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W W W . R O M A R C O . C O M
MAY 2012
CORPORATE PRESENTATION
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The informa-on in this document has been prepared as of March 13, 2012. Certain statements contained in this document cons-tute “forward-‐looking statements” within the meaning of the United States Private Securi-es Li-ga-on Reform Act of 1995 and forward looking informa-on under the provisions of Canadian provincial securi-es laws. When used in this document, the words “an-cipate”, “expect”, “es-mate”, “forecast”, “will”, “planned”, and similar expressions are intended to iden-fy forward-‐looking statements or informa-on. Specifically, this presenta-on contains forward looking statements regarding the results and projec-ons contained in the March 13, 2012 technical report of the Haile Gold project, including the expected mine life, recovery, capital costs, cash opera-ng costs and other costs and an-cipated produc-on of the described open pit mine, the projected internal rate of return, the projected payback period, the availability of capital for development, sensi-vity to metal prices, ore grade, the reserve and resource es-mates on the project, the financial analysis, the -ming for comple-on of the revised feasibility study on the Haile Gold project, the -ming and amount of future produc-on, the -ming of construc-on of the proposed mine and process facili-es, capital and opera-ng expenditures, the -ming of the receipt of permits, rights and authoriza-ons, communica-ons with local stakeholders and community rela-ons, availability of financing and any and all other -ming, development, opera-onal, financial, economic, legal, regulatory and poli-cal factors that may influence future events or condi-ons and expected drilling ac-vi-es. In addi-on, this presenta-on also contains updated resource es-mates contained in the March 13, 2012 technical reports. Scien-fic and technical informa-on referred herein has been extracted from and are hereby qualified in their en-rety by reference to the aforemen-oned technical reports (“Technical Reports”). Joshua Snider, P.E., Thomas L. Drielick, P.E., Lee “Pat” Gochnour, M.M.S.A., John Marek, P.E. and Derek Wi\wer, P.E. are responsible for preparing the Technical Reports. Each of the above referenced persons is a “qualified person” as defined in Na-onal Instrument 43-‐101 — Standards of Disclosure for Mineral Projects. Such forward-‐looking statements are based on a number of material factors and assump-ons, including, but not limited in any manner, those disclosed in any another of Romarco’s public filings, and include the ul-mate determina-on of mineral reserves and resources, availability and final receipt of required approvals, licenses and permits, sufficient working capital to develop and operate the proposed mine, access to adequate services and supplies, economic condi-ons, commodity prices, foreign currency exchange rates, interest rates, access to capital and debt markets and associated cost of funds, availability of a qualified work force, lack of social opposi-on and legal challenges, and the ul-mate ability to mine, process and sell mineral products on economically favorable terms. While Romarco considers these assump-ons to be reasonable based on informa-on currently available to it, they may prove to be incorrect. Actual results may vary from such forward-‐looking informa-on for a variety of reasons, including but not limited to risks and uncertain-es disclosed in other Romarco filings at www.sedar.com. Forward-‐looking statements are based upon management’s beliefs, es-mate and opinions on the date the statements are made and, other than as required by law, Romarco does not intend, and undertakes no obliga-on to update any forward-‐looking informa-on to reflect, among other things, new informa-on or future events Cau-onary Note to United States Investors Concerning Es-mates of Measured, Indicated and Inferred Resources: Certain tables may use the terms “Measured”, “Indicated” and “Inferred” Resources. United States investors are advised that while such terms are recognized and required by Canadian regula-ons, however, the United States Securi-es and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, es-mates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cau-oned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cau-oned not to assume that all or any part of a Mineral Resource is economically or legally mineable. All figures are US$ unless otherwise indicated
Cautionary Statement
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2011 HIGHLIGHTS
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u Completed Feasibility Study
u Filed for all State & Federal permits
u Completed 179,000 meters drill program • Discovered 2 mineralized zones
- Mustang & Palomino u Ordered key long lead-time equipment
u Locked in pricing u Completed C$92mm bought-deal
financing
u Acquired 5 regional targets, initiated drilling at 3
u Permitted regional drilling projects in less than 30 days
u Permitted and built assay lab • $5 million state of the art lab
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Why own ROMARCO?
