C A P I T A L   M A R K E T S   U P D A T E

S T R I C T L Y   P R I V A T E   A N D   C O N F I D E N T I A L

2008

Bond Equity Leveraged

BANK OF THE Derivatives Securitisation
House of the year House of the year Finance House
YEAR House of the year House of the year
of the year
International International International International International International
Financing Review Financing Review Financing Review Financing Review Financing Review Financing Review
l

This presentation was prepared exclusively for the benefit and internal use of the J.P. Morgan client to whom it is directly addressed and delivered
(including such client’s subsidiaries, the “Company”) in order to assist the Company in evaluating, on a preliminary basis, the feasibility of a possible
transaction or transactions and does not carry any right of publication or disclosure, in whole or in part, to any other party. This presentation is for
discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by J.P. Morgan.
Neither this presentation nor any of its contents may be disclosed or used for any other purpose without the prior written consent of J.P. Morgan.
The information in this presentation is based upon any management forecasts supplied to us and reflects prevailing conditions and our views as of this date,
all of which are accordingly subject to change. J.P. Morgan’s opinions and estimates constitute J.P. Morgan’s judgment and should be regarded as
indicative, preliminary and for illustrative purposes only. In preparing this presentation, we have relied upon and assumed, without independent
verification, the accuracy and completeness of all information available from public sources or which was provided to us by or on behalf of the Company or
which was otherwise reviewed by us. In addition, our analyses are not and do not purport to be appraisals of the assets, stock, or business of the Company
or any other entity. J.P. Morgan makes no representations as to the actual value which may be received in connection with a transaction nor the legal, tax
or accounting effects of consummating a transaction. Unless expressly contemplated hereby, the information in this presentation does not take into
account the effects of a possible transaction or transactions involving an actual or potential change of control, which may have significant valuation and
other effects.
Notwithstanding anything herein to the contrary, the Company and each of its employees, representatives or other agents may disclose to any and all
persons, without limitation of any kind, the U.S. federal and state income tax treatment and the U.S. federal and state income tax structure of the
transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to the Company relating to such
tax treatment and tax structure insofar as such treatment and/or structure relates to a U.S. federal or state income tax strategy provided to the Company
by J.P. Morgan.
J.P. Morgan’s policies prohibit employees from offering, directly or indirectly, a favorable research rating or specific price target, or offering to change a
rating or price target, to a subject company as consideration or inducement for the receipt of business or for compensation. J.P. Morgan also prohibits its
research analysts from being compensated for involvement in investment banking transactions except to the extent that such participation is intended to
C A P I T A L   M A R K E T S   U P D A T E

benefit investors.
IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters
included herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing
or recommendation by anyone not affiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S.
tax-related penalties.
J.P. Morgan is a marketing name for investment banking businesses of JPMorgan Chase & Co. and its subsidiaries worldwide. Securities, syndicated loan
arranging, financial advisory and other investment banking activities are performed by a combination of J.P. Morgan Securities Inc., J.P. Morgan plc,
J.P. Morgan Securities Ltd. and the appropriately licensed subsidiaries of JPMorgan Chase & Co. in Asia-Pacific, and lending, derivatives and other
commercial banking activities are performed by JPMorgan Chase Bank, N.A. J.P. Morgan deal team members may be employees of any of the foregoing
entities.
This presentation does not constitute a commitment by any J.P. Morgan entity to underwrite, subscribe for or place any securities or to extend or arrange
credit or to provide any other services.
 J.P. Morgan was ranked No. 1 in most business areas in 2008—the
first bank in the world to achieve this—ever

Market
Market capitalization
capitalization of
of bulge
bulge bracket J.P.
J.P. Morgan
Morgan received
received the
the most
most awards Recognition
bracket awards Recognition from
from the
the top
top
investment banks (US$bn) in 2008 financial publications
investment banks (US$bn) in 2008 financial publications
Market cap. (US$bn)
October 31, 2007 J.P.Morgan 13
December 31, 2008 BNP Paribas 6

158 HSBC 4
118 Barclays 2 International
Financing Review
International
Financing Review

Citi 2
214 Credit Suisse 2 No. 1 No. 1 No. 1

71 RBS 2 2008 2008

2008 Equity house Global
UBS 2 Bank of the Year of the year Equity House
111
Bank of America 1
42 105
208 Daiwa SMBC 1
40
Deutsche Bank 1
37 82 ING 1
69
32 71 Morgan Stanley
23 17 1
RBC Capital Markets 1
No. 1 No. 1 No. 1
Unicredit 1
Fortress balance sheet
2006/07 2008 Western 2008
Global Europe European
Execution team stability Credibility with investors Equity House Equity House Equity House
C A P I T A L   M A R K E T S   U P D A T E

