Minerals Advisory Group, LLC

MINERALS ADVISORY GROUP, LLC

P. J. CRESCENZO

REGISTRATION

Registered Professional Engineer in Arizona #007906, Nevada #20667, Pennsylvania #015388

EDUCATION

 B.S., Electrical Engineering, Michigan Tech. University, 1949  B.S., Mechanical Engineering, Michigan Tech. University, 1947

QUALIFICATIONS

Twenty-seven years of development, engineering and execution of major mineral and mineral-related projects. Eleven years in operating positions with a major mining company. Fourteen years as a private consultant to the mining industry.

EXPERIENCE

1993 – Present, Minerals Advisory Group, LLC, Senior Principal Consulting company providing advisory, due diligence, cost control and project auditing services to mining companies, governments and financial institutions.

2000 – Present, MDI, Inc., Owner Consultant to the mining industry providing project audits, engineering investigations, due diligence and advisories to governments and financial institutions.

1989 – 1999, P.J. Crescenzo & Associates, President Consultants to the mineral industry. Providing services such as project audits, consultant to insurance companies, project development reviews, engineering investigations, and advisories to legal firms.

1971 – 1989, Newmont Mining Corporation Held positions of Vice President of Engineering (15 years), Chief Engineer (1 year) and Assistant Chief Engineer (2 years). Responsibilities included contract negotiation, project development and execution responsibility of all Newmont and subsidiary companies major capital projects. Geographical areas included United States, South America, Canada, South Africa and Australia. The work involved gold, copper, lithium, ferro alloys, cement, manganese and zinc.

1964 – 1971, Jones and Laughlin Steel Corporation. Corporate Manager of Raw Materials Engineering and Construction Projects were in lime, coal, limestone and dolomite, taconite, hematite, and iron making blast furnaces. Provided the corporate management of all mineral projects including contract negotiation and administration, cost and schedule control. P. J. Crescenzo 2 1953 - 1964, Pickands-Mather & Company Held various management and technical positions for Iron Ore and Taconite related mining and processing functions such as General Superintendent, Assistant Mine Manager, Division Metallurgist, Supervisor of Plant Operations, Plant Superintendent, Electrical Engineer and Mechanical Engineer.

AFFILIATIONS

 AIME  National Society of Professional Engineers  Mining and Metallurgical Society of America  Arizona Society of Professional Engineers

MAJOR PROJECTS Administered Directly or Indirectly

MK Gold  Provided expert witness services on a grind autoclave leach, SX/EW process to recover copper from the Las Cruces deposit in Spain.

Newmont Mining Corp.  $290 million estimate check on 8500 tpd gold ore roasting plant.  Review of current capital project control procedures yielding advisories on organizational structuring and procedures to minimize risks of overruns.  In depth audit of a project which seriously overran and the determination of participant liabilities; i.e., owner, contractor, vendors, etc.  Review of contractual matters relating to a project in Uzbekistan.  Review of contractual matters with respect to a project in Indonesia.  A due diligence audit of the capital cost for a $1.55 billion copper-gold project in Indonesia.  The development of interdependent capital cost ratios of the various project elements on extractive metallurgical plants, from historical project cost data covering 30 years.  Assist legal team in recovery from insurers of previous expenditures made by Newmont to comply with state mandated regulations.  Oversaw the development of revised earthwork costs and schedules on above Indonesian project due to relocated facilities.  Overview of the development of Batu Hijau definitive capital cost estimate preparation.

Newcrest Mining Co. (Australia)  Assisted Newcrest in the feasibility engineering and cost development of a copper gold project in Australia, valued at $450 - 500AUD. MAG provided due diligence reviews of mine planning, metallurgical assessment, facilities planning, engineering and equipment evaluation and estimate validation.

Cyprus AMAX  Consolidation of several independent consultants’ reports into a summary feasibility report on the Cerro Verde project in Peru. This summary was prepared for the Peruvian partners of the project.  A forensic audit of an Alaskan gold project which very seriously overran. The assignment was to determine the internal and external reasons for the overrun and any possible liabilities.

