Volta is listed on the Toronto Stock Exchange (under the symbol VTR) and headquartered in Toronto, Canada. It was created in March 2008 through the merger of Goldcrest Resources Ltd (“Goldcrest”, exploring in Burkina Faso since 2000) and Birim Goldfields Inc (“Birim”, exploring in Ghana since 1994). Volta’s fully-diluted market capitalization was CAD93 million (US$88 million) at a market price per share of CAD0.88, on Jan 5, 2010. The Company’s five largest shareholders are Randgold Resources (20.3%), Sprott Asset management (6.2%), Caisse de Depot et Placement du Quebec (2.6%), Troy Resources (2.6%) and Aquila Resources (2.6%). Randgold Resources is a London-listed and reputable ‘FTSE 100’ global mining company. Management owns around 2.6% of the Company.

The Company has established a financial estimate for the next 24 months of CAD23 million to carry forward its exploration activities. Of this estimate, 77% will be dedicated to projects in Burkina Faso, of which 83% will go to the Kiaka project. IFC will make an initial investment of CAD4 million, with the option to make a further investment of CAD4 million within 12 months, which will go towards the Company’s exploration activities.

13.23 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	13.23

* These investment figures are indicative

The Kiaka gold project is located 140 km south-east of Ouagadougou, the capital of Burkina Faso. Access to the site is generally very good with 100 km of paved road from Ouagadougou to Manga and 40 km of gravel road to the Kiaka Camp. The Kiaka exploration license covers 244km2 and its development is expected to have a beneficial impact on the small villages locally within the area. A total of about 3,700 local people live in small scattered villages in the area and are involved in animal husbandry and farming the fertile river basin land. While artisanal mining is an issue at many mining projects in Burkina Faso, the comparatively lower grades at Kiaka mean that only very few artisanal miners work there.

The proposed investment will be made before the completion of a full project feasibility study that would confirm the commercial viability of Kiaka. The IFC investment will thus fund exploration and further studies and will not fund the development of a mine or result in any immediate incremental production. Development impacts from exploration activities are typically limited and at this stage mainly limited to local employment. Should Kiaka be developed into a commercial mining operation, significant development impacts will be realized, including: (i) diversification of Burkina Faso economy away from agriculture; (ii) Government revenue generation and increased foreign exchange earnings; (iii) catalytic effect of the mining projects on other economic activities such as construction, transportation and logistics; (iv) employment opportunities; (v) local business supply chain linkages, given close proximity to Ouagadougou; and (vi) community benefits through development programs (health, education, etc.) established by Volta. However, during this advanced exploration stage, the key impacts to monitor will include: (i) completion of drill program establishing an international standard resource; (ii) completion of feasibility study confirming a mineable resource; (iii) the mobilization of development financing and start of development activities; (iv) completion of Environmental and Social Impact Assessment and Stakeholder Engagement Plan.

IFC has the opportunity through this project, and other targeted potential strategic clients in Burkina Faso, to be a key player that would positively influence the emerging mining sector in the country. The extractive sector in Burkina Faso offers the World Bank Group an opportunity to demonstrate how a sustainable extractive sector can contribute to poverty reduction. The main additionality IFC would provide in this investment would be: (i) Providing financing - IFC will provide financing in a difficult country environment at a time when equity financing for junior miners, especially for exploration, is still difficult; (ii) Mobilizing financing - IFC will give its "stamp of approval" which will improve the risk perception of investors of the project and the country and thereby give comfort to potential future investors in the Company, and the country more broadly; and (iii) Standard setting - Volta is a junior company with limited human resources but a desire to be a good corporate citizen, and will benefit from IFC support to set up good environmental and social practices, especially as it relates to artisanal mining.

This is a category ‘B’ project according to IFC’s Environmental and Social Review Procedure. IFC is investing in exploration and feasibility studies, which have limited impact, and the required environmental and social impact assessment focused on risks and impacts associated with exploration. Prior to any future mining development, Volta has committed to prepare environmental and social documentation in line with IFC Performance Standards and therefore any project development would meet IFC requirements. Should IFC be involved in the financing of such future mining development, that project would be categorized accordingly and IFC will ensure that social and environmental assessment documents associated with such a development will be publicly available and consulted upon in accordance with IFC’s disclosure policy prior to the start of construction.

A visit to the Project site identified the following environmental, social, health and safety issues currently associated with this gold exploration project: (i) Management of exploration activities – land access procedures, including compensation for economic displacement; control of erosion and rehabilitation of drill roads and drill sites; safe disposal of oils, waste etc.; managing employee health, e.g., with respect to HIV/AIDS and malaria; (ii) Development of environmental, health & safety management system and policy commitments to ensure Performance Standards compliance in any future mining development; and (iii) Management of community expectations during ongoing consultation and disclosure, influx management, artisanal mining, and community development planning.

If the Kiaka gold project progresses to commercial production, it is expected to generate development benefits through payments to the Government of Burkina Faso in the form of royalties and taxes. In evaluating this investment, IFC took into account governance and other risks to these potential benefits. Having considered the potential benefits and governance risks, IFC believes that the Project should be supported. The Company has agreed to make material payments to Government public as per IFC’s requirements. The Burkinabe Government has over the past few years earned the reputation of being a reformist government by placing priority on improving governance, tackling corruption and playing an increasing role in promoting regional stability. In 2008, all six WBI Governance Indicators scored between the 25th and 50th percentile, and according to the World Bank’s Country Policy and Institutional Assessment (“CPIA”) the country was ranked fourth highest in Sub-Saharan African, behind Ghana, Uganda and Tanzania. It was ranked respectively 79th and 80th out of 180 countries in Transparency International’s 2009 and 2008 Corruption Perception Index (“CPI”) surveys, and respectively 147th and 155th out of 183 countries according to the World Bank’s “Ease of Doing Business” index in 2010 and 2009. Meanwhile, the World Bank’s Mining Policy group, which has been involved in Burkina Faso since 1997, is currently negotiating a program aimed at capacity building within the Ministry of Mines and implementation of the Extractives Industry Transparency Initiative (“EITI”).