“Never before in the long history of IFR awards has one bank been so dominant, in what is our equivalent of a ‘Titanic at the Oscars’
Bank of the Year moment, J.P. Morgan has won a significant proportion of our awards this year”

2008
“J.P. Morgan has the chance to build a lead over its rivals that might prove unassailable. The bank has manoeuvred itself into this
position not just because of the bullets it dodged, but also because of the business it built over the last decade”

“More than a survivor: Thanks to its belief in old-fashioned banking virtues, J.P. Morgan is in a position to become the pre-
eminent financial institution of the first half of the 21st century. It dodged most of the bullets of the financial crisis by a
relentless focus on careful banking and has also built a global investment banking deal machine that is the envy of its rivals. J.P.
Morgan is IFR’s Bank of the Year.”

1
 J.P. Morgan has now led 12 of Europe’s 14 largest
mining IPOs ever
Primary
Primary mining
mining listings
listings on
on the
the London
London Stock
Stock Exchange
Exchange ($mm)
($mm)

3,042

2,505

1,770
1,589
1,425
1,369

873
653 644 594
454 450 440 418
C A P I T A L   M A R K E T S   U P D A T E

ENRC NWR Fresnillo Billiton Xstrata Kazakhmys Vedanta Gem Anglo Hochschild KGHM Ferrexpo Nikanor Talvivaara
Diamonds American P olska
M iedz

Led by
JPM/
JPMC:            
2007 2008 2008 1997 2002 2005 2003 2007 1999 2006 1997 2007 2006 2007

Source: Dealogic

2
 J.P. Morgan—consistently the top bookrunner for EMEA Metals
and Mining capital raisings

April 2009 February 2009 January 2009 May 2008

2009
2009 YTD
YTD US$107mm US$105mm US$5.9bn US$1,787mm

Cash Box Placing Rights Issue

Placing Initial Public Offering
Sole Bookrunner & Joint Bookrunner, Sole Bookrunner,
Placing Agent Joint Sponsor & Joint Sponsor, Global
Sole Financial Advisor,
Financial Adviser Coordinator and Financial
Bookrunner & Sponsor
Adviser
underwriting
equity—linkedunderwriting

May 2008 May 2008 March 2008 November 2007

2008
2008 US$2,505mm US$60mm US$97mm US$160mm

Placing
Initial Public Offering Placing and re-admission Placing
to AIM
Sole Bookrunner, Placing Sole Bookrunner, Joint
andequity—linked

Joint Bookrunner Joint Bookrunner Agent & Corporate Broker Lead Manager &
& Joint Broker Corporate Broker

2007 June 2007 May 2007 May 2007 May 2007

2007 US$450mm US$800mm US$418mm US$556mm
equityand

Initial Public offering Placing Initial Public Offering Placing of shares &
Financial Adviser, Sole warrants
Sponsor, Global Sole Financial Adviser,
UKequity

Sponsor, Global
C A P I T A L   M A R K E T S   U P D A T E

Coordinator & Joint Coordinator, & Joint Lead Manager &

Bookrunner Sole Bookrunner Bookrunner Sole Bookrunner
UK

2006 February 2007 January 2007 October 2006 April 2006

2006 US$653mm US$1,443mm US$5,596mm US$77mm

Initial Public Offering Accelerated Bookbuild Rights Issue Placing

Sole Global Coordinator, Joint Global Sole Global Coordinator,

Bookrunner. Sponsor & Co-ordinator & Joint Bookrunner, Lead
Financial Adviser Bookrunner Manager & Sponsor Sole Bookrunner

Source: Dealogic, May 2008 We

We are
are the
the consistent
consistent leader
leader in
in bookrunning
bookrunning Metals
Metals and
and Mining
Mining equity
equity offerings
offerings

3
 … as we have been for as long as we can remember

2004 Recent transactions

2004 Recent transactions
November 2005 October 2005 July 2005 July 2005
US$52m US$1,369m US$440m US$140m

Initial Public Offering

Sole Bookrunner, Sole
Global Coordinator, Lead
Accelerated Bookbuilding Initial Public Offering 7.125% Convertible due
Manager, Nominated
2010
Adviser, Financial Adviser
Sole Bookrunner Sole Sponsor,
underwriting

