Snapshot

• Established gold mine located in the Iron Quadrangle in the mining state of Minas Gerais of SE Brazil
• Currently producing at ~25,000oz pa from a single underground mine
• Metallurgically stable ore profile averaging 93-94% and excellent mine/mill reconciliations
• Recent exploration success has defined new emerging production centres at Crista and Olhos, within a 2km radius of the existing plant
• Production expected to double to ~50,000oz pa with development of the new Crista open pit (~5g/t Au)
• Broader exploration to unlock the significant potential of the northern satellite areas – maiden diamond drilling at Olhos and Crista Deeps planned for 2011

Overview

Mundo Minerals has been producing gold from the Engenho Underground Gold Mine, which is located in the Iron Quadrangle region approximately 40 minutes from the regional capital of Belo Horizonte in south-east Brazil, since 2008.

In addition to existing production of approximately 25,000 ounces per annum from the underground mine, the Engenho Project tenements present an emerging suite of resource opportunities with the potential to substantially enhance the mine life, grade and profitability of the Project.

In 2011, Mundo expects to significantly enhance the production profile from the Engenho Gold Project through development of the emerging Crista open pit which is located on the Mundo tenements approximately 4.2km haulage distance to the existing treatment facilities.

The development of Crista will increase annualised production from the Engenho Project to approximately 50,000 ounces per annum and is expected to transform the economics of the operation through the introduction of an important new high-grade ore source.

The Company is also focused on establishing a third production source at Olhos, an emerging resource located between Engenho and Crista, where preliminary surface exploration has confirmed the presence of high-grade gold. Resource drilling is planned in this area from mid-2011.

Exploration over the Engenho tenement holdings has covered approximately 40% of the area. Exploration success to date has been productive and future exploration will be focused on potential of the broader tenement base.

Development & Mining

Initial production commenced at the Engenho underground mine in 2008. The head grade from underground mining operations has averaged approximately 3 g/t, which is below expectations from the initial resource estimates.

As a result, Engenho has generated only a relatively small cash surplus which has been required to support all operating and corporate overheads.

The introduction of a second source of ore from the Crista open pit, which will enable the Company to amortise overheads over a broader unit base and a focus on realising operating efficiencies from an integrated operation, is expected to transform the Project to one that delivers robust economic returns.

Underground mining is based on owner operator mining. Ground conditions are robust and mining methods historically have delivered a strong reconciliation to mine plans.

Processing & Production

Ore is processed through a conventional carbon-in-pulp processing plant that Mundo constructed immediately adjacent to the open pit.

The plant was commissioned on 30 April 2008 with initial gold bullion production achieved in mid-June 2008. Gold ore is processed and refined under contract at an external refinery.

Since commissioning, the treatment facility has achieved excellent metallurgical recoveries averaging around 95%, compared to initial expectations of 93%.

The treatment facility is beien upgraded by enhancing crushing facilites, introduction of a second ball mill and tankage to increase mill capacity to manage the increased production through the production to be delivered from developing the Crista ore body.

The development of Crista will increase annualised production from the Engenho Project to approximately 50,000 ounces per annum and is expected to transform the economics of the operation through the introduction of an important new high-grade ore source.

The Company is also focused on establishing a third production source at Olhos, an emerging resource located between Engenho and Crista, where preliminary surface exploration has confirmed the presence of high-grade gold. Resource drilling is planned in this area from mid-2011.

Exploration over the Engenho tenement holdings has covered approximately 40% of the area. Exploration success to date has been productive and future exploration will be focused on potential of the broader tenement base.

Crista

Mundo Minerals is in the process of developing the Crista ore body, located approximately 1.6 km directly north of the existing Engenho underground ore body. This will initially be mined through an open pit and then further developed using underground mining techniques.

Mining will be undertaken using contractors and ore will be treated through the existing treatment facilities owned and operated by Mundo Minerals. An all-weather haulage road will be constructed between Crista and the mill.

Current drilling has been restricted to only 70 metres below the surface and the initial resource of approximately 26,000 ounces represents only the initial stage of expected mining from Crista.

Deeper drilling will be undertaken once mining has commenced and the resource is expected to extend at depth, consistent with the other resources mined in the region.

Exploration

The initial Engenho gold resource was based on drilling to a depth of approximately 270 metres below surface. The resource remains open at depth and expectations are that the resource will continue for some distance below this level based on the structure of ore bodies in the region.

The underground Engenho resource is located on an area of 11 hectares, within the Company’s broader tenement holding of 713 hectares.

An assessment of the broader exploration potential of the tenement has yielded a number of significant exploration targets requiring advanced exploration.

Regional exploration activity has already resulted in the delineation of the Crista resource, and the Company’s immediate exploration focus will be directed towards developing a resource at the nearby Olhos prospect, which has delivered preliminary exploration success.

The development of Crista and construction of a new haul road is expected to open up these satellite areas to the north of the Engenho treatment facility to exploration and resource development. The Company’s aim is to have a thrid deposit ready to be introduced to the production profile by the end of 2012.

A systematic exploration program will be undertaken over the broader Engenho tenements which have not been fully tested and the Company will also aim to develop a more regional profile from which to further enhance the potential of the Engenho gold project,

Location & Logistics

The Engenho Gold Project in Brazil is located in the “Iron Quadrangle” region in the mining state of Minas Gerais in south-eastern Brazil. The project is situated approximately 40 minutes from Belo Horizonte, Brazil’s 3rd largest city.

The iron Quadrangle hosts major iron ore deposits operated by Vale, which produces approximately 50% of its iron ore from this region, and major gold mines operated by AngloGold Ashanti, which produces approximately 400,000 ounces of gold annually from the area. The Iron Quadrangle also has a number of mid-tier mining operations.

The area is well structured to service the resources sector with many internationally recognised consulting firms being based in Belo Horizonte, well-serviced towns located close to the mine, and a readily accessible and experienced workforce available to the Company.

The Engenho Project is well located with respect to infrastructure such as mains power and water, and is located just 5km from the regional town of Rio Acima.

Community Relationships