Gold, Diamonds and Rare Earths
ASX: CVI NASD OTCBB: CTVWF FSE: C4Z
ASX / MEDIA RELEASE June 18, 2008
UPDATE TO SHAREHOLDERS
CityView is pleased to present its June Update to Shareholders on the recent progress of the Company.
In addition to the annexed Shareholder Update, a comprehensive analysis of CityView’s present underlying value has been carried out by the Caplin analyst team (“the Caplin Report”).
Price Waterhouse Coopers have reviewed the Caplin Report and their review has been posted today on the Company’s website www.cityviewcorp.com.
Mark Smyth
Chief Executive Officer For personal use only use personal For
Level 9, 28 The Esplanade, Perth, Western Australia, 6000 PO Box 5643 St George’s Terrace, Perth, Western Australia, 6831 Telephone: (61-8) 9226 4788 Facsimile: (61-8) 9226 4799 Email: [email protected] Web: www.cityviewcorp.com ABN: 59 009 235 634 ACN: 009 235 634
Shareholder Update June, 2008
Website: www.cityviewcorp.com Email: [email protected]
ASX: CVI NASD: CTVWF FSE: C4Z
This presentation may contain references to assumptions, representations, estimates, budgets and forecast outcomes that are uncertain by the nature
For personal use only use personal For of the business and no assurance can be given by CityView Corporation Ltd. that its expectations, estimates, budgets and forecast outcomes will be achieved. Actual results may vary materially from those expressed herein.
1 Capital Structure
Shares on Issue (ASX : CVI) (OTCBB : CTVWF) (FSE : C4Z)
Total: 438,033,895
Options on issue: 96,550,403 (15c / Nov 2009)
May Share Placement: Aus $16.65m Facility Available: US $100.00m For personal use only use personal For Funding Programme: US $1.1 billion
2 Share Trading Volumes
July 2007: 86,543,834 August 2007: 350,419,066 September 2007: 138,239,682 October 2007: 243,682,785 November 2007: 223,785,163 December 2007: 122,091,785 January 2008: 105,575,453 February 2008: 102,308,787 March 2008: 141,420,900 April 2008: 64,361,369
For personal use only use personal For May 2008: 168,532,450
3 Commodity Basket
Through its excellent connections in West Africa and experienced management, CityView has accumulated a valuable commodity portfolio of oil, copper, gold, diamonds and rare earths.
CityView's strategy is to secure Government endorsed legal title to key resources in Africa and upgrade them to bankable feasibility/ production
for the minimum dilution of CityView's share capital For personal use only use personal For
4 Why Commodity Basket is increasing in value
Oil: Consumption of oil today is 32 billion barrels per annum but oil industry is only finding 5-7 billion barrels a year.
Gold: Current gold production is approx. 78 million ounces per annum but new gold discoveries are around 20 million ounces a year.
Copper: The BRIC economies Brazil, Russia, India and China are in a metals- intensive stage of rapid development, particularly the urbanisation of China.
Diamonds: Rough diamonds are in increasingly short supply, but demand in China is rising steadily. After 2011 the supply side declines For personal use only use personal For sharply as 3 major mines (Ekati in Canada, Udachinaya in Russia and Venetia in South Africa) start to fade.
5 Management Chairman: Angolan to be appointed
CEO: Mark Smyth
Company Secretary: Paul Williams
Non Exec Directors: Robbie Brothers Paul de Chazal Ian Egan Nik Hoexter
Advisory Board: Conrad Maher Bart de Boer
For personal use only use personal For David Boote Kevin Sylvester Leith Wale
6 Management Experience
Mark Smyth: Selection Trust, Australia Paul Williams: General Gold Resources, Australia, Mauritania Robbie Brothers: Wheelock Marden, Hong Kong Paul de Chazal: Simmons & Simmons, London Nik Hoexter: Selection Trust/BP, British Gas, London Ian Egan: BHP Australia Conrad Maher: Occidental Petroleum, USA Bart de Boer: Occidental Petroleum, USA David Boote: Occidental Petroleum, USA
Kevin Sylvester: Phillips Petroleum, USA For personal use only use personal For Leith Wale: Nopco, Germany
7 The story so far - 2006
March: Mark Smyth accepts position of CEO of CityView, a technically insolvent company listed on ASX.
May: CityView's pays off all debts and changes focus from Indonesia to Angola.
July: CityView acquires 30% working interest in the Longonjo metals & Ucua beryllium projects in Angola.