& Broker
Joint Bookrunner Sole Bookrunner
equity—linkedunderwriting

2003
2003
July 2005 June 2005 May 2005 March 2005
US$40m US$3bn US$34m US$202m

Initial Public Offering

andequity—linked

Placing
Initial Public Offering Global Coordinator, Follow-on
Sole Bookrunner Sole Bookrunner, Sponsor &
& Lead Manager Co-Manager Lead Manager Joint Bookrunner

10
10 years
years January 2005 November 2004 June 2004 June 2004
US$114m US$120m US$205m US$205m
equityand
UKequity

Secondary Placing of
Bought Deal Accelerated Bookbuilding AngloGold Ashanti shares
C A P I T A L   M A R K E T S   U P D A T E

Follow-on Offering
Joint Bookrunner & Joint Joint Bookrunner Joint Bookrunner
Lead Manager Joint Bookrunner
UK

15
15 years
years May 2004
US$270m
December 2003
US$875m
November 2003
US$224m
November 2003
US$1,060m

5-year 4.875% equity Initial Public Offering

linked offering Follow-on Follow-on
Sole Sponsor,
Sole Bookrunner Joint Bookrunner Bookrunner Joint Bookrunner

Source: Dealogic, May 2008

We
We are
are the
the consistent
consistent leader
leader in
in bookrunning
bookrunning Metals
Metals and
and Mining
Mining equity
equity offerings
offerings

4
 A large number of corporates are raising new equity as insurance
against an unpredictable macro environment
Review of EMEA equity issuance market Equity offerings by type (€bn)
Review of EMEA equity issuance market Equity offerings by type (€bn)

Review of recent equity issuance trends

 In the first quarter of 2009, the trend towards corporate equity
offerings executed to strengthen balance sheets materialised in
SQUEEZE
size SQUEEZE
 Following financial institutions and real estate issuers, the
market saw two large utility deals being announced
 Italy’s ENEL and Snam Rete Gas are targeting to raise a
combined €11.5bn from the market mainly for acquisitions
 A significant portion of the $50bn of right issues which has been Equity
Equity offerings
offerings by
by type
type
in the market in recent weeks has now closed
2008 2009Convert:
YTD 7%
 HSBC’s $19.5bn rights issue led by J.P. Morgan Fully marketed 2% Rights 64% IPO: <1% Fully marketed: <1%
Convert 9%
ABB: 7%
 The convertible market is back and recent deals have seen IPO 10%
strong demand — Cap Gemini raised €500mm in a convertible
led by J.P. Morgan ABB 15%

Outlook for primary equity issuance in the coming months

Rights: 85%
 Private equity firms are awaiting stronger market conditions to
C A P I T A L   M A R K E T S   U P D A T E

divest some of their holdings which could bring IPOs back to the
forefront in the second half of the year Equity offerings by sector
Equity offerings by sector
 Corporates are increasingly starting to look at M&A driven by 2008 Oil&Gas: 2% Electronics: 1% 2009 YTD Oil & Gas: 1%
Electronics: 1% Other: 1%
Real Estate: 2% Other: 5%
Machinery: 1%
cheap valuations and will look at raising equity Construction: 2%
Transportation: 2%
Mining: 3% Construction: 5%
 Drivers of equity issuance volumes will likely continue to be: Energy: 4% Real Estate: 5%
Telecom & Media: 6% Energy: 6%
 Recapitalizations are expected to continue, with more
Consumer &
Metal: 2%
corporate issuers Healthcare: 12%
Transportation: 2%
 Possible sell downs of non-core stakes to raise cash Financials: 62% Financials: 65%
Mining: 7%

Source: Dealogic, J.P. Morgan Source: Dealogic, IFR and Bloomberg as of April 14, 2009

5
 Emerging signs of stabilisation in equity markets have
started to show, although too early to call a recovery
Market
Market performance
performance last
last 12
12 months
months 2008
2008 overview
overview
Rebased to 100 FTSE 100 Volume (bn)  At the start of 2008, 2009 had been forecast as a year of recovery for the global
120 6.0 economy, however now consensus is for a global contraction of c.1.5%
 UK and US Equity markets ended 2008 30—40% down. The FTSE 100 was down
100
4.0 31.3%—the worst year on record and characterised by:
80  Knock on impact of US sub prime to all sectors globally
2.0  Bankruptcy of Lehman Brothers
60
 Significant GDP downgrades
40 0.0  Forced deleveraging by corporates and hedge funds
01-May-08 01-Aug-08 01-Nov-08 01-Feb-09 01-May-09  Unprecedented market volatility and trading volumes

