Terramin Australia Limited · ASX:TZN
Terramin Australia — Shareholder Meeting (May 2006)
37 slides from Terramin Australia's shareholder meeting presentation, May 31, 2006
Slide 1: Oued Amizour, Olympic Dam, Menninnie, Angas
Oued Amizour lymipic Dam Menninnie Angas
Slide 2: Important information
Important information The information in this presentation is designed as an aid to a spoken explanation. It is not to be considered without that explanation. . The information is for the information of shareholders and not intended to guide any investment decisions in Terramin Australia Ltd. Some o
Slide 3: Zinc price response is real
Weeks of Consumption Zinc price response is real source:RBC Capital Markets Total Inventory ——LME Prices — Critical Level
Slide 4: China is the driver
'000 tonnes CHINA is the driver source: RBC Capital Markets 1970 1975 1980 1985 1990 1995 2000 2005 — China — US.
Slide 5: Analyst price lags spot price
Analyst price lags spot price source:RBC Capital Markets US$/Ib $1.60 5 $1.40 - $1.20 - $1.00 - $0.80 - $0.60 - $0.40 - Spot Price Forecast Prices st Feb “March April June July Au rola ig Sep Oct Nov mmm Forecast ——Spot
Slide 6: The Case for Zinc
The Case for Zinc rag of gine Mine Production ~heilsane of Tor 1 {Red Dog, Cenwngien, Angouran, Tare, Medsthur River, RampureAguche, ate.) 2007 2004 2007 200 2043 source: Teck Cominco
Slide 7: TZN: a zinc-lead production company
TZN bee A zinc-lead production company — 6 * assumes positive feasibility and DTM
Slide 8: Oued Amizour
Oued Amizour e (Infrastructure ~ 1.2 to 3.2 Mtpa ~ water, power at site ~ 12 km from Bejaia port a 5 ESET | ae : oe We 7 ae Te Ve L
Slide 9: Location
Location Oued Amizour is located near Bejaia on the Mediterranean coast of Northern Algeria and close to Spain. There are caily fights a and ferry: services from Europe and Algiers.
Slide 10: Terramin in Algeria
Slide 11: Data
10 Data Drilling. @. ORGM (the Algerian geological survey) carried out extensive exploration with over 19,000m diamond drilling (over 40 drill holes) around the Oued Amizour deposit. More than 100 holes were drilled in the permit area a
Slide 12: Vulcan 3D movie
Vulcan 3D movie
Slide 13: Oued Amizour geology
12 Oued Amizour geology Oued Amizour is a stratiform ore body, hosted within the lower oe volcanic and plutonic complex. “E-W Cross section Ww Fault /.. Drillhole Upper volcanics [[22] Rhyolitoid sill | Lower volcanics [27] Grano-syenite
Slide 14: Genetic model
Genetic model N-S CROSS SECTION Fault zone within, s~ . — — N or at the margin of oe i the altered monzo- syenite ijntrusio ‘othermal 400m i i | ag 100m Host: porous pyroclastics 4 elements‘are essential: porous pyroclastics, impervious sill, fault zone fed by hydrothermal fluids during intrusion 13
Slide 15: Oued Amizour Resource
Oued Amizour Resource ORGM geologists estimated: __. EW length of 760m 2°" NS width of 350m The overall shape is lensoidal, elongate in an EW direction, dipping SW ~ Whole deposit (6% cutoff) 30 million tonnes @ 5.5% Zn, 1.4% Pb Average thickness: 98m... including High grade core W million tonnes @
Slide 16: Oued Amizour: Terramin Modelling
15 Oued Amizour Terramin Modelling Terramin modelled deposit: 50 million tonnes using a 2% cutoff: Using Vulcan Visually picking the boundaries of the mineralisation Block models using blocks 25mx25mx25m Average density of 2.95 (data ORGM) Grades interpolated using the inverse distance cubed method
Slide 17: Oued Amizour Preliminary grade-tonnage
16 > c N + 2 es > 2 o Zu i £ o Oued Amizour Preliminary grade-tonnage _ ~~~ Orebody Grade Site Cost @ USs$45/t Break Even Grade (7.2%) Site Cost @ US$32/t Break Even Grade (5.5%) 50 million tonnes
Slide 18: Oued Amizour possible performance
