ECMC: May 2011

A Leading Producer Of Gold

Since founded in 2005 in Samoa, East Cape Mining Corporation has grown rapidly into a leading global mining company focus on exploration, mining and smelting of gold and base metals with significant gold production, gold development stage properties and exploration properties.

Our main business portfolio are mainly of high-quality gold mining assets, with significant interests in copper cathodes, zinc, iron ore, metallurgical coal, thermal coal and silver deposits, as well as a divestment portfolio of other mining and industrial businesses in both the established and new gold-producing regions of the world.

Headquartered in London, United Kindom with approximately 800 employees worldwide, the company currently has a number of exploration programmes in South Africa and Australia. We plans to continue to build our business through existing operating mine expansions, thoughput increases, development of new mines, the advancement of current exploration properties and also by targeting other gold consolidation opportunities.

We are a world-class business as we bring together an exceptional mix of quality, low-cost resource assets, complemented by a strong management team determined to operate our assets in an efficient manner.

In every location in which we operate, we strive to generate lasting benefits. Today, our commitments to safety, operational excellence and sustainable development are stronger than ever. These commitments support our ambition to become the leading global mining company.

IPO

While an IPO is an interesting and lucrative proposal, it s not part of our short term goal. We are currently comfortable as a private corporation because it allows us more room in which to grow and compete. Based in a tax and business friendly offshore jurisdiction, ECMC is better placed and more flexibly able to invest in many onshore operations than its bigger peers. Our short term goal is to grow this corporation into a global industry leader and return good and consistent dividends to Shareholders.

However, going public remains our medium term priority. We foresee ourselves launching a IPO by year 2015 if the environment is conductive. It will be very interesting when this materializez since millions of our private Shareholders will hold public listed shares. CPS will be able to convert their shares into public traded common shares. The shares to which they currently subscribe with ECMC will potentially appreciate several times over after IPO.

Daily Gold Charts

Click to enlarge

Why Invest In Gold?

Gold is a basic foundation of asset within any long term savings or investment portfolio. For many centuries, especially during times of financial crisis, investors have sought to protect their assets value. As an important wealth preserver, gold's stability remains as compelling as ever for today's investor.

As one of the very few financial assets that do not rely on any issuer's promise to pay, gold offers a widespread of default risk. It also offers investors the best insurance against the extreme movements in the value of other asset classes

GOLD MINING

Gold Mining

Exploration has always been the priority in ECMC's growth. We have more than 150 exploration professionals who based in Africa and Australia, include the exploration professionals of our alliances have.

Usually, it will take 8 – 13 years, starting from exploration into mining production.

Stage 1 : EXPLORATION
Duration : 3 – 5 years
Objective : To determine the existence of the minerals

During exploration, while we conduct the ground sampling, we do initiate to talks to the local community and had a better understanding of their needs and also, environmental concern.

Stage 2 : DEVELOPMENT
Duration : 3 – 5 years
Objective : To study and design the viability of the mining area

During the development stage, we conduct the feasible study to ensure the mining is economy viable which include the mining method, mineral recovering process and closure consideration.

We also conduct an extensive environmental study and testing in order to establish a series of data, to be submitted to Environmental Impact Assessment (EIA) through the local authority.

Stage 3 : CONSTRUCTION & TRAINING
Duration : 2 – 3 years
Objective : To construct mining and infrastructure facilities according to the approved design.

ECMC make it the first priority to hire the local resident, train and educate all the stakeholders who involved in the particular mining, in the best of environmental.

Stage 4 : MINING & PROCESSING
Duration : 10 – 40 years of lifespan, averagely

All of the mining that ECMC involve is strictly environmental friendly and comply with the local and international standards.

From time to time, the employees are required to be trained practically and theoretically, to increase healthy and safety working environment.

Stage 5 : RECLAMATION & CLOSURE

During this stage, we research and conduct to get the best reclamation practice. Although the mining is no longer profitable to the company, it is important for the mines to physically turn into a productive ecosystem.