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Near term, low cost gold producer with strong project economics
Located in a mining friendly jurisdiction with excellent infrastructure
Private land – 100% ownership of surface, minerals, water
No royalties
Solid cash position (~ US$93 million), no debt
70% Institutionally held
Significant exploration upside – open pit and at depth
One federal permit – all others issued by the State of SC - pending
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§ First Gold rush before California § Carolinas led US Gold production until
1848 § Second US Mint in Charlotte, NC § Original 49ers came from East Coast § Significant gold production in 80s-90s § Mining part of local history/community § 500 active mines in South Carolina today
CAROLINA SLATE BELT
Tennessee
Kentucky West Virginia
North Carolina
Georgia
South Carolina
Buzzard
Elm
Hickory Ironwood
Bayberry
Locust
Russell Mine
Reed Mine Howie Mine
Brewer Mine
Ridgeway Mine Dorn Mine
Bante Mine Tathom Mine
Columbia Mine
Magruder Mine
Haile Mine
5
HAILE GOLD MINE MINING HISTORY
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• First discovery by Colonel Benjamin Haile
• Beginning with placer mining “panning” in 1827
• Mining continued with trenching, underground and open pit methods through the early 1990s
HAILE GOLD MINE HISTORY
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LOCAL COMMUNITY TOWN OF KERSHAW
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AERIAL OF HAILE
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Typical Palustrine Emergent Wetland
WETLANDS AT HAILE PROPERTY - wetlands
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Typical Palustrine Forested Wetland (inundated)
Non-Relatively Permanent Waters
(intermittent stream channel)
Duckwood (location of Tailings Facility)
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HAILE GOLD MINE PERMITTING
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ALL
BA
SELI
NE
STU
DIE
S R
EVEA
L No threatened or endangered species
No historical sites
No fish or protected wildlife
No impact on local water supplies
No impact on recreation areas
Property impacted by 200 years of mining
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PROVEN RECLAMATION TECHNIQUES
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• 404 Wetlands Permit only • USACE is sole deciding
regulatory body • All other agencies are
cooperating or commenting agencies only – EPA, US Fish and Wildlife, etc.
• Schedule pending
• 401 Water Quality Certification • Mining Permit • Operating Permit • Air Quality Permit • Others
Federal – USACE* State – DHEC**
* US Army Corps of Engineers���** South Carolina Department of Health and Environmental Control
HGM PERMITTING
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Record of Decision (ROD)
30 day minimum comment period
Final EIS includes comments, amendments if necessary
Prepare Final EIS and Response to Comments
45 day Review Period
DraD EIS filed
PreparaFon of DraD EIS
Scoping Comment Period Closed – Nov. 28, 2011
Public Scoping MeeFng – Oct. 27, 2011
30 day noFce period
NoFce of Intent Federal Register – Sept. 23, 2011
Contractor (3rd Party) SelecFon – Sept. 2, 2011 (announced Sept. 26, 2011) þ
þ
þ
þ
þ
ENVIRONMENTAL IMPACT STATEMENT PROCESS
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CURRENT STAGE
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• Strong balance sheet with approximately $93M in cash and no debt(1)
• Well defined project schedules and clear development milestones
Haile Milestones and Status Report
Milestone / Activity Status Complete feasibility study P
State operating permit submitted P
401/404 permit submitted P Resource / reserve report P Expand Haile & Horseshoe P Identify new targets P Acquire other properties P Explore regional targets P Update Resource P
Draft EIS 2012
(1) As disclosed in Q1 MD&A May 7, 2012
Project Schedule for EIS
2011 2012 2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Feasibility Study
Optimization
Permitting
Construction
Production
Exploration
CLEAR PLAN TO BRING HAILE INTO PRODUCTION
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People § Operating team in place
Construction § Engineering work >40% complete
