CSI Investor Presentation

59
Serra Pelada Building Brazil’s Next Gold Mine

Transcript of CSI Investor Presentation

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Serra Pelada Building Brazil’s Next Gold Mine

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Forward Looking Statements

Forward-looking statements in this presentation include statements regarding the timing and nature of future exploration and development programs that are dependent on projections that may change as drilling continues, or if unexpected ground conditions are encountered. The Company does not currently have any mineral properties that are in production or that contain a reserve as defined by National Instrument 43-101. In addition, areas of exploration potential are identified which will require additional drilling to determine whether or not they contain similar mineralization to areas that have been explored in more detail. Significant additional drilling is required at Serra Pelada to fully understand system size. Certain information contained in this presentation, including any information relating to Colossus Minerals Inc.’s (“Colossus” or the “Company”) future financial or operating performance may be deemed “forward-looking”. All statements in this presentation, other than statements of historical fact, that address events or developments that Colossus expects to occur, are “forward- looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “does not expect”, “plans”, “anticipates”, “does not anticipate”, “believes”, “intends”, “estimates”, “projects”, “potential”, “scheduled”, “forecast”, “budget” and similar expressions or their negative connotations, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond the Company’s ability to control or predict. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause Colossus’ actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: price levels and volatility in the spot and forward markets for commodities; the uncertainties inherent to current and future legal challenges Colossus is or may become a party to; controls, regulations and political or economic developments in the countries in which the Company does or may carry on business; changes in national and local government legislation in Canada, Brazil or any other country in which Colossus currently does or may in the future carry on business; the lack of certainty with respect to foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction that Colossus operates; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States and Brazil; significant capital requirements; impact of any hedging activities; taxation; additional funding requirements; loss of key employees; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties; and competition. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding as well as other risks discussed under the heading “Risks Factors” included in Colossus’ latest Annual Information Form filed at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these cautionary statements. Colossus expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. The technical information in this presentation has been reviewed by Graham Long, VP of Exploration of Colossus Minerals Inc. and Qualified Person for the project.

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Serra Pelada

• Develop the Serra Pelada Mine in a cost-effective, sustainable and safe manner

• Provide leading cash flow per share, earnings per share and dividend yield to investors

• Deliver low cost, high margin growth from organic sources

THE VISION

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Serra Pelada 2013 OBJECTIVES

Objective Target

Extract bulk sample from the CMZ Second quarter

Complete process plant construction Third quarter

Process bulk sample Third quarter

Initial NI 43-101 outlining 12 months resources

Following bulk sample

Initial production and first gold pour Third quarter

Design & engineer flotation plant Fourth quarter

Complete PGM flotation plant Third quarter ‘14

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Capital Structure AS AT JUNE 12, 2013 EXCEPT WHERE OTHERWISE NOTED

All dollar amounts $CDN, unless noted Current Position

Shares outstanding - basic 125.0 million

Shares outstanding - fully diluted 139.0 million

Market capitalization (06/18/13) C$198.7 million

Share price (06/18/13) C$1.59

52-week range C$1.52 – C$6.03

Insider ownership* (approximate) 17%

Institutional ownership* (approximate) 58%

Options & Warrants (5,175,000 - CSI.WT.A –Exp. Nov 8/16 ) 14.0 million

Cash balance (March 31/13) US$32.1 million

Gold-linked Note – CSI.NT - Matures Dec 31/16 C$86.25 million

Precious metals sale (35% Pt and Pd, 1.5% Au) US$75 million

Major Shareholders

Arias Resources, Acuity, Sprott Asset Management, Van Eck, Franklin Advisers, Fidelity, Franklin Templeton, BC Investment, MFS, Manulife, JP Morgan *Shares held by Arias Resources included in total as Alberto Arias is a director of CSI

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Focused on Brazil

• Resource-rich country

• Pro-mining government

• World’s 6th largest economy by GDP and largest in South America

• Real GDP growth of 2.5% forecast in 2013

• Inflation estimated at 5.7% and stable monetary policy

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Serra Pelada

• Prolific Carajas region

• Major deposits of iron ore, copper-gold, manganese

• Robust infrastructure with access to roads, power, water and skilled labour

• Vale S.A. investing billions of dollars over the next decade in the region

LOCATION AND INFRASTRUCTURE

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Serra Pelada LAND AND PERMITS

• Preliminary Environmental License – issued March 2010 • Precedes balance of permits –

issued by COEMA

• Installation License – issued April 2010 • Para State environmental council

• Mining License – issued May 2010 • Ministry of Mines and Energy

Permits

Land Package • 874 hectare property

• Ownership Structure: Colossus 75% Coomigasp 25%

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High Grade Deposit GRADE VARIABILITY

