the aggregate, each fund is governed by a separate partnership agreement

• Performance excludes Panhandle Investments, L.P. and Irish Ocean, L.P. (investments in structured oil/gas net profits interests and volumetric production payments which are in the first two Denham Funds, but are not anticipated to be a significant part of future Fund portfolios) and is exclusive of a $182 million bridge loan for Thermal North America Holdings LLC

Notes Regarding Individual

Items

1. Includes the fair value of investments valued in accordance with Denham’s internal fair valuation policy (which incorporates the techniques prescribed by ASC 820) and accrued interest and other non-cash items to appropriately reflect the total value of the portfolio company as a whole

2. Both Gross IRR and Gross MOI ire calculated excluding the impact of cash flows associated with fund expenses, management fees and carried interest distributions

3. Gross IRR represents the annual pretax internal rate of return based on actual dates of underlying cash flows

4. Net IRR is calculated net of fund expenses, management fees and any carried interest amounts, based on actual dates of capital contributions and distributions since May 2000, using limited partners’ ending capital balance as of March 31, 2011 as the terminal cash flow

5. Investments that have been realized either in full or in part

6. The performance of DCPF II LP is exclusive of a $182 million bridge loan for a portfolio company investment

7. Performance results include hedges executed at the Fund level

8. Inclusive of Panhandle Investments, L.P. , Irish Ocean, L.P. and the $182 million bridge loan for Thermal North America Holdings LLC: Realized and Substantially Realized Investments IRR is 39.1% and the multiple of capital invested is 2.1x; Total Investments Gross IRR is 26.4%, Net IRR is 18.2% and the multiple of capital invested is 1.7x

Investment Performance Notes

21

This presentation is furnished on a strictly confidential basis to a limited number of sophisticated recipients for the purpose of providing certain information regarding Denham Capital Management LP (“Denham Capital”). The information contained herein should be treated in a confidential manner and may not be reproduced, distributed or used in whole or in part for any other purpose, nor may it be disclosed without the prior written consent of Denham Capital. Past or projected performance is not necessarily indicative of future results and there can be no guarantee of future results, levels of activity, performance or achievements. Statements contained herein that are not historical facts are based on current expectations, estimates, projections, opinions and/or beliefs, including forward-looking statements relating to future events or future financial performance. Such statements are subject to known and unknown risks, uncertainties and changes (including changes in economic, operational, political or other circumstances and other risks beyond the control of Denham Capital), any of which may cause the relevant actual, financial and other results to be materially different from the results expressed, projected or implied in this presentation. Nothing contained in this presentation may be relied upon as a guarantee, promise, assurance or a representation as to the future. No assurance, representation or warranty is made by any person that any expectation, belief, forecast or other forward-looking statement will be achieved and no recipient of this presentation should rely on the forecasts.

This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any security. Any such offer or solicitation will be made through definitive offering documentation, identified as such. This presentation is not, and may not be relied on in any manner as, legal, tax, investment, accounting or other advice. Neither the U.S. Securities and Exchange Commission (the “SEC”) nor the securities regulatory authority of any state or of any other U.S. or non-U.S. jurisdiction has passed upon the accuracy or adequacy of this document. Any representation to the contrary is unlawful.

Notice to Recipients

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