Basileus's investment philosophy follows the broad principles of profitability and social responsibility. All opportunities are evaluated on a case-by-case basis making the scope of potential projects wide - from developing "Green Fields" resource opportunities to acquiring existing operating businesses with an aim to grow them and thereby add substantial value. Basileus' investment decision is made after considering the following key questions: Can Basileus add value to the project / investment? Is the project / investment of such scale to warrant attention? Can the project / investment deliver an appropriate return on resources (including management time)? Is there an opportunity to either realize liquidity or crystalise the value of the project / investment?

Basileus's approach is to take on the "binary risk" in a project. In any new company or project, the initial stages are fraught with risk and uncertainty. For this reason investment in this stage typically has extreme outcomes; either the investment is lost or it yields substantial return (hence the term "binary risk"). Basileus chooses to invest either its own balance sheet or a combination of its balance sheet and that or a select group of close associates at this stage and actively manage the project or investment in return for an equity participation in the project. Given the risk involved in each investment, Basileus has to ensure a high degree of active management and injection of management skills.

Once the binary risk stage has been overcome Basileus either looks to introduce other partners into the project or, depending on its available capacity, the company continues to invest in developing the company or project further.

As Basileus uses its own balance sheet in the transactions it participates in, the company seeks to find ways of "recycling" its capital in order to allow it to participate in further development opportunities. Basileus achieves this typically by either exiting the investment or by "crystalising" its value through a listing, thereby allowing the company to borrow against the investment for other opportunities.

Against this backdrop it is easy to understand the three investment categories employed by Basileus, namely:

• Invest to develop a listable company,
  
  
• Invest to sell, or
  
  
• Invest to harvest cash flow.

This philosophy has enabled the Basileus team to engage in investments from Platinum Exploration to Property and Financial Services.

From an operating perspective, Basileus will employ the use of external technical consultants to ensure that it is able to broaden its business footprint. Combining this with the experience and skills base within Basileus ensures that projects are implemented successfully and on time.

Combining external technical expertise with the significant internal expertise along with substantial capital support will ensure Basileus's success.

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