Investor Presentation Rahman Connelly London October 2006
Disclaimer The information contained within this presentation is not intended to be a comprehensive review of all matters and developments concerning Corporation Limited (KLG) and KLG assumes no responsibility as to its completeness, accuracy or currency. This presentation may contain forward-looking statements which involve risks and uncertainties which may affect KLG's business and prospects and cause actual results to differ from the forward-looking statements. Specifically, charts, tables and text in this presentation may make use of estimates. Forward-looking statements contained in this presentation may be affected by the following factors, among others: risks associated with mining exploration, development, construction and mining operations; changes in the equity markets and market conditions for equity financing; changes in the price of commodities; changes in foreign currency exchange rates; foreign investment risk; government regulations including regulations relating to prices, taxes, royalties, land tenure, use, importing and exporting of minerals and environmental protection. The information in no way should be construed or interpreted as or as a part of an offering or solicitation of securities. No securities commission, stock exchange or other regulatory authority in Canada or any other country or jurisdiction has in any way passed upon this information and no representation or warranty is made by KLG to that effect. 2
Kalimantan - Overview Junior explorer focused on Kalimantan in Indonesia Advanced copper & gold exploration prospects Experienced management team Kalimantan Active community development program - vital ahead of potential mining 3
Indonesia Large Exploration Potential Kalimantan Copper/Gold/Silver Base Metals 19 29 2 37 Coal (Selected) Other 20 51 32 12 50 55 30 31 15 49 21 11 10 16 33 54 53 38 1 36 5 39 40-45 13 6 46 35 52 47 48 34 22 4 24 23 18 26 9 8 14 7 25 27 28 3 17 Active Operators include: RioTinto Freeport Newmont BHP Billiton, Eramet Newcrest Antam = In Operation = Exploration / Development Avocet 4
The Copper Story Beruang Mansur Baroi 5
Indonesia: Copper Rich Successful history of copper production World s 3 rd largest copper exporter Freeport s Grasberg mine Newmont s Batu Hijau mine Regional geological setting (plate margins and magmatic arcs) provide heat sources and structures favourable for copper and gold mineralisation Yet Indonesia remains relatively underexplored 6
Copper Exploration - Central Kalimantan 75% ownership of KSK Contract of Work (CoW) 941 km 2 area with 38 prospects Priority targets: Beruang, Mansur & Baroi Exploration to date: Drilling over 20 km IP & mag surveys over 190 km Samples over 9,000 Aeromagnetics 8000 km Structural analysis 7
CoW New Copper Porphyry Province Major new copper-porphyry province* Porphyry deposits normally >500mt & contribute to more than 50% of annual world production (~15mt)** Freeport has 80bn lbs Cu, 108moz Au - in-ground asset / resource $380bn Batu Hijau 920 mt @ 0.55% Cu, 0.42g/t Au: in-ground asset / resource $50bn * Terry Leach paper to PDAC Porphyry Copper Gold Systems in Central Kalimantan ** Resource World Magazine 8
Baroi Prospect Focus for past 3 years 4 mineralized zones cover a massive 6x4km area 8 characteristics of major porphyry deposits in the region* Several priority targets defined for deeper drilling *Leach Report 2003 Hole BF-5 83 meters @ 2.6% copper; 0.6% lead; 1.9% zinc; 61 g/t silver and 0.22 g/t gold 9
Beruang Prospect S/E Beruang Kanan looking S/W N/W Low Zone South Zone South Polymetallic Main Zone North Polymetallic West Zone Right structural setting intersecting major faults Drill hole BK2 results up to 167 meters @ 0.59% copper Two independent technical reviews Deep drill ready 10
Mansur Prospect Right structural setting intersecting major faults Classic copper porphyry geology Exploration work includes: Airborne geophysics & satellite image interpretation Geological mapping/sampling Diamond drilling Close to surface & drill ready 11
Development Strategy Heads of Agreement signed with Oxiana (ASX:OXR) Initial funding period US$2.5m over 18 months Includes deep drilling at Baroi, Mansur & Beruang Nil equity earn-in Right to sole fund JV to earn equity 40% equity at completion of a Pre-Feasibility Study: 30-42 months. 66.67% equity at completion of a Bankable Feasibility Study: 48-60 months Project Financing Oxiana to use best endeavours to arrange Kalimantan s share of project financing 12
Summary Copper Prospects New porphyry province All prospects potential to be company transforming Dr Peter Pollard recently completed independent review of data to prioritize drill targets Heads of Agreement signed for future joint development of the prospects The KSK CoW contains the Baroi, Beruang and Mansur prospects...mineralisation shows similarities with that which occurs in similar arc-related settings in Indonesia and the south-west Pacific, which are known to host economically significant copper deposits. SRK Competent Persons Report 13
