Investor Presentation

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1 TSX Venture: RVI OTCBB: RVINF Investor Presentation European Road Trip January-February 2007 John Bristow James Allan 1

2 Disclaimer This presentation includes certain statements and other information that may be deemed "forward-looking". Other than statements of historical fact all statements in this presentation that address future production, reserve or resource potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forwardlooking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Rockwell, Investors should review Rockwell s annual Form 20-F filing with the United States Securities and Exchange Commission and the Company's home jurisdiction filings that are available at 2

3 RVI unique diamond opportunity Established alluvial diamond miner Three existing mining operations in Kimberley district of South Africa Producer of world s highest value gemstones (~US$1500 to $2000 per carat) Exceptional geological and operational skill set Acquisition opportunities capable of doubling production in short term 3

4 Management Expertise John Bristow, PhD geologist, ex De Beers, 25 years in alluvial diamond mining and kimberlite development. Hennie Van Wyk 15 years experience in start-up, development and operation of the alluvial diamond projects. Jeremy Crozier, MBA geologist, ex De Beers, African operational experience in kimberlites and alluvial diamonds. Jeffrey Brenner rough diamond expert, international trader and manufacturer. Dave Copeland, P. Eng principal of HDI and a geological engineer James Allan, BSc Eng, MBA- extensive diamond industry experience 4

5 Demand-Supply Projections Demand-Supply Projections (with current resources) Rough demand / supply (US$m) 18,000 14,000 10,000 6,000 Rough Demand Rough Supply BHPB Projections : 3.6% Demand 0.8% Supply 5

6 Diamond Price Appreciation Diamond Index (1948=100) Gold Index (1948=100) Diamond Index Forecast Index Year Source: De Beers 6

7 First Acquisition Completed RVI 100% DPI Holding Company 51% 51% 100% H C van Wyk Diamonds ( HCVWD, Holpan and Wouterspan operations, SA) Klipdam Diamond Mining (Klipdam operations, SA) Galputs (SA diamond bearing deposits - trial mining) Staged acquisition to 74% ownership with 26% BEE partner Staged acquisition to 74% ownership with 26% BEE partner 80%* Midamines Concession (Cuango River, DRC Feasibility) * A net profit interest subject to exploration program and feasibility study 7

8 Alluvial Diamond Deposits Southern Africa N Botswana Limpopo Limpopo River Zimbabwe Holpan-Klipdam Pretoria Swaziland Wouterspan Namibia Molopo River Johannesburg Ventersdorp Vaal River Galputs Lower Orange Springbok Orange River Koa Valley Prieska Douglas Middle Orange Bloemhof Vaal River Kimberley Bloemfontein Riet River Orange RSA Lesotho River Kilometres 8

9 Size : Frequency Distribution - Middle Orange River Diamond Distribution of Saxendrift Percent carats larger than Z 0.01 Mining & exploration 1 Statistically inadequate to be used in the plot Carats per stone 9

10 Recent Production From Operations 156 carats Flawless D US$5.7M (US$37,000/carat) 152 carats Flawless D US$4.3M (US$28,000/carat) 132 carats Intense Yellow US$1.6M (US$12,200/carat) 39 carats Flawless D US$858,000 (US$22,000/carat) 10

11 Recent Production From Operations 90% of stones are above 1 carat >30% of stones are above 10 carats Approximately 3% of stones are above 100 carats The area is known for recovery of large, exceptional quality stones average price >US$1500 per carat. Prices firming in ( 11

12 2carats + ; ~ 45% world diamond production by value 12 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% 35% 30% 25% 20% 15% 10% 5% 0% Production by value +2cts Production by volume: 8.4m cts 34.8m cts 18.0m cts 14.4m cts +2cts m cts

13 Site Operations Conventional earthmoving operation Processing via 200tph Bateman DMS plant Final recovery via hands-off X-ray flow sort 13

14 Security Key Focus Emphasis on hands-off recovery systems Regular review of procedures Ownership 14

15 Project Summary: Established Profitable Operations Holpan & Klipdam Wouterspan Diamondiferous gravel (million tonnes)* Grade (carats per hundred tonnes) Average diamond value (US$ per carat) Revenue per tonne (US$ per tonne) Costs (US$ per tonne) EBITDA Margin 52% 47% * R.H. De Decker, Pr.Sci.Nat., is the Qualified Person responsible for the resource estimate. 15

16 Black Economic Empowerment Paying their way African Vanguard Resources ( AVR ) may acquire up to 26% of H C van Wyk Diamonds Broad based BEE vehicle with existing interests in mining (Harmony and Aflease) Good knowledge of diamonds with additional projects identified Principals Sandile Zungu (BSc Eng, MBA) Darryll Castle (BSc Eng, MBA) 16

17 Growth Strategy 2 part 1: Organic growth: Optimize/expand existing Holpan-Klipdam & Wouterspan operations ~20% leverage ability in short term with existing plant & equipment (ie to 2400 carats per month) Evaluate/develop other properties already held in South Africa Develop DRC enterprise ~30km of 60km-long concession 17

18 Growth Strategy 2 part 2: Acquisitive growth: Pursuing two established diamond operations with significant resources (+90M tonnes) in RSA Other private & listed diamond companies in RSA (via cash or paper ) Double production (2000 to 4000 carats per month) in medium term (12 months) Earmarked several established ventures in other southern African countries 18

19 Growth Opportunities Holpan/Klipdam N Holpan-Klipdam RSA Botswana Potential Acquisition Limpopo River RSA Pretoria Holpan+Klipdam 60km-long Opportunity 19 Molopo River Potential Acquisition Prieska Wouterspan Douglas Middle Orange Johannesburg Ventersdorp Orange River Bloemhof Vaal River Kimberley Bloemfontein Riet River Orange River Lesotho Kilometres Wakefords

20 Growth Opportunities-Middle Orange River 152 carats $ Douglas Wouterspan $ $ x x x x $ x $ x $ North-bank Terraces Prieska 10 kms X South-bank Terraces (Trans Hex Group) 20

21 Democratic Republic of Congo Midamines Concession Known kimberlites 21

22 Project Summary: DRC Exploration Extensive Midamines concession (66km north-south) along Cuango River Current small scale production Downstream of rich Angolan alluvial deposits and diamondiferous kimberlites Interpolated grades ~ 5 to 6 carats per tonne Diamond value US$110/ct 120/ct September 2005 Production: ~$120/c) 22

23 DRC Cuango River Site 23

24 DRC: Cuango River Project Future: Delineation of channels through geophysics and prospecting Large scale earth moving as per ITM & SDM operations upstream on Cuango River in Angola 24

25 Key Investment Highlights Proven operations - scaleable capacity, long-life resources, excellent operational skills Operating margins approximately 50% Predominantly +2 carats large gemstones of exceptional quality Current production 2000 carats (US$3M) per month Equivalent to 300,000 carats per annum of kimberlite production Leverage opportunity (~20%) in existing operations 25

26 Key Opportunities Acquisitions with history of production, delineated resources and high value diamonds (RSA) MOR area: ~90M tonnes with established infrastructure and similar deposits to Wouterspan NW Province: established mining operation with significant resources Double production in short term from 2000 to 4000 carats per month Increase economies of scale, optimize overheads, reduce unit costs 26

27 Capital Structure Listed TSXV RVI OTCBB RVINF Shares Issued Fully Diluted Shares 68.3 million 121 million Principals Control 20% Working Capital Cash From Dilutables C$10 million C$25-42 million 27

28 RVI Strategy PRODUCER CONSOLIDATOR VALUE ADDER Strategic Beneficiation & Marketing Evaluation (Exploration) 28