Slide 1: Regency – March 2011
ee ee oS) REGENCY
Slide 2: Disclaimer
Disclaimer These presentation slides (the “Slides”) do not constitute an offer to the public or an offer for sale or solicitation to purchase or subscribe for any securities of the Company and they should not be relied on in connection with a decision to purchase or subscribe for any such securities
Slide 3: Corporate Profile
Corporate Profile AIM Listed Company (AIM:RGM) 3 Divisions: Lateritic Nickel and Cobalt Ni/Cu Australia Mining Finance and Technology Share Price: 4.40 pence Market Cap: £26.0m Shares in Issue: 590,440,755 3
Slide 4: Share Price
Share Price Share Price: 4.4p 4
Slide 5: Lateritic Nickel and Cobalt - PNG
LATERITIC NICKEL AND COBALT - PNG 5
Slide 6: Mambare Nickel Exploration Project
Mambare Nickel Exploration Project
Slide 7: 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 7
Slide 8: Geology
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
Slide 9: DNi Joint Venture
DNi Joint Venture Aim To combine the Mambare Nickel Laterite property and Direct Nickel Pty Ltd’s (DNi) hydrometallurgical extraction process, and create a management team to develop JV as a substantial producer of Nickel. Project Operating Committee Richard Carlton DNi COO and a professional Engine
Slide 10: DNi Joint Venture
DNi Joint Venture Drilling to start in order to define the Mambare resource to JORC standards, then pilot testing of the Mambare deposit and complete a pre feasibility study for the project Key Highlights a) An emerging world class nickel project b) One of the lowest capital cost technologies availa
Slide 11: The Challenge
The Challenge Problems with HPAL • High capex/opex • Complicated high intensity plants – large scale operations only The DNi team, backed by Teck Resources, has spent years refining the core technology, • More tailings produced licensing a patented chemical process developed to treat than the origin
Slide 12: DNi Joint Venture
DNi Joint Venture 95% of reagent package (not The plant uses standard materials H2SO4) recycled so leach and is low cost so can start small consumption per tonne 30kg and scale up to meet the needs of the market and the capacity of the resource Low cash operating costs ~$1.8-2.0/lb, before Co Key Fe
Slide 13: DNi JV Programme for 2011
DNi JV Programme for 2011 •4,000 metre initial drill programme at Mambare •April to Q3 2011 •Aim to prove up JORC Indicated and Inferred (possibly some Measured) Resources • GPR, pits, and other exploration •Budget £2m (50:50 split) •DNi: demo plant Q3 – results late 2011 • -- pegged ground for geot
Slide 14: DNi JV Programme for 2011
DNi JV Programme for 2011 General Area of Exploration, showing 2008 drill lines in south of license area, with old drill holes, pits and trenches Background: Red: over 20 degree slope Blue: under 10 degree slope 14
Slide 15: DNi JV Programme for 2011
DNi JV Programme for 2011 • Close up view of drill areas for 2011 • 200 x 400m grid in N on plateau • 100 x 100m grid infill to S • Next page: 0.8% envelopes of Ni mineralisation 15
Slide 16: DNi JV Programme for 2011
DNi JV Programme for 2011 16
Slide 17: Nickel and Copper in Australia
NICKEL AND COPPER IN AUSTRALIA 17
Slide 18: Lake Johnstone - WA
Lake Johnstone - WA • 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 newly granted adjacent tenements 18
Slide 19: Lake Johnstone VTEM
Lake Johnstone VTEM Black outline denotes area flown by VTEM survey following the Jerdacuttup Fault line and magnetics 19
Slide 20: Drilling WA
Drilling WA Drill Holes showing best intersects from Target 1 20
Slide 21: Lake Johnstone Sulphide target
Lake Johnstone Sulphide target Proposed trenching and aircore 21
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Slide 24: Bundarra - Queensland
Bundarra - Queensland •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-No
Slide 25: View around Bundarra
View around Bundarra
Slide 26: Bundarra
.Bundarra Phase 1 Yellow, Phase 2 Blue and Phase 3 Red, Black dots are historic drill holes
Slide 27: Mining Finance and Technology
MINING FINANCE AND TECHNOLOGY 27
Slide 28: Historic financing activities and investments
• Historic financing activities – 3 companies to AIM – one Red Rock Resources plc (AIM) • £1.3m investment in Oracle Coalfields plc, now worth £1.75m (PLUS, moving to AIM) • Shareholding in Alba Mineral Resources (AIM) • $6m investment in Direct Nickel Pty Ltd: so let’s see what they said at M&M HK
Slide 29: Imagine if we changed...
Imagine if we changed... Capex Opex 12.00 jee US$ per pound of annual capacity US$ per pound cash cost SISONPOld 1BYIOE ie} Q = @ 3 3 ie} Q é a Direct
Slide 30: DNi process flowsheet
4. Aluminium precipitation U hy 3. Iron precipitation 7. Reagent recycling 5. Nickel/Cobalt precipitation ‘Direct:
Slide 31: Existing processes are niche solutions
Existing processes are niche solutions Pressure Acid Leach - PAL Heap leach with sulphuric Very high capex, high opex ¢@ Unproven Difficult and risky to operate ¢ Lower and much slower Very sensitive to ore type, suits recoveries limonite ores High acid consumption — single High acid consumption — s
Slide 32: A dream list of features
A dream list of features Recycles key reagents (+95%), significantly reducing operating costs, and producing more environmentally benign tailings Fast take lead consistently high recoveries of nickel and cobalt, over 95% (Aker Solutions PFS/2) A much lower operating intensity than HPAL and smelting
Slide 33: Demonstration under way
Demonstration under way The Demonstration Plant (DP) will run the process in locked cycle Each part of the DP generating precise data and | design criteria for the commercial plant Each component of the DP modelling commercial equipment DP runs at one tonne/day ore Producing sample product for globa
Slide 34: Demonstration will satisfy most sceptics
Demonstration will satisfy most sceptics US$25m invested in development over last three years Demonstration in preparation at CSIRO-DNi facility - Waterford Perth Direct Nickel is seeking an additional strategic ‘cornerstone’ partner Continuing acquisition — many ‘orphan’ nickel laterites Ready for
Slide 35: DNI is operator in current drill program in Regency Mines JV
DNI is operator in current drill program under way in Regency Mines plc JV Potentially very large — 5 -7 million tonnes contained nickel (previous drilling and pits) Broad spaced testing across 10x25km plateau to define resource Infill drilling between the completed lines in the three known full hig