Overview of Projects

Cleveland's 3 strategic project hubs are located in Brazil and Chile.  The "Crixás Hub" in Brazil is centred on gold exploration and production; the “Canela Hub” in Chile has a Gold/Copper focus; and the “Amapá Hub” in northern Brazil is home to the Company’s Iron Ore Division.

The Company's Premier Gold Project in Brazil is currently progressing towards mining and good results have been returned from investigation of several other projects in all 3 hubs.

All projects are subject to excellent mining legislation, pro-mining governments, access to existing infrastructure, access to skilled labour, safe operating environments and are located in areas with track-records for successful mining.

Crixás Hub, central Brazil

Cleveland has 5 gold-focused projects in the Crixás Hub, located in Goiás state in central Brazil.  The projects - named Premier, O Capitão, Baú, Guarinhos and Pantera - are located in a recognised gold region and abut tenements held by AngloGold Ashanti, Kinross, Yamana and Vale, amongst others. Total tenure stands in excess of 240km².

Access to infrastructure, mine services, contractors and labour in the project area is very good, with the 'mining town' of Crixás in walking distance from the Premier tenements. The national capital, Brasilia, and the state capital, Goiania, are 260km and 270km away respectively.

The most advanced project, Premier, currently holds an inferred resource of circa 89,000oz with significant scope for expansion.  A mining and engineering study is complete and Board aprroval has been granted for mining.  All plant and equipment has been secured for construction.

Canela Hub, central Chile

Cleveland has acquired several high-potential gold and copper projects in coastal Chile.

Inital exploration results at the Canela Hub have show excellent potential for both gold and copper.  Exploration continues and drilling is targeted to begin in the first half of 2012.

The Central West Hub is linked to ports and smelters by rail and road infrastructure, is subject to excellent mining legislation, is serviced by world-class mining contractors and has a track-record for successful mining projects.

Both the Crixás Hub and Central West Hub are currently managed by the same team.

Amapá Hub, northern Brazil

The cornerstone of the Amapá Hub is the Porto Grande project, where first phase exploration results have been excellent .  The Company has already expanded its presence in this region and will continue to do so with the right projects.

Amapá is coastal, pro-mining, subject to sound legislation and taxation, and is politically stable, whilst having good infrastructure and access to low cost, yet skilled labour – all in association with
high-grade iron ore.

The first mining companies working in Amapá appear to be progressing well.  Anglo American produced approximately four million tonnes of iron ore within the region last year and has brokered an iron ore off-take agreement with ASX-listed Beadell Resources, who have  delineated a multi-million ounce gold resource.  Vale and Cliffs are also working in close proximity to Cleveland.

A discretely-managed Iron Ore Division has been formed to manage the Amapá Hub to avoid compromising the development of the Crixás Hub and Central West Hub projects.  The Company’s Board will oversee all three hubs.