WHAT WE OFFER

What We Offer

ECMC is undertaking an exercise of issuing new Convertible Preferred Stocks (CPS). We sincerely invite any willing investors from worldwide to take up this offer. The offer will be subject to the time limit and capital needed for new expansion.

Preferred Stock
Preferred stock is generally considered less volatile than common stock. Preferred stockholders generally do not have any voting rights, unlike common stockholders do, but they have a greater claim to the company's assets. Preferred stock may also be "callable," which means that the company can purchase shares back from the shareholders at any time for any reason, although usually at a favorable price.

Another advantage that preferred stock shareholders hold is they receive their dividends before common stockholders receive theirs, and these payments tend to be higher. Shareholders of preferred stock receive fixed and regular dividend payments for a specified period of time, unlike the variable dividend payments sometimes offered to the common stockholders.

Bear in mind, it's important to take note that fixed dividends depend on the company's ability to pay as promised. In the event that a company declares bankruptcy, preferred stockholders are paid before common stockholders.

Convertible Preferred Stock
One of the most common forms of investment for private equity, especially venture capital and expansion is convertible preferred stock. Convertible preferred stock is a type of stock, which can be exchange with the predetermined number of company common stock.

ECMC Convertible Preferred Stock can be converted into Company's Common Stock, at the point of time when the company decided to be listed. It can be done by paying a certain percentage of the price difference between the subscribe price of Convertible Preferred Stock and the IPO share price.

ECMC Convertible Preferred Stockholders do not have any voting rights.

ECMC Convertible Preferred Stockholders do entitled to a monthly fixed dividend payment, depending on the amount agreed at the time of subscription.

ECMC Convertible Preferred Stockholders are not allowed to interfere in its daily operation and decision making. ECMC have a very experience management and professional team to take care of it.

ECMC Convertible Preferred Stockholders may choose to unsubscribe their shares by giving 45 days' notice in advance to the company, for a full refund of the subscription amount.

WHY IT WORK?

Why It Works

ECMC Convertible Preference Share is a "win-win" solution and advantages for stockholders and company.

For Stockholders

ECMC Convertible Preference Stockholders will entitle to a monthly fixed dividend. However, these dividends are paid in terms of ounces of gold, which can be convertible into monetary value at the spot gold price, at any point of time.
ECMC Convertible Preference Stockholders will be given an amount of capital and an interest free account, in order to hold paper gold up to 3 times their share subscription value. This is another great way to further increase their medium term return to a long term return.
ECMC Convertible Preference Stockholders holders may convert their shares into Common stock when ECMC decided to go public. However, if the stockholders choose not to do so, they will be refunded according to their subscription price.
ECMC Convertible Preference Stockholders are entitled to other incentives that ECMC offered, should the existing stockholders refer a new stockholder to the company.
CPS holders may unsubscribe their shares by giving 45 days' notice to the company.

For Company

New capital from stockholders enables the company to expand its operation to more places.
In order for ECMC to list the company in stock exchange, it will required higher turnover and cash liquidity. Hence, convertible preference stock plays a major role in this.
ECMC convertible stockholders will not allowed interfering with the company's daily operations and decision making, hence it will give the management and also, the professional teams to plan and do decision making faster and smoother.

Risk Factors

Actually, there is very minimum risk in subscribing ECMC Convertible Preference Stock (CPS). Why we say so?

First of all, you can unsubscribe the CPS, as long as you have given 45 days written notice in advance to ECMC. This is a protection to the stockholders if they dissatisfied with the company.

Secondly, in the case of the gold price tumble, stockholders will not lose anything as the dividend is pay in term of gold. ECMC will not face any difficulty as ECMC has a large deposit of gold.

Thirdly, according to the history record, gold's price is higher this year compared to yesteryear, although it does drop a few times in the past year.

The possible risk that ECMC stockholders face is ECMC going into bankruptcy. These will happen if ECMC runs out of mining resources, no new exploration being carried out and mismanagement of the company.

ECMC management and field team are very professional and experience in handling the daily's operation and decision making. Together with our corporate values, governance policy and structure, it further ensure that decisions are evaluated and monitored at almost every single level of this corporation. Thus the risk of ECMC cease its operations are next to zero.