Source: Datastream, 1 May 2009

Market
Market commentary
commentary
Market
Market performance
performance last
last 2
2 months
months  Cautiously optimistic investor sentiment fuelled by ‘seeds of growth’ comments
Rebased to 100 FTSE 100 Volume (bn) from President Obama, Bernanke and Summers
135 6.0  Early signs that stimulus package starting to impact
125
115 4.0  Deutsche Bank, Credit Suisse, Goldman Sachs, J.P. Morgan and Wells Fargo
enjoy profitable 1Q, Citi beats estimates
105 2.0  Banking sector rally has lifted the market over the last month
95
85 0.0  Fears still surround the state of the global economy
C A P I T A L   M A R K E T S   U P D A T E

9  US retail sales unexpectedly declined 1.1% in March

01-Mar-09 01-Apr-09 01-May-09
Source: Datastream, 1 May 2009 9  Balanced view on future market direction amongst market analysts:
 Morgan Stanley unconvinced bear market is over while Goldman Sachs
Volatility¹
Volatility¹ believes the low point in the economic cycle has been passed
%  IMF and CBI expect recovery to be slow and fragile due to weak consumer
4.0
3.0 demand
2.0  Recovery seen in UK equity market since the start of March characterised by
1.0 substantial sector rotation - sectors that underperformed in 2H 2008
0.0 outperforming in 1H 2009
Mar-06

May-06
Jun-06

Aug-06

Nov-06

Jan-07
Feb-07

Apr-07

Jun-07

Oct-07

Dec-07
Jan-08
Feb-08
Mar-08

Jun-08

Aug-08

Nov-08
Dec-08
Jan-09
Feb-09

Apr-09
Apr-06

Jul-06

Oct-06

Dec-06

Mar-07

May-07

Jul-07
Aug-07

Nov-07

Apr-08
May-08

Oct-08

Mar-09
Jul-08
Sep-07
Sep-06

Sep-08

 Financials and mining stocks in focus

Source: Bloomberg, 1 May 2009

¹ Average daily % FTSE 100 movement

6
 Project development is financed through number of different
alternatives
Equity
 Issue new share capital to new
and/or existing shareholders
 Options include:
 Rights offering
 Private placement
C A P I T A L   M A R K E T S   U P D A T E
Hybrids
 Have characteristics of both debt
and equity forms of financing
 Examples of this form of financing:
 Subordinated loan
 Convertible bond/notes
Debt
 Issue new subordinated claims over
the company’s assets
 Can be marketable or non-
marketable forms of debt:
 High yield bond
 Project finance bank loan
7
 Financing alternatives are dictated by mine lifecycle
Indicative
Indicative portfolio
portfolio lifecycle
lifecycle

Mezzanine
Value
Seed Development projects
Capital Public Equity Operating assets

100%

90%

75 Expansion
% Extend
reserve base
50%
Bonds/Project Loans

25%
C A P I T A L   M A R K E T S   U P D A T E

Exploration Pre-feasibility Operating Time

Commissioning
Feasibility
Permits Mine closure & rehabilitation
EPC

A producing mine will be well positioned to access the global financing markets

8
C A P I T A L   M A R K E T S   U P D A T E
The financing spectrum available to a mining company

9
 Peter Hambro Mining merger with Aricom and cash-box placing created
regional mining industry leader and strengthened balance sheet
5 & 6 February 2009
Financial Advisor & Sole Bookrunner
Key
Key transaction
transaction statistics
statistics
C A P I T A L   M A R K E T S   U P D A T E
Transaction
Transaction highlights
highlights
No. 1 bank
 PHM has announced agreement of terms for the recommended merger of PHM
and Aricom to create a mining industry leader in the Far East of Russia with EMEA
operations in both gold and iron ore equities
 Merger gives PHM access to Aricom cash to support near term debt obligations Russian
 PHM’s production growth profile and cash flows support iron ore asset equities
development when the commodity cycle recovers Metals and
 Combined market capitalisation of £789m / $1,147m, implying current mining
equities
theoretical rank #54 in the FTSE 250
 The Company has simultaneously announced its immediate intention to move
Metals and
mining
the enlarged group to the Main Board of the LSE research
 Exchange ratio range of 15.77x—17.14x announced on 5 February prior to final
agreement at 16.0x announced on 6 February
 Implies a price of 30.9p per Aricom share based on PHM previous night’s close
and 24.9p on undisturbed PHM price (8 January)
 Irrevocable undertakings received from Aricom Directors for 9.4%
 Cash box placing completed on 5 February
 Upsized from £55m target to raise £72m by issuing 16m shares at £4.50,
representing 19.7% of the current ordinary share capital of PHM (pre-merger)
 Priority given to existing institutional shareholders
 Equity placing proceeds used to repurchase $87m of notional Gold Equivalent
Exchangeable Bonds (“GEEx”)
 Reduces the exposure to short term obligations
 GEEx purchased at 95% of notional plus accrued interest
 Following the merger, the enlarged group has a pro forma net cash balance
Marketing highlights
Marketing highlights
 Transaction highlights JPMorgan Cazenove’s ability to offer and combine full
range of investment banking services
 M&A advisor to PHM
 Cash box placing structure and AIM listing allowed equity issuance >10% of
share capital without need for additional documentation
 Transaction was pre-marketed to ensure existing shareholders were
comfortable with proposed transaction structure
 Upsized transaction 2.3x oversubscribed following positive reaction to fully
covered book prior to launch, which allowed books to close at 09:30
 Acted as sole agent in the repurchase of the GEEx for PHM
 Risk management products
10
 Gem Diamonds successfully raised $107m through a Firm Placing to
weather a challenging diamond industry environment
J.P. Morgan Cazenove acted as Sole Bookrunner, Financial Adviser and Sponsor No. 1 bank

