NEWS RELEASE VULCAN RESOURCES PRESENTS TO THE ... · Finland. Attached is a copy of his presentation. The presentation is also available on the Company’s website . - ENDS - Please

ABN 60 100 072 624 Ground Floor, 1 Altona Street, West Perth WA 6005 Telephone: +61 8 9485 2929 www.vulcanresources.com.au

Australian Securities Exchange: VCN, Frankfurt Stock Exchange: VUA (WKN: A0HHEF), Norwegian OTC: VCNR VRL1491D-MC

NEWS RELEASE

29 November 2007

VULCAN RESOURCES PRESENTS TO THE FENNOSCANDIAN EXPLORATION AND MINING CONFERENCE

Base metal explorer, Vulcan Resources (ASX: VCN, FSE: VUA, WKN: A0HHEF, Norwegian OTC: VCNR) is pleased to announce that Managing Director, Dr Alistair Cowden, presented a corporate overview at the Fennoscandian Exploration and Mining Conference yesterday in Rovaniemi, Finland. Attached is a copy of his presentation. The presentation is also available on the Company’s website www.vulcanresources.com.au.

- ENDS - Please direct enquiries to: Alistair Cowden Managing Director Tel: +61 8 9485 2929 Email: [email protected]

Charlotte Knudsen Crux Communications Norway Tel: +47 (97) 56 19 59

Sven Olsson AXINO AG Germany Tel: +49 (0) 711- 25 35 92 46

Ann Nahajski Porter Novelli Tel: +61 8 9386 1233 Mobile: +61 400 205 433

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© 2007 Copyright 2007 Vulcan Resources Limited FEM Presentation 28 November 20071

Fennoscandian Exploration Mining ConferenceVulcan Resources Limited

Alistair Cowden, Managing Director28 November 2007

ASX: VCN ▪ FSE: VUA ▪ OTC: VCNR

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Agenda

1. Company Overview

2. Kylylahti Project

3. Kuhmo Nickel Project

4. Summary

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Two base metal projects in Finland

Kylylahti copper-cobalt-nickel project –feasibility in progress

Kuhmo Nickel – defining sulphide nickel Resources

Malmikumpu Bar, Outokumpu

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Background

Sept 2002 - Listed ASX

Dec 2004 - Acquired Finnish projects from Dragon Mining

Nov 2005 - Kylylahti Pre-Feasibility Study

Aug 2006 - First Kuhmo Nickel Resource estimates

July 2007 - A$50m raising

Aug 2007 - Frankfurt & Oslo OTC listingFor

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226m shares, 22.6m options

European Institutions 45%

US$100m market capitalisation

US$46m cash

Full Oslo listing pending

A European Focussed CompanyF

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Experienced Mining Board

Barry EldridgeChairmanMining Engineer, director Cleveland Cliffs, ex CEO Portman, ex Norths Ltd

Alistair CowdenManaging DirectorGeologist, ex WMC, Delta, Archaean Gold

Heikki SolinNon-Executive Director, Chairman of Finnish SubsidiariesLawyer, ex Business Development Manager Outokumpu

Michael BlakistonNon-Executive DirectorLawyer, director Platinum Australia

Fiona HarrisNon-Executive DirectorAccountant, ex director Alinta, PortmanF

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Internationally Experienced Management

Campbell BairdGeneral Manager, OperationsMining Engineer, ex WMC, Norths, SRK

John BrodziakProject Manager, KylylahtiEngineer, ex Rio Tinto, Portman

Jarmo VesantoManager, FinlandEx Outokumpu

Nick WalkerExploration ManagerGeologist, Ex Outokumpu

Seppo TuovinenMining Manager, FinlandMining Engineer, ex Outokumpu

Mel CampbellChief Financial OfficerAccountant, ex Goldfields, Auriongold

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Finland - Low Sovereign Risk

Highly ranked Euro zone economy

Government support, no royalties

Fe, Cu, Zn & Co smelters & refineries

Vibrant industry of miners, explorers & equipment manufacturersF

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Agenda

1. Company Overview



4. Summary

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Kylylahti Copper-Cobalt-Nickel Project

View from Outokumpu towards Kylylahti

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Project Outline

Underground decline mine, 650,000tpa, 13 year life

Long hole open stoping with paste fill

Concentrator produces Cu-Au & Ni-Co-Zn concentrates

Concentrate processing plant produces Ni-Co hydroxide, Zn & Cu sulphates Drilling at KylylahtiF

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3-Dimensional view of the Kylylahti orebodyF

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Outokumpu Field

Excellent infrastructure

Active mining area

2 billion lbs Cu, 1m oz Au produced (1914-1995)

Two satellite deposits

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Cross Section

7.85Mt @ 1.17% Cu, 0.24% Co, 0.22% Ni, 0.49% Zn, 0.7 g/t Au (JORC)

Downdip extensions (1km plus?)

