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Cape Alumina Limited

Investor presentation, November 2011

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www.capealumina.com.au

Disclaimer Statements and material contained in this Presentation, particularly those regarding possible or assumed future

performance, production levels or rates, commodity prices, resources or potential growth of Cape Alumina Limited,

industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to

future events and expectations and, as such, involve known and unknown risks and uncertainties.

Cape Alumina is at an early exploration stage and although reasonable care has been taken to ensure that the facts

stated in this Presentation are accurate and or that the opinions expressed are fair and reasonable, no reliance can

be placed for any purpose whatsoever on the information contained in this document or on its completeness.

Actual results and developments may differ materially from those expressed or implied by these forward looking

statements depending on a variety of factors.

Nothing in this Presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell

shares in any jurisdiction.

Technical information on any Cape Alumina project in this Presentation had been compiled by Dr Paul Messenger,

Non-Executive Director of Cape Alumina Limited who is a fellow of the Australian Institute of Mining and Metallurgy

(F. AusIMM) and is a competent person and has relevant experience to the mineralisation being reported on to

qualify as a Competent Person as defined by the Australasian Code for Reporting of Minerals Resources and

Reserves. Dr Paul Messenger consents to the inclusion in the presentation of the matters based on the information

in the form and context in which it appears. The resource information in this Presentation has been released to the

Australian Stock Exchange. For

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On 29 November the Company announced a maiden Inferred Resource of 28.3 Million

tonnes (Mt) of in-situ, high-quality, export-grade bauxite at our Bauxite Hills project BH1

area. This is expected to yield 20.3 Mt of beneficiated, dry-product bauxite.

Cape Alumina’s business model is based on the establishment of an independent bauxite supply business to feed the growing market for traded bauxite into China.

Cape Alumina is listed on the Australian Securities Exchange (ASX Code: CBX) with 130 million shares on issue to just over 2,100 shareholders.

Introduction

Our vision - to become one of the largest bauxite producers and traders in the world –

supplying the rapidly growing Asia-Pacific region with high-grade, good-quality bauxite in

accordance with market demands.

Brisbane-based, Cape Alumina controls approximately 1,900 square kilometres of

exploration tenements in world-class western Cape York bauxite province. This is the second largest tenement holding in the region outside the Rio Tinto Alcan mining leases.

Further assay results from the extension drilling undertaken at BH1 and the

exploration of BH2 and BH6 deposits are due to be released in early 2012 and are

expected to significantly increase the project’s resource base.

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Company snapshot ASX Code CBX

Market Cap $23.4m

Shares on Issue 130.0m

Options on Issue 5.4m

Total Shareholders c. 2100

Cash (30 Sept 2011) $1.8m

Top 20 Holdings 93.7%

George Lloyd Chairman

30yrs in the resource industry. Chairman of Pryme Energy Limited, Director of Ausenco Ltd. Adviser to the mining and energy industries in Asia

Graeme Sherlock Managing Director & CEO

Mining Engineer with 20 yrs resource industry experience. Former senior roles with Peabody Energy Aust, Rio Tinto Coal Aust,, Mitsubishi Development after a long career with BHP Billiton

Ronald (Rennie) Fritschy Independent Non-Executive Director

Chancellor CQ University. 30 yrs experience in bauxite and alumna industries. Former MD QAL, Gladstone and Gove Bauxite – alumina

Peter Nicholson Non-Executive Director

Partner in Resource Capital Funds, a mining focussed private equity firm with $2billion in funds. Director of Talison Tantalum Pty Ltd

Mr Liu Jilun Non-Executive Director

MD of Xinfa Group Company Limited, China’s largest independent Alumina-Aluminium company

Valentine Smirnyagin Non-Executive Director

Extensive experience in corporate finance/ strategy for resource and industrial companies. Previous roles include Alcoa Inc, Chromalux Inc and Scania AB

Metallica MineralsLimited

China Xinfa GroupCorporation Ltd

Bondline Limited

Resource Capital Fund IIILIP

Resource Capital Fund IVLP

JP Morgan NomineesAustralia Ltd

Other

16.17%

20.71%

16.49%

13.75%

11.34%

7.89%

13.65%

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Our location and projects F

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Metallica Minerals (20.1%) – One of the most progressive, multi-mineral developers

in Australia’s eastern states. The company has interests in nickel, cobalt, coal,

bauxite, copper, gold and limestone projects.

