001 Board presentation CXU Sept12 260912 - Cauldron Energy · Ordinary shares 155.1 M Listed options 12.8 M Unlisted options 4.3 M Market cap. (AUD$0.23) A$35.7M Cash (30 June 2012)

COMPANY PRESENTATION

September 2012

Capital Structure (as at 28/9/12)

Ordinary shares 155.1 M

Listed options 12.8 M

Unlisted options 4.3 M

Market cap. (AUD$0.23) A$35.7M

Cash (30 June 2012) A$3.07M

Directors & Management

Exec. Chairman Tony Sage

Exec. Director Brett Smith

Non-Exec. Director Qiu Derong

Operations Consultant Simon Youds

Company Secretary Claire Tolcon

Corporate Snapshot

Pure Uranium Investment

Major Shareholders (as at 28/9/12)

Mr Derong Qiu & Mr Dekang Qiu 23.79%

Cape Lambert Resources Ltd 24.2%

All other shareholders have up to or less than a 5% holding in CXU

Uranium Australia Yanrey W.A.

Marree S.A.

Lake Frome S.A.

Amadeus N.T.

Uranium Argentina Rio Colorado Argentina

Esperanza Argentina

Las Marias Argentina

Los Colorados Argentina

Global Uranium CompanyLarge Project Areas with Defined Uranium & Resources

Activities Snapshot

Socially Responsible Power

Renewables are realistically 50 – 100 years away as baseload option

Low emission power is key; nuclear is the only carbon free baseload source of electricity

1t uranium produces 40GW hours of power; equivalent to burning: 16,000 tons coal

80,000 barrels oil

Source: METI, WNA

Nuclear is essential major power generation source this century

Next generation nuclear power has lowest intrinsic cost: Social, Capex, Opex

World Nuclear Energy Market

Nuclear only clean energy fuel option for developing nations

Lowest social cost and financial power option given post Fukushima safety gains

China’s electricity demand growing at average annual rate of 10%

2020 China & India will need >40Mlb U~40% of 2011 global mine supply

planned increases to 2010 nuclear capacity by 2020

China x7 to 80GW ~ 30% 2011 Mine Capacity

India x4 to 20GW ~ 8% 2011 Mine Capacity

Source: World Nuclear Association 2012

Emerging economies banking on nuclear power to meet electricity demands

Post-Fukushima: 1st World Nuclear Power Generation Back-Flip

Uranium Market Drivers

Tidal Wave 11th March 2011 Manifestation of worst case disaster scenario;

Man-made; 3-Mile Island, Chernobyl…. Fukushima… natural cause.

Devalued stocks. Impacted supply, not material on demand as 1st World restarts

Led nuclear engineering safety renaissance

Power Station Growth Operational 434

63 under construction; 496 planned or proposed

~300 new reactors by 2030

Nuclear = Reliable, Economic, Clean Power GenerationSource: Consensus Forecast

“Supply not keeping up with demand

Demand Growth & Supply

2011 mine production of ~54,000 tons uranium fulfilled 85% global demand

Mt to MW program ending in 2013

• how will this supply gap be filled?

Supply remains constrained

• $85/lb typical project trigger price

Uranium forecast to be top performing commodity

Source: Japanese Ministry of Economy, Trade & Industry; WNA; Bloomberg: Market Update 

Forecast Nuclear Power Growth ~34% by 2030v.

Continued Demand Increase/ Supply Decrease

Long-Term Supply & DemandUnderpins Positive Outlook for Uranium

Production Cost Step Change

Current commodity price remain biggest impediment to supply growth

Current spot price ~$50/lb – trigger price is $85/lb

For supply growth, commodity price must increase

Source: Bloomberg, UxC

Market Demand Driven Production Increase

Current commodity price remain biggest impediment to supply growth

In-Situ Leach Uranium Deposits

Sandstone roll-front ISL operations production price : $10/lb - $16/lb globally

Revenue at $50/lb is 4-5 times C1 cash cost

Room to grow and prosper in current market

Multiple deposits to one plant location

Low Capex ISL Projects Provide Growth Platform

Beverley  ISL Wellfields

ISL – The Future of Uranium Mining?Low Cost + Low Environmental Impact

Social Engagement Important

Land: upon decommissioning, land readily reverts to its previous use

Water: quality reverts to original condition over time once oxygen input + leaching discontinued,

Radiation safeguards applied to ISL operations, despite orebody radioactivity remaining well underground

Responsible management of Uranium As a society why aren’t we putting

radioactive mine waste in cemented mine backfill?

Is there a backwards “not in my backyard” attitude to waste?

An untapped revenue centre?