GOLD 14
Jelai Mewet East Kalimantan Epithermal Gold Project 100% owned Previously explored by Indochina Goldfields (Ivanhoe) 11 gold prospects identified Mewet Prospect confirmed high-grade gold mineralisation 15
Mewet Prospect 8 major veins identified 26 holes drilled: 3,872 m depths up to 200m Gold bonanza grades to 63g/t & 87g/t gold Less than 10% of 5km strike length drilled 16
Select Indochina Drill Hole Results Hole From To Metres Au g/t Ag g/t JM011 26.31 28.43 2.12 6.9 16 JM012 57.00 58.70 1.70 11.1 JM013 38.33 40.20 1.87 7.5 JM015 67.50 69.00 1.50 7.3 JM015 69.27 70.77 1.50 7.4 JM018 115.00 119.51 4.51 6.4 JM019 185.10 191.20 6.10 5.7 JM024 58.07 59.35 1.28 8.4 JM024 60.73 60.85 0.12 53.8 10 13 14 20 8 15 3 18 17
Jelai Mewet Drilling Program Validate Indochina results Proposed Drill Holes Evaluate Mewet prospect with systematic drilling program 4,000m drilling program Regional exploration of 10 other prospects 18
Summary - Gold Prospects Advanced gold exploration properties in Indonesia Formerly explored by Indochina (now Ivanhoe) 6-month 4,000m drilling program to start January 2007 Drilling will expand known mineralisation towards resource definition 10 other similar prospects 19
Directors & Management Murray Clapham, Chairman Rahman Connelly, Executive Chairman Peter Bojtos, Director Doris Meyer, CEO ---------- Mansur Geiger, VP Exploration Brett Gunter, Technical Advisor Jelai Mewet Bardolf Paul, Community Development Manager 20
Key Focus over next 6 months KSK Copper US$2.5m deep drilling program funded by Oxiana Jelai Gold Substantial drilling program to prove up initial Indicated Resource to NI 43-101 standards New Prospect Acquisition Program Work through extensive data on hand to acquire other well worked / highly prospective areas in Kalimantan 21
Share Structure KLG listed TSX.V 1996 Introduction to AIM in London October 2006 Symbol: KLG/TSX.V Shares outstanding 57.1 million Warrants 17.3 million Options 3.6 million Fully diluted 78.0 million Retail & Institutions 69.5% Significant shareholder 21% Management 9.5% Shareholders Retail & Institutional holders Kalimantan Investment Corp. Management 22
Community Development Program Aim to foster good relationships & improve conditions locally Programs include: Building local capacity to self-manage village level development Linking villages with local government services Linking donor agency support to the needs of communities Good to establish strong community links ahead of potential mining operations 23
Investment Opportunity Listing on AIM Recent private placement raised 1.3 million Introduction to AIM in October Will diversify shareholder base Major porphyry copper opportunity Joint Venture highly valued by the market Advanced gold exploration property drilling towards resource definition Early focus on community development demonstrates Kalimantan s commitment 24
Contacts www.kalimantan.com Rahman Connelly Doris Meyer Executive Chairman President and CEO Office +61 7 55232298 Office +1 604 536 2711 Mobile +61 418 116955 Email: rconnelly@ozemail.com.au Email: dorism@telus.net 25
Appendices 26
Baroi Geology 27
Baroi 28
Baroi soil and IP chargeability anomalies BB04 BB03 BC08 BC09 BB-7 BB-5 (Geo data) BB-6 BF0048 BF0046 BF0047 BF0049 Cu-Au Geochem Anomalies BDH-4 Diamond Drill Hole IP Chargeability High 29
Baroi Drilling Surface/Channel Samples Sample No Meter Cu % Pb % Zn % Au_Ave Ag 0633-5 12 3.90 0.01 0.03 0.07 53.3 672-5 12 6.06 0.17 0.40 0.72 197.5 1800 & 1845-6 9 4.16 0.24 0.76 0.05 62 1802 & 1863-4 9 0.83 0.17 3.79 0.06 24.7 1869-71 9 2.42 0.54 3.26 0.16 149.7 0641-3 9 14.03 0.04 0.66 0.11 464.3 0669-71 9 3.63 0.01 0.51 0.07 46 0241&0330 6 6.68 3.51 5.78 0.61 240 0648-9 6 6.73 0.04 0.32 0.14 104.5 676-7 6 15.60 0.02 0.25 0.14 240.5 682-3 6 6.30 0.02 0.17 0.04 103 724-5 6 4.82 0.30 1.84 0.04 119.5 822-3 6 7.68 0.52 0.78 0.05 332.5 30
Baroi Drilling Drill Core Results Hole From To Meters Cu (%) Pb (%) Zn (%) Ag(g/t) Au(g/t) BF-4 52.75 76.75 24.00 1.53 0.25 2.27 28.6 0.13 BF-5 2.45 85.45 83.00 2.64 0.62 1.85 61.1 0.22 Incl. 2.45 31.45 29.00 3.18 1.71 4.21 97.1 0.57 Incl. 40.45 64.45 24.00 5.08 0.04 1.24 88.5 0.02 BF-9 6.80 36.80 30.00 2.18 0.07 0.37 53.7 0.05 BF024 13.50 61.50 48.00 0.52 0.26 0.18 28.1 0.02 BF28/030 1.00 42.85 41.85 3.18 0.99 1.85 101 0.16 Incl. 1.00 12.05 11.05 11.05 1.64 2.55 296 0.24 BF29/033 27.95 64.90 36.95 0.73 1.08 0.02 144.7 0.23 BF040 36.30 67.30 31.00 1.04 0.59 2.9 29.6 0.17 BF0048 154.50 184.50 30.00 1.1 0.2 0.8 29.4 0.02 Incl. 163.50 175.50 12.00 2.2 0.05 0.5 47.8 0.02 31
BK-2 Proposed Drill hole BK-2 : 04.50 171.50 m : 167.00 m @ 0.59 % Cu including : 93.00 m @ 0.752 % Cu 32
Jelai Sample 33
Jelai Mewet (Geo data) 34