Equipment § Caterpillar trucks – warehoused in SC § Mills, shovels, ancillary equipment ordered
Exploration § Continue studies on underground system § 85,000 meters of drilling in 2012
…… in the meantime…. Preparing for Production
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Proven gold mine development, finance, permitting and operations experience
Romarco has the team in place to bring Haile into production
Experienced Board of Directors Strong Management & Technical Team
Leendert Krol, acting Chairman § Former Newmont
Diane R. Garrett § Former Dayton Mining, US Global Investors
James R. Arnold § Former Freeport, Gold Fields – Richards Award Winner
Don MacDonald § CFO KGHM International (formerly QuadraFNX), former
NovaGold, DeBeers, Dayton Mining
John Marsden § Consultant, former Freeport – Richards Award Winner
Patrick Michaels § Portfolio Manager – Zuri-invest, Switzerland
Gary A. Sugar § Former RBC Capital Markets
Robert van Doorn § Former Mundoro, Rio Narcea, Morgan Stanley
Diane R. Garrett, Ph.D., President & CEO § Former Dayton Mining, US Global Investors
James R. Arnold, Sr. VP, COO § Former Freeport, Gold Fields – Richards Award Winner
Stan Rideout, Sr. VP, CFO § Former Phelps Dodge
David Thomas, VP, General Manager
James Berry, Chief Geologist & Regional Exploration Manager § Former Barrick
Brent Anderson, Mine Manager § Former Quadra, Freeport
Mike Gleason, Construction Manager § Former Freeport
Jim Wickens, Process Manager § Former Barrick
Johnny Pappas, Director of Environmental Affairs § Former Freeport
Ramona Schneider, Environmental Manager § Former Kinross
Dan Symons, Vice President, Investor Relations § Former Renmark Financial
STRONG BOARD, MANAGEMENT���& TECHNICAL TEAM
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0%
20%
40%
60%
80%
100%
Start 7/1/11 12/30/11 6/29/12 12/28/12 6/28/13 12/27/13
EP CompleFon Graph
Planned Fee at Risk Milestones Earned Hours Burned Hours
DETAILED ENGINEERING
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• 44% complete at March 31, 2012 • Targeting 75% complete by end of 2012
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• Equipment is being warehoused in South Carolina
• Pricing is locked in ($32mm)
HAILE EQUIPMENT
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Mills and shovels have been ordered with fixed pricing ($11mm) Equipment balance ($55mm) – purchase orders in process – price substantially negotiated
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2 0 1 1
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RESOURCE GROWTH At year end 2011
HORSESHOE
PALOMINO
MUSTANG
2010 GOLD MINERALIZATION
2011 GOLD MINERALIZATION GROWTH
HAILE LONG SECTION
PLAN VIEW
CHAMPION SMALL SOUTH PIT LEDBETTER SNAKE
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3.5 KM
CHAMPION SMALL SOUTH PIT LEDBETTER SNAKE
PLAN VIEW
HAILE LONG SECTION
2 0 1 1
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RESOURCE GROWTH At year end 2011
HORSESHOE
PALOMINO
MUSTANG
US$950 RESERVE PIT LIMITS
CHAMPION
SMALL
MUSTANG
LEDBETTER
HORSESHOE
SNAKE
PALOMINO SOUTH PIT
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CHAMPION SMALL SOUTH PIT LEDBETTER SNAKE
PLAN VIEW
HAILE LONG SECTION
2 0 1 1
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RESOURCE GROWTH At year end 2011
HORSESHOE
PALOMINO
MUSTANG
US$1200 RESOURCE SHELL
CHAMPION
SMALL
MUSTANG
LEDBETTER
HORSESHOE
SNAKE
PALOMINO SOUTH PIT
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US$950 RESERVE PIT LIMITS
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CHAMPION SMALL SOUTH PIT LEDBETTER SNAKE
HAILE LONG SECTION
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RESOURCE GROWTH At year end 2011
HORSESHOE
PALOMINO
US$1200 RESOURCE SHELL
CHAMPION
SMALL
MUSTANG
LEDBETTER
HORSESHOE
SNAKE
PALOMINO SOUTH PIT
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US$950 RESERVE PIT LIMITS
85,000 meters of drilling in 2012
2012 EXPLORATION TARGETS
DISCOVERY HOLE
MUSTANG
RC-1724 62.5m @9.6 g/t Au
RCT-129 70.1m @ 5.5 g/t Au
RC-1816 77.7m of 8.0 g/t Au
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RESOURCES & RESERVES
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OPEN PIT & UNDERGROUND MEASURED + INDICATED RESOURCES AT US$1,200 GOLD (1)
