Gryphon Minerals Inc Gryphon Minerals Limited (Gryphon or the Company) has been engaged in exploration of minerals in Burkina Faso since 2005.  The Companys key focus is in the advancement of its early-stage exploration project, the Banfora Gold Project (Banfora or the Project), located in south-west Burkina Faso.  Over the last few years, Gryphon has conducted aggressive exploration at Banfora which has now yielded impressive discoveries.  The Company recently doubled its maiden resources at Banfora to 10.6 million tonnes with an average grade of 2.4 grams per tonne for 820,000 ounces of gold.  As a result, Gryphon is placing an increasing emphasis on the development of its Burkina Faso assets and this requires access to more capital.  IFC has been invited to provide an equity investment of A$2 million to finance on-going exploration work at Banfora with the aim of proving up adequate resources that would lead to the development of a mine at Banfora. Funds raised will be applied to undertake further work targeting additional increases in resources at Gryphons flagship Banfora project, including:    - Funding an in-fill drilling program within the existing defined resource zone; - Funding an ongoing reverse circulation/diamond drilling program following up on high grade extensions along strike at the Project; - Commencing reconnaissance rotary air blast/aircore/auger drilling testing high priority targets ; and - General working capital purposes. Fit with World Bank Group (WBG) Strategy:  The proposed investment is consistent with the WBGs strategic priorities in Burkina Faso.  The World Banks strategy for Burkina Faso emphasizes the need to pursue a vision based on regional economic integration, promoting foreign direct investment and export enhancement.  The extractive industries is specifically targeted as one of the sectors that should be developed to make optimal use of the countrys limited natural resource base to expand export earnings.  The strategy particularly identifies the mining sectors potential to offer a source of long-run, export-led growth.  The World Bank and IFCs country strategy focuses on promoting diversification of the economy and supporting project development in mining, with emphasis on junior miners.   Development Impact: IFCs involvement in Burkina Fasos growing mining sector will have an important demonstration effect in terms of setting environmental and social standards. IFC will assist Gryphon to handle social, environmental, community development and mine closure issues in line with IFC Environmental and Social Performance Standards.  The direct development impacts during the pure exploration and feasibility study stage are expected to be limited.  Because the investment predates any feasibility study, it is not yet possible to fully quantify or specify the potential development impacts during production stage. However, expected developmental impacts during production phase include:  Demonstration Effect:  Burkina Faso is an emerging resource-rich country which has attracted a lot of interest from the global mining community.  IFC involvement in the sector could assist in establishing some benchmarks on sustainable resource development.   Important demonstration effects include setting environmental and social standards.  IFC will assist Gryphon to handle social, environmental, community development and mine closure issues in line with IFC Environmental and Social Performance Standards.  Economic Diversification and Community Development:  The Project would support the Burkinabe governments efforts to diversify the economy from its current dependence on agricultural production. In addition, the project which is located outside the key centers of commercial activity would generate economic activity in what is otherwise an agrarian-based and under-developed part of the country.  Revenues to Government:  The Project, once operational, is expected to generate revenues in the form of taxes, dividends and royalties to the host Government and the Project would also generate positive foreign currency flows.  Creation of Direct and Indirect Employment: The project could also have a high impact on local economies through the generation of employment opportunities for the local population.    The key development indicators that are to be monitored during the life of IFCs investments are:   (i) number of projects that would employ industry best practices on sustainable resource development; (ii) number of non-farm economic activities including community development projects that would develop around the project; (iii) the direct and indirect increase in non-farm jobs that would be created around the project; and (iv) amount of taxes, dividends and royalties paid to government as a result of the project.