Transaction
£75m (c.$107m) 1 April 2009 Transaction highlights
highlights EMEA
equities
 Gem Diamonds prepared for a fully pre-emptive equity offer Russian
equities
 Use of proceeds was balance sheet repair: Metals and
 Repay debt and fund working capital mining
Sole Sponsor, Financial Adviser and Bookrunner equities
 Concentration and stability of register enabled dialogue with >85% of Metals and
Transaction
Transaction terms
terms register over 2 day pre-marketing period
mining
research

 Initial feedback themes:

 Limited sub-underwriting capacity of several institutions against
current market backdrop
 Longer-run timetable of rights issue not liked in current environment
 A placing and open offer was preferred to a rights issue by most

 Following further positive feedback and strong bookbuild momentum, a

firm placing only was effected enabling tighter pricing and offering
certainty
 Offer of 75 million shares at 100p per share
 68 million firm placed ahead of announcement to existing and new
investors
C A P I T A L   M A R K E T S   U P D A T E

 7 million left open for existing shareholders intra-day on 1 April

 Books closed intra-day following announcement

Successful marketing of deal structure and use of proceeds complemented management action plan
 Very strong support from existing shareholders
 Several smaller holders took opportunity to significantly increase exposure

 Preferential (and minimum pro-rata) allocation to existing shareholders in the Firm Placing

 Capital raise combined with clear cost cutting and downside protection plan

 Clear use of proceeds to provide balance sheet strength

11
 May 2008

The $2,505m IPO of New World Resources was the first

£1,265m ($2,505m)

pure play coking coal listing in Europe

intended as a recommendation or an offer or solicitation for the purchase or sale of any security. No representation or warranty is made with respect to the accuracy
or completeness of the information in this document, and no obligation is undertaken to update it. This document is not investment research nor is it the product of
Confidential - not for onward distribution to any person. The securities described in this document have been sold. This document is for information only and is not

Initial Public Offering

Joint Sponsor, Global

Coordinator &
Bookrunner

£1,265m ($2,505m) May 2008 Deal highlights

Deal highlights
 NWR targeted London, Prague and Warsaw listings to create the first
listed European coking coal company and position itself to lead further
consolidation in the Central European coal industry
 A powerful equity story of rising global coal prices, regional supply
Joint Sponsor, Global Coordinator constraints and high quality management generated significant interest
from leading resource, emerging market and UK long only funds
and Bookrunner
 As a Dutch incorporated Company, NWR submitted its prospectus for
Transaction approval to the AFM and subsequently “passported” under the EU
Transaction summary
summary Prospectus Directive into the UK, Czech Republic and Poland
Date: 6 May 2008  The four week investor education and management roadshow was well
Offer type: Initial Public Offering
our research department. For further information, please speak to your usual JPMorgan Cazenove contact.

received by investors
Issuer: New World Resources NV
 Cazenove research met 178 investors in one on ones and groups
Issuer’s industry: Mining & Metals
 Management met 439 investors in 3 teams in London, Europe and US
Gross proceeds: £1,100m/€1,407m/$2,178m
83m shares  Strong early demand with little price sensitivity from investors drove
 69.5m secondary shares (£921m/€1,178m/$1,824m) the decision to accelerate the bookbuild
 13.5m primary shares (£179m/€229m/$ 354m)  Priced at very top of £10.75—13.25 price range and was multiple times
Greenshoe: c.15%; £165m/€211m/$327m oversubscribed
12.5m secondary shares (exercised on 9 May 2008)  New World Resources made a strong debut on the London Stock
Proceeds post-shoe: £1,265m/€1,618m/$2,505m Exchange
95.5m shares  Closed at 1425p pence on the first day of trading, up 7.6% with 34
Market cap: £3,495m/€4,470m/$6,920m million shares being traded
C A P I T A L   M A R K E T S   U P D A T E

