BRR - Straight from the source

PRESENTATION BY STEPHEN STONE, EXECUTIVE CHAIRMAN OF AZUMAH RESOURCES LIMITED (AZM)

“Africa Downunder Conference Presentation”

http://www.brr.com.au/event/51083

FRIDAY, SEPTEMBER 5, 2008, 2:30 PM.

            AZM     And good afternoon, ladies and gentlemen. It’s a real pleasure to present Azumah to you this afternoon. Azumah is named after a very famous boxer

10                    from Ghana, Azumah “The Professor” Nelson, who was the Olympic Gold medal winner in the Edmonton Olympics and went on to win a number of WBC Championships. And he was over here about two months ago fighting a very well-known Australian boxer. And we’ve got a little memento from that, got a shirt here signed by Azumah and the other boxer. And the first person

15                    that comes to our booth after the talk and tells us who that Australian boxer was, can have this lovely designer shirt. Now, we think Azumah following on from that theme Azumah Resources is also a gold medal opportunity. It’s a single project emerging very focused exploration company. It’s a got a very large landholding in the Northwest of Ghana. It’s very difficult to put those,

20                    sort of, packages together these days because Ghana is a very popular place to explore and all that packages are 100% owned. Within that and most importantly, we have 110 kilometres strike, a very fertile Birimian greenstones. And as you can see from the map on the right, the red is the anomalies geochemistry and you can see that the anomalism is very, very

25                    widespread throughout that whole 2,800 square kilometres. We’ve already delineated a 516,000-ounce mineral resource in Kunche and this morning we announced that a recent discovery we made just 2 kilometres North of Bepkong we announced a 212,000 ounce for that. So that brings our total resources in Wa-Lawra, including a couple of small areas, which we’re just

30                    beginning to work up through three-quarters of a million ounces. All those mineral resources are from surface or shallow and very open in most directions. And we’ve also got a growing pipeline, as you can see from that map on the right, of lots of targets we’ve worked up into drill-ready position that we are very clean to go and explore from now on. And we’re very

35                    confident that we’ll achieve our next objective of a 1-million ounce mineral resource on this property. This is a statement of our mineral resources, which as of today, have been increased by 46% and over 50% of that is in the Indicated category. The company’s got 93 million shares on issue and the major shareholder is Macquarie Bank, who bought a stake in the company

40                    through a placement about six weeks ago and they have now got 13% of the company. Market cap is just AUS$13 million at today’s price 14 cents. We got AUS$2.5 million cash. If you divide that, less the cash -- the market cap less the cash into the resources that we now have, we’ve got an extremely low enterpriser value per resource ounce of AUS$14. This is a graph here of

45                    some of our peers and fellow explorers in West Africa, some Australian, TSX, and AIM-listed companies, and the yellow bar there is the number of ounces that those companies have. And in the next pie you’ll see there is a comparison of the enterprise value, so you can see standout -- Azumah stand out to a fundamentally good value company compared to a lot of those. And you heard Mark Bojanjac talk about Adamus and that’s another good company that’s doing very well and you’ll find a lot of the Australian companies, perhaps an order of magnitude cheaper than their fellow companies on the TSX-V. That line there is US$30 an ounce, which is a

5                      benchmark that a lot of the analysts are using to value companies at the similar stages of exploration is Azumah, so you can see, we’re well below that sort of industry benchmark. I joined the company at 18 months ago and took over the executive position at the beginning of the year and was joined by Bernard Aylward, as the General Manager. We also have on the Board, well-

10                    known metallurgist, Joe Ariti, and Michael Ivey, geologist and mining entrepreneur will be known to many of you. But most important is our team on the ground in Ghana. Dr. Roy Elliott, we brought him and Roy’s an old school hands-on geologist and he works the ground and it’s largely through his efforts that we’re beginning to find a lot of gold there. We work quite closely

15                    with CSA Australia to provide database management for us and they calculated the resources that we announced today, and also work very closely with RSG Global, now Coffey Mining, in terms of geologists, technicians, and they -- in particular, we use their power machines, which I’ll come on to a bit later, but making a fundamental difference to why we’re

20                    finding the gold there. Paul Amoako-Atta looks after our licence management for us and government and community relations, and I just like to welcome Paul to the conference today. It’s first time Paul has been to Perth, and he is over here with his wife and hope he enjoys his stay. I’m very glad that he could be with us today. And Hector Niyanaku looks after our administration.