Adjacent gold & nickel intersections, geophysical & geochemical anomalies

Satellite Resources & targets

Drilling in progress

Growing ResourceF

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Pyrrhotite – pyrite – chalcopyrite – sphalerite – cobaltiteGrades up to 11.70% Cu, 1.67% Co, 1.55% Ni, 11.7% Zn, 13.7 g/t Au

Simple Sulphide OrePolished drill core

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World class mining conditions

Keretti Mine, 1940

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Processing

Conventional milling & flotation concentrator

Nickel-cobalt concentrate trucked 100km to new concentrate processing plant

Copper-gold concentrate sold to European smelters

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Annual value of metal in concentrates

* September 2007 Prices: copper US$3.40/lb, cobalt US$30.00/lb, nickel US$14.00/lb, gold US$780/oz, zinc US$1.25/lb

Value (US$) *

Cobalt 1,480 tCopper 8,000 tNickel 820 tGold 8,750 ozZinc 3,000 t

$ 97.9 m$ 59.7 m$ 25.2 m$ 9.5 m$ 6.0 m$198.3 m

Annual Production

pa

Metal

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Feasibility Study - PartnersF

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Feasibility Study - Status

Mining lease granted

Environmental permits pending

Independent Resource estimate complete

Mine design & schedule complete Aerial view of mine siteF

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Feasibility Study (cont)

Metallurgical testwork complete

Concentrator & infrastructure design complete

Concentrate processing plant design gives high capital costs

Study extended to Q1 2008 for optimisation & reviewF

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Agenda

1. Company Overview



4. Summary

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Outcropping 2.5% nickel massivesulphides discovered 1964

Peura-aho deposit

Kuhmo Nickel Project

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Project Outline

37,000t of nickel metal in 5 shallow Resources

12 drilled komatiite hosted nickel sulphide occurrences

Concept of central processing plant, multiple open pits

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Analogous to Australia

Abundant targets, under-explored, well understood geological model

150km long greenstone belt

Australian experience reinforces that sulphides lead to mine discoveriesF

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2007 Drilling Campaign

Peura-aho – high grade shallow massive sulphides

Hietaharju – massive sulphides and high PGE

Vaara – thick low grade intercepts

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2007 Drilling Results

Hietaharju: 5m from 18m:- 2.1% Ni - 1.5% Cu- 3.7 g/t Pd - 2.7 g/t Pt

Peura-aho: 58m from surface- 1.3% Ni - 0.6% Cu- 1.0 g/t Pd - 0.2 g/t Pt

Vaara: 43m from 30m:- 0.43% Ni - 0.1 g/t Pt- 0.2 g/t Pd

Peura-aho

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1.5% Ni outcrop discovered 10 years ago

Vaara DepositF

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Next Steps

Drill out shallow open pitsMetallurgical testworkEnvironmental baseline studiesPit optimisationsBrownfield & regional exploration

Vulcan winter drilling

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Agenda

1. Company Overview



4. Summary

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Vulcan dominates 3 metal provinces in Finland

Feasibility - Outokumpu copper camp

Resource Definition - Kuhmo nickel

Exploration - Iron-vanadium-titanium & nickel in layered intrusions

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SummaryFinland has mining expertise & low risk

Unique commodity exposure – Ni, Cu, Co, Pt, Pd

Development & exploration exposure

US$4.3bn in ground value

Exploration, development & operations experience

A$50m cash, 58% institutional ownershipFor

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© 2007 Copyright 2007 Vulcan Resources Limited FEM Presentation 28 November 200733 Kuopio Ice Marathon

Developing Base Metals in Finland

Vulcan Resources LimitedWebsite: www.vulcanresources.com.au

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Appendices



3. Metal Markets

4. Exploration Projects

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Kylylahti History Discovered by Outokumpu1984

Never developed – prices & change in corporate focus

Acquired by VulcanDec 2004

Pre-Feasibility StudyNov 2005

Definitive Feasibility StudyIn progressF

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Project Location & InfrastructureF

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Regional GeologyF

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Local GeologyF

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Schematic Cross Section

Complex polyphase deformation

Upper Amphibolite metamorphism for 200Ma

No modern analogue

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Altered ultramafic rock: quartz-tremolite-sulphide myloniteF

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Nickel & gold not always assayed

Large & Growing Resource Base

Tonnes Cu Co Ni Zn Au(Mt) (%) (%) (%) (%) (g/t)

Kylylahti 7.9 1.2 0.24 0.22 0.5 0.7Saramaki 3.4 0.7 0.10 0.10 0.8 -Vuonos 0.8 1.8 0.14 - 1.3 -TOTAL 12.2 1.1 0.19 - 0.6 -

250m lbs contained copper

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How Big will Kylylahti be?

