State of the Market Presentation

Presenter: Chris Hinde

Research: Jeremy Thompson [email protected]

State of the Market Examining minings predicament

Leadership: Over 30 years of providing mining information (through two databases, consultancy, maps, conferences/ seminars and published reports) Information: Lease locations and ownership, company intelligence, drilling data, project pipeline, due diligence reports, production statistics, finance and M&A activity Reports: Quarterly examination on trends in exploration, mine development and metals production, analysis of the market and financing, and expert comment on the industry

Disclaimer: IntierraRMG makes reasonable and diligent efforts to obtain accurate information for our clients and presentations. No warranty, expressed or implied is made regarding the accuracy, adequacy, completeness, reliability, or usefulness of any information contained herein. Neither IntierraRMG nor the contributors of data to this presentation shall be held liable for any improper or incorrect use of the information contained herein and assume no responsibility for the use of the information.

About IntierraRMG

By the end of the March quarter, the mining industry had found itself between a rock and a hard place: Rock: Falling metals prices, with little prospect of an early recovery because of lacklustre demand. Hard Place: Pressure on operating costs and a heightened threat of resource nationalism. Problems compounded by the restricted supply of finance, especially for mineral exploration.

Disclaimer: IntierraRMG makes reasonable and diligent efforts to obtain accurate information for our clients and presentations. No warranty, expressed or implied is made regarding the accuracy, adequacy, completeness, reliability, or usefulness of any information contained herein. Neither IntierraRMG nor the contributors of data to this presentation shall be held liable for any improper or incorrect use of the information contained herein and assume no responsibility for the use of the information.

State of the Market: Mining

Base Metals Gloom (but Gold OK)

0100

200

300

400

500

600

700

800

900

1000

REAL

(/o

z)

|----100 years---|

Gold at record real-price of over 1,000/oz

Gold floods into Europe from Spanish conquests in 16th century, causing inflation spiral

1489: Royal Mint issues Sovereign (1 = 0.5oz)

1717: Isaac Newton fixes 1 at 0.235oz

USA discovered (1492)

All-Time High For Gold

Prices Stall for Coal, Iron and Copper

Mid-2012 Prices MINED

(000t) PRICE (US$/t)

VALUE PA (US$ bn)

Coal 7,700,000 90 693 Iron Ore 1,980,000 120 238 Gold 2.57 51,440,000 132 Copper 16,300 7,500 122 Bauxite 203,000 350 71 Nickel 1,400 16,400 23 Zinc 12,000 1,900 23 PGMs 0.38 38,560,000 15 Diamonds 0.032 350,000,000 11 Lead 4,000 1,900 8 Top Ten Total 9,916,700 (134) 1,336

Shape of an Industry

$1,600/oz

$70/ct ie 32 tonnes!

www.intierraRMG.com

State of the Market Snapshot: ExplorationEdition 2, 2013

FEASIBILITYSTUDIES

NPVQ1 USD13.1MQ4 USD12.7M

EXPLORATIONRESULTS

Copper assays ledby Carrapateena

project

ASSAY SHARE-PRICE ALERT

Top 35 shareprice increases

EXPLORATIONHOT SPOTS

ProspectsQ1, 2013 - 1,457Q1, 2012 - 2,467

DRILLERS LOG355 drill reports

in March

17th month fall

CAPITAL RAISINGFOR EXPLORATION

Q1 - USD470MQ4 - USD1.51B

Expert review on exploration activities and trends for the previous and upcoming quarters. Below are some highlights from this edition.

There has been a sharp reversal in fortunes during the three months to end March after the welcome improvement in financing for the exploration sector in the December quarter. After an 18-month decline in share prices from the end of 2010 to mid-2012, the second half of last year saw a gradual recovery in the mining industrys overall market capitalisation. This improvement was helped by a strengthening gold price, but metals prices, and the markets equity valuation of the mining industry, have gone into reverse this year.

FULL REPORT CONTAINS: 16 pages 11 graphs 17 tables

Drillers LogExploration activity captured on theIntierraLive database dropped to a new low in March, extending the downward trend into a 17th month, with the drilling reports from only 355 prospects. (See graph below)

Feasibility StudiesLittle overall change in new development announcements but there has been wide geographical variation. For the quarter to end-March IntierraRMG identified 27 new development projects.

Capital Raising for ExplorationUSD470 million was raised for exploration in the quarter just ended, compared with (a restated) USD1.51 billion in the three months to end-December, and USD1.26 billion in the year-ago period.

Global drilling activity continue to fall

Exploration Hot SpotsCumulative reports from all exploration activity for the quarter to end-March amounted to 1,457 prospects, compared with 2,467 prospects in the first quarter of 2012 and 1,959 in the first quarter of 2011.

Exploration ResultsCopper assays were led, for the second successive quarter, by a drill hole at OZ Minerals Carrapateena project near Woomera in Australia; this time 1.62% Cu over 1,094m at a depth of 821m. Gold assays were led by recent drilling on La Ronges Preview property in Saskatchewan, Canada, which returned 634g/t over 4.1m at 204m.

Assay Share-Price AlertThe report notes the top 35 share price increases following assay announcements, with Kidman Resources leading the list with a jump of 270% in its share price.

