American Rare Earths Ltd · ASX:ARR

American Rare Earths — Broken Hill Prospecting — Shareholder Meeting (November 2014)

14 slides from American Rare Earths's shareholder meeting presentation, Nov 19, 2014

  1. Slide 1: High-grade Heavy Mineral Sand (Ti-Zr) Acquisition

    High-grade Heavy Mineral Sand (Ti-Zr) Acquisition An Outstanding New Strategic Opportunity in the North Murray Basin Managing Director’s Presentation following the Annual General Meeting 19 NOVEMBER 2014

  2. Slide 2: Cautionary Notes

    Cautionary Notes Disclaimer This presentation contains forward-looking statements that involve subjective judgement and analysis and accordingly, are subject to significant uncertainties and risks, many of which are outside the control of, and are unknown to, Broken Hill Prospecting Pty Ltd ( “BPL”)

  3. Slide 3: Introduction – New Advanced Mineral Sands Opportunity

    Introduction – New Advanced Mineral Sands Opportunity  5 newly granted (Sept 2014) exploration permits over an advanced portfolio of Heavy Mineral Sands (HMS) Projects in the North Murray Basin of NSW  Located west of Cristal Mining’s Ginkgo & Snapper HMS operations  Investigated (drilling) in 19

  4. Slide 4: Murray Basin HMS – Regional Setting

    Murray Basin HMS – Regional Setting • The Murray Basin is a globally important Heavy Mineral Sand (‘HMS’) Province with current Broken Hill Broken Hill resources valued >US$200b Broken Hill Broken Hill • HMS deposits south of Broken Target area Target area Hill were evaluated by Iluka & others in 19

  5. Slide 5: BPL's HMS Project Portfolio

    BPL’s HMS Project Portfolio • Five new Exploration Licences, 20 Prospects. 100% ownership • HM mineralogy: ilmenite, leucoxene, rutile & zircon • Prospect data being evaluated & ranked • Initial focus at Copi North & Magic deposits • Shallow aircore drilling (<35m depth) planned Jan 2015 testing hig

  6. Slide 6: Corporate Strategy

    Corporate Strategy Stage 1 – Establishing the Early Uplift Advantage  Low Cost Entry Point –100% Ownership (Application not Purchase) ✔ ✔  Quantify the Opportunity – Desk Top Studies ✔ ✔  Communicate the Opportunity to Investors ✔ ✔  Arrange Financing ✔ ✔ Stage 2- Adding Value to Established Res

  7. Slide 7: Planned drilling

    Planned drilling EL8312 Copi Shallow drill testing to define JORC 2012 Resources is planned in the new year Copi HM strands with planned drill hole traverses 5 kilometres EL8311 Woolcunda Magic HM strand with planned drill hole traverses 5 kilometres 5 kilometres 7

  8. Slide 8: Vision - Low Cost Production

    Vision - Low Cost Production  Focus on well located shallow deposits (20-40Mt) high-grade (>8%HM)  10 year mine life, 2 year capital payback, contract mining  Production envisaged using low cost Dry Mining techniques (Unlike Ginkgo & Snapper which use wet dredging)  Mined “ore” processed by in-p

  9. Slide 9: Advances in HM Separation

    Advances in HM Separation  Spiral separators have undergone continuous development over 40 years with recent focus on the processing of progressively finer mineral particles  New spiral separators can now treat HMS material <30 microns and recover HM from fine fractions – regarded as waste in many

  10. Slide 10: Conceptual Timeline For Development

    Conceptual Timeline For Development • COMPLETE PRE-FEASIBILITY & FEASIBILITY STUDIES • UNDERTAKE ENVIRONMENTAL, HERITAGE STUDIES 2015 • COMMENCE DEVELOPMENT APPROVALS PROCESS • COMPLETE DEVELOPMENT, EIS, APPROVALS & FINANCING • LODGE MINE PLAN 2016 • CONSTUCTION AND PRODUCTION 2017 10

  11. Slide 11: Ti Demand Linked to Economic Growth

    Ti Demand Linked to Economic Growth China & India are now recognised as the current market drivers Demand is expected to continue to grow …….. ? Sources: TZMI 11

  12. Slide 12: Medium Term Prices - Driven by Urbanisation

    Medium Term Prices - Driven by Urbanisation During 2010-2012 mineral sand product prices rose from values typically less than US$600/t to over US$1,500/t Since 2012 prices have settled to around US$1,000/t. Medium term fundamentals for zircon & high-grade TiO2 products are favourable & growing deman

  13. Slide 13: Corporate Overview

    Corporate Overview Capital ASX Code BPL Source: ASX Ordinary Shares On Issue 99.04m Options; Unlisted (20c, 17/2/16) 38.65m Options; Unlisted (8c, 12/11/19) 11.05m Cash (on 18/11/2014) $0.5m Market Cap (Undiluted @ 4cps) $4.0m Shareholders Shares (m) % So Co Limited 34.37 35% New Talisman Gold Mines

  14. Slide 14: Contact

    Contact Ian Pringle, Managing Director, Broken Hill Prospecting Ltd Tel: +61 408 548 767 Email: ipringle@bhpl.biz Broken Hill Prospecting Limited Level 14, 52 Phillip Street, Sydney Box 3486 GPO, Sydney NSW 2001 website: www.bhpl.biz

Broken Hill Prospecting — Shareholder Meeting (November 2014) on 6ix