Slide 1: Aspire Mining Limited Investor Presentation October 2011
Aspire Mining Limited For personal use only Investor Presentation ‐ October 2011 ABN: 46 122 417 243 Not for release or distribution in the United States or to US Persons
Slide 2: Important notices and legal disclaimer
Important notices and legal disclaimer For personal use only The following disclaimer applies to this document and any information provided regarding information contained in this document. You are advised to read this disclaimer carefully before reading or making any other use of this document or a
Slide 3: Important notices and legal disclaimer
Important notices and legal disclaimer For personal use only Forward Looking Statements Certain statements in the presentation are or may be “forward‐looking statements” and represent the Company’s intentions, projections, expectations or beliefs concerning among other things, future exploration act
Slide 4: Introduction: Corporate Snapshot & Project Update
Introduction For personal use only Aspire is an ASX listed, independent Mongolian coking coal company focused on its 100% owned Ovoot Coking Coal Project Prefeasibility Study initiated to assess globally significant production scale Strategic shareholders include SouthGobi Resources and Noble
Slide 5: Section – Corporate Snapshot and Project Update
For personal use only Section 1 – Corporate Snapshot and Project Update 5
Slide 6: Company Snapshot
Company Snapshot For personal use only Capital Structure pre Placement (ASX:AKM) Share Price (LTM) Undiluted Diluted 250 1.20 Share Price (10 October 2011) $ 0.485 0.485 18 Mar 2011 Additional Shares Outstanding m 540.6 847.22 quality data 22 Mar 2011 6 Apr 2011 Noble discloses Final quality data co
Slide 7: Strategic Investor Interest
Strategic Investor Interest For personal use only 20.2% 9.55% Interest pre Interest pre Placement Placement 7
Slide 8: Project Interests
Project Interests For personal use only Project Locations Project Interests Ovoot Coking Coal Project (100%) Jilchigbulag Coal Project (100%) Nuramt Coal Project (100%) Shanagan Joint Venture (51% Earn in) Zavkhan Iron Ore Project (Earning 70%) 8
Slide 9: Geology & Tenement Plan
Geology & Tenement Plan For personal use only Ovoot Project Tenement and Geology Large 500km2 + project area 10,000m drilling programme for 2011 Comprehensive Magnetics programme to be undertaken Numerous targets within host Jurassic sediments New coal discovery 4km north east of current O
Slide 10: New Coal Seams Identified
New Coal Seams Identified For personal use only 10 Note, DH289, DH291 and DH298 not geophysically logged
Slide 11: New Coal Discovery in Ovoot Basin
New Coal Discovery in Ovoot Basin For personal use only Traced to within 4kms of Ovoot Coal Resource area New Coal Discovery area will add to Resources Currently outlined in a 2km x 1km zone Coal seams thickening towards the south Coal is described as hard and bright Note, DH289, DH291 and
Slide 12: JORC Resource & Coal Seam Stratigraphy
JORC Resource & Coal Seam Stratigraphy For personal use only 93% of Resource Tonnes are located in the Upper and three plies of the Lower Seam JORC Resource Above 250m Below 250m Total (mt) Depth (mt) Depth (mt) Measured 70.4 22.9 93.3 Indicated 135.0 47.4 182.4 Inferred 41.9 13.1 55.0 Total 247.3 8
Slide 13: Indicative Product Quality & Fluidity Properties
Indicative Product Quality & Fluidity Properties For personal use only Yield % IM % Ash % Volatiles % CSN Sulphur % Indicative Washed Coal 80% 0.6% 8% 25 ‐ 28% 8‐9 1% Quality Air dried basis Above table based on R.D. 1.4 cut for all 7 sample batches from the 2010 Exploration Programme ISO Coal
Slide 14: Attractive, High Quality, Globally Competitive Product
Attractive, High Quality, Globally Competitive Product For personal use only Coal marketing experts Wood Mackenzie describe Ovoot coal as: A strongly caking coking coal with superior blend carrying capacity Within the ideal range for mid volatile hard coking coal and fat coal classifications P
Slide 15: Favourable Coal Quality Comparison
Favourable Coal Quality Comparison For personal use only Coking Coal Qualities Source: Wood Mackenzie and Aspire 15
Slide 16: Strong Medium to Long Term Coking Coal Market Outlook
Strong Medium to Long Term Coking Coal Market Outlook For personal use only …coking coal demand was expected to grow from 942 million tonnes last year to 1.425 billion tonnes in 2025, representing a compound annual growth rate of 3%. Source: Australian Financial Review, “BHP will struggle to meet de
Slide 17: Continued growth in demand for metallurgical coal
Continued growth in demand for metallurgical coal For personal use only Source: BHP Billiton, Metallurgical Coal Briefing Presentation 30 September 2011 17
Slide 18: Mongolian Peer Comparison by Attributable Resources