November: For personal use only use personal For CityView links up with Angolan partners to negotiate for oil contracts in Angola.
8 The story so far - 2007
September: CityView confirms extensive mineralisation at its Catabola prospect in the Longonjo licence.
October: CityView acquires right to purchase 100% of Petro Energy Africa Ltd.
November: CityView increases its working interest in Longonjo and Ucua to 79% (55.3% net equity).
December: For personal use only use personal For CityView acquires interest in Fortitude Minerals Limited, the holder of seven concession areas in Angola.
9 The story so far - 2008 February: Four Angolan offshore oil interests offered to CityView CityView acquires option over oil refinery for West Africa. March: CityView agrees to fast-track production at Luachisse and Nhefo alluvial diamond concession. CityView transfers its Longonjo and Ucua interests to Fortitude Minerals Limited and becomes its major shareholder May: CityView negotiates US$1.1 billion finance plan with
Pensador Resources Inc. For personal use only use personal For
10 Why Angola? After 26 years war Angola has become a good place in which to do business
Angola's sovereign risk rating has risen to 3 tier range
"Angola is low hanging fruit": Jim Rogers fund manager.
Angola has overtaken Nigeria as the second largest oil producer: current oil production almost two million barrels of oil per day.
Angola has proven oil reserves of 9 billion barrels, with potential for further large discoveries.
For personal use only use personal For Angola has favorable tax breaks and working conditions.
Population approx. 12.5 million.
11 Projects & Prospects
1. Zenza/Dondo copper licence – 747 sq km 2. Cachoeiras copper licence – 3615 sq km 3. Benguela copper licence – 3943 sq km 4. Benguela SW copper licence – 355 sq km 5. Bentiabe copper licence – 183 sq km 6. Ucua gold/beryllium licence – 1369 sq km 7. Chipindo gold licence – 1433 sq km 8. Longonjo copper/gold rare earths licence – 3750 sq km 9. Longonjo diamond licence – 3000 sq km 10. Luachisse diamond concession – 2700 sq km
For personal use only use personal For 11. Nhefo diamond concession – 3280 sq km 12. Offshore oil concessions – 15841 sq km
12 Pensador Resources Inc.
Pensador is in the final stages of securing underwriting of approx US$1.1 billion to fund the work programme.
The major shareholders of Pensador (most of whom are Angolan) have agreed to exchange their Pensador shares for CityView shares when called upon by CityView (“the claw-back”).
Upon exercise of the “claw-back” option over Pensador Shares and the merger of Pensador with CityView, CityView will be the surviving holding company.
With the Angolans becoming the major shareholders of
For personal use only use personal For CityView, they will have a vested interest in ensuring CityView’s success.
13 Work Program: USD$1.1 billion The funds available through the Pensador funding will be allocated towards the development of the following projects:-
a To bring Cachoeiras copper project to a JORC compliance resource and then into commercial production. Also to continue exploration on the other four copper concessions held by Fortitude Minerals Limited (“Fortitude”) in Angola;
b To bring the Luachisse and Nhefo alluvial diamond concessions into production;
c To construct and commission in West Africa a 100,000 barrels of oil per day refinery, with a guaranteed oil supply
For personal use only use personal For and off-take for its refined products;
d To participate in the development of four Offshore Oil Permits in Angola;
14 Work Program: USD$1.1 billion (cont)
e To establish an Angolan energy fund for the development of onshore oil and gas deposits in Angola.
f To develop a JORC compliant resource at the Longonjo copper/gold rare earths project;
g To develop a JORC compliant resource at the Chipindo gold project;
h To continue exploration at the Ucua pegmatite project;
i To conduct initial exploration and development work on the Luachisse and Nhefo diamondiferous kimberlites and the
Longonjo diamond area; For personal use only use personal For
j To invest in other opportunities in Angola including iron ore.
15 Angola Metals
CityView's metals portfolio are held through Fortitude Minerals Limited which controls nine concession areas totaling more than 18,000 square kilometres of prime mineralised areas in Angola.