Offer price: £13.25  JPMorgan Cazenove traded 14 million shares, representing an

Bookbuilding range of £10.75—£13.25
Use of proceeds: Fund additional growth opportunity by further
exploration, joint venture s or strategic acquisitions
Develop new or mothball mines
 Starting with Billiton in 1997 which was followed by the likes of Xstrata,
Part fund, capital investment programme
Lock-up: Company and selling shareholders : 180 days
Directors: 365 days
Free float post shoe: 36.2%
Listing: Main Board of London Stock Exchange , Prague & Warsaw
Distribution: Global institutional offering —rule 144A into US
Retail offer in Czech Republic and Poland
JPMorgan Cazenove: Joint Sponsor, Global Co -ordinator and Bookrunner
impressive 41% of the secondary market trading
 Following strong aftermarket performance, the greenshoe was
exercised on 8 May 2008
Vedanta Resources, Kazakhmys, Ferrexpo, Hochschild Mining and Gem
Diamonds, amongst others, NWR, with its existing asset base in the
Czech Republic and growth projects in Poland, is yet another successful
example of the superior track record of the JPMorgan Cazenove team in
leading the introduction of high quality international resource
companies to international investors through the London capital
markets

12
 August 2008

$514m raised for Ferrous Resources in largest ever pre-IPO

$514m (£342m)
Pre-IPO financing

financing led by JPMorgan Cazenove

intended as a recommendation or an offer or solicitation for the purchase or sale of any security. No representation or warranty is made with respect to the accuracy
or completeness of the information in this document, and no obligation is undertaken to update it. This document is not investment research nor is it the product of
Confidential - not for onward distribution to any person. The securities described in this document have been sold. This document is for information only and is not

Sole Placing Agent and

Financial Advisor

$514m (£342m) August 2008 Deal highlights

Deal highlights
 Ferrous Resources (“Ferrous”) is a developing iron ore company based
in Brazil
 Five separate deposits in the Iron Quad in the Minas Gerais region
 Estimated resource base >3.5bn tonnes of itabirite iron ore

Sole Placing Agent  Plan to develop to a 70 Mtpa iron ore producer and exporter supplying
the global steel industry
Transaction summary  Staged development plan to ramp up production and utilise cash
Transaction summary
flow at each stage
Date of 1st close: 9 July 2008
Date of 2nd close: 6 August 2008  Management team with experience in Rio Tinto, BHP Billiton, Vale,
our research department. For further information, please speak to your usual JPMorgan Cazenove contact.

Offer type: Pre-IPO financing Fortescue Metals

Issuer: Ferrous Resources Limited
 US$1.2bn raised through private placements to August 2008
Issuer’s industry: Mining & Metals
Proceeds: $514m / £342m  Capital raising initiated to raise new equity at $4.50
114.2m shares
 Executed in two stages
 1st close: 100.3m shares ( $451m/£300m)
— Initial closing of $451m in July
 2nd close: 13.9m shares ($63m/£42m)
— Additional interest accommodated through secondary close of
Valuation at placing $3,496m/£2,325m
price: $63m in August
Price: $4.50  Majority of new money raised through existing, institutional investors
Use of proceeds: Development of Brazilian mining assets
C A P I T A L   M A R K E T S   U P D A T E

that had participated in previous financing rounds

Acquisition and development of infrastructure
General corporate purposes  Transaction provided Ferrous with an opportunity to rapidly access new
JPMorgan Cazenove: Sole Placing Agent equity capital pre-summer, given increasingly uncertain outlook
 No requirement for detailed regulatory documentation and well
 Largest ever pre-IPO financing executed by JPMorgan Cazenove established existing investor base allowed efficient execution

 Transaction demonstrates JPMorgan Cazenove’s ability to develop long  Use of proceeds for development of Brazilian assets, resource drilling,
term relationships by providing solutions for early stage companies acquisition of assets, acquisition and development of infrastructure

Substantial pre-IPO financing demonstrates our ability to access targeted

investors beyond the context of the public markets

13
 Polo Resources placing of £43m of new shares
intended as a recommendation or an offer or solicitation for the purchase or sale of any security. No representation or warranty is made with respect to the accuracy
or completeness of the information in this document, and no obligation is undertaken to update it. This document is not investment research nor is it the product of
Confidential - not for onward distribution to any person. The securities described in this document have been sold. This document is for information only and is not