25                    So see if we can get this working. So just a short flow-through of the project, okay, so we’re in Ghana. We’re right up in the Northwest Ghana, we’re actually away from the sort of Golden Triangle in the south where all the action has been. But the reason, a lot of companies are in Ghana is because it’s well known for many, many sort of deposits of over 5 million ounces, some

30                    10, some 15, some 18 million ounces, but if you scan that, you can see that Azumah is right there in the middle of the West African shield, but not really out of the action at all. Quite easy to get out to the project -- has good road, there’s a good airport at WA, which we’re hoping will be converted to several years very soon. Just a map of the geology, the green rocks in the west there

35                    -- the rocks that we’re interested in and you can see the distribution to some of where our resources are. They’re all congregated in one area there, and here’s a map of the regional EM and what this shows you is there’s a number of major structures running through the area and those structures provide the conduits for the mineralizing fluids to work their way up to surface, so it’s very

40                    important to have those. This is the historical geochemistry and this is what we use our to lead us into particular areas and you can just sort of emphasizes the distribution of that anomalous soil geochem right throughout the project. What we’ve been doing is going back with RSG and using the power auger and that takes a sample, not from surface like this -- these

45                    numbers here, but it takes some from well below surface. So we don’t have the contamination that you get, and we got a lot more reliable numbers that way. Just flying now to Kunche -- Kunche, sort of, distributed out about 1.5 kilometres and some -- a number of high-grade shoots there within the overall global resource. It’s been pretty well drilled, but we do think there’s an opportunity throughout incremental ounces, near surface, and would probably as well at depth. But our focus at the moment is just really an open near-surface open-cut ore material. In East there, we’ve also been doing some drilling which I’ll show a bit about later on. Here’s Bepkong, which we

5                      announced today, just literally 2 kilometres to the North, two loads, subparallel loads there, slightly different geological setting to Kunche, and I’ll tell you how we found that very shortly. As we move on, we’ve come to our -- we’re just going to move to the 40 kilometres or 50 kilometres North and you just can see that there’s not a lot of drilling the North Kunche and Bepkong.

10                    (Inaudible) (0:08:33) have been doing a little bit of work, got some preliminary ounces there, are very keen to go back and look at some anomalies we got to the East, same with the (Inaudible) (0:08:41). And then as you can see, there’s very, very, very little drilling, yet there’s the anomalies throughout these areas. We come to one area. We had been doing some work-up, which

15                    is Basabli, a completely new area and we found some primary mineralisation there. The first time anybody has drilled it -- the first time anybody has come up so good, so you can see why we’re getting quite excited about the overall prospects for this whole project. Here’s another look, a leapfrog model of the Kunche mineralisation and you can see the 1 gram cut-off material, which is

20                    there in the red surrounded by a 0.5 to 1 gram envelope and 74% of that mineralisation is contained in the upper 150 metres, that’s the resource statement for Kunche. And we announced this week, as well, that we’ve just completed some test work there and that shows that we can get 90% recoveries for unoxidised material, which actually represents about 70% of

25                    the Kunche resource, so that’s very important to us. And a large fraction of that 25% to 40% is recoverable through gravity, so if we do get to production stage, we’d expect to be combining gravity and the CIL type plant. There’s no requirement for any specialist or expensive refractory processing technology there. And that work is continuing and it will continue on to some Bepkong

30                    samples that we’ve just brought over to the country as well. Here’s a wire frame model of Bepkong, 40% of that’s in the Indicated category, 25% is oxide mineralisation at surface grading at 3 grams, and the 77% of that is above the 120-metre depth grading at 2.5 grams, and that’s the resource statement for Bepkong. Now Bepkong, as I said before, is just literally, as you

35                    can see that little map on the right there, a little thumb map there showing that Bepkong is really right on the doorstep of Kunche. This is completely flat. There’s no road working, there’s no outcrop, there’s nothing there. It was discovered through that auger drilling program that we were doing with RSG. We got a single point soil sample there of 1.3 grams, and we whacked a hole

