Extract from the South Boulder Mines Ltd. (STB:ASX) AGM and Investor Presentation 2009 on the potentially “world class” buried evaporate potash project in Eritrea.

Factors speaking for Eritrea:

Stable Government ;

Supportive Government for foreign investment in mining and exploration;

Corporate tax rate 38%;

Government 10% free carry and after BFS has option to purchase an additional 30% equity participation interest at an independently determined price;

Other current mining activities: Nevsun Resources Ltd: NSU (TSX/AMX) Bisha Deposit

Chalice Gold Mines Ltd: (CHN.AX) Zara Project;

Mining Potash;

(Mineral) -Potash is important for agriculture ( as fertilizer) it improves texture and disease resistance of food.

Rising population and improving diets drive food consumption growth and potash demand;

Short- term decline in fertilizer use is not sustainable- irreplaceable,

Price estimates USD600- 900/ft for 2009- irreplaceable;

Colluli Project Eritrea:

Eritrean ports are close to major shipping routes to India, Asia and Europe;

Asia is major importer of potash;

Infrastructure;

Solar evaporation;

Geothermal energy;

Solution mining potential;

Cheap capital and operating costs;

South Boulder Mines Ltd. AGM Presentation 2009

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