buchans minerals announce captivating pea for lundberg deposit

Buchans

Head Office

Exploration Office

Toronto

Woodstock

Buchans

Head Office

Exploration Office

Toronto

Buchans

Head Office

Exploration Office

Toronto

Woodstock

!  BASE METAL PRE-DEVELOPMENT

!  Lundberg Positive Preliminary Economic Assessment

!  Daniels Pond deposit

!  MANGANESE PRE-DEVELOPMENT

!  Woodstock Manganese deposits

!  Possible spin-out

!  EXPLORATION HIGHLIGHTS

!  Goldquest gold discovery

!  Range copper / cobalt prospect

Atlantic Canada Exploration & Development

!  Warren MacLeod BA., Director & President, experienced junior mining operator

!  Paul Moore M.Sc., P.Geo., Director & VP Exploration, 25 years exploration

!  Ed Merringer LL.B., Director, former partner at Ladner Gervais Law firm

!  Steve Poad CA, Director, CFO Colossus Minerals

!  Dan Burneski CA, Director, experienced international commodities trader

!  Andrew Forrest M.Sc., B.Eng., Director, mining engineer

Directors & Management

Trading Exchange: Toronto Venture Exchange (TSX-V)

Trading Symbol: BMC.V

Shares Outstanding: 150,898,545

Options: 8,913,000

Warrants: 33,921,392

Cash (May 31st, 2011): $3,500,060

Market Cap (Jun 28th, 2011): ~$10,000,000

Share Structure

Lundberg Base Metal Deposit Preliminary Economic Assessment

June 2011 The preliminary economic assessment is based only on Inferred Mineral Resources and are not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is therefore no certainty that the conclusions of the PEA will be realized.

Buchans Minerals – Benton JV – Ni-Cu Buchans Minerals – Zn-Cu-Pb (VMS)

LUNDBERG DEPOSIT PRELIMINARY ECONOMIC ASSESSMENT

BUCHANS MINE (1928 – 1984) Lucky Strike Glory Hole

LUNDBERG DEPOSIT:

Old Lucky Strike Glory Hole

Lundberg Mineralization

LUNDBERG & ENGINE HOUSE DEPOSITS

•  Lundberg & Engine House deposits

•  Bulk tonnage base metal stockwork mineralization at surface

•  Open pit mine plan completed Wardrop Engineering

Lundberg Inferred Resource (National Instrument 43-101 compliant)

Threshold Tonnes Zn % Pb % Cu % Ag g/t Au g/t Combined Zn, Pb, Cu %

Lundberg Inferred Resource

20,700,000 1.68 0.72 0.38 5.92 0.07 2.78

Engine House Inferred Resource

1,120,000 2.04 0.85 0.82 9.79 0.12 3.71

Inferred Resource Within Open Pit Shell Design

* 17,278,660 1.63 0.69 0.40 5.96 0.07 2.72

LUNDBERG RESOURCE

* This value does not reflect any economic parameter, as an Inferred Mineral Resource Estimate does not imply mineability. Inferred Resource Estimate reported from: Technical Report on the Mineral Resource Estimate for the Lundberg and Engine House deposits Buchans Area, Newfoundland, Canada. Prepared for Royal Roads Corp. by Peter

C. Webster, B.Sc., P.Geo., P. James F. Barr, B.Sc., Mercator Geological Services Limited. Effective Date November 3, 2008.

LEGEND Zn Pb Cu

Combined Grade 1-2 % 2-3 % 3-4 %

4-99 %

LUNDBERG INFERRED RESOURCE BLOCKS & OPEN PIT DESIGN

LEGEND:

NOTES:

!

Lundberg conceptual site plan

Preliminary Lundberg PEA Economics

Lundberg PEA Economic Summary Base Case

Pre-Tax IRR 40.92%

Pre-Tax NPV @ 6% discount rate $192.7 million

Pre-Tax Cash Flow over Life of Mine $433.2 million

Mine Capital $152.0 million

Inferred Resource included in PEA pit design (tonnes) 17,278,660

Waste Mined (tonnes) 52,930,648

Stripping Ratio 3.06 to 1

Metal Prices $1.22 Zn, $1.10 Pb, $3.62 Cu, $22.74 Ag

Operating Costs (Mining, Processing & G&A) $26.00 / tonne

Operating Years 10

Payback Period (Years) 1.5

The PEA is based only on Inferred Mineral Resources and are not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is therefore no certainty that the conclusions of the PEA will be realized.