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Kylylahti mine surface layout plan showing details of concentrator & tailings

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Appendices



3. Metal Markets


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Finland - Nickel IndustryNickel smelter at Harjavalta owned/operated by New Boliden

Nickel refinery at Harjavalta (Norilsk), cobalt refinery at Kokkola (OMG)

Hitura nickel mine & mill owned by Belvedere (Toronto)

Many former producing nickel mines, typically low grade

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Project HistoryOutcrops discovered in 1960’s-1970’s

Limited exploration- Different style from known Finnish deposits- Metal prices- No large deposits found

Outokumpu/GTK exploration in 1990’s- Discovered Vaara, looked at PGE’s- Outokumpu withdrew from mining

Vulcan 2005For

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Suomussalmi BeltFive known occurrences

Three open-pittable resources drilled to date

Peura-aho, Hietaharju –Collurabbie style (high Cu & PGE

Kauniinlampi & Vaara – Mt Keith Cosmos styleF

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Mineral ResourcesTonnes

(Mt)Location Ni

(%)Cu(%)

Co(%)

Pt(%)

Pd(%)

Vaara1 6.10 0.35 0.03 0.01 0.15 0.10Peura-aho1 0.60 0.51 0.22 0.03 0.18 0.40Hietaharju1 1.00 0.53 0.28 0.03 0.19 0.26Sika-aho2 0.17 0.66 0.01 n/a n/a n/aArola3 1.50 0.46 n/a n/a n/a n/a

Total 9.38 0.40 contained nickel 37,765 tonnes1 Indicated and Inferred Resources. For a breakdown see Resource estimate by Snowden & Associates in ASX Release 23 November 2006.2 GTK, 1998 Polygonal Resource Estimate, available in Public domain but not reported under JORC Code. Vulcan review classified as Inferred Resource.3 Outokumpu, Polygonal Resource Estimate, available in Public domain but not reported under JORC Code. Vulcan review classified as Inferred ResourceFor

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Appendices



3. Metal Markets


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Copper

Forecasts range from US$2.00-$3.40/lb to 2010

20 month average US$3.20/lb (US$7,000/t)

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5 Year Cobalt (BHPB)

$0.00

$10.00

$20.00

$30.00

2002 2003 2004 2005 2006 2007

Cobalt

20 year average ($17/lb)

CRU forecast a floor price of US$16.00/lb (US$35,000/t)

4 year average US$18.88/lb (US$41,600/t)

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Demand forecast to double by 2015- Market of 50,000tpa growing at 4-5,000tpa, a

Ravensthorpe every 4 months

Cobalt MarketsNew generation metal- ipods, alternative fuels and hybrid cars

Structural change in market- Stockpiles gone, Glencore, Xstrata, OMG & China

Supply growth reliant on Congo & laterites

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Nickel

Forecasts range from US$7.00-$14.00/lb to 2010

Base formed at US$14.00/lb (US$31,000/t)

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Copper-gold concentrate- Letters of Intent with New Boliden & Norddeutchse

Offtake & Financing

Nickel-cobalt hydroxide- Discussions with European & other refineries

underway

Financing- Discussions with banks, offtakers, partners

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Appendices



3. Metal Markets


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Layered Intrusion Exploration -Vanadium, PGE & NickelA pipeline of opportunity

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Vanadium, Nickel & PGEMustavaara & Otanmäki produced 10% of world vanadium from 1940’s-1980’s. Vulcan has pegged old mines or extensions

Potential for 300Mt plus deposits with worlds best vanadium concentrate grade

Potential large shallow low-grade nickel-copper-PGE depositF

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Haukiaho Nickel Project

Location of the Haukiaho project area within the KLIC, with an aeromagnetic image shown in the subset window in the top right

Haukiaho project scale geology and existing drill holes (from GTK)For

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The Mustavaara concentration plant & factory buildings

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Distribution of magnetite gabbro in the Koillismaa intrusion on magnetic image

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First priority targets at Syöte

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Concentration tests of drill core, SyöteAverages for magnetite gabbro intersections

FromHole ID Length Fe Ti TiO2 V V2O5

Pöllävaara R9B 8.10 96.70 60.03 3.45 5.76 0.86 1.53

Soidinvaara R1 2.50 86.60 58.71 4.98 8.31 0.88 1.57

Soidinvaara R2 10.00 126.20 59.00 4.59 7.66 0.96 1.72

Soidinvaara R3 59.90 122.10 55.95 5.34 8.92 0.85 1.51

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Magnetic ground survey image of the Akanvaara intrusion

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Akanvaara intrusionMagnetite gabbro intersections, calculated by J LahtinenOre grade V mineralisation, cut off ca 0.1% V (0.179% V2O5)

From(metres)

Hole ID Length(metres)

V2O5(%)

Cuppm

FeOTot

Sppm

TiO2(%)

R303 5.70 58.30 0.26 701 18.40 938 2.95R303 180.00 198.87 0.23 539 15.33 683 1.64R304 122.00 40.00 0.25 629 18.90 1,262 3.10R307 10.00 68.33 0.30 604 16.97 403 1.94R406 44.00 19.69 0.51 779 22.17 663 2.93

Three concentrates produced: Magnetite (2.8% V2O5), Sulphide (12% Cu, 1.4g/t Au, 53g/t Ag), Ilmenite (TiO2 ?)

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NEWS RELEASE VULCAN RESOURCES PRESENTS TO THE ... · Finland. Attached is a copy of his presentation. The presentation is also available on the Company’s website . - ENDS - Please

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