ISL: Most Cost Effective + Safe Uranium Mining Method

Source: www.sciencephoto.com

Global growth requires Uranium power… responsibly

Asset Rich Company

Yanrey Potential ISL Opportunity

Australia Advanced Uranium projects

$6.2M Marree JV (Korean consortium)

17,000 km2 highly prospective uranium tenure

Yanrey: potential ISL opportunity

Argentina Large uranium endowment

Advanced nuclear power generation industry

Argentina currently imports 100% of U used

Government support + investment incentives

Rio Colorado: huge potential

Yanrey Project: Western Australia

Inferred Mineral Resource1

7.3Mt @ 300ppm eU3O8 for 4.8Mlbs (2,200t) eU3O8 at a 150ppm cut-off

Between to Paladin’s 23.4Mlb Manyingee & Energia’s Nyang 9.2Mlb Resources

25-35Mlb Yanrey Exploration Target(2) grading 300-900 ppm eU3O8

11 major palaeo-channels identified, most with evidence of uranium mineralisation

+70km Redox zone which is relatively unexplored – palaeo coastal margin

Potential In-Situ Leach (ISL) Mining Opportunity

1) Bennet Well Inferred Resources of 4.8 million lb (2,200) U3O8, at 300ppm eU3O8 (2) Exploration Target: Under clause 18 of the JORC code, the exploration targets (excluding the portion already classified into JORC Inferred Resource outlined in thisreport are conceptual in nature as there has been insufficient exploration (namely drilling) to define a mineral resources and it is uncertain if further exploration will result in the determination of any additional mineral resource

Yanrey: A World Class ISL Uranium Province?

Source

Source

CXU Marree Project, SACXU Yanrey Project, WA

Jailor Bore

Manyingee

Bennett Well

Carley Bore

PDH50 AnomalyZone 4

Golan A

Dulc

Telfer S

Telfer River

Winning Hill

KewellLyndon

Pongo Pool

Bora Bora Bore

Jimmy Well Uranium

Kimbers Well 9

Peepingee

Weaner Bore 1Weaner Bore 2

YAN-1

Shallow BoreGranites Bore

White Spot

Bad Ass

Lyndon 3

Jane Well

Main Road Channel

Lyndon 1

Main Road Channel North

Relief Bore

Red Rock Bor

Chain P

Baltic Bore

Dunns

Cahill-Holman

Calcrete Targets

Carley Bore South

25.00

kilometres

0

FOUR MILE

25.00

kilometres

0

LegendUranium signatures

Underlying hot granites

Plumbing

Circulating fluids

Palaeo coastal margin

Radiometric Geophysical Maps

Marree JV : South Australia

Marree Project JV: KORES earning 50%

KORES, Daewoo, LG International (40% current holding)

$6.2 million over 3 years

Year 1 & 2 completed May 2011

Current mapping and soil sampling underway to define

drill targets

Significant increase in economic uranium endowment

Two large target areas

Red Banks Well Prospect

Blanchewater Paleaochannel

Marree – Target for Beverley Style Mineralisation

Summary: Yanrey & Marree

Sandstone deposits in fossil river systems average grades of between 0.05% - 0.40% U3O8

Sources Eroded hot granites Carbon derived from swamp environments Consistent source similarities with Beverley

Drainage/ Plumbing Marree exposed Yanrey shows signature of granite

undercover Traps

Marree in former inland sea: potential trap Yanrey in sea margin swamp environment;

beach sands

CXU Australia: Multiple Uranium Anomalies – Untested, Outstanding Potential

Ticks Geology BoxesExciting Potential for High Grade Mineralisation

Argentina: Nuclear Power

Two nuclear power generators

7% of National power consumption is nuclear

Current electricity supply is inadequate for demand and growth

2015 plan to grow nuclear power capacity to 16%

3rd reactor under commission

Scoping underway for additional 3 reactors

Historical production to ‘95: 2,500t U3O8 (6 sites)

Current reactor usage:120tpa U3O8

Projection of +250tpa U3O8 (3 reactors)

Life of reactor requirements 7,500t U3O8

Argentina Imports 100% of Uranium Supply Concerns Due to Global Demand

Argentina Wants Home Grown Uranium Supply to De-risk Power Growth

Rio Colorado: Argentina

Best Assays

2,451 ppm U3O8

17 oz/t Ag*

3.73% Cu

* = 17 oz/t Ag is upper detection limit for silver analysis

Selected Channel Sample Results

8 m @ 705 ppm U3O8

11 m @ 246 ppm U3O8

7 m @ 436 ppm U3O8

6 m @ 763 ppm U3O8

7 m @ 498 ppm U3O8

9 m @ 300 ppm U3O8

Rio Colorado Significant Potential for Uranium

Valuable Metal Content

Uranium Mineralisation

Best Assays

CommodityAverage

(ppm)In situ value

(US$/t)

U 537.5 73.75*

Cu 13850 102.28

Ag 302 310.71

[Metal Prices $52.75 US/lb U3O8, $3.35 US/lb Cu, $32 US/oz Ag] [* = U3O8 ]

Work to Date Highlights Rio Colorado as a Copper/ Silver Opportunity with Uranium as “By-Product”

Argentina’s 3 reactors need 7,500t or 16M lbs U3O8

3km of Rio Colorado’s 16km mineralised trend required to meet “life of reactor” demand

2: For details on the Rio Colorado Exploration Target, refer to Disclosure Statements. Under clause 18 of the JORC code the exploration targets (excluding the portion already classified into JORC inferred resource) outlined inthis report are conceptual in nature; there has been insufficient exploration (namely drilling) to define a mineral resource and it is uncertain if further exploration will result in the determination of any additional mineral resources.