Our significant shareholders

Resource Capital Funds (25.1%) – A respected resources-focused private equity

firm based in Denver, Colorado, and Perth, Australia. Cape Alumina represents the

funds sole metallurgical bauxite investment.

Xinfa (18.6%) – China’s largest independent alumina-aluminium company with

refining and smelting operations in Shandong, Guangxi and Xinjiang Provinces. It

currently has installed capacity of around 7 million tonnes per annum (Mtpa) of

alumina and over 1.8 million tonnes per annum of primary aluminium.

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General Manager External Affairs, Mr Neville Conway – Mr Conway joined Cape Alumina as the General

Manager, External Affairs and Stakeholder Relations in 2009. Mr Conway is an accomplished senior manager

with extensive stakeholder relations and project management experience. Previous experience includes

working for some of Australia’s largest resource, construction and finance companies as well as an adviser to

Members of the Commonwealth Parliament.

Our management team

Chief Financial Officer and Company Secretary, Mr Scott Waddell – Mr Waddell was appointed Cape

Alumina’s CFO and Company Secretary in Sept 2010. Prior to joining Cape Alumina, he served as Head of

Finance for the Monash Energy project in Victoria’s La Trobe Valley. His resources experience has been

gained over nine years with Anglo Coal and eight years with Rio Tinto Alcan (RTA). He has a deep

understanding of the global bauxite and resources sectors.

MD & Chief Executive Officer, Mr Graeme Sherlock – Mr Sherlock is a qualified mining engineer with more

than 20 years of resource industry experience. With senior business development positions within Peabody

Energy Australia, Rio Tinto Coal Australia and Mitsubishi Development and a long career with BHP Billiton, he

brings a strong record of achievement on several key major resource project developments, mergers,

acquisitions and commercial negotiations across the Australian and international coal industry. A Member of the

Australasian Institute of Mining and Metallurgy, Graeme also has an MBA in Technology and a Postgraduate

Diploma in Management.

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Business Development Consultant, Ms Guoyan Li – Ms Li has been Cape Alumina’s China Business

Development Consultant since 2006. In this time, she has facilitated the development of business ties and

relationships with key Chinese alumina companies. Before moving to Australia, Ms Li spent 15 years at

one of China’s largest copper mining and refinery groups holding key roles including commercial project

manager and foreign affairs co-ordinator along with key roles in the importation of metal process

technology and equipment.

Cape Alumina employs local Aboriginal people in all of our field operations

including exploration, cultural heritage surveys, environmental studies, and

environmental monitoring.

Operations Manager, Mr Ron Tibaldi – Mr Tibaldi joined the Company as Operations Manager in Sept 2007.

He oversees all project exploration activities and manages the Company’s field Health and Safety programs in

Cape York. Before joining Cape Alumina Mr Tibaldi was Mine Production Superintendent at the Gove bauxite

mine and alumina refinery for 32 years. He brings a wealth of experience in all facets of bauxite mining,

rehabilitation and exploration in northern Australia.

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China is the largest alumina producer and

consumer but is short in bauxite, which is

being consumed at an ever increasing rate.

China’s trend towards conventional high

temperature Bayer refineries to utilize bauxite

from Weipa – significant growth next 5 to 10 years.

Western Cape York to become China’s preferred source of bauxite.

Cape Alumina well placed to establish a reliable alternative to the Weipa RTA

operations.

Indonesia to restrict bauxite exports as

government policy and new laws encourage

down-stream processing in Indonesia.

Other, 23%

Brazil, 7%

Jamaica, 7%

Vietnam, 8%Guinea, 28%

Australia, 23%

China, 4%

Share of global bauxite reserves

Asia-Pacific bauxite-alumina trends

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Bauxite prices and Chinese imports are rising

Bauxite prices are increasing based on

the growing Chinese market.

