Slide 1: 6 December 2010
6 December2010 7.5p £5.82m
Slide 2: Nickel Exploration
NICKEL EXPLORATION PAPAU NEW GUINEA - 100% control of the lateritic deposit in PNG at Mambare; exploration programme to define Resource underway; JV with Direct Nickel Inc (DNI) as technology/exploration partner agreed. Exploration programme to establish JORC resource underway AUSTRALIA -
Slide 3: Mambare Nickel Exploration Project
Mambare Nickel Exploration Project
Slide 4: Mambare Plateau
Mambare Plateau • Exploration licence area (EL1390) approx. 584km2 • 181 sub-blocks (1’ squares) • Lateritic Nickel-Cobalt Exploration – tropical laterite deposit x2 Vertical Exaggeration • ~20km north of Kokoda District, Oro Province • 20 km long; 5-7km wide; max. elevation 1200m EL boundary
Slide 5: Geology
• Laterite profile underlain by tectonic ultramafics • Covered by a protective ash layer (few m) reducing erosion and weathering rates • Nearby Mt. Lamington volcano, Popondetta Geology x2 Vertical Exaggeration
Slide 6: DNi Joint Venture
DNi Joint Venture Aim To combine the Mambare Nickel Laterite property, Direct Nickel Pty Ltd’s (DNi) hydrometallurgical extraction process, and a highly experienced management team to create a substantial producer of Nickel. DNi Senior Management: Julian Malnic Executive Chairman and a professional
Slide 7: DNi Joint Venture
DNi Joint Venture £2m to be invested in order to define the Mambare resource to JORC standards, complete pilot testing of the Mambare deposit and complete a pre feasibility study for the project over the next 24 months. Key Highlights a) An emerging world class nickel project b) One of the lowest ca
Slide 8: DNi Joint Venture: The Technology
DNi Joint Venture The Technology Problems with HPAL • High capital and operating costs • Complicated high intensity plants – large scale operations only The DNi team, backed by Teck Resources, has spent years refining the • More tailings produced than the original amount of ore put in core technolog
Slide 9: DNi Joint Venture: The Technology
DNi Joint Venture The Technology The plant uses standard materials 95% of reagent package (not and is low cost so can start small H2SO4) recycled so leach and scale up to meet the needs of consumption per tonne 30kg the market and the capacity of the resource Low cash operating costs ~$1.8-2.0/lb, b
Slide 10: Recent Exploration
Recent Exploration x2 Vertical Exaggeration Drilled holes along cut lines Preliminary drill program completed in 2008 • 4000m of core drilled • 331 holes; 200m (E-W) by 400m (N-S) • 15 drill lines across the southern end of the plateau • Logging and sampling work completed in mid-2009
Slide 11: Drilling Results
Drilling Results >20m 1%Ni equiv. metres 5-20m 1%Ni equiv. metres 1-5m 1%Ni equiv. metres • All holes which do not include material above a 1% cut-off eliminated • Nickel grade of any assay results above 1% in each of the remaining holes multiplied by sample thickness to convert to 1% equivalent met
Slide 12: Drilling Results
Drilling Results • Laterite and saprolite development mostly along shallower gradients where the right bedrock is present • Shallow slopes: ridge tops, base of ridges and valley floors • Limited laterite development on the steeper slopes (where erosion and weathering rates higher) View from Kokoda l
Slide 13: Future Exploration
Future Exploration • More drilling is anticipated over the wider area of the main plateau • Broad spaced regional testing across full plateau to define resource potential •Infill drilling between the completed lines in the 3 high grade zones to further constrain extent of mineralisation • Deeper dri
Slide 14: Lake Johnston
LAKE JOHNSTON Western Australia •Approximately 150 kms along strike •Greenstone Belt area, host to many nickel sulphide and gold mines •First phase of drilling completed; Target 1 identifies high Ti and sulphur •VTEM survey completed over Target 1 and 2 newly granted adjacent tenements – awaiting re
Slide 15: Lake Johnston area map
Emily Ain By ZIM @3.989H pS Tec Saino 12h @ 1.55% Ni Beautiful Sunday Flying Fox { RA 835,000 @0.7% Ni Ae RA % 207,000 @ 5.95% Ni REGENCY MINES PLC
Slide 16: Area flown by VTEM survey
Black outline denotes area flown by VTEM survey following the Jerdercuttup Fault line and magnetics
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Slide 18: Drill Holes showing best intersects from Target
Drill Holes showing best intersects from Target 1
Slide 19: Target drill hole intersects
Target 1 MNAC2007 | 304093 | 6301343 310/-60 8 28 2.35% Ti 310/-60 24 24 to EOH 10.60% S MNAC4033 | 304337 | 6301946 310/-60 32 4 11.5 g/t Ag MNAC3019 | 304162 | 6301840 320/-60 0 4 0.13% Co MNAC3017 | 304091 | 6301911 320/-60 24 2 0.07% Cu 30 3 0.04% Cu 32 1 45 ppb Pt MNAC3030 | 304554 | 6301447 31
Slide 20: Cross section showing intersection with high Ti and S
Cross section showing intersection with high Ti and S (orange line)
Slide 21: Tenement map
ob Ds Australia . ‘opicana Gold Deposit q my: 7 hanti - IGO JV Swe ; 4 J MeeC Project Sp 1 é ‘ocaton aaa Tenement Legend @ Regency Mines JV Anglogold Ashanti - IGO JV ™ Teck - Triton Gold JV |= Sipa - Newmont JV ee ~~ Maggie Hays oo oodline Projecty PA SSSipa - Newmont JV a - = ‘ a om » Salmon Gums
Slide 22: Other tenements in relation to Regency Mines
Other tenements in relation to Regency Mines. Tectonic Resources picked up ground surrounding our area of drilling when results were announced
Slide 23: Junction South
JUNCTION SOUTH • Situated within the Kambalda and Kalgoorlie- Boulder region of WA renowned for extensive gold mineralisation • Geologically favourable area • Analysis shows drilling has been consistently too shallow • VTEM survey flown over the entire tenement to allow deeper geophyiscal and struct
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Slide 25: Bundarra
Bundarra •Granodiorite/hornsfel contact geology, previously mined for copper and gold •Exploration previously done over small areas and not consolidated • Recent Geophysical review has highlighted several oversights in previous exploration. • Reconnaissance Field visit undertaken mid-November • Old
Slide 26: Entrance to old copper mine workings
Entrance to old copper mine workings
Slide 27: Investment Holdings
Investment Holdings Red Rock Resources PLC AIM Listed (AIM:RRR) listed gold exploration and production company. Multiple other liquid assets including [6%] holding in expanding Mn and Fe explorer Jupiter Mines. [141,594,100] shares held by RGM(20.96%); Holding Value : £22.65m Direct Nickel Inc
Slide 28: Investment Holdings
Investment Holdings Red Rock Resources PLC AIM Listed (AIM:RRR) listed gold exploration and production company. Multiple other liquid assets including [6%] holding in expanding Mn and Fe explorer Jupiter Mines. [141,594,100] shares held by RGM(20.96%); Holding Value : £22.65m Direct Nickel Inc