LUNDBERG POSSIBLE OPPORTUNITIES POSSIBLE FUTURE ZINC PRODUCTION SHORTFALL

Buchans Minerals – Benton JV – Ni-Cu Buchans Minerals – Zn-Cu-Pb (VMS)

LUNDBERG POSSIBLE OPPORTUNITIES

DANIELS POND DEPOSIT

LUNDBERG POSSIBLE OPPORTUNITIES DANIELS POND DEPOSIT (100% OWNED)


•  Daniels Pond deposit

•  VMS base metal deposit exposed at surface

•  Possible satellite mine contributing to larger Lundberg operation Daniels Pond (National Instrument 43-101 compliant Indicated & Inferred resources)

Threshold Tonnes Zn % Pb % Cu % Ag g/t Au g/t Combined Zn, Pb, Cu %

2.0 % Zn Indicated 929,000 5.13 2.50 0.34 101.40 0.63 7.98

2.0 % Zn Inferred 332,000 4.61 2.13 0.30 85.86 0.53 7.04

DANIELS POND DEPOSIT

Red Indian Lake

deposits (projected to surface) sulphide prospects

favourable alteration stringer sulphide mineralization

Clementine West (stockwork) Intersections up to 118 m

5 km

Lundberg (stockwork near surface) 20.7 million tonnes 1.68% Zn, 0.72% Pb, 0.38% Cu, 5.9 g/t Ag & 0.07 g/t Au (Inferred, 1% combined Cu+Pb+Zn cutoff)

Outline of Buchans Camp rocks after GSC 2007

Buchans camp rocks

Clementine (transported) historic (unclassified non-43-101 compliant) 0.36 Mt @ 4.9% Zn, 2.6% Pb, 0.3% Cu & 41.0 g/t Ag

Little Sandy (stockwork) historic (unclassified non-43-101 compliant) 0.16 Mt @ 1.9% Cu incl. - intersections up to 1.80% Cu/ 9.3 m - Incl. 3.21% Cu/ 3.90 m

Buchans North (in situ) Intersections - 15.50% Cu, 1.85% Pb, 5.80% Zn, 214.8 g/t Ag & 2.92 g/t Au/ 0.30 m -  15.52% Zn, 7.61% Pb, 0.92% Cu, 148.9 g/t Ag & 1.15 g/t Au/ 2.1 m

POSSIBLE OPPORTUNITY EXPLORATION PROSPECTS

•  Possible future shortfall in world zinc production (Brook Hunt)

•  Possible satellite operation at Daniels Pond deposit (100%)

•  Exploration prospects

•  Clementine West

•  Buchans North

•  Possible improved metallurgical recoveries

•  Possible Barite production

•  Regional deposits


•  Manganese critical to Steel production – 10 kgs / 1 tonne steel

•  Growing Market

•  8% per year for Manganese Ore Concentrates for a total current market of 13.6 million tonnes per annum

•  26% per year for Electrolytic Manganese (EMM) for a total current market of 1.2 million tonnes per annum

•  Electrolytic Manganese supply controlled by China

•  97.4% of the 1.2 million tonnes per annum

•  No North American production

•  American Manganese planning production of 50,000 tonnes per annum

•  Customers seeking secure supply chains

•  North American ores amenable to lower cost production techniques

Manganese Market

Woodstock Deposits

Manganese Market

Woodstock Deposits

200 km

New Brunswick

Halifax

Fredericton

Toronto

Manganese Roadmap to Development

Plymouth Deposit

Hartford Deposits

Woodstock Manganese (Historic non 43-101 compliant)

Deposit Tonnes (uncategorized)

Mn % Fe %

Plymouth 46,500,000 * 10.9 13.3

North Hartford 45,000,000 * 8.00 12.0

South Hartford 45,000,000 * 8.00 12.0

* These resources are historic in nature and are not national instrument 43-101 compliant and rely entirely on data provided by other sources which have not and cannot be independently verified at this time. As such, the data discussed herein should not be relied upon, but are presented as an indication of the exploration and development potential of the mineralization described.

Manganese Roadmap to Development

•  Potentially one of the largest Manganese resources in North America

• historic non NI 43-101 compliant

Woodstock Deposits

•  Manganese leaching confirmed in 1987 metallurgical tests by Witteck Development Corp.

