Alkane Resources Ltd · ASX:ALK

Alkane Resources — Shareholder Meeting (May 2012)

41 slides from Alkane Resources's shareholder meeting presentation, May 23, 2012

1. Slide 1: Presentation cover letter to ASX

   R ES O U RCES L TD AB N 3 5 0 0 0 6 8 9 2 1 6 For personal use only 23 May 2012 Manager Announcements ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of the Company’s Annual General Meeting presentation to shareholders. A copy of this p

2. Slide 2: Annual General Meeting May 2012

   For personal use only ANNUAL GENERAL MEETING Mayy 2012

3. Slide 3: Equity & Ownership

   Equity & Ownership For personal use only Equity Ownership ƒ Shares – 372,231,500 ƒ O i Options – 4,000,000 4 000 000 ƒ Market Capitalisation – A$370M ƒ Cash – A$105M (30 April 2012) ƒ Debt – nil ƒ Share turnover – ~1.2M / day current ƒ 12 Month Low/High – A$0.89/$2.55 ƒ Top 20 – 58% As at 30 April 2

4. Slide 4: Location and Business Strategy

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

5. Slide 5: Board & Management

   Board & Management For personal use only Board Senior Management ƒ John Stuart Ferguson Dunlop (Chairman). BE(Min), ƒ Terry Ransted (Chief Geologist) ‐ BAppSc MEngSc(Min). Mining Engineer ƒ Michael Sutherland ((General Manager g NSW)) ‐ BSc ƒ David Ian Chalmers (Managing Director). MSc. Geologist ƒ

6. Slide 6: Project Locations

   Project Locations For personal use only Emerging Producers ƒ Dubbo – Zr, Nb, REEs 400km NW of Sydney ƒ T i l – Au Tomingley A 50km 50k SW off D Dubbo bb ƒ McPhillamys – Au 35km SE of Orange ƒ Peak Hill – Au 65km SW Dubbo Advanced Exploration ƒ Bodangora – Cu‐Au 40km SE of Dubbo ƒ Wellington – Cu‐Au

7. Slide 7: Dubbo Zirconia Project

   Dubbo Zirconia Project For personal use only Demonstration Pilot Plant at ANSTO (2008) 6

8. Slide 8: Rare Metals - Rare Earths

   Rare Metals ‐ Rare Earths For personal use only Rare Metals – Rare Earths • China produces 90% of world downstream zirconium chemicals • China currently produces 95% of world REE output • China is limiting the export of raw rare Rare metals earths materials • Brazil produces 90% of world niobium Lig

9. Slide 9: 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

10. Slide 10: Resources & Reserves

    Resources & Reserves For personal use only Resources & Reserves ƒ Resources & Reserves – open at depth ƒ Lif – +20 Life 20 years but b can support llonger lif life and d hi higher h production d i rates ƒ Major world resource ‐ zirconium, hafnium, niobium, tantalum, yttrium & rare earth elements ƒ I

11. Slide 11: 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

12. Slide 12: Marketing

    Marketing For personal use only Off‐take ƒ Zirconium (39% of revenue) – 100% under MOU ƒ Ni bi Niobium (22% off revenue)) – 100% under d 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

13. Slide 13: Zirconium

    For personal use only 12 Zirconium

14. Slide 14: Zirconium Pricing

    Zirconium Pricing For personal use only Zirconium price trends US$/tonne 12000 10000 8000 +US$6 800/t +US$6,800/t 6000 4000 2000 0 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 Zircon 65% ZrO2 Fused Zirconia 99.0% ZrO2 Chemical Zirconia 99.5% ZrO2 ZOC 36.0% ZrO2 13

15. Slide 15: Niobium

    For personal use only 14 Niobium

16. Slide 16: Niobium Demand and Price

    Niobium Demand and Price For personal use only Niobium 2010 (Ferroniobium units) Consumption ~85,000t 90% sourced from Brazil Estimate for 2012 ~100,000t Sources: IAMGOLD / TZMI 15

17. Slide 17: Rare Earth Elements

    Rare Earth Elements For personal use only 16

18. Slide 18: Rare Earth Elements

    Rare Earth Elements For personal use only Rare Earths Prices (US$/kg FOB China REO) Source: Metal Pages© Numbers have been rounded DZP Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q1 2012 Light Rare Earth Distribution Average Average Average Average Average Lanthanum Oxide 19.51% $7.13 $53.00 $138.00 $64.00 $39.

19. Slide 19: Auto Applications

    Auto Applications REE Zr Nb For personal use only Zirconium Small content of niobium in chassis steel can lighten vehicle by 10% ‐ fuel efficiencies; emissions minimisation Potential for solid oxide fuel cells power plant which use zirconia ceramic (+ yttrium and cerium) 18

20. Slide 20: DFS Financials

    DFS Financials For personal use only Definitive Feasibility Study September 2011 DUBBO ZIRCONIA PROJECT Financial Summary (A$) ƒ Base case – 0.4Mtpa (superseded) Project j Capacity p y 0.4Mtpa p 1.0Mtpa p ƒ C Current case – 1.0Mtpa 1 0M (base (b case)) Capex – Plant1 $278M $543M ƒ CAPEX – $893M ($75

21. Slide 21: DZP Site Infrastructure

    DZP Site Infrastructure For personal use only Solid residue SRSF storage facility Liquid residue LRSF storage facility 20

