Gold Equities vs Gold 6 th July 2011

Gold Equities vs. Gold 6 th July 2011 Black. Rock Natural Resources, London FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY

Gold equities vs gold price Performance of the Gold Price versus Gold shares post the Financial Crisis • Two periods in the last three years where gold equities have significantly underperformed the gold price • Both relate to periods of significant macro uncertainty • On previous occasion this was a temporary dislocation, with gold shares recovering lost ground as sentiment improved. Source: Data. Stream, 30 th June 2011 2

Short term correlation of gold equities to the gold price • Correlations of gold equities to the gold price can vary in the short term • Periods of dislocation are not uncommon • Historically have been short-lived with the longer term correlation with gold remaining high 3 month rolling correlation between the moves in FT Gold Mines Index versus the gold price Financial Crisis: gold shares significantly underperform gold price QE 3: gold shares significantly outperform gold price End of QE 2/Greek debt concerns: gold shares significantly under-perform gold price Source: Bloomberg, 4 th July 2011 3

Longer term relationship between gold equities & gold price Gold & Gold Shares Source: Data. Stream. Weekly data Feb 2008 to 1 July 2011 4

Gold mining production costs Operating leverage has returned to the gold sector • Mining companies delivering on margin growth in rising gold price environment The price of gold and cash operating costs of production Quarterly, price through second quarter 2010 Average annual gold price vs industry cash operating costs 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 $/Ounce 1100 1000 900 800 700 600 500 400 300 200 100 0 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 Cash Costs Gold 02 03 04 Cash Cost 05 06 07 Production Cost 08 09 10 Gold Price CPM Group October 2010 5

De-rating of gold equity multiples – permanent or temporary? • Since H 2 2010, gold equity multiples have come under pressure North American Gold Shares: Price/NAV multiples • This has accelerated in the last four months • Possible reasons for this: • Reduction of risk appetite – similar to post Lehman’s collapse in H 2 2008 • Expectation that loose monetary policies may come to an end • Consensus price expectations significantly below current spot prices • Fears over cost inflation impacting margins Gold forward curve versus consensus forecasts Catalyst for change • Improvement in risk appetite • Upgrades in consensus price forecasts following end of H 1 • H 1 gold company results showing increasing gold margins • Potential for increased dividends Source: Bank of America Merrill Lynch, June 2011 6

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BGF World Mining Fund & BGF World Gold Fund The following notes should be read in conjunction with the attached document: 1. Issued by Black. Rock Investment Management (UK) Limited, authorised and regulated by the Financial Services Authority. Registered office: 33 King William Street, London, EC 4 R 9 AS. Tel: 020 7743 3000. Registered in England No. 2020394. For your protection telephone calls are usually recorded. Black. Rock is a trading name of Black. Rock Investment Management (UK) Limited. Issued in Switzerland by the representative office, Black. Rock Investment Management (UK) Limited (London), to Claridenstrasse 25, Postfach 2118 CH-8022 Zürich, from where the Company's Prospectus, Simplified Prospectus, Articles of Association, Annual Report and Interim Report are available free of charge. Paying Agent in Switzerland is JPMorgan Chase Bank, National Association, Columbus, Zurich Branch Switzerland, Dreikönigstrasse 21, CH-8002 Zurich. 2. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. Changes in the rates of exchange between currencies may cause the value of investments to go up and down. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time. 3. The fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment. 4. The fund invests in a limited number of market sectors. Compared to investments which spread investment risk through investing in a variety of sectors, share price movements may have a greater affect on the overall value of this fund. 5. The fund typically invests in smaller company shares which can be more unpredictable and less liquid than those of larger company shares. 6. The fund invests in economies and markets which may be less developed. Compared to more established economies, the value of investments may be subject to greater volatility due to increased uncertainty as to how these markets operate. 7. The fund can invest in mining shares which typically experience above average volatility when compared to other investments. Trends which occur within the general equity market may not be mirrored within mining securities. 8. Black. Rock Global Funds (BGF) is an open-ended investment company established in Luxembourg which is available for sale in certain jurisdictions only. BGF is not available for sale in the U. S. or to U. S. persons. Product information concerning BGF should not be published in the U. S. It is recognised under Section 264 of the Financial Services and Markets Act 2000. Black. Rock Investment Management (UK) Limited is the UK distributor of BGF. Most of the protections provided by the UK regulatory system, and the compensation under the Financial Services Compensation Scheme, will not be available. A limited range of BGF sub-funds have a distributor status A sterling share class that seeks to comply with UK Distributor Status requirements. Subscriptions in BGF are valid only if made on the basis of the current Prospectus, the most recent financial reports and the Simplified Prospectus which are available on our website. Prospectuses, Simplified Prospectuses and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been authorised. Any research in this document has been procured and may have been acted on by Black. Rock Investment Management (UK) Limited for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the Black. Rock Group or any part thereof and no assurances are made as to their accuracy. 9. Unless otherwise specified, all information contained in this document is current as at the date on the front page of this presentation. 10. No part of this material may be reproduced, stored in retrieval system or transmitted in any form or by any means, electronic, mechanical, recording or otherwise, without the prior written consent of Black. Rock. THIS MATERIAL IS FOR DISTRIBUTION TO PROFESSIONAL CLIENTS AND SHOULD NOT BE RELIED UPON BY ANY OTHER PERSONS. 8

Important notes ASX – represents the Australian Stock Exchange; SIX – represents the Swiss Stock Exchange; LSE – represents the London Stock Exchange; JSE – represents the Johannesburg Stock Exchange; DAX – represents the German Stock Index; NYSE – represents the New York Stock Exchange; AMEX – represents the American Stock Exchange Please ask your clients to consider the investment objectives, risks, charges and expenses of the Black. Rock World Gold Fund carefully before investing. The prospectus and if available summary prospectus contains this and other information about the fund and is available along with information on other Black. Rock funds by calling 800 -882 -0052 or by visiting our website at www. blackrock. com. The prospectus, and if available summary prospectus, should be read carefully before making any investment decisions. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of March 31, 2011, and may change as subsequent conditions vary. Individual portfolio managers for Black. Rock may have opinions and/or make investment decisions that, in certain respects, may not be consistent with the information contained in this report. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Black. Rock to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. Investment involves risks. The price of gold and other precious metals and of gold and other precious metal related securities historically have been very volatile. The high volatility of gold and other precious metal prices may adversely affect the financial condition of companies involved with gold and other precious metals. The production and sale of precious metals by governments or central banks or other larger holders can be affected by various economic, financial, social and political factors, which may be unpredictable and may have a significant impact on the supply and prices of precious metals. International investing involves additional risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are typically heightened for investments in emerging markets. Investments in the natural resources industries can be significantly affected by events relating to those industries, such as variations in the commodities markets, weather, disease, embargoes, international, political and economic developments, the success of exploration projects, tax and other government regulations, as well as other factors. The fund may actively engage in short-selling, which entails special risks. If the fund makes short sales in securities that increase in value, the fund will lose value. Any loss on short positions may or may not be offset by investing short-sale proceeds in other investments. Investing in derivatives entails specific risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Prepared by Black. Rock Investments, LLC, member FINRA Black. Rock is a registered trademark of Black. Rock, Inc. (c)2011 Black. Rock, Inc. All rights reserved. 9