CityView owns approx. 40.5% of Fortitude. Fortitude's Board comprises Ian Egan (CityView), Nik Hoexter (CityView) and Chris Page. The remainder of the shares in Fortitude will be
Acquired by Pensador. For personal use only use personal For
16 Fortitude - Project Licences
License Percentage Area Copper: Cachoeiras de Binga 80% 3,615 sq km Zenza Dondo 70% 747 sq km Benguela 70% 3,943 sq km Benguela South West 80% 355 sq km Bentiabe 80% 183 sq km
Gold: Chipindo 60% 1,433 sq km Carbonatite: Longonjo Minerals 70% 3,760 sq km Diamonds: Longonjo Diamonds 38% 3,000 sq km Pegmatite: Ucua 70% 1,369 sq km ______
For personal use only use personal For 18,405 sq km
17 Fortitude - Metals Portfolio
Five copper licences running for several hundred kilometres along the western seaboard of Angola and encompass the greater part of the Upper Cuvo formation, where Copper mineralisation has been reported along its entire length. It has the potential to be a new copper province.
Included amongst the copper licences is Cachoeiras de Binga on which over 6,000 metres of core has been drilled.
Fortitude's immediate objective is to bring this
resource to a bankable feasibility so that production For personal use only use personal For can commence.
18 Fortitude - Metals Portfolio (cont)
Chipindo Gold licence area with high gold grades reported in artisinal workings. Its geology is similar to the Minas Gerais gold area of Brazil and to the Kalgoorlie region of Western Australia.
Longonjo copper-gold-rare earths licence area containing Catabola and Longonjo Carbonatite.
At Catabola copper and iron oxide mineralisation has been identified over a 1.6 kilometre strike. A major drilling programme is now in progress.
At Longonjo Carbonatite niobium, tantalum and uranium minerals
have been identified. For personal use only use personal For Longonjo diamond licence ultimately to be transferred to CityView's diamond portfolio.
19 For personal use only use personal For
20 Diamond Concessions
CityView has converted its rights into a 10% NPI of Canzar’s percentage share of Luachisse and Nhefo alluvial diamond concessions.
Production on these concessions is planned to begin in 2009 with a 200 tonnes per hour production plant installed on each concession area.
Canzar’s Percentage Area
Luachisse 41% 2700 km²
Nhefo 42% 3280 km² For personal use only use personal For Pensador is taking over Canzar, so that the full percentage owned by Canzar will be owned ultimately by CityView.
21 Angola Oil - Onshore / Offshore
EXISTING OFFSHORE OIL PERMITS
CityView/Pensador have been offered participation in four offshore blocks by Falcon Oil (6/06, 15/06, 17/06 & 18/06). Negotiations are in progress on the level of participation
ONSHORE OIL PERMITS
The majority of onshore Kwanza Basin blocks have been reserved for Angolan companies. CityView is assisting in the establishment of an Angolan Energy Fund for the
development of these onshore oil and gas deposits. For personal use only use personal For
22 Refinery
CityView/Pensador have acquired an option to purchase an Oil Refinery with a potential capacity of 100,000 bpd.
West and Southern Africa do not have enough refinery capacity. This situation is forecast to continue. The Ivory Coast refinery is export oriented but with limited capacity. The four Nigerian refineries run at less than 50% of installed capacity. Much of the fuel consumed in West Africa has to be imported from Europe. Consequently
refined products are in short supply and very expensive. For personal use only use personal For
23 Summary
Emerging from decades of war, Angola is finally open for business. It is currently the fastest growing economy in Africa.
Whilst recognised for its oil and diamonds wealth, it is also minerals rich, with many areas yet to see any form of modern exploration.
CityView has excellent connections there and a strong and experienced management with a good mix of technical and financial skills
Joint ventures with powerful African groups.
For personal use only use personal For High grade projects in oil, copper, gold, diamonds and rare earths.
24 Summary - Metals Metals: (Licence areas - more than 18,000 square km)
Cachoeiras (Cu)
Zenza (cu)
Benguela SW (Cu)
Bentiabe (Cu)
Ucua (Au, Be)
Chipindo (Au)
Longonjo minerals (Cu, Au, U, Diamonds) For personal use only use personal For
25 Summary - Diamonds
Longonjo Diamonds
Luachisse alluvial diamond concession
Nhefo alluvial diamond concession
Luachisse and Nhefo kimberlite concessions For personal use only use personal For
26 Summary - Oil & Gas
Offshore Angola - Four permits under offer
Onshore permits in Angola Energy Fund
Refinery under option For personal use only use personal For
27 Cameroon
CityView has acquired the right to purchase 100% of Petro Energy Africa Ltd (“Petro”)
Negotiations for concession rights in Cameroon to be awarded to
Petro have commenced. For personal use only use personal For
28
Luanda Port, Angola For personal use only use personal For
29 For personal use only use personal For
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