•  Potential to produce high purity manganese products that include EMM, EMD, Manganese dioxide powder, carbonate, hydroxide, and sulphate

•  2011 drilling & hydrometallurgical testing begins to confirm and optimize Mn leaching & purification of Mn solution

Exploration Highlights

Long Range JV

Goldquest Discovery (Gold)

GOLDQUEST DISCOVERY

outcrop up to 8.5 g/t Au & 30.7 g/t Ag float up to 106.4 g/t Au & 364.3 g/t Ag 5 kilometres

N Range Copper

Prospect

Portage Nickel Prospect

Select samples labelled assaying greater than 1 g/t gold

outcrop rock sample float rock sample

soil sample

Geology after van Staal et al., 2005, (GSC) Contoured elevation in metres above sea level

Goldquest Gold Discovery Long Range JV, Newfoundland

assays highlights Assay results to January 10, 2011

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016750M016750M016750M016750M016750M016750M016750M016750M016750M1.8 g/t Au, 7.7 g/t Ag float, 2 x 1.5 m

12.4 g/t Au, 47.9 g/t Ag float


1.7 g/t Au, 5.4 g/t Ag float, 1.5 x 0.5 m

8.5 g/t Au, 30.7 g/t Ag outcrop

18.2 g/t Au, 87.1 g/t Ag float 4.1 g/t Au, 18.8 g/t Ag

outcrop

1.7 g/t Au, 8.1 g/t Ag outcrop


12.5 g/t Au, 43.3 g/t Ag float, 40 cm


27.9 g/t Au, 157.2 g/t Ag float, 50 x 30 cm




SOUTH AREA float up to 106.4 g/t Au & 364.3 g/t Ag

meta-diorite/gabbro (Ordovician)

meta-tonalite/granodiorite (Ordovician)

lake

gravel road

100 metres

gold in soil anomaly (26 to 70 ppb Au)

N

pond

NORTH AREA outcrop up to 8.5 g/t Au & 30.7 g/t Ag float up to 18.3 g/t Au & 87.1 g/t Ag

•  Company Market Capitalization (June 21st, 2011)

•  $10 million

•  Lundberg Preliminary Economic Assessment

•  $193 million Net Present Value (at a discount rate of 6%)

•  Woodstock manganese deposits (Program ongoing)

•  Potentially one of the largest manganese resources in North America

•  Historic non NI 43-101 compliant

•  Goldquest Discovery (Program ongoing)

•  New gold discovery in previously unexplored region of Newfoundland

•  50/50 Joint Venture with Benton Resources

INVESTMENT OPPORTUNITY

This powerpoint presentation contains or refers to "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements in this release, other than statements of historical fact, which address activities, events or developments that Buchans Minerals believes, expects or anticipates will or may occur in the future are forward-looking information. Wherever possible, words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "anticipates" or "does not anticipate", "believes", "intends" and similar expressions or statements that certain actions, events or results "may", "could", " "would", "might" or "will" be taken, occur or be achieved, have been used to identify forward-looking information.

In particular, all statements in this powerpoint presentation that address estimated resource quantities, grades and contained metals, possible future mining, and exploration and development activities are forward looking statements. By its very nature, a preliminary economic assessment (“PEA”) prepared by Wardrop Engineering (“Wardrop”) is preliminary. The PEA includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the findings of the PEA will be realized. Wardrop's assumptions, estimates, expectations, analysis and opinions used in the PEA are based on the information available to Buchans Minerals and Wardrop as of the date of this news release. Wardrop's assumptions and estimates are based on experience and perceptions of trends, current conditions and expected development as well as other factors that Wardrop believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. In particular, assumptions have been made regarding a number of variables that impact the Lundberg project and include, among other things, market prices for metals, exchange rates, inferred resource tonnages & grades, stripping ratios, processing techniques, through-put rates, flotation recoveries, concentrate grades, smelter charges, transportation charges, tailings disposal, waste rock disposal, site reclamation, equipment salvage, operating costs (including mining, processing & general administrative costs), capital costs and assumptions that all the necessary regulatory (including environmental) permits will be issued in respect of the project.

Readers & viewers are cautioned that the foregoing list is not exhaustive of all factors, variables and assumptions which may have been used. Buchans Minerals is subject to the specific risks inherent in the mining business as well as general economic and business conditions. Buchans Minerals’ actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of a number of factors, many of which are beyond the Company’s control. These factors include, but are not necessarily limited to, results of the exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource estimations, receipt and security of mineral property titles, receipt of licenses required to conduct mining activities, country risks, project cost overruns or unanticipated costs and expenses, the availability of funds, fluctuations in metal prices, currency fluctuations, and general market and industry conditions. Although the Company believes the expectations expressed in the PEA and other forward looking statements are based on reasonable assumptions, there is no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, such statements should not be in any way construed as guarantees of future performance as actual results or developments may differ materially from those forward-looking statements and readers should not place undue reliance on this information.

Forward Looking Statement Disclaimer

buchans minerals announce captivating pea for lundberg deposit

Economy & Finance