£43.4m 17 March 2008 Deal rationale and highlights

Deal rationale and highlights
 JPMorgan Cazenove successfully completed a primary placing of 362m shares on
AIM raising £43.4 m for Polo Resources
 Large raising (equal to 43.4% of the market cap.) completed in difficult
market conditions FTSE 100 at a 21 month low & FTSE AIM at an 18 month low
Sole Bookrunner  Strong long-term fundamentals for thermal coal industry
 Industrialisation and urbanisation of South East Asia, especially China and
Transaction summary India, will further increase the global demand for energy
Transaction summary
 Polo’s assets are strategically located to benefit from proximity to Chinese
demand

Date:
 Polo has 14 coal, 18 uranium and one iron ore licence in Mongolia—close to
Chinese border and rail link
our research department. For further information, please speak to your usual JPMorgan Cazenove contact.

 At the time of placing, owns 28.5% of GSM significant coal deposit in

Bangladesh; also held 6.9% stake in Caledon Resources with its eastern
Australian coal assets
 The proceeds of the placing to be used to bring Polo’s Mongolian assets into

Issuer:
production and to make strategic acquisitions in the global coal sector

Stock
Stock performance
performance
Polo Resources 122% FTSE AIM All share (11)%
Caledon 57% GCM 36%

Issuer’s industry:
15
Suspended from AIM¹
C A P I T A L   M A R K E T S   U P D A T E

12

6
“We are very pleased to announce that we have raised £43.4m. The funds will also

Listing
enable use to invest in our Mongolian exploration assets to bring these into 3
production on an accelerated development programme”
Stephens Dattels, Executive Chairman Sep-07 Oct-07 Nov-07 Dec-07 Feb-08 Mar-08
Note: Rebased to Polo Resources
¹ Reverse takeover-listing Rules suspension

JPMorgan Cazenove successfully raised £43.4m for Polo (equal to 43% of the market cap.)

Offer structure
in difficult market conditions

14
 The £228m IPO of Ferrexpo is the first IPO of a Ukrainian
company on the London Stock Exchange
Transaction summary £228m ($450m) June 2007
Transaction summary

Sole Financial Adviser, Sponsor,

Global Coordinator and Joint Bookrunner

Deal
Deal highlights
highlights
 Ferrexpo’s Poltava mine is one of the world's largest producing
iron ore resources

 Ferrexpo’s primary focus is the mining, processing and sale of

iron ore in the form of pellets for use in the production of steel

 Unique story attracted interest from a wide pool of investors

 Substantial under-exploited iron ore reserves and ready
access to additional resources requiring commercialisation
 Under-utilised capacity and brownfield expansion capability
 Favourable geographic location and logistics enabling
competitive cost of delivery
C A P I T A L   M A R K E T S   U P D A T E

 Experienced management team capable of delivering Western

Break-down of demand by geography
Break-down of demand by geography ‘best practice’
Other  The deal was de-coupled with the price range set after meeting
USA 4%
11% Continental key investors in London, three days into the roadshow
Europe
34%  The book witnessed heavy orders towards last few days of the
Russia/
Ukraine bookbuilding period
23%
 The book was comprised of good demand from CIS, Emerging
UK Markets, European and UK accounts
28%

15
 The €302.5m IPO of Talvivaara has given the London Stock
Exchange its first pure play nickel miner
intended as a recommendation or an offer or solicitation for the purchase or sale of any security. No representation or warranty is made with respect to the accuracy
or completeness of the information in this document, and no obligation is undertaken to update it. This document is not investment research nor is it the product of
Confidential - not for onward distribution to any person. The securities described in this document have been sold. This document is for information only and is not

Transaction summary £557m (€822m) May 2007

Transaction summary

Sole Financial Adviser, Sponsor,

Global Coordinator and Bookrunner

Deal highlights
Deal highlights
 Deal upsized from €275m to €302.5m due to strong demand during the bookbuild process by
tier 1 investors
our research department. For further information, please speak to your usual JPMorgan Cazenove contact.

