XPLORATION SERVICES GREENLAND A/S

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2 AGENDA The Management of XS [3 slides] Grenland in brief [4 slides] Fundamental license terms & The Minerals Act [2 slides] XS Services in brief [5 slides] Bringing people into Greenland [3 slides] Partnering with XS [2 slides]

3 XPLORATION SERVICES GREENLAND A/S Martin Sandy Shalmi (1968), CEO, M.Sc. Economy & Politics (1991) +25 years background in administration, accounting and business development in Greenland. Initiator and co-owner of a range of frontier service companies e.g. Frederikshåb Betoncentral ApS (construction, excavation, oil distribution) Greenland Petroleum Services A/S Xploration Services Greenland A/S Deputy Chairman of Greenland Business Association, board member since 2002-> Chairman Sermersooq Business Council, CFO of NunaMinerals Implemented IFRS & IAS 34, 2009/2010 IPO (112 mdkk) and listing at Nasdaq OMX Copenhagen, June 2008 Negotiated JV with Rio Tinto (2007), Implats (2008) and Nuuk Fjord Goldmines (2009) Board member Nalunaq Gold Mine A/S, 2007

4 XPLORATION SERVICES GREENLAND A/S Anders Lie (1965), Partner/Consultant/Chairman, M.Sc. Geology, University of Århus (1994). +25 years of hands-on mineral exploration and logistics from arctic Greenland incl. designing, executing and supervising large camp complexes Claus Østergaard (1973), Partner/Consultant, M.Sc. Geology, University of Copenhagen (1997). +20 years of experience in the mineral industry including grass-root prospecting, exploration logistics in arctic settings, diamond drilling and 3D modelling Nungo Pedersen (1972), Partner/Logistical officer, Marketing & Service, Vejle Business School (1999). +20 years of experience with logistics in Greenland. In charge of Staffing, Incoming, Ground Logistics, Customs clearing, Support office and Customer relations

5 XS offers turn-key solutions Administration * Planning * Logistics * Camps * Geology Turn-key Solutions Administration Staffing Planning HSE/ERP Drilling Logistics Camp Rental Site Management Geological Support

6 GREENLAND IN BRIEF 1/4 Legal framework of Greenland Constitution of The Kingdom of Denmark [5 June 1953] Home Rule Act [1 May 1979] Self-governance Act [21 June 2009] Minerals Act [7 December 2009] Trade Act [27 March 2006] Law on large scale Projects [29 November 2013] Various Tax Laws

7 GREENLAND IN BRIEF 2/4 Area: 2,166,086 km 2 Ice free area: 410,449 km 2 Population: 55,994 January 2015 Urbanisation: Parliament: Cabinet: Municipalities: Corporate tax rate: 17 towns and 54 settlements 31 persons elected for 4 years 9 ministers Kujalleq, Sermersooq, Qeqqata, Qaasuitsuup 31.8% (30% license holders) Personal income tax: 42-44% (above DKK 48,000) Gross personal tax: 35%

8 GREENLAND IN BRIEF 3/4 No one can own land in Greenland Industrial areas, Apartments and Houses in Towns are scarce Workforce 30,000 mostly non-skilled workers Very few companies with international experiences Very poor language skills apart from Greenlandic/Danish Copenhagen, Keflavik & [Iqaluit] are hubs to Greenland Monopoly on sea transport of goods to Greenland

9 GREENLAND IN BRIEF 4/4 No restrictions on Foreign Ownership Low Level of Corruption Favourable License Terms Stable Political System No Aboriginal issues Relatively Simple Tax Regime No VAT

10 FUNDAMENTAL LICENSE TERMS Prospecting license gives non-exclusive rights to prospect for minerals except hydrocarbons and radioactive elements Exploration license gives exclusive rights to explore an area except for hydrocarbons and radioactive elements Progressive increasing work commitments [$] If you only sit on the license and do not explore, it can be revoked Possible to get an special exploration license for radioactive elements Exploitation license is granted for 30 years with extension possible for another 20 years Royalties applies, but is off set in reduced corporate tax

11 THE MINERALS ACT 18 Licensee must to the greatest extent possible use Greenland enterprises for contracts, supplies and services Licensee must to the greatest extent possible use labour from Greenland Licensee must conduct surveys and prepare and implement plans to ensure that exploration or exploitation of mineral resources is socially sustainable Licensee must document this

12 XS offers turn-key solutions Administration (Pay roll, Taxes, Book keeping, Visa & Work permits, Management, Liaison) Exploration planning (Budgeting, Permitting, Procurement, Tendering) Logistics (Freight, Forwarding, Customs Clearing, Incoming, Support office) Camp rental (Turn-key camp setup with all infrastructure) Camp management (Staffing, Catering, Cleaning, Site Management, Medical, Emergency Response Planning) Geological services (Prospecting, Core logging, Drilling supervision) Diamond core drilling (BQ, NQ & HQ)

13 Camp for 18 people (Disko Island, 2013)

14 Camp for 30 people (Puiatoq, 2014)

15 Camp for 40 people (Puiatoq, 2015)

16 Selected Customers and Services North American Nickel Inc. London Mining Greenland A/S Coastal Ventures A/S 21st North ApS Moxie Pictures Cougar Helicopters Inc. Others Setting up branch office X X X X Advisory services & Liaison X X X X X X X Pay roll, Taxes & Book keeping X X X X X X Visa & Work permits X X X X Translations (GL-UK-DK) X X X X X Exploration Planning & Management X X X X X X Budgeting X X X X X X Tendering X X X Procurement X X X X X X Permitting X X X X X X Support office on call 24/7 X X X X X X X Logistics, Freight, Forwarding & Customs clearing X X X X X X Incoming, Transfer service & Accommodation X X X X X X Procurement X X X X X X Warehousing / Lay down X X X X X X Camp solutions X X X X X X Staffing X X X X X X Catering & House keeping X X X X X X Site Management X X X X X X Medical / HSE / ERP X X X X X X Geological support X X X X X Core logging X X Geophysics X Remote sensing X Drilling supervision X X

17 WHO CAN WORK IN GREENLAND 1/2 Greenlanders have a preferential for all positions that requires skilled or non skilled workers and for all positions on Sea. But who is a Greenlander? Someone born in Greenland and who has lived there the first 5 years of his/her life People who have worked in Greenland for 7 out of the last 10 years have equivalent rights So does people married to people fulfilling these requirements

18 WHO CAN WORK IN GREENLAND 2/2 Nordic citizens does not need a Work & Stay permit all others do For activities in accordance with the minerals act you can bring in labour for a period of 3 months Applications for a Work & Stay permit must be filed by the Greenlandic company and the worker in Danish Furthermore VISA may be needed Primarily for non-eu citizens

19 BEWARE Labour market laws in Greenland are preceptive so you must comply weather you like it or not. The Holiday act : 12% of all pay The Pregnancy/Maternity act Workers Compensation Industrial Illness Insurance

20 WHY PARTNER WITH XS Experienced and Competent Management group Proven Track Record Strong network all over Greenland Xploration Services Greenland A/S Is your natural Choice as your Business Partner in Greenland

21 In Greenland nothing is possible Although In Greenland everything is possible How can we help you

22 How can we help you Martin Sandy Shalmi, CEO