Mongolian Peer Comparison by Attributable Resources For personal use only Few listed Mongolian coal companies amid ongoing M&A activity AKM is the standout premium coking coal exposure +6,500 Mt 779 Subject to M&A activity 690 536 330 322 220 149 90 1 2,5 3 4 6 7 Typical Coking Hard and Semi Hard
Slide 19: Rail Path Identified
Rail Path Identified For personal use only Commentary Potential Rail Route Calibre Rail has reviewed a number of rail options to connect Ovoot to coal export markets Multiple potential users of rail between Moron and Erdenet Rail path analysis identified a preferred and possible: ‐ 162 km rail
Slide 20: Potential Routes to Coal Markets – rail access
Potential Routes to Coal Markets – rail access For personal use only Asian Importers of Coking Coal: Japan 53.6Mt1 Korea 19.2Mt1 Taiwan 5.3Mt1 78.1Mt Russian total Coking Coal Exports to Asian markets: 3.15Mt1 1. Source: Wood Mackenzie 2010 data 20
Slide 21: Catalyst for Development of Northern Mongolia
Catalyst for Development of Northern Mongolia For personal use only Rail Connection to Moron will Provide Enormous Benefits for Northern Mongolia: Will utilise underused rail capacity on the TMR heading north Provide job opportunities ‐ 125,000 people in Khuvsgul Province ‐ Well educated but hig
Slide 22: Summary
Summary For personal use only Ovoot … Is independent, strategic and 100% owned coking coal deposit located in Northern Mongolia Has a 330.7 mt resource with strong exploration potential and resource growth from recent drill results Is a premium, high vitrinite, high fluidity coking coal Pref
Slide 23: Section – Equity Issuance & Project Funding Overview
For personal use only Section 2 – Equity Issuance & Project Funding Overview 23
Slide 24: Equity Issuance Overview
Equity Issuance Overview For personal use only Placement of up to approximately 15% of shares on issue at a price of $0.41 per share Issue price of $0.41 per share represents a 15% discount to the last close price of $0.485 SouthGobi has a right to maintain its shareholding in Aspire if it is
Slide 25: Issuance Indicative Timetable
Issuance Indicative Timetable1 For personal use only Event Date (2011) ASX Trading Halt commences Placement announced 11 October Placement launch 11 October Placement close 11 October ASX Trading Halt lifted Pre‐market 12 October Placement DvP settlement 17 October Note 1. This timetable is indicati
Slide 26: Section – Key Risks
For personal use only Section 3 – Key Risks 26
Slide 27: Summary of Key Risks
Summary of Key Risks For personal use only Risk Explanation Exploration and Development There is no assurance that the mineral resource estimates published by Aspire Mining can be profitably mined or that the planned exploration and project studies by Aspire Mining will result in the delimitation of
Slide 28: Competent Persons’ Statement
Competent Persons’ Statement For personal use only In accordance with the Australian Securities Exchange requirements, the technical information contained in this announcement in relation to the Ovoot Coking Coal Project in Mongolia has been reviewed by Mr Neil Lithgow – Non Executive Director for A
Slide 29: International Offer Restrictions
International Offer Restrictions For personal use only International Offer Restrictions This document does not constitute an offer of new ordinary shares (New Shares) of the Company in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Austra
Slide 30: International Offer Restrictions (Cont’d)
International Offer Restrictions (Cont’d) For personal use only Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies Ordinance (Cap. 32) of Hong Kong (the "Companies Ordinance"), nor has it been authorised by the Securities and Futures Commis
Slide 31: International Offer Restrictions (Cont’d)
International Offer Restrictions (Cont’d) For personal use only Norway This document has not been approved by, or registered with, any Norwegian securities regulator pursuant to the Norwegian Securities Trading Act of 29 June 2007. Accordingly, this document shall not be deemed to constitute an offe
Slide 32: International Offer Restrictions (Cont’d)
International Offer Restrictions (Cont’d) For personal use only Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared
Slide 33: International Offer Restrictions (Cont’d)
International Offer Restrictions (Cont’d) For personal use only United Kingdom Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Services Authority in the United Kingdom and no prospectus (within the meaning of sect
Slide 34: Contact Details
Contact Details For personal use only Aspire Mining Limited ABN: 46 122 417 243 ASX Code: AKM Web: www.aspiremininglimited.com AUSTRALIA Level 2, Suite 20, 22 Railway Road Subiaco WA 6904 MONGOLIA Sukhbaatar District, 1st Khoroo, Chinggis Ave‐8 Social Insurance Department Building Altai Tower, 3rd F