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High Grade Deposit GRADE VARIABILITY

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Underground Drilling DEFINING AND DELINEATING THE CMZ

• Exploration and definition underground drilling commenced in Dec 2011

• Bulk sample, being extracted from CMZ, will be processed at site

• An initial NI 43-101 resource statement will follow which will outline the initial resource estimate for approximately one year, allowing the Company to more accurately predict future earnings

• The drill spacing for this resource statement will be as tight as possible (5 to 10 metre centres)

• As decline and underground development advances, so will the pace of drilling

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Serra Pelada DEVELOPMENT TIMELINE

2010 2011 2012 2013 2014

Exploration

Permitting

Construction

Underground Development

NI 43-101 Resource

Initial Production

Ramp up to 1000 tpd

Design & Engineer Flotation Plant

Complete PGM Flotation Plant

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Process Plant SIMPLIFIED FLOWSHEET

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Process Plant DESIGN OVERVIEW

Gold Room

Scrubbing, Screening and

Reagents

Primary Crushing Ball Mill and Gravity

Concentrators

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Primary Crushing 90% COMPLETE

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Primary Crushing TIPPING RAMP FOUNDATION – PRIMARY CRUSHING IN BACKGROUND

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Scrubbing & Screening ERECTING COLUMNS & CONVEYOR

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Scrubbing & Screening PRIMARY SCREEN INSTALLED

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Scrubbing & Screening ADVANCING CONVEYOR SYSTEM

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Reagents Building TANKS INSTALLED – SECONDARY CRUSHER BUNKER IN FOREGROUND

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Process Plant BALL MILL, GRAVITY CONCENTRATORS & GOLD ROOM DESIGN

Gold Room

Ball Mill

Gravity Concentrators

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Grinding Building PLACING THE BALL MILL

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Grinding Building BALL MILL RING GEAR INSTALLED

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Grinding Building THREE GRAVITY CONCENTRATORS INSTALLED

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Control Room WITH BALL MILL IN BACKGROUND

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Gold Room FINAL HEIGHT

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Gold Room START OF MECHANICAL INSTALLATIONS

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Thickener PROCESS WATER TANKS

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Thickener PROCESS WATER TANKS

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Power House

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Power House CONTROL ROOM

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Laboratory READY FOR MODULAR UNITS

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Transformers MASTER CONTROL CENTRE 1 – IN PLACE

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Ventilation Shaft COLLAR

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Ventilation Shaft COLLAR

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Tailings Dam VARIOUS ELEMENTS

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1 – Spillway wall rebar 4 – Cut off Excavation 2 – Spillway wall rebar 5 – Clean up of borrow area 3 – Spillway wall rebar and formwork

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Development Decline

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Mining Method UNDERHAND CUT & FILL

• Underhand Cut & Fill mining method for 100% extraction of the ore

• Work from top of the orebody down

excavating under cemented rock fill • Used in a number of high-grade gold

mines including Goldcorp’s Red Lake Mine, Barrick’s Miekle Mine, Turquoise Ridge Mine, former Eskay Creek Mine and Newcrest Kencana Mine

• Trucks to haul ore to surface via the decline

• Target a 1,000 TPD mining rate

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Run of Mine (ROM) Pad CMZ MATERIAL

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Underground EXCAVATION IN CMZ

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Underground CMZ – AT THE FACE

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Exploration Potential

• Down-plunge extension of Central Mineralized Zone

• Connecting the Lower Limb to the Central Mineralized Zone

• Elefante – Potential satellite deposit two kilometres away

THREE PROSPECTIVE AREAS

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Exploration Potential CONNECTING THE LOWER LIMB TO THE CMZ

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Exploration Potential ELEFANTE – POTENTIAL DEPOSIT TWO KILOMETRES AWAY

• Hole EL-12-001 returned 5.70 metres grading 5.41 g/t gold, 0.04 g/t platinum and 0.29 g/t palladium

• Hole EL-12-002 returned 5.10 metres grading 0.45 g/t gold, 1.27 g/t platinum and 2.04 g/t palladium

• Auger drilling included SPTRD-017 (124.78g/t Au, 6.52g/t Pt and 7.67g/t Pd over 1.5 m)

• Auger drilling in saprolite together with diamond drilling suggest a broad halo of mineralization in the Elefante Area sourced by deeper bedrock zone

Please see news releases issued November 14, 2011, March 12, 2012, August 20, 2012 and January 10, 2013 for complete NI 43-101 compliant disclosures.