In the event of liquidation, CPS holders still has the priority distribution of the company's assets over common stockholders. So the risk of CPS holders losing their investment is reducing greatly.

ECMC do sincerely advise any potential investors to get advice from qualified local financier and also, legal advisor before subscribing to ECMC Convertible Preference Stock.

Africa

Africa is renowned as the world major gold producer, second to China. According to the US Geological Survey in 2009, South Africa alone produced 210 metric tons of gold in that year. In recent years, Tanzania and Mali had become Africa's latest gold producers. Several mines had been commissioned or in final feasibility stages. However, despite of all Ghana is still rank as top gold producer in Africa.

It is estimated South Africa have 6,000 metric tons of gold reserves. 90% -95% of South Africa's gold mines is underground operations, which can reach the depth over 3.8km. This has increase the cost of the operation. However, steps are taken to reduce the cost of the operation, such as major new projects, introduction of new technology, new approaches towards the organization of work and some commercial innovation.

ECMC had alliance with several local and international companies, to explore and start mining operation, in order to minimize the operation cost and maximize the successful rate.

Currently, ECMC had successful explored a few new sites for mining production in Africa, together with its alliances. It is vital for us to withstand our present in Africa mining industry. Nevertheless, we will still uphold our responsibility towards the environmental, community and economy development.

Australia

Australia is rising to be the world's third largest producer of commodities in the world. Due to its unique geology and size, Australia's mineral potential is still at the height compared to others countries.

Australia is the home to approximately 10% of total world economy gold resources. Most of the Australia's gold resources are located in Western Australia.

The mining activity in all of its states and territories Australia has earned Australia with the name of "quarry". Significant areas that still actively operating today include the Goldfields, Peel and Pilbara regions of Western Australia, the Hunter Valley in New South Wales, the Bowen Basin in Queensland and Latrobe Valley in Victoria and various parts of the outback. Places such as Kalgoorlie, Mount Isa, Mount Morgan and Coober Pedy are known as mining towns.

80% of Australia gold production comes from open-pit mines, while underground mining method will be used when the open-pit mining uneconomical. Vertical shafts and spiral tunnel are used to move people and also equipment into the mine and also, out of the mine. This is to provide better ventilation and for hauling the waste rock and ore to the earth surface.

Thanks to the Australia's mining technology, ECMC is doing very well although we had just venture into the country not very long ago.

Due to the economy and political stability in Australia, ECMC is continuing to expand its explorations and operations in the country together with its alliances.

MANAGEMENT TEAM

Our management combines decades of experience along with credible track performance. Top down from leadership to ground operations, we at East Cape Mining Corporation bring the best value in returns and steady corporate growth.

Board of Directors

The Board of Directors of East Cape Mining Corporaton is responsible for the overall direction, supervision and control of its global operations.

Alan Aldersgate
Born: 1959
Function: Chairman

Peter Staughton
Born: 1961
Function: Director

Richard Mayfield

Born: 1957

Function: Director

Gareth Thompson
Born: 1963
Function: Director

Clement Stevenson

Born: 1964
Function: Director

Jonathon Clarkson
Born: 1965
Function: Director

Honorary Chairman

Micheal Strom
Born: 1960
Function: Chief Advisor

Corporate Secretary

Johnston Mann
Born: 1969
Function: Secretary

Executive Board

The Board of Directors delegates management control and executive rights to implement policies and directives to management bodies and executive officers.

Chief Executive Officer
John Sherwood

Chief Operating Officer
George Cowan

Chief Financial Officer
Jonathon Spencer

Chief Auditing Officer
Mary Albridge

Chief Information Officer
David Allswell

Head, Exploration Mine Management
Alan Strom

Head, Risk Management
Clarence Stepwood

Head, Legal & External Affairs
Leslie Fairfield

Head, Human Resource
Mary Dowell

Head, Business Creation
Steve Siber

ECMC

A Leading Producer Of Gold

IPO

Why Invest In Gold?

Thursday, May 26, 2011

GROUP PROMOTION

Honorary Chairman

Corporate Secretary