For the full report, subscribe now: [email protected]

SPECIAL OFFER

10% discount off the annual subscription (4 editions)

After discount: USD1,440 plus taxes

Usual price: USD1,600 plus taxes

Offer expires 30 June 2013

Download full summary at

www.intierraRMG.com

Drilling Trends

17 month decline

Drilling Reports

Drill Announcements Mar Q 2013 Dec Q 2012 Mar Q 2012

Gold Prospects 651 702 1,119

Copper Prospects 192 238 315

Silver Prospects 154 174 274

Zinc Prospects 63 72 104

Reported Ore Reserves (contained metal)

Metal Deposits Mar Q 2013 Dec Q 2012 Mar Q 2012

Gold (000oz) 23,752 15,665 50,059

Copper (000t) 1,110 5,239 8,537

Silver (Moz) 574 469 309

Zinc (000t) 2,264 872 1,901

Copper/Gold Open-Pit Developments

Copper and gold deposits that have received a capital expenditure forecast (during the past two years) for an open-pit development

www.intierraRMG.com

State of the Market Snapshot: Mining and FinanceEdition 2, 2013

For the full report, subscribe now: [email protected]

Hinde Sight Market CommentThe value of mergers and acquisitions has fallen, and the global industry's market capitalisation is back to the levels last seen at the start of 2009 (see graph below).

Market for MiningNot only have precious metals prices fallen but the index price for the six base metals on the London Metal Exchange fell during a March quarter for the first time since 2001.

ExplorationExploration activity captured on the IntierraLive database dropped to a new low in March, extending the downward trend into a 17th month, with drilling reports from only 355 prospects.

Assay Share-Price AlertThe report notes the top 30 share price increases following assay announcements, with Kidman Resources leading the list with a jump of 270% in its share price.

Metals Production OutlookEarly production announcements for the three months to end-March indicate significantly lower gold output in the Americas. Copper and iron ore output also sharply down.

Mergers and AcquisitionsThe Raw Materials Database captured a 28% fall in announced deals, and a 14% drop, to under USD12.0 billion, in the valuation.

Mining FinanceIntierraLive tracks almost 3,500 listed companies, and the funds raised by the mining sector in the quarter to end-March dropped to under USD5.2 billion from almost USD6.8 billion in the last three months of 2012.

EXPLORATION355 drill reports

in March

17th month fall

MERGERS &ACQUISITIONS

Value of metals deals drops 14%

FUNDS RAISED

Q1 - USD5.2BQ4 - USD6.8B

METALSPRODUCTION

OUTLOOK

Lower goldproduction inthe Americas

MARKET FOR MINING

Precious andbase metals

sold down

ASSAY SHARE-PRICE ALERT

Top 30 shareprice increases

Ed.2 SPECIAL REPORTS Operating Costs Open-Pit Ore Grades Regional Activity - Latin America

Expert review on all aspects of the industry, recent performance and quarterly outlook. Below are some highlights from Edition 2.

MARKET CAPITALISATION ACROSS INTERNATIONAL MINING MARKET

Market capitalisation back to the levels of early 2009

01,0002,0003,0004,000

Jan2009

Jan2010

Jan2011

Jan2012

Jan2013

01,0002,0003,0004,000

Number of Companies Aggregate Market Capitalisation

USD

billi

on

40 2.50

2.00

1.50

1.00

0.50

0 0

3530252015105

Resource base at inception Grade at inception

Reso

urce

base

(Moz

)

Grad

e (g/t

Au)

2004 2006 2008 2010 2012

Gold resources and grades at new mines

GoldRESOURCES AND GRADES AT NEW MINES

Full report contains: 36 pages 42 graphs 33 tables 3 special reports

Copper mine costs in 2012

COPPER MINE COSTS

2012

TYPE NUMBEROUTPUT('000t)

COSTS (USD/t)

LABOUR (%)

Open Pit 77 7,889 2,757 20.4

Underground 54 2,181 3,841 32.0

OP / UG 16 1,496 3,354 24.1

Tailings 2 84 4,466 20.2

TOTAL 149 11,650 3,049 23.6

Download full summary at

www.intierraRMG.com

SPECIAL OFFER

10% discount off the annual subscription (4 editions)After discount: USD3,240 plus taxes (Usual price: USD3,600 plus taxes)

Offer expires 30 June 2013

Metals M&A Activity

Metals Deals: US$11.9

billion in March quarter

(US$14 billion in Dec Q)

An Industry Devalued

20 month

decline

6 month

recovery

Copper Discovery Rates

Average Feasibility

Study Grade (Open-Pit Mines Only)

Gold Discovery Rates

Average Feasibility

Study Grade

(Open-Pit Mines Only)

Funds Raised (US$m)

Company Size (US$m)

Q1 2013 Q4 2012 Q1 2012

100 4,075 5,137 2,914

Total 5,159 6,768 5,870

Explorers 1,451 3,405 3,418

Producers 3,710 3,364 2,454

Falling total, and

smaller share

End-2012 corporate cash holdings of US$300 billion

(under US$15 billion of this held by explorers)

Regional Spending

Operating Costs Held at Base Metals Mines

Up only

12% on

2008

But Costs Soar at Gold Mines

Up 62%

on 2008

Thank You

For a copy of this presentation, contact

[email protected]

Austmine 2013 - IntierraRMG_p1to7Slide Number 2Slide Number 3Slide Number 4Slide Number 6Slide Number 7

Austmine 2013 - IntierraRMG_8to11Slide Number 8Slide Number 9Slide Number 10

12-20_28may