Alkane Resources Ltd · ASX:ALK

Alkane Resources — REE World's Technology Metals Summit 2012

27 slides from Alkane Resources's conference presentation, Feb 2, 2012

1. Slide 1: Cover letter to ASX announcing presentation

   RESOURCES L TD ABN 35 000 689 216 For personal use only 1 February 2012 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Dubbo Zirconia Project Attached is a copy of the Company’s presentation to the REE World’s Technology Metals

2. Slide 2: Dubbo Zirconia Project

   For personal use only Dubbo Zirconia Project NSW Australia A strategic and alternate source of zirconium, rare earth and niobium products

3. Slide 3: Equity & Ownership

   Equity & Ownership For personal use only Equity Ownership ƒ Shares – 269,028,158 ƒ O i Options – nilil ƒ Share price – A$1.00 ƒ Market Capitalisation – A$269M ƒ Cash – A$9M (31 Dec 2011) ƒ Debt – nil ƒ Share turnover – A$55M per month (average 2011) ƒ 12 Month Low/High – A$0.89/$2.73 As at 30 Decemb

4. Slide 4: Location and Business Strategy

   Location and Business Strategy For personal use only Multi commodity explorer and miner, focussed in the Central West of New South Wales, Australia Region with substantial existing infrastructure Dubbo Zirconia Project – world class resource of zirconium, hafnium, niobium, tantalum, yttrium and rare

5. Slide 5: DZP Location & Infrastructure

   DZP Location & Infrastructure For personal use only Infrastructure ƒ Population – 80,000 Dubbo regional ƒ Rail – railway hub ƒ Road – major highways intersection/hub ƒ Water – numerous sources ƒ Electricity – NSW State power grid ƒ Gas – NSW State gas grid ƒ Industrial – substantial light industry ƒ

6. Slide 6: Geology

   Geology For personal use only 0 200 metres Jurassic aged trachyte intrusive V l Volcanic i pipe i open att depth d th 5

7. Slide 7: Trachyte outcrop

   For personal use only 6 Trachyte outcrop

8. Slide 8: Geology section

   Geology section For personal use only East-west cross section through centre of deposit Recent Grits SEDIMENTS Basalt Dykes TRACHYTE SEDIMENTS Siliceous Contact Niobium Zirconium Zone Horizontal Scale 0 100 m Rare earth grade identical distribution as the zirconium and niobium 7

9. Slide 9: Ore Mineralogy

   Ore Mineralogy For personal use only Zirconium Zi i eudialyte di l t ZrSiO4 ± Ca, Ca YY, < 2μ m - 50μ m Heavy REs armstrongite HREE, H2O +?U Niobium/ NaNbO3 + Ta + ?Th natroniobite < 30μ m Tantalum also NbFeSiO4 calcian Ca(REE)(CO3)F basnaesite Light REs < 100μ m rare ancylite Sr(REE)(CO3)H2O The de

10. Slide 10: Resources & Reserves

    Resources & Reserves For personal use only Resources & Reserves ƒ Resources & Reserves – open at depth ƒ Life – +20 years but can support longer life and higher production rates ƒ Major world resource ‐ zirconium, hafnium, niobium, tantalum, yttrium & rare earth elements Resources Depth (m) Tonnes (

11. Slide 11: Metallurgy

    Metallurgy For personal use only Process development work began in 1999 and the basic flow sheet trialed at mini-pilot plant stage in 2001 - 2002 • Preliminary test work on HCl, HF, NaOH leaching, and H2SO4 roasting and leaching • Preliminary y flotation to assess p potential for p pre-concentration

12. Slide 12: Process Flow Sheet

    Process Flow Sheet For personal use only Processing ƒ Demonstration Pilot Plant – established 2008 ƒ ANSTO – Aust. Nuclear Science & Tech. Org. ƒ Process – unique & advanced ƒ Optimization – ongoing ƒ Sulphuric acid leach whole of ore ƒ Solvent extraction, separation & refining ƒ Chemical precipitat