P. J. Crescenzo 3 Cyprus-AMAX/Frieda River  Providing flowsheet development, mass balances, capital and operating cost estimates on conventional and hydrometallurgical processes for the treatment of copper concentrates to be processed in Papua New Guinea.

Goldfields Mining Co.  Economic evaluation of mining Goldfields portion of the pipeline deposit by open pit means.  Same as one above via underground mining. Economic analysis of milling the pipeline deposit vs. heap leaching same

Copper Range  Due diligence on in-situ leaching the pillars of White Pine Copper underground mine in upper Michigan and recovering the copper via SX/EW.

BBU Mezzanine Fund II  Provided advisory services for the completion of a gold heap leach project in northern Arizona.

Lowell Mineral Exploration  Completed a pre-feasibility analysis of the Santa Catalina Project in northern Chile. The study included flowsheet development, capital and operating cost development and economic analysis of a copper oxide heap leach/SX/EW plant and a conventional copper sulfide milling operation.

Southern Peru Copper Company (Peru)  Provided auditing and validation services for the development of an $850 million smelting facility in Ilo, Peru.  Provided monitory services in the development of a working target estimate for above.

Western Mining Company (Australia)  Provided post evaluation of their feasibility study for Olympic Dam

Apex Silver  Provided auditing, monitoring and technical services in the development of a feasibility study for a zinc-lead-silver mine in Bolivia

Wabush Mines - Labrador and Quebec, 6 mtpy Iron Ore Pelletizing Facility Adams Mine - Ontario, 1.1 mtpy Taconite Mine and Pellet Plant McKinley Mine - Mesabe Range in Northern Minnesota, 5.5 mtpy Iron Ore Plant Tsumeb Mine - SW Africa, Copper Smelting Furnace Copper Smelter Gas Handling and Acid Plant, U.S.A. Grand Duc Mine - B.C., Modifications thereto Similkameen Mine - B.C., Modifications Thereto Telfer Gold Mine - Western Australia Gold Quarry Gold Mine - Nevada, U.S.A. New Celebration Gold Mine - Western Australia Telfer Expansion - Western Australia New Celebration Expansion - Western Australia Iron Making Blast Furnace Slag Cement Plant - U.S.A. Lithium Producing Facilities - Chile Newmont Gold, Plant 3 - Nevada Newmont Gold, Plant 4 - Nevada Newmont Gold, Plant 5 - Nevada Newmont Gold - Nevada, South Area Leach Newmont Gold - Nevada, North Area Leach Newmont Gold - Nevada, South Area Crushing Newmont Gold - Nevada, North Area Crushing Magma Copper Company - Arizona, Copper Leach and SX/EW Magma Copper Company - Arizona, Expansion Magma Copper Company - Arizona, Flash Smelter Installation

FORENSIC INVESTIGATIONS

Newmont Mining Determined the cause and responsible parties for a gold roasting project severely overrunning the appropriate funds.

Independence Mining Co. An audit of their heap leach project cost near Cripple Creek, Colorado to determine the reasons for large overrun and, the associated owner and contractor liabilities.

Amax Gold Determined the causes why the Fort Knox project seriously overran its budget.

Allen Allen & Hemsley – Attorneys at Law, Sydney, Australia Participated in the investigation as to why the Mt. Todd Project failed and identified the liable parties and the extent of damages.

Farella Braun & Martel – Attorneys at Law, San Francisco, CA Participated in an investigation of why zinc recovery from subterranean solutions did not meet expectations and whether the contractor, Kvaerner, met their contract obligations.

Smith Pachter McWhorter & Allen – Attorneys at Law, Washington, D.C. Participated in an investigation to determine whey a copper heap leach project owned and operated by Equatorial Tonopah Inc. at Tonopah, NV failed after a short period of operation. Causes of the failure were discovered and duly reported.

DUE DILIGIENCE ACTIVITIES

Newmont Mining – Minera Yanacocha S.R.L. Provided services to complete a due diligence examination of the geology, resource and metallurgy for a gold heap leach project at Yanacocha in Peru.

Newmont Mining – Phoenix Project, Nevada Provided services for a due diligence review of a feasibility study produced by Amec covering the full range of elements from the resource to the economics of the project.

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