METRIC TONNES (000s)
g/t CONTAINED oz Au (000s)
MEASURED 36,894 1.79 2,125
INDICATED 34,277 1.74 1,914
MEASURED + INDICATED 71,171 1.77 4,039
INFERRED 20,125 1.24 801
RESERVES AT US$950 GOLD (1)
METRIC TONNES (000s)
g/t CONTAINED oz Au (000s)
PROVEN RESERVE 19,592 2.19 1,382
PROBABLE RESERVE 10,917 1.82 636
PROVEN & PROBABLE RESERVE
30,509 2.06 2,018
(1) From March 13, 2012 Technical Report filed on www.sedar.com on March 19, 2012
2011
2010
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FEBRUARY 2011 § Feasibility completed
$320 million (1) § One of lowest capital cost projects in industry
$379/oz (2)(3)
($347/oz first 5 years) § One of lowest operating cost projects in industry
2.06 g/t (2) § One of highest grade open-pit projects in industry
(1) Capital cost estimate from December 31, 2011 MD&A (includes $30 million for contingency and $17 million for inflation) (2) As per February 2011 Feasibility Study results included in March 13, 2012 Technical Report filed on March 19, 2012 on sedar.com (3) Includes silver byproduct credit
INTRODUCTION TO THE
HAILE GOLD MINE PROJECT
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LOW CAPITAL COST
25 Source: BMO Capital Markets, as at April 30, 2012 (1) Includes precious metals only calculated at long term consensus prices of Au US$1,200/oz and Ag of US$21.35/oz
Development Capex per ounce of Measured & Indicated Resources (inclusive) (US$/oz Au Eq.)(1)
$83 $81 $78
$70 $66
$63
Torex Rainy River Extorre International TowerHill
Guyana Goldfields Romarco Victoria Gold
Average: $85
$156
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Unfunded Development Capex(1) for Primary Open Pit Asset (US$mm)
LOW CAPITAL COST
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Financing Risk – Unfunded Development Capex as % of Current Market Capitalization
Source: BMO Capital Markets, as at April 30, 2012 (1) Development capex plus US$25mm per annum until production start, less current cash balance
$632
$582
$511
$434
$283 $256
517% 148% 76% 194% 440% 65% 42%
International TowerHill
Rainy River Torex Guyana Goldfields Victoria Gold Extorre Romarco
Average: $629
$632 $1,704
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Reserve Grade for Primary Open Pit Asset (g/t Au) (1)
3.17!
2.09! 2.06!
1.46!
1.03!0.78! 0.73!
0.00!
0.50!
1.00!
1.50!
2.00!
2.50!
3.00!
3.50!
Guyana Goldfields! NovaGold! ROMARCO! Gabriel Resources! Detour Gold! Victoria Gold! Andina!
(1) Source: Company Disclosure at March 31, 2012
HIGH GRADE FOR OPEN PIT
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(1) Source: Brook Hunt estimates (2) As per February 2011 Feasibility Study results included in March 13, 2012 Technical Report filed on March 19, 2012 on sedar.com
$617!
$379! $428!
$0!
$100!
$200!
$300!
$400!
$500!
$600!
$700!
LOWEST QUARTILE AVERAGE CASH COST IN Q4 2011 (1)
Industry Average (1) ROMARCO LOM Average (2)
Lowest Quartile (1)
LOW CASH COST
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Gold Price
Per oz. NPV @0% NPV @ 5% NPV @ 10% IRR %
PAYBACK YEARS
$1500 $1,426 $930 $621 47.0% 2.0
$1400 $1,259 $811 $534 42.3% 2.2
$1300 $1,092 $693 $447 37.6% 2.4
$1200 $925 $575 $359 32.7% 2.7
$1100 $758 $457 $272 27.6% 3.1
$1000 $591 $339 $185 22.3% 3.8
$950 $507 $279 $141 19.6% 4.2
$800 $257 $102 $10 10.7% 7.6
$700 $90 ($16) ($77) 4.0% 9.4
Pre-tax NPV and IRR Sensitivity to Gold Price (1)
($ Millions, except gold price)
(1) As per February 2011 Feasibility Study included in March 13, 2012 Technical Report filed on March 19, 2012 on sedar.com - based on capital costs of $275 million not updated capital cost of $320 million from December 31, 2011 MD&A
NPV & IRR SENSITIVITY TO GOLD PRICE
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BASE CASE
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HAILE GOLD MINE FEASIBILITY STUDY HIGHLIGHTS
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u Feasibility Study does not include deep mineralization: u Horseshoe, Mustang, Palomino and Snake
Deep deposits u Opportunities for reducing strip ratio by
removing saddles between pits u Opportunities to expand operation through
open pit & underground – system remains open along strike and at depth