Oued Amizour Possible performance based on similarity to Endeaver Project (NSW) Ore mined and treated tonne 4,200,000pa, ” 3,000,000pa Head Grade poe tg a 7 a oe Zinc En 9.57 ~ TF. Lead Pb 3.2 yop 2Be0 y Silver “gitAg 6 Hi Be, Recovery “ foe So Zinc to Zn concentrate %zn 85 80 Lead to Pb concentrate
Slide 19: 18
18
Slide 20: Oued Amizour potential to the south
100m] SOUTH 100m Oued Amizour potential to the south S-63 stopped short in high grade mineralisation
Slide 21: Potential
20 Potential Within the volcanic complex 1 4 N te? ‘yl Facies sub-volcanic (sub-volcanics) Laccolithe (Laccolith) Gisement foré (drilled ore body} Gisement proposé (inferred ore body) Forages proposés (proposed drill holes} Another 50 Mt ? Oued Amizour Zine Project NS profile showing proposed drillh
Slide 22: Potential
21 Potential Within the volcanic complex Al Han ‘Oued Amizour Deposit Facies sub-voleanic {sub-volcanics} Laccolithe (Laccolith) Gisement foré (drilled ore body) Gisement proposé {inferred ore body} Oued Amizour Zinc project Forages proposés (proposed drill holes) EW profile showing prospective zone
Slide 23: {en SEs
on) — {en SEs te of e indica
Slide 24: roe
— — ; i 2 a. roe © co ~
Slide 25: Menninnie Dam
24 Menninnie Dam e Infrastructure : resource not yet defined: potential in 10’s Mt 50 km from Kimba town 100 km from Whyalla port 160 km from Pt Pirie smelter Pies a : Menninnie Dar 7 e y
Slide 26: Menninnie: 3.5km of Pb-Zn mineralisation
Blane, RES porouesin OMe [fom Anarene i tut ZZ, Psy exertion ares 18-0) Menninnie 3.5km of Pb-Zn mineralisation: A big cut? esdion
Slide 27: Menninnie: a Broken Hill style deposit
Menninnie A Broken Hill style deposit 26 BOE RB, VMS & eae ROE ~ OE aa * SSIs we Bi Bie ORL TS IS WB, HOR Re fi AE,
Slide 28: Production (LOM)
27 Production (LOM) - Lead concentrate - Zinc concentrate Timetable May 06 June 06 July 06 August 06 January 07 April 07 Angas Zinc Project 123,000 tonnes at 55%Pb & 450g/ Ag 325,000 tonnes at 52%Zn Mine lease approval MARP approval Boxcut excavation Surface works commence Decline construction Mine
Slide 29: Angas Zinc Project - Resource
~ Angas Zinc Project - Resource N Indicated Resource: 3.04 Mt at 8.0% Zn, 3.1% Pb, | 34 g/t Ag, 0.55 g/t Au, 0.3% Cu
Slide 30: Angas Zinc Project - Production Statistics
aN Angas Zinc Project - Production Statistics (first years) ~~ Mined tonnes 150650 398000 431444 391530 %Zinc 6.4 9.62 8.04 » 6,96 %Lead 2.23 3.37 3.16 — “2.81 %Silver 23 38 29.7 31.5 Zinc Con grade-%Zn Recovery(%) Concentrate tpa Silver-Lead : Con grade-%Pb 55 55 55 55 -g/tAg 425 425 » 425 425 ooo
Slide 31: Angas Facts
30 Angas Facts - lead-copper concentrate (Life of mine) (47.9% lead, 3.6% copper, 446g/t Ag, 7g/t gold) - zine concentrate (Life of mine) (52.0% zinc, 6.5% iron) - zine breakeven cash cost (after credits) - zinc breakeven total cost (after credits) 122;300 tonnes 319,300 tonnes US 17 cents per lb -U
Slide 32: Angas Finance
3 Angas Finance IRR Payback period initial capital (pre-production plus six months of underground development) maximum cash outflow NPV at 8 percent discount rate Net cash (after finance before tax) EBITDA 2007 EBITDA 2008 39% 32 months $63.3 million $61.2 million 354.7 million $78.8 million $8.5 mi
Slide 33: Angas Exploration Update February 2006
Angas Exploration Update 27 February 2006 RY Ne <a 8 Strathburn- "> Ron Creek Strathalbyn ; mag anomaly Mines a
Slide 34: Slide 34
Slide 35: Long Section — targets
Long Section — targets . — high probability of extra tonnes P2501 -SO0t, -500) 34
Slide 36: Angas Regional
35 Angas Regional RO. KANMANTOD. -f & Oe CALLINGTON 28. ‘ 4X 1 Preomimme, Garnet -Andatusite zone s Frond tines aoro-magnotic anomates SE Freswa Recent Cover Ul! DELAMERIAN GRANITES: TE vonmauiis rorsaarion (O") TARANAPPA FORMATION TALISKER FORMATION Sst. fron Suiphide-rich Metacediment
Slide 37: Oued Amizour, Menninnie, Angas
Oued Amizour Menninnie Angas