13. Slide 13: Demonstration Pilot Plant 2008

    Demonstration Pilot Plant 2008 For personal use only 12

14. Slide 14: Zirconium

    For personal use only 13 Zirconium

15. Slide 15: Zirconium Industry Pricing

    Zirconium Industry Pricing For personal use only Q2 2011 Q3 2011 PRODUCT ZrO2 Q2 2010 US$/T Q4 2011 US$/T US$/T US$/T Zircon (producer/trader) 65% $900 ‐$1,150 $1,150 $1,700 ‐$2,750 $2,750 $2,200 ‐$2,800 $2,800 $2,100 ‐$2,900 $2,900 (100% ZrO2 basis) 100% ($1,380 ‐ $1,770) ($2,620 ‐ $4,230) ($3,380

16. Slide 16: Niobium

    For personal use only 15 Niobium

17. Slide 17: Niobium Demand and Price

    Niobium Demand and Price For personal use only Niobium 2010 (Ferroniobium units) consumption ~85,000t – 90% Brazil Estimate for 2012 ~100,000t Ferroniobium price spiralled to US$60/kg in March 07 and is currently around US$40 - 45/kg Sources: IAMGOLD / TZMI 16

18. Slide 18: Rare Earth Elements

    Rare Earth Elements For personal use only 17

19. Slide 19: Rare Earth Pricing

    Rare Earth Pricing For personal use only Rare Earths Prices (US$/kg FOB China REO) Source: Metal Pages© Numbers have been rounded DZP Q2 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Light Rare Earth Distribution Average Average Average Average Average Average DFS Lanthanum Oxide 19.51% $7.13 $53.00

20. Slide 20: Rare Earth Distribution

    Rare Earth Distribution For personal use only Rare Earth Distribution in Deposit ~ Tonnes Light Rare Earth ppm % @ 50% recovery available at 1Mtpa Lanthanum Oxide 1799 19.51% 1800 900 Cerium Oxide 3393 36.70% 3390 1700 Praseodymium Oxide 373 4.05% 370 180 Neodymium Oxide 1302 14.12% 1300 650 S Samar

21. Slide 21: Product Output & Revenues

    Product Output & Revenues For personal use only 1.0Mtpa Throughput ƒ 39% of revenue – Zirconium ƒ 22% of revenue – Niobium ƒ 21% of revenue – LREE ƒ 18% of revenue – YHREE Anticipated Production & Revenues (1.0Mtpa) Products Price/kg predicted Price/kg used Production / Sales Revenues Revenue % Zirc

22. Slide 22: Marketing

    Marketing For personal use only Offtake ƒ Zirconium (39% of revenue) – 100% under MOU ƒ Niobium (22% of revenue) – 100% under MOU ƒ LREE (21% of revenue) – advanced negotiations ƒ YHREE (18% of revenue) – advanced negotiations ƒ Throughput – there are four MOU’s which virtually guarantee production

23. Slide 23: DFS Financials

    DFS Financials For personal use only Definitive Feasibility Study DUBBO ZIRCONIA PROJECT Financial Summary (A$) ƒ Base case – 0.4Mtpa (superseded) Project j Capacity p y 0.4Mtpa p 1.0Mtpa p ƒ Current case – 1.0Mtpa (base case) Capex – Plant1 $278M $543M ƒ CAPEX – $893M ($751M pre‐contingency) Infras

24. Slide 24: Environmental Assessment

    Environmental Assessment For personal use only Environmental Impact Statement – key areas of focus ƒ Existing land use (agriculture) ƒ Air quality ƒ Noise and vibration ƒ Surface and ground water ƒ Soil stability ƒ Flora and fauna ƒ Biodiversity ƒ Visibility ƒ Rail freight g movements ƒ Road traffic

25. Slide 25: DZP Timetable

    DZP Timetable For personal use only ‐> 2009 2010 2011 2012 2013 2014 DZP Resource definition 2001 ‐ 2002 9 Fl Flow sheet h d development l 2002 9 Laboratory Zr – Nb 1999 – 2002 9 Continued product Pilot plant Zr – Nb 2002 9 development Mine Plan & Scheduling 2002 9 Plant Design & Engineering 2002 9

26. Slide 26: Disclaimer

    Disclaimer For personal use only Disclaimer This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth o

27. Slide 27: DZP Resource & Reserves

    DZP Resource & Reserves For personal use only Dubbo Zirconia Project – Mineral Resources Toongi g Tonnage g ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO U3O8 Deposit (Mt) (%) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 0.014 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 0.014 Total 73.20 1

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