Alkane Resources Ltd · ASX:ALK

Alkane Resources — Investor Presentation (November 2013)

31 slides from Alkane Resources's investor presentation, Nov 26, 2013

1. Slide 1: Alkane Resources Ltd Corporate Presentation: Transition to operations

   For personal use only ALKANE RESOURCES LTD Corporate Presentation Transition to operations November 2013

2. Slide 2: Corporate Profile

   Corporate Profile • Listed on ASX since 1969, also listed on OTCQX (US) For personal use only • Market cap ~$135M • ~6,300 shareholders • Multi commodity explorer, miner and developer focused on Central West of NSW, Australia • Active in region for more than 20 years • Developed Peak Hill Gold Mine

3. Slide 3: Operations – Tomingley Gold Project

   Operations – Tomingley Gold Project For personal use only Base case statistics • Project approval by NSW Department of Planning and Infrastructure late July 2012 • Mining Lease approved February 2013 • Resource – 921,000oz of gold • Construction CAPEX – A$107M • Mine Method – open cut & underground

4. Slide 4: TGP Resource Expansion

   TGP Resource Expansion Additional Resource Potential For personal use only Caloma Two open pit and underground Expand Wyoming One underground Caloma underground Myalls underground Wyoming Two and Three underground McLeans Caloma Two – Geological model 4

5. Slide 5: TGP Construction

   For personal use only 5 TGP Construction

6. Slide 6: TGP CIL Plant

   For personal use only © 6 TGP CIL Plant

7. Slide 7: Dubbo Zirconia Project

   Dubbo Zirconia Project A very large polymetallic resource of the metals For personal use only • zirconium (hafnium), niobium (tantalum), yttrium and rare earths • Important and strategic metal mix - 25% of rare earth output is in “heavy” group • Reserve supports 35 year mine life at 1 million tonne

8. Slide 8: Project Structure

   Project Structure For personal use only • Project owned by Australian Zirconia Limited, currently a 100% Alkane Resources Ltd owned subsidiary of Alkane • Value enhancement of core DZP products both on and off site • Establishing long term strategic Australian Zirconia Limited relationships with off

9. Slide 9: Geology, Resources & Reserves

   Geology, Resources & Reserves For personal use only Resources Depth (m) Tonnes (Mt) Grade 1.94% Zr02, 0.04%HfO2, 0.46% Nb2O5 , 0.03% Measured 0-55 35.7 Ta2O5 , 0.14% Y2O3, 0.74% REO (0.9% TREO) Inferred 55-100 37.5 As above Total 0-100 73.2 As above Reserves 1.93% Zr02, 0.04%HfO2, 0.46% Nb2O5 , 0.03

10. Slide 10: Process Flow Sheet

    Process Flow Sheet For personal use only • Simple open cut mining operation • Crushing and grinding • Sulphuric acid, roast, leach whole of ore • Solvent extraction, separation & refining © 10

11. Slide 11: Demonstration Pilot Plant

    Demonstration Pilot Plant For personal use only Y and HREE refining and recovery DPP Filtration, PLS, SX, Zr and Nb recovery Zirconium refining and precipitation Reverse osmosis and water recycle ©  Operating at ANSTO since 2008 11

12. Slide 12: REE Industry

    REE Industry For personal use only REE DEMAND 2016 Other Catalysts • Total REE consumption 2012 115,000t 12% 15% with annual growth estimated at 5- Ceramics 10% to be 162,000t in 2016 6% • Global market US$3-5B Glass 6% • China produces about 90% of world Phosphors supply and consumed about 65%, 8%

13. Slide 13: REE Pricing

    REE Pricing For personal use only These are not “basket prices” © Source: IMCOA/TCMS 13

14. Slide 14: Zirconium Industry

    Zirconium Industry Zirconium Chemicals Output For personal use only (2011 – 194,000t ZrO2 basis CAGR 5-10% ) Increasing prices Increasing purity • Global market US$3-4B • Mid 2013 consumer zircon inventories running down • Market expected to move back into under supply 2015 - 2016 • Prices starting

15. Slide 15: Zirconium Pricing

    Zirconium Pricing For personal use only © Source: TCMS 15

16. Slide 16: Niobium Industry

    Niobium Industry Current use of ferro-niobium For personal use only 13% 29% Structural 10% Pipe Auto Stainless Other 24% 24% • 90% of Nb used in standard grade ferro-niobium for the production of high strength low alloy (HSLA) steels • Nb HSLA steels are primarily consumed in structural and pipe, bu