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Sierra Pelada

Cutia

Cutia Project DRILLING COMMENCES IN 2013

• 75% ownership interest purchased from COOMIC for R$3.6 million (~USD $2.0 million) payable in installments upon satisfaction of certain milestones.

• Mesothermal gold and silver project

• 633 hectares, 13 km SE of Serra Pelada, accessed by same road

• Mineralized vein system occurs along the Cutia Fault Zone that separates two major lithologic domains

• 3 metre thick quartz veins outcropping on surface

• ~ 65,000 ounces produced by artisanal miners between 1988 and 1992

• 2.5 km of strike length and still open to the west and east

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Serra Pelada A COMPELLING INVESTMENT

• Gold & PGM grades at Serra Pelada are among the highest on record

• High grade, potential low cost emerging producer

• Project is permitted and construction is well underway

• 110,000 metres drilled, significant exploration upside

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TSX: CSI www.colossusminerals.com

OTCQX: COLUF

Colossus Minerals Inc. 1 University Avenue, Suite 401

Toronto, ON M5J 2P1

Ann Wilkinson Vice President, Investor Relations

416.643.7655 [email protected] www.colossusminerals.com

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APPENDICES

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Community

• Striving to build a stronger community – community

based projects • Hiring locally is a priority • Education and training • Community donations (ambulance and police

vehicles) • Health and dental services • Children’s programs (sports teams, first aid training,

social events)

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Community Programs

Community based projects • Donation of ambulance and police vehicles

• Public security and police training

• School renovation

• Hospital renovation

• Municipal stadium renovation

• Municipal theatre renovation

• 2012 - installation of a community centre focused on worker training and qualifications, income generation programs, computer training centre and environmental education

Health • Vaccination programs

• Medical and dental services

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Community Programs

Children

• Soccer school

• Sporting events

• Social events

• Visual arts workshops

• Reading programs

Education and training programs

• Literacy programs

• First aid and safety training

• Serra Pelada Capoeira school for children, teenagers, youth and adults

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Area A PAYMENT STRUCTURE

Range of production (millions of ounces of

metal)

Royalty as a percentage of gold price on precious

metal sold* From To

--- 2.03 ~ 2.1%

2.03 4.79 ~ 1.4%

4.79+ --- ~ 1.3%

Colossus must pay COOMIGASP R$350,000 (US$175,000**) per month and payments cease when production begins.

In addition Colossus will finance their portion of CAPEX (25%). * Precious metal is defined as any one of gold, platinum, palladium, rhodium, osmium, ruthenium or iridium ** Basis 2.00 R$ per US$ (4/30/13)

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Area B PAYMENT STRUCTURE

• COOMIGASP paid R$8 million (US$4.5 million*)

• Will pay COOMIGASP a royalty payment of 0.4326 of gold price of precious metals sold**

• Exercised option on Vale agreement Mar 18/13

• Vale has 45 days to request additional documents to support US$5 million spent over 3 years

• Assignment of mining rights expected to occur 30 days after Vale is satisfied requirements met.

• Pay Vale a fee of US$35/oz of gold, platinum, palladium based on the reserve estimate.

700 – Hectare Land Tenement

*Calculated at historical exchange rates. **Precious metal is defined as any one of gold, platinum, palladium, rhodium, osmium, ruthenium or iridium.

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Area C PAYMENT STRUCTURE

• Have paid COOMIGASP R$4 million (US $2.2 million*)

• Will pay COOMIGASP a royalty of 2.0908% of gold price on precious metals sold**

*Calculated at historical exchange rates. **Precious metal is defined as any one of gold, platinum, palladium, rhodium, osmium, ruthenium or iridium

Consideration

74 - Hectare Land Tenement

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Warrants and Options AS AT APRIL 30, 2013

Warrant price # of warrants Expiry

$8.50 5,175,000 Nov 8, 2016

Range Options Outstanding

Options Exercisable

$0.48CAD - $1.50CAD

150,000 150,000

$1.51CAD - $3.00CAD 285,000 83,750

$3.01CAD - $4.50CAD 2,945,000 1,633,750

$4.51CAD - $6.00CAD 2,485,000 1,203,750

$6.01CAD - $8.37CAD 2,980,000 2,830,000

TOTAL: 8,845,000 5,901,250

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Senior Management

Claudio Mancuso, CA CEO, Director

• Over 10 years experience in mining industry and capital markets • Previously VP, Treasurer of Agnico-Eagle Mines Limited • Involved in raising over $4 billion over the past five years in both equity and debt capital markets

David Anthony President & COO

• Previously Senior Vice President, Mining of Forbes & Manhattan • Previously worked for Kinross, as the Project Director, responsible for execution of the Fruta del Norte Project and held Senior positions

at Barrick Gold in Tanzania responsible for the development of the Bulyanhulu, Buzwagi and Tulawaka mines

Alden Greenhouse, CFA CFO

• Over 10 years capital markets experience in commodity risk management, foreign-exchange and fixed income • Senior management positions with RBC Capital Markets and Senior Analyst at Dominion Bond Rating Service

Graham Long VP, Exploration Qualified Person under NI 43-101

• Over 25 years’ experience in the mining industry, spent the majority of his career with Agnico-Eagle Mines where he held progressively changing roles from exploration geologist to Exploration Manager for Canada.