Stage 1 Exploration Target2 (3km strike to 150m below surface) includes 11 – 18M lbs U3O8

Copper and silver mineralisation provides valuable metal credits

Mineralisation looks like a silver deposit with copper credits; uranium is a by-product

Rio Colorado Holds Valuable Cu- Ag Metal Credits

Argentina Socio-Political Issues

Federal Government understands strategic significance of in-country uranium supply

Government-owned projects with existing resources are located in environmentally sensitive areas (including Mendoza and Chubut)

Recent history of the province being at odds with the Federal Government

New Provincial Government took office in December 2011

Mining to be a major focus for Catamarca

The Lights Are On…..

Catamarca historically a major mining province

Argentina is a Net Importer of Uranium

9 Julio Avenue, Buenos Aires

….yet their power solution has been in the shadows

Investment Highlights

Uranium market and supply/ demand forecast

Undervaluation of quality uranium miners creates credible buying opportunity

ISL C1 cost multiplies at low market price

New generation of nuclear energy essential to energy mix over next 30 years

ISL low environmental impact

Yanrey – The new uranium camp?

Argentina – Huge potential

Supportive shareholders and revitalised Board & Management Team

Current Underperformance in Junior Uranium Miners Is Transient

CXU: Asset Rich, Projects Poised for GrowthUranium Market Supply Deficit

Disclosure StatementsForward Looking Statements:-

This presentation may include forward-looking statements with respect to achieving corporate objectives, developing additional project opportunities, the Company’sanalysis of opportunities and the development of these and certain other matters. These statements involve risks and uncertainties which could cause actual results todiffer from those contained herein. Given these uncertainties, reliance should not be placed on forward-looking statements.

Exploration Target:-

Under clause 18 of the JORC code the exploration targets (excluding the portion already classified into JORC inferred resource) outlined in this report are conceptual in nature as there has been insufficient exploration (namely drilling) to define a mineral resource and it is uncertain if further exploration will result in the determination of any additional mineral resources.

Rio Colorado Exploration Target :-

This exploration target has yet to be drill tested and is conceptual in nature. There has been insufficient exploration (namely drilling) to define a mineral resource and it isuncertain if further exploration will result in the determination of a mineral resource. The basis for this target includes:-

Extensive surface sampling and mapping of outcropping uranium mineralisation indicating continuity over at least 5 kilometres, open to the south. The area sampled is thenorthern extent of a 16 kilometre mineralised trend. Exploration of outcrops, historical underground workings, including adits and drives, has identified oxidation of between100 and 200 metres down-dip. For this exploration target a conservative figure of 150 metres has been used. Mineralisation in higher grade zones is up to 2,430 ppm U3O8(1 metre sample), but averages between 300 and 750 U3O8 over the average widths reported above. Surface sampling is in the form of continuous channel samples,assayed on a one metre basis. Sampling was supervised by a Consultant Geologist with more than 30 years experience. Analysis was completed by Alex StewartLaboratories in Argentina, a respected international assay service company. This exploration target is specified over 3 kilometres of a 16 kilometre trend. The southern 10kilometres of this trend has yet to be fully tested, however reconnaissance sampling and examination of underground workings suggest a similar tenor of mineralisation asdefined in the north.

The exploration target is for the uranium mineralisation only. Metallurgical test-work is currently being conducted which will allow the Company to better understand thevalue of associated metals such as copper and silver.

Competent Person:-

The information in this report to which this statement is attached that relates to Cauldron Energy Limited’s Exploration Results, Mineral Resources or Ore Reserves isbased on information compiled by Mr Brett Smith, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Smith is an employee of Cauldron EnergyLimited. Mr Smith has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration, and he is undertaking to qualify as aCompetent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Smith consentto the inclusion in the report of the matters based on his information in the form and context in which it appears.

CONTACT US

Simon Youds

Tony Sage David Tasker

Cauldron Energy Limited Professional Public Relations32 Harrogate Street Tel: +61 (8) 9388 0944West Leederville WA 6007 M: +61 (0) 433 112 936 Tel: +61 (8) 6181 9796 [email protected]@cauldronernergy.com.au

www.cauldronenergy.com.au