17. Slide 17: Niobium Pricing

    Niobium Pricing For personal use only © Sources: Niobec (IAMGOLD) 17

18. Slide 18: Process and Product Development

    Process and Product Development Continuous process optimisation and product development through For personal use only operation of the demonstration pilot plant  Development of high purity, variable grain size zirconia for multiple end use applications  Operation of ceramics colours laboratory to

19. Slide 19: Estimated Product Output @ 1Mtpa

    Estimated Product Output @ 1Mtpa For personal use only 100% 5% 1,309t 90% 95% yttrium, dysprosium, 20% 4,665t 30% terbium 80% 28.5% of revenue 8% 1,967t 70% 90% neodymium, 60% 24% praseodymium 50% 21.6% of revenue 15,827t 40% 16% 67% 30% 20% 31% 10% 0% Production 23,768t Revenue A$450 - 500Mpa* ZrO2

20. Slide 20: Pathway to Market

    Pathway to Market For personal use only AZL MOU’s and Agreements aiming to secure 100% of output Zirconium (Zr) • Leading chemical company to develop applications and markets in Asia for zirconia produced by DZP • European manufacturer/trading company to market DZP products in Europe and North Ameri

21. Slide 21: Environment

    Environment Alkane has a 25 year history of sustainable mine management For personal use only EIS lodged 28 June and addresses all environmental aspects Water • 70% recycle of process water currently achievable • Limited groundwater aquifers – minimal impact • Water secured from existing water licen

22. Slide 22: Commercial Plant 3D Model

    Commercial Plant 3D Model For personal use only © Toongi Operations Plant 22

23. Slide 23: Construction Strategy

    Construction Strategy For personal use only  Hybrid EPCM/EPC construction strategy • EPCM for front end engineering with large packages as EPC (eg EPC acid plant and niobium plant)  Strategy to be optimised as front end engineering design progresses • potential for capex reducing strategies (eg BO

24. Slide 24: DZP Financing Program

    DZP Financing Program For personal use only Advisors assisting with A$1B DZP financing package  Sumitomo Mitsui Banking Corp  Credit Suisse (Australia)  Petra Capital Targeted Funding Sources Anticipated Funding Uses Debt Funding Construction - Government Assistance/ECA Funding Capital Expenditur

25. Slide 25: DZP Funding Strategy

    DZP Funding Strategy  Government Assistance Programs/ECA style funding For personal use only  Lead Coordinator: SMBC  Attractive Project:  long life low cost strategic source of critical metals  long term off-take agreements with international companies  Commercial Bank Debt  Financial Adviso

26. Slide 26: DZP Major Milestones

    DZP Major Milestones For personal use only Major Milestones 2013 2014 2015 2016 Environmental Impact Statement Project Approval Process Project Financing Program Engineering Contract Front End Engineering Design (FEED) CONSTRUCTION PRODUCTION Estimates of times are indicative only and are subject to

27. Slide 27: Board & Management

    Board & Management Board Senior Management For personal use only  John S F Dunlop (Chairman) BE(Min), MEngSc(Min). Mining  Michael Ball (Chief Financial Officer) CA BCom engineer  Nic Earner (Chief Operations Officer) BEng (Honours)  D Ian Chalmers (Managing Director) MSc. Geologist  Terry Rans

28. Slide 28: Investment Highlights

    Investment Highlights  DZP a highly strategic asset For personal use only − Globally significant resource of zirconium, niobium, yttrium and rare earths − Significant yttrium and heavy rare earth content providing an estimated 30% of project revenues Positive feasibility study completed: long mine

29. Slide 29: 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

30. Slide 30: Resource & Reserves: Dubbo

    Resource & Reserves: Dubbo Dubbo Zirconia Project – Mineral Resources For personal use only 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 Total 73.20 1.

31. Slide 31: Resource & Reserves: Tomingley

    Resource & Reserves: Tomingley Tomingley (TGP) – Mineral Resources For personal use only DEPOSIT MEASURED INDICATED INFERRED TOTAL Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade Ounces (Mt) (g/t) Au (Mt) (g/t) Au (Mt) (g/t) Au (Mt) (g/t) Au Wyoming One 2 2.32 2.2 0.89 2.2 3.12 1.7 6.32 1.9

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