 Access to public equity markets key to successfully developing the Talvivaara mining project

 Unique story attracted interest from a wide pool of investors

 The first pure play Nickel producer on the Main Board
 One of the few project companies on the Main Board
 Low cost bioheapleaching extraction technology
 Mine expected to operate for a minimum of 24 years
 Annual nickel output of 30,000 tonnes, approximately 2.3% of global primary nickel
production

 Pre-IPO support from strategic investors (Norilsk Nickel, Outokumpu, and Metso Minerals) also
important

 Demand built steadily throughout the bookbuilding period with sensitivity towards the higher
C A P I T A L   M A R K E T S   U P D A T E

end of the range

 Talvivaara made a strong debut on the London Stock Exchange, closing at 269 pence on
the first day of trading, up 7.6% with 16.8 million shares being traded
 JPMorgan Cazenove traded 13.0 million shares, representing an impressive 77% of the
secondary market trading

Following a €33 million pre-IPO convertible bond issued through JPMorgan in October 2006 and continued
support on debt financing, Talvivaara’s IPO further demonstrated JPMorgan Cazenove’s ability to secure
funding for attractive development stories and deliver a full product spectrum
Confidential - not for onward distribution to any person. The securities described in this document have been sold. This document is for information only and is not intended as a
recommendation or an offer or solicitation for the purchase or sale of any security. No representation or warranty is made with respect to the accuracy or completeness of the
information in this document, and no obligation is undertaken to update it. This document is not investment research nor is it the product of our research department. For further
information, please speak to your usual JPMorgan Cazenove contact.

16
 The successful $594 million IPO of Hochschild Mining plc is the
first major listing and capital raising for a precious metals
intended as a recommendation or an offer or solicitation for the purchase or sale of any security. No representation or warranty is made with respect to the accuracy
or completeness of the information in this document, and no obligation is undertaken to update it. This document is not investment research nor is it the product of
Confidential - not for onward distribution to any person. The securities described in this document have been sold. This document is for information only and is not

business in the UK market

Transaction
Transaction summary
summary £311m ($594m) November 2006

The
The largest
largest mining
mining IPO
IPO in
in 2006
2006

Sole Financial Adviser, Joint Sponsor,

Global Co-ordinator & Bookrunner

Leading precious metal producer provides unique investment on LSE

our research department. For further information, please speak to your usual JPMorgan Cazenove contact.

Leading precious metal producer provides unique investment on LSE

 Hochschild Mining is the 1st major listing and capital raising for a precious
metals business in the UK market

 This transaction represents the 1st sizeable Latin American business which
has selected London at its primary listing location

 Hochschild Mining, a niche player in Latin American underground narrow

vein mining, is the 4th largest primary silver producer in the world and
also produces a significant amount of gold

 The Company was well received throughout the extensive roadshow in

C A P I T A L   M A R K E T S   U P D A T E

the UK, the US, Canada and Continental Europe gaining notable credit for
its low cash cost profile, proven track record of production growth and
reserve replacement, long dated experience in underground Latin
American mining having been in operation for over 100 years and
significant growth opportunities

 Hochschild Mining made a strong debut on the London Stock Exchange

closing at 355 pence on the first day of trading, up 1.4%, with 4.6 million
shares having traded
 JPMorgan Cazenove traded 4.1 million, representing an impressive
88% of the secondary market activity

17
 The successful $1.37 billion IPO of Kazakhmys is the first
full UK listing of a major business from the CIS
Transaction
Transaction summary
summary £761m (US$1,370m) October 2005
First LSE main board listing of a major business from the CIS
First LSE main board listing of a major business from the CIS

Sole Sponsor, Sole Financial Adviser

Joint Global Co-ordinator & Bookrunner

Strong and early demand from high quality institutional investors

Strong and early demand from high quality institutional investors
Fourth largest mining IPO ever. Second largest UK IPO in 2005
 Short, successful marketing: Only 7 full days of bookbuilding
 On the back of high quality demand book was closed one day
earlier than previously indicated
 Top quality demand from almost 500 global institutions including
a vast majority of core targets
 Priced at 540p, near the top of the 460—545p price range
 On 2005 EV/EBITDA, the offer price implies “nil discount” to
Antofagasta, Kazakhmys’ only real comp
C A P I T A L   M A R K E T S   U P D A T E

 In the immediate aftermarket, the stock traded at a premium

range of +4 to +14% to the offer price
 Closed at 561.5p on Day One, up 4% from the offer price

 Official data for the first days of trading showed JPMorgan

Cazenove as the clear market leader with a >50% market share.
The #2 had a market share of c.15%

Confidential - not for onward distribution to any person. The securities described in this document have been sold. This document is for information only and is not intended as a
recommendation or an offer or solicitation for the purchase or sale of any security. No representation or warranty is made with respect to the accuracy or completeness of the
information in this document, and no obligation is undertaken to update it. This document is not investment research nor is it the product of our research department. For further
information, please speak to your usual JPMorgan Cazenove contact.

18