• Mr. Long has a broad range of mining experience having worked in several operating mines both underground and open-pit as well as experiencing the discovery of a gold deposit and seeing it through to production.

Luis Albano Tando VP, Operations & Country Manager, Brazil Qualified Person under NI 43-101

• Mining engineer with twenty five years’ experience working at increasingly senior levels of a number of organizations. • Previously COO at OROSUR Mining Inc. • Prior to this, worked in a variety of capacities for Kinross • He is also a fellow of the Australian Institute of Mining and Metallurgy (AusIMM)

Jason Brooks VP, Finance

• More than 10 years of finance and accounting experience in the mining industry. He most recently served as Assistant Controller of NewGold Inc., an intermediate gold producer. Previously, he spent six years with Barrick Gold Corporation in various financial management positions. Prior to joining Barrick, he spent five years at BDO Dunwoody LLP, a public accounting firm.

Ann Wilkinson VP, Investor Relations

• 20 years in the mining industry in investor relations and other management roles. Prior to joining Colossus, served as Vice President, Investor Relations of Breakwater Resources Ltd. Prior to Breakwater she held a number of roles with several capital market firms and a couple of junior gold exploration companies.

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Board of Directors

John Frostiak, P.Eng Chairman Qualified Person under NI 43-101

• Over 35 years experience in the mining industry. Managed Metallurgy and Process Development for Barrick Gold Corp. • Lead developer of both Pierina Mine and Bulyanhulu Mine for Barrick

Claudio Mancuso, CA Chief Executive Officer

• Over 10 years experience in mining industry and capital markets • Previously VP, Treasurer of Agnico-Eagle Mines Limited • Involved in raising over $4 billion over the past five years in both equity and debt capital markets

J. Alberto Arias • Founder, General Partner and Portfolio Manager of Arias Resource Capital Management LP • Previously Managing Director of Goldman Sachs – Metals & Mining Research from 1998 to 2006, • Mr. Arias has engineering degrees in mining and metallurgy and an MBA (B.Sc. from the Colorado School of Mines and three

Masters degrees from Columbia University), mining industry operational experience, and holds a patent for a gold mineral processing technology.

David Garofalo • President and Chief Executive Officer of Hudbay Minerals Inc. • Previously served as Senior Vice President, Finance and Chief Financial Officer and a director with Agnico-Eagle Mines Limited

Mr. Garofalo worked in various finance roles including Treasurer with Inmet Mining Corporation.

Greg Hall Qualified Person under NI 43-101

• Over 40 years experience in the mining industry. Chief geologist world-wide of Placer Dome until the Barrick takeover • Credited discoveries include Granny Smith Mine (Barrick), Yandi Mine (Rio Tinto)

Mel Leiderman, CA, CPA

• Managing Partner of Lipton LLP, Chartered Accountants. • Current Member of Agnico-Eagle Mines Limited Audit Committee (Chair from 2005 – 2011) • Board of Trustees – Morguard North American Residential REIT. Audit committee member.

Douglas Reeson, MBA

• Current CEO of Gossan Resources Limited and a director of Lithium Americas Corp., Mega Uranium Ltd. and Soltoro Ltd.

John S.M. Turner • Partner at Fasken Martineau DuMoulin LLP and the Leader of its Global Mining Group • Has been recognized on numerous occasions including Best Lawyers in Canada for Natural Resources Law • Recipient of the Queen's Golden Jubilee Medal and is a member of both the Canadian Association and the Law Society of

England and Wales.

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Analyst Coverage

Research Firm Analyst Latest Coverage Target/Rating

Clarus Securities Jamie Spratt June 2013 $2.50 – Accumulate

GMP Securities George Albino June 2013 $7.15 – Buy

Canaccord Genuity Nicholas Campbell May 2013 $7.50 – Spec. Buy

Stifel, Nicolaus Craig Stanley April 2013 $3.55 – Buy

Dundee Securities Joseph Fazzini May 2013 $4.25 – Spec. Buy

Macquarie Securities Michael Gray May 2013 $2.25 – Neutral

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NOTES

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