40                    in there pretty quickly and the very first hole we put in there returned 16 metres at 4.9, including 10 at 7.1. So we obviously went back there again, and we’ve done two programs since to get that resourced, which we’ve just announced today. So this just shows you how -- that’s the KRC 144, that first hole that we’ve put in there, that blue area, and then we’ve stepped out,

45                    drilled another -- a number of other sections and you can see how we’ve slowly or not slowly, but quickly built up. Our understanding what’s going on there in the resource, and we only discovered this last December, and you can see, it’s very, very open at depth and definitely open to the North and possibly to the South as well, and then just a cross-section there, so this trades you to the two loads. Here are some Bepkong fresh unoxidised mineralisation is a bit difficult to see here, but it’s sulphide mineralisation distributed throughout that’s just from BRDC038. We got nearly 40 metres at 6.58 and that included over 4 metres at an ounce. But probably what’s

5                      important is how we’re going to find some more ounces there. As I said going North there, we’ve got a number of prospects where we’re quite hopeful of coming up some more ounces and it also looks like we’ve got, sort of, western corridor appearing and we were quite keen to do some more work there as well. Right next to Kunche itself, last year Roy went out and did

10                    some rock chip samples and came back with some interesting numbers and went in in-fill there with some (inaudible) (0:12:40) geochem and put some holes down and we came up with some very good numbers, so right on the doorstep of Kunche and probably an opportunity to add some more ounces there. And this is just a plan here of back of Basabli -- that area that was 40

15                    kilometres to the North and these are some of the numbers that we’ve just been getting 11 metres at 2.81 from a reconnaissance drilling program there, so that’s beginning to look very, very interesting. So while we’re drilling, we’ve got that auger rig working there constantly in the background just going systemically through all those anomalies that we’ve got about all those red

20                    areas on that map. Just really, it’s not rocket science, it’s just old-fashioned back to basics fieldwork and soil sampling. Yes, we’re going to go and do geophysics, and yes, we’re going to this and that, but really we’re finding most of the gold this way. Just operating there at Wa-Lawra, it’s very easy to access. It’s relatively flat topography especially compared to down in the

25                    South of Ghana, got good roads, good communications -- we can ring the guys up on the mobile phone practically anywhere on the licenses. There’s a grid power running right through the property, plenty of water, and some pretty good basic local services there. We’ve more or less closed our office down that we had in (inaudible) (0:13:51) and set up a headquarters there at

30                    (Kalsara), so the guys are there all the time -- they’re living and breathing the project. Now, get to the nitty-gritty. As we all know, the gold price is being really good at late and everybody here is sort of has been saying how their prices have gone the opposite way. And Azumah is a good example, but we’ve got a more or less a sort of double hit in the guts because with the

35                    January correction that coincided with two of our major shareholders, stakes coming on the market, one was Croesus Mining, which has gone into administration and then one of our other shareholders got caught up in the Opes Prime issue. I’m pleased to say all of that stock is now being cleared from the market and unlike a lot of companies actually, the Azumah shares

40                    are beginning to climb back to where we think they ought to be. So if you’re looking to invest in a company, what are the investment cues going forward. Well we’re looking to commence drilling beginning of October at Bepkong and also look at some of these other targets, continue with that power auger sampling, and we’ll be doing some more metallurgical test work. In January,

45                    we’re going to look at commencing some preliminary scoping studies. We’re going to look at ways of perhaps fast-tracking the exploration and development and of course the reason we’re here today is to increase our market profile and investor awareness. There are lot of companies in West Africa, and we also believe there’s probably an opportunity for consolidation amongst those and we’d like to participate there in that in some way. So, Azumah, a company with very clear objectives, primary one is o delineate sufficient gold reserves to underpin the stand-alone open-cut operations in Northwest Ghana and our immediate objectives that one we’re trying to

5                      achieve in the not too distant future is to delineate million ounce mineral resource. So why do we think Azumah has a gold medal opportunity, single project focused company, three-quarters a million ounces of gold, very large 100% owned contiguous land position, and we’re very confident we’re going to get the next million ounces of gold -- a very, very low market cap, so we’re

10                    coming from a very low base. Here’s that graph again and there’s that $14 per ounce. Thank you very much.

PRESENTATION CONCLUDED

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