22. Slide 22: DZP Plant Layout

    DZP Plant Layout For personal use only Zirconium and niobium Sulphuric acid plant recovery Office and workshops R Roasting ti and d lleaching hi Rare earth recovery and refining Solvent extraction Crushing and grinding 21

23. Slide 23: Environmental Impact

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

24. Slide 24: Naturally Occurring Sources of Radiation

    Naturally Occurring Sources of Radiation For personal use only 23

25. Slide 25: Radiation Doses

    Radiation Doses For personal use only Naturally Occurring Radioactive Materials (NORM) are in the ground, food and air 20.0mSv Annual dose limit for radiation workers 1.5-2mSv Average Australian natural 6.9mSv CT Scan background radiation annual dose (per adult) 0.6-1.1mSv radon 1 0mSv 1.0mSv Annual

26. Slide 26: NORM - thorium - Central West Region

    NORM ‐ thorium – Central West Region For personal use only Higher concentration of thorium • Regional aero- radiometric image of thorium concentration in the Dubbo Region • Thorium is a Naturally Occurring Radioactive Material (NORM) Lower concentration of thorium Source: GSNSW

27. Slide 27: NORM - thorium - Dubbo Area

    NORM ‐ thorium ‐ Dubbo Area For personal use only Higher concentration of thorium Lower concentration of thorium Source: GSNSW

28. Slide 28: DZP Process NORM

    DZP Process “NORM” For personal use only NORM Management • Does NOT produce a mineral concentrate. • Does NOT concentrate the uranium & thorium at the front end. • All wastes are contained within the project site. • Waste products are neutralised with limestone. • Stored in the residue storage facil

29. Slide 29: DZP Development pathway

    DZP Development pathway For personal use only ‐> 2009 2010 2011 2012 2013 2014 2015 DZP Resource definition 2001 ‐ 2002 9 Flow sheet development 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 2

30. Slide 30: Tomingley Gold Project

    Tomingley Gold Project For personal use only CIL Treatment Plant Stockpile ROM Pad Crushing Gravity Gold Room Screening Milling Leaching Process Water Residue Storage 29

31. Slide 31: Tomingley Gold Project

    Tomingley Gold Project For personal use only Location / Infrastructure / Resources ƒ TGP located 50km south west of Dubbo on the Newell Highway ƒ 15km north of Alkane’s Peak Hill Gold Mine (467,000oz) ƒ Resource – 12.6 Mt @ 2.0g/t (812,000oz) ƒ Three deposits – Wyoming One; Wyoming Three; Caloma, wi

32. Slide 32: Tomingley Gold Project

    Tomingley Gold Project For personal use only Current Project Activities ƒ Project waiting for approval from NSW Department of Planning and Infrastructure ƒ Review of capital and operating costs ƒ Long lead construction items ordered (ball mill, water supply, tenders for earth works and other infrast

33. Slide 33: McPhillamys Gold Project (49%)

    McPhillamys Gold Project (49%) For personal use only Core drilling at McPhillamys 32

34. Slide 34: McPhillamys Gold Project

    McPhillamys Gold Project For personal use only Project Highlights ƒ Joint venture – Newmont has 51% but may go to 75% by completing a bankable feasibility study ƒ Resource (+0.3g/t cut) – 92Mt @ 1.0g/t gold (3.0Moz) ƒ Resource (0.5g/t cut) – 61Mt @ 1.3g/t gold (2.6Moz) ƒ Copper credits (<0.1%) ƒ Mi

35. Slide 35: Exploration

    Exploration For personal use only Core drilling at Bodangora 34

36. Slide 36: Exploration

    Exploration For personal use only Discoveries in 2010‐2011 ƒ Bodangora (100%) – NSW. Glen Hollow gold‐copper: – 46m 46 @ 0 0.9g/t 9 / gold ld & 0 0.25% 25% copper – 18m @ 1.7g/t gold & 0.45% copper ƒ Wellington (100%) – NSW. Galwadgere copper‐gold: – 2Mt @ 1.0% copper & 0.3g/t gold (with upside) – 1

37. Slide 37: Outlook

    Outlook For personal use only Conclusion ƒ Dubbo Zirconia Project (DZP): Global Gl b l SStrategic i Significance Si ifi – a long l term, significant i ifi project j iin the h zirconium i i and dh heavy rare earth h iindustries, d i which can generate substantial cash flows Production costs – spread

38. Slide 38: 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

39. Slide 39: Resource & Reserves: Tomingley + Peak Hill

    Resource & Reserves: Tomingley + Peak Hill For personal use only Tomingley (TGP) – Mineral Resources DEPOSIT MEASURED INDICATED INFERRED TOTAL Top Cut Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade Gold 2.5x2.5x5.0m model (t) (g/t) (t) (g/t) (t) (g/t) (t) (g/t) (koz) Wyoming One 2,316,550 2

40. Slide 40: Resource & Reserves: Dubbo + Galwadgere

    Resource & Reserves: Dubbo + Galwadgere For personal use only Dubbo Zirconia Project – Mineral Resources Toongi Tonnage 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 T

41. Slide 41: McPhillamys Resource Statement

    McPhillamys Resource Statement For personal use only Moorilda – McPhillamys – Mineral Resources DEPOSIT INDICATED INFERRED TOTAL McPhillamys Tonnage Grade Grade Tonnage Grade Grade Tonnage Grade Grade k Ounces tonnes 0.3g/t Au cut-off (t) (g/t) % Cu (t) (g/t) % Cu (t) (g/t) % Cu gold copper I Inner

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