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HAILE GOLD MINE FEASIBILITY STUDY HIGHLIGHTS
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u 7,000 tpd throughput u Designed for 14,000 tpd u Recovery: 83.7 % u Avg. annual Au production: 150k oz/yr initially u Strip Ratio: 7.2:1 (LOM)
CRUSH GRIND FLOTATION
REGRIND FLOTATION CONCENTRATE • 12 – 16% max pull • 13 – 15 micron
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PROPOSED HAILE PROCESSING PLANT
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Ore Processing, Process Water Recycling &
Water Treatment
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KERSHAW MINERAL LAB
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LAB OPERATIONS
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Haile
Ironwood Hickory
30 Miles North
CAROLINA SLATE BELT
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• 2 in North Carolina • Hickory – currently drilling • Historical production during 1800s • Historical drilling consists of 11 core holes and 130
RC holes • Completed 25 core hole phase one program
• HKDH-11-002 encountered 10.7m of 4.5 g/t • Currently drilling a 17 core hole follow-up
program
• Ironwood – currently drilling • The highest grade encountered in the trenching was
9.1 g/t • Twelve shallow RC holes and two core holes have
been historically drilled • Completed 11 core hole phase one program • Completed 7 core hole follow-up program
• Results pending
Tennessee
Kentucky West Virginia
North Carolina
Georgia
South Carolina
Haile Mine Buzzard
Elm
Hickory Ironwood
Bayberry
Locust
NEW REGIONAL EXPLORATION TARGETS
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• 3 in South Carolina • Bayberry – currently drilling
• Similar host rocks, alteration and mineralization as observed at Haile
• 74 shallow rotary holes, 8 RC holes, and 8 core holes historically drilled on the property
• Romarco completed 15-hole phase one program (RC and core)
• Currently drilling an 11-hole follow up program (RC and core)
• RC-2033 encountered 13.7m of 2.3 g/t, including 4.6m of 5.5 g/t
• Locust – drill ready • Small historical oxide resource (pre 43-101) • 34 RC and 27 core holes have been drilled on the
property • Historical reported, highlighted intercepts include:
• 71.5 meters of 2.9 g/t • 5.1 meters of 1.5 g/t • 74.6 meters of 1.5 g/t • 65.0 meters of 1.9 g/t
• Elm – drill ready • Soil and rock chip sampling completed • Rock chip sampling has yielded 8.6 g/t
Tennessee
Kentucky West Virginia
North Carolina
Georgia
South Carolina
Haile Mine Buzzard
Elm
Hickory Ironwood
Bayberry
Locust
NEW REGIONAL EXPLORATION TARGETS
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BlackRock
Sun Valley Gold
Franklin Templeton Investments
Van Eck
Oppenheimer Funds
Norges Bank
Tocqueville
Colonial First State
US Global Investors
Fidelity Investments
Baker Steel Capital Managers
Ruffer
TD
URAM
Investec
70% Institutional Ownership
38
TOP
15 S
HA
REH
OLD
ERS
OF OUR SHARES ARE INSTITUTIONALLY
OWNED
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TARGET PRICE Paradigm $2.75
GMP $2.50
NBF $2.10
BMO $2.00
RBC $1.25
ANALYST COVERAGE
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Exchange/ Symbol TSX:R
Share Price(1) C$1.01
Shares Outstanding (Basic) 584.3M
FD Shares Outstanding (TSM)(2) 589.2M
Market Capitalization(1) C$590M
52 Week High / Low(1) C$2.15 / C$0.79
Cash Balance (May 7, 2012) US$93M
(1) As at close on April 30, 2012 (2) Includes 4.9M “in-the-money” options at an average strike price of C$0.52 as of April 30, 2012
Capitalization Summary
CAPITAL STRUCTURE
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SUMMARY
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Emerging gold producer
Significant exploration remains – open pit & underground
Optimize the underground potential
Completing engineering
$93M cash – no debt
70% Institutionally held
Permits pending – targeted by year end 2012
Extremely undervalued in today’s Market vs. Peers
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Brookfield Place 181 Bay Street, Suite 3630 Toronto, Ontario M5J 2T3 Tel: 416.367.5500 Fax: 416.367.5505 Email: [email protected]
Dan Symons Vice President, Investor Relations [email protected]
CONTACT INFORMATION