Investment Strategy

The Company will seek to invest in opportunities within the natural resources sector that the Directors believe either are of strategic value or represent a significant value opportunity. The Company is prepared to take an active role in its investments where it is deemed to be appropriate.

The Directors plan to adopt a flexible approach, both to the form of the Company’s investments and the subject of its investments. This includes making investments in other listed investment companies focused on the natural resources sector, including those with no significant assets other than cash. The Directors believe that investing in other natural resources focused investing companies will provide the Company with greater scope to make and support investments in the natural resources sector.

The Company's investments may take the form of:

• Equity
• Debt
• Convertible instruments
• Licence rights

Possible investments could include direct or indirect investments in:

• Permits and licences
• Exploration, mining and production operations
• Processing and development projects

The Company may make indirect investments via:

• Quoted companies
• Unquoted companies seeking a public quotation
• Candidates for reverse transactions into quoted investment companies

The Company may invest in these types of opportunities through:

• Acquisitions
• Partnerships
• Joint venture arrangements
• As finance for management buy-outs or buy-ins
• As finance for pre-IPO, seed and underwriting positions

Such investments may result in the Company acquiring the whole or part of a company or project. The Company will consider opportunities anywhere in the world, with a particular focus on Africa, the Americas, Australasia, Central and Eastern Europe and Russia and the former Soviet Union republics.

The Company expects to be an active investor in situations where the Company can make a clear contribution to the progress and development of the investment. In respect of other, principally more substantial opportunities, the Company expects to be a passive investor.

The Company intends to invest for the medium to long-term. However, should an opportunity arise to realise its investments, the Company will consider these on a case-by-case basis and seek to maximise value for shareholders.

The Directors intend to hold all investments for a minimum of 30 days. Other than set out above, there are no restrictions on the Company’s investment policy.

The Company intends to utilise industry experts in the analysis of proposed investments, and it is intended that the decision making process will be a collegiate, team-based approach, driven by intrinsic value or informed opinion.

The returns to Shareholders are expected to be by way of dividends and growth in the value of the Company's shares.