Monday 23 January 2012
Morning Meeting Note
Horizonte Minerals* - Site visit to Araguaia nickel project (14.3p) HZM - CORP - TP: 30.6p.

- Market Cap: �39.8m Our site visit to Araguaia supported the major assumptions made in our DCF valuation model.

In particular, it is clear that the higher grade zones within the two main target zones can be mined selectively.

We saw no significant environmental issues that could impede the development of the project. 4Our site visit to Horizontes Araguaia nickel project in Brazil was encouraging, in that it confirmed some of the critical assumptions in our DCF model.

To be specific, most of the higher grade mineralisation lies within two zones, Baiao and Pequizeiro.

Within each of these zones, the higher grade mineralisation lies within one contiguous area and so should be selectively mineable. 4We expect results from the metallurgical test programme within the current quarter, with the Preliminary Economic Assessment due at the end of Q1 or early in Q2.

When we have the results from these studies, we will update our model and valuation. Martin Potts 020 7220 0544
Please see important disclosure and disclaimer in the research report. 60 New Broad St London EC2M 1JJ Tel: 020 7600 1658 Fax: 020 7600 1659 Email: � finnCap 2011. www.finncap.com