Mining & Infrastructure Investment opportunities on the Braemar Iron Formation

Australia China Resources Symposium, Adelaide 11 July 2012

Andrew Woskett Managing Director, Minotaur Exploration Ltd (ASX: MEP)

This presentation has been prepared by the management of Minotaur Exploration Limited (MEP) for the general benefit of analysts and industry and does not constitute specific advice to any particular party or persons. Information herein is based on publicly available information, internally developed data and other sources. Where an opinion, projection or forward looking statement is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations are made or implied as to origin, validity, accuracy, completeness, currency or reliability of the information. MEP specifically disclaims and excludes all liability (to the extent permitted by law) for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where MEP expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future project evaluations, such expectation or belief is expressed in good faith and is believed to have a reasonable basis. However, such projected outcomes are subject to risks, uncertainties and other factors which could cause actual results to differ materially from projected future results. Such risks include, but are not limited to, exploration success, metal price volatility, changes to current mineral resource estimates or targets, changes to assumptions for capital and operating costs as well as political and operational risks and government regulatory outcomes. MEP disclaims any obligation to advise any person if it or they become aware of any inaccuracy in or omission from any forecast or to update such forecast.

The following presentation is a visualisation of possible infrastructure solutions to support potential future iron ore mine developments. Locations nominated for the

provision of infrastructure facilities are for illustration purposes only and should not be considered viable technical, economic, environmental, social or State solutions for any

future requirements

Cautionary Statements

Braemar Iron Formation: Location

2 new maps to be inserted here

1. The Braemar Iron Formation: Australia’s next big Iron ore province 2. Mining development scenarios 3. Infrastructure investment opportunities:

Concentrate transfer – Rail and Slurry Pipeline Port & Sea Freight

4. a Mining Investment opportunity Muster Dam Magnetite Project

Braemar Iron Formation: The Investment background

Braemar Iron: Australia’s next big Iron province

The Braemar Iron Formation is a regionally extensive sequence of magnetised sedimentary siltstones, with pervasive beds of magnetite mineralisation, often up to 300m thick, stretching over 200km, as shown in red on the Total Magnetic Image below.

400km

The Braemar Iron Formation has potential for an "Exploration Target” of 25 – 50 billion tonnes of the magnetite form of iron The term "Exploration Target” should not be misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and the term

has not been used in that context. It is uncertain if further exploration will result in the determination of a Mineral Resource. Refer Cl 18 of the JORC Code (2004).

Braemar Iron: the potential mining scale

around 5 large open cut mines

each mining 50 – 100 million tonnes of ore p.a. and each beneficiating 10 – 20 Mtpa of iron concentrate, exceptionally low in impurities

for total annualised output of ~50 - 100 Mtpa of blast furnace quality concentrates grading 65% - 70% Fe

and with a foreseeable 100 year life of mining across the Braemar Iron Formation

Braemar Iron: Transporting iron products to Port

๏ Rail:

• Main continental E-W standard gauge rail line runs right through the Braemar Iron Formation

• Deposits are a 150km - 300km rail trip to Port Pirie where a Pellet Plant could be established

• existing spare rail line capacity of 10Mtpa

• For 25Mtpa haul capacity, need;

• line duplication to provide sufficient train paths beyond 10Mtpa

• 9 train sets each comprising 5 x 4,000hp Traction locomotives & 162 wagons

• 1990 train trips per year

• 5 hour load/unload turnaround time (max)

Braemar Iron: Concentrate transfer to Port

๏ Slurry Pipeline: • Slurry transfer is a cost effective alternative to

rail haulage for a long-term mining project • Slurry transfer can be used for concentrate

movements from mine to port • we envisage a 300km long buried pipeline to a

Pellet plant near Port Pirie or 380km to a deep water port location

• 25Mtpa requires a 600mm diameter Concentrate delivery pipe + Return Water Line

• Example: ✴Minas Rio iron project, Brazil; 600mm diameter

pipeline is 522km long, to transport 24.5Mtpa of concentrate

• 2-3 intermediate Pump Stations • Port Dewatering station & Concentrate storage • both rail and slurry line solutions could be used

to transport >25Mtpa of concentrate Slurry loading via a floating Stockpile vessel

Photo courtesy Royal Resources Ltd

Braemar Iron: Port for bulk loading of iron products

Minimum 50Mtpa port capacity

up to 250 ships loaded per year

6,000tph loading rate

320m long, double sided berth

20m draft accessible in Spencer Gulf

Need new deep water port in Spencer Gulf, south of Port Pirie

jetty length ~3km Capital cost around $750 million

Biggest challenge to development of new mines is lack of bulk handling port infrastructure: • Port Adelaide: capacity is only 1.7Mtpa • Port Pirie: capacity expanding to 8Mtpa, but has very shallow draft • Port Bonython (proposed): sub-optimal; extra rail distance incurs additional haulage charges

Mines on the Braemar need to berth 200,000 DWT ‘Cape Size’ vessels to export iron concentrates & Pellets:

Braemar Iron: Sea Freight 5,300 nautical miles

Braemar Iron: Infrastructure Investment scenarios

Item Scale Capital Cost A$ million

Power & Transmission 500MW $2,250

Desalination Water 50Gl/year $500

Slurry Pipelines 25Mtpa $650

Rail expansion to 25Mtpa 380km $750

Locomotives & Wagons 9 train sets hauling 25Mtpa

$550

Port for 200,000 DWT 50Mt $750

Pellet Plant 10Mt $1,250

Total Capital Investments ±$6,650

Mining Investment opportunity at Muster Dam

on the Braemar Iron Formation

1,500,000,000 tonne JORC resource contains 225 Mt of 70% Fe in concentrate

Muster Dam, South Australia

Mutooroo Pastoral Station is 500km from Adelaide

Muster Dam – 6.2km Strike length

Open Pit for 10Mtpa Concentrate over 20+ years Final Pit dimensions:

Length = 5,700m Width = 730m – 975m Depth = 320m

Muster Dam Section schematic

Muster Dam Development Schedule Activity 2011 2012 2013 2014 2015 2016

Resource Definition

Scoping Study

Permitting

Feasibility

Financing

Construction

Commissioning

Muster Dam Magnetite 1.5 billion tonne JORC resource contains 225 Mt of 70% Fe in concentrate,

not including Hematite component which is 35% of the Fe mineralisation

JORC Estimate Concentrate Properties JORC

Category Billion

tonnes§ Magnetite DTR %

Fe% Al2O3 % P2O5 % S % SiO2 % LOI %

Inferred 1.5 15.2 69.8 0.4 0.002 0.002 2.8 -3.3

Target for Blast Furnace Pellet fines >60 1.0 - 1.5 <0.03% P <0.01 <5.5 -2 to -4

§ Average Density 2.96t/m3 DTR% (Mass Recovery)

= Wt Magnetite (g) / Wt Head (g)

EXPLORATION TARGET⌘: additional 2.2 – 4.2 billion tonnes @ 15% – 18% DTR ⌘Refer earlier Cautionary Statement

Muster Dam

Mining Investment opportunity at Muster Dam

Andrew Woskett Managing Director, Minotaur Exploration Ltd (ASX: MEP)

Interested? Please see me at the Minotaur Exploration Trading Table