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Press ReleaseFrontier Strategy Group Managing Director Alex Gorbansky Discusses Resource Nationalism and Its Implications for Reserve Growth in the Gold Mining Industry at the Denver Gold Forum CAMBRIDGE, Mass. – (BUSINESS WIRE) – September 28, 2006 – Frontier Strategy Group Managing Director and mining industry expert Alex Gorbansky discussed the topic of resource nationalism and its implications for reserve growth in the gold mining industry at the 17th Annual September Gold Forum of the Denver Gold Group. Speaking to an audience of industry executives, institutional investors, and the media, Gorbansky observed, "Accessing new reserves is the number one imperative for the gold mining industry, and within this context how companies respond to resource nationalism will be a critical determinant of growth." Gorbansky urged the audience to focus on upside opportunities, "By separating the daily noise from underlying reality, companies can identify undervalued assets in countries that are incorrectly perceived as too risky - the key is finding countries in transition and creating an investment model that mitigates risk. AngloGold's recent investment in Colombia is one such example." Gorbansky specifically addressed Shell's recent licensing issues around the Sakhalin project and what it means for mining investment in Russia, "It is not surprising that the Russian government is seeking greater participation in Sakhalin, given the strategic nature of the project and Shell's cost overruns. We should not extrapolate too much from this, as in Russia, it's important to distinguish government policies towards projects that are viewed as strategic [such as Sakhalin] and those that are viewed as being significantly less important. Most mining deals, with some exceptions, fall into the latter category." Gorbansky closed the presentation by discussing the implications of investing in riskier markets on the industry competitive landscape, "Given the need to play in higher risk environments, it will be interesting to see who will be best positioned for long-term success. Will it be the traditional Western players or companies from the developing world such as Gold Fields, Polyus, and Buenaventura who have experience investing and operating in challenging environments." A webcast of Mr. Gorbansky's presentation can be accessed at: http://events.onlinebroadcasting.com/denvergold/092506/index.php About Alex GorbanskyAlex Gorbansky is a Managing Director at Frontier Strategy Group and heads the Africa Mining & Energy practice at the Frontier Strategy Group. About Frontier Strategy GroupFrontier Strategy Group is a global consulting and advisory firm focused on the natural resources industries. Key practices include country-entry and growth strategies, M&A advisory, political risk assessments and permitting assessments. The firm is based in Cambridge, Massachusetts, and has offices in New York and Washington DC. Media Contact:
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