Nilefos Minerals Limited:  Phase I:  Internal rate of return calculation
SSP	-1	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
Mine production and cost
ore ktpa		350	350	350	350	350	350	350	350	350	350	350	350	350	350	350
cost of ore US$/mt		1.71	1.71	1.71	1.71	1.71	1.71	1.71	1.71	1.71	1.71	1.71	1.71	1.71	1.71	1.71
cost of ore US$ (000s)		600	600	600	600	600	600	600	600	600	600	600	600	600	600	600
ore beneficiation and cost
plant throughput ktpa		350	350	350	350	350	350	350	350	350	350	350	350	350	350	350
cost of operation US$/mt		57.31	57.31	57.31	57.31	57.31	57.31	57.31	57.31	57.31	57.31	57.31	57.31	57.31	57.31	57.31
cost of concentrate US$ (000s)		20,057	20,057	20,057	20,057	20,057	20,057	20,057	20,057	20,057	20,057	20,057	20,057	20,057	20,057	20,057
SSP production and cost
production ktpa		1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000
cost US$/mt		199.03	199.03	199.03	199.03	199.03	199.03	199.03	199.03	199.03	199.03	199.03	199.03	199.03	199.03	199.03
cost of SSP US$ (000s)		199,025	199,025	199,025	199,025	199,025	199,025	199,025	199,025	199,025	199,025	199,025	199,025	199,025	199,025	199,025
TSP production and cost
production ktpa		1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000
cost US$/mt		718.55	718.55	718.55	718.55	718.55	718.55	718.55	718.55	718.55	718.55	718.55	718.55	718.55	718.55	718.55
cost of TSP US$ (000s)		718,553	718,553	718,553	718,553	718,553	718,553	718,553	718,553	718,553	718,553	718,553	718,553	718,553	718,553	718,553
G&A cost		10,338	10,338	10,338	10,338	10,338	10,338	10,338	10,338	10,338	10,338	10,338	10,338	10,338	10,338	10,338
Total direct operating costs		-       948,574	-       948,574	-       948,574	-       948,574	-       948,574	-       948,574	-       948,574	-       948,574	-       948,574	-       948,574	-       948,574	-       948,574	-       948,574	-       948,574	-       948,574
capital cost	-142,405
selling price SSP US$/mt		300	300	300	300	300	300	300	300	300	300	300	300	300	300	300
selling price TSP US$/mt		700	700	700	700	700	700	700	700	700	700	700	700	700	700	700
total sales US$ (000s)		1,000,000	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000
cash flow US$(000s)	-142,405	51,426	51,426	51,426	51,426	51,426	51,426	51,426	51,426	51,426	51,426	51,426	51,426	51,426	51,426	51,426
IRR%	36%