Indonesia has dominated imported

bauxite into China, which is not

sustainable.

Source:

CRU

China are looking for reliable, alternative,

long-term supply.

Source:

CRU

Source:

CRU

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Western Cape York bauxite province Set to become the world’s largest source

of export bauxite.

Estimated to contain over 3 billion tonnes

of bauxite.

Rio Tinto Alcan (RTA) has been the only

Weipa bauxite producer for over 50 years

and remains the only exporter of

Australian bauxite.

RTA plans to increase bauxite production

in Weipa over the next 6 years –

majority of this is expected to go to

Chinese refineries.

Cape Alumina is well placed to provide

an alternative source of bauxite supply to

the bourgeoning Chinese market.

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Cape Alumina is uniquely placed Cape Alumina is the largest exploration

tenement holder in the province with 1,900

km2 under licence with an exploration

target of 300-400 Mt* in-situ bauxite.

Well established with six years on-ground

experience.

Strong partnerships and experience in

cultural heritage and stakeholder

engagement.

Unsurpassed environmental database.

Developed world leading innovative low-

cost mining and continuous rehabilitation

process.

*Note: The resource potential is conceptual in nature and there has been insufficient work completed to

define a mineral resource at this stage. Estimated tonnage range is 300–400 Mt and the estimated

beneficiated grade range is 48–54 per cent Al2O3 and 8-12 per cent SiO2 assuming average 65 per cent recovery. F

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Our bauxite Is located within the world-class western Cape York bauxite province, which is

characterised by high-quality, export-grade bauxite.

Has ready access to ship-borne trade.

Is close to the Asia-Pacific market.

Is well-suited for low and high temperature

alumina refineries.

Is export-grade. Pisolite Hills 134.6Mt in-situ bauxite resource has an average

washed grade of 53.1 per cent Al2O3 and 12.3 per cent SiO2 (7.5 per cent reactive

silica at 150 degrees Celsius).

Inferred Resource of 28.3 Mt of in-situ, high-quality, export-grade bauxite at

Bauxite Hills’ BH1 area. This is expected to yield 20.3 Mt of beneficiated, dry-

product bauxite.

Further assay results from the extension drilling undertaken at BH1 and the

exploration of BH2 and BH6 deposits are due to be released in early 2012 and are

expected to significantly increase the project and Company’s resource base. For

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To date, Cape Alumina has identified seven priority

bauxite exploration areas. The Company has

conducted significant drilling on the Pisolite Hills

and Bauxite Hills deposits.

An advanced exploration and drilling program

commenced in August 2011 at our second major

project site – the Bauxite Hills mine and port

project, which is located approximately 95

kilometres north of Weipa and just five kilometres

south of the Skardon River.

Cape Alumina retains its Pisolite Hills

tenements which contain 134.6 Mt of JORC-

Code-compliant bauxite resources.

Scout exploration programs at our other existing

project areas – Duyfken, Weipa Satellites, and

Vrilya – are planned for 2012.

Exploration program F

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An emerging bauxite project that incorporates seven

bauxitic plateaux - BH1 through to BH7.

The bauxite in the project area is proving to be high-

quality and export-grade . The bauxite at BH1

appears to include bauxite zones suitable for both

high and low temperature refineries.

Cape Alumina has lodged four Mining Lease

Applications (MLAs) over the area.

Skardon River is a tidal estuary less than 10 miles

long with existing port and disturbed land.

Pisolite Hills experience means we can expedite the

permitting process.

Local environment comprises predominantly open

eucalyptus woodland plateaux and estuarine

waterways. There are no known fresh water springs

in the vicinity of the bauxite target areas.

Bauxite Hills – an emerging export project F

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Recently completed 2,569-hole, 7,000-metre drilling program revealed the

presence of near-surface, pisolitic bauxite rich units with average

thicknesses of 2.4 metres at BH1 and 1.8 metres at BH2 and BH6.

The BH1 deposit has an extremely low strip ratio, with an average

overburden of 0.4 metres. A summary of the drilling results as at October

2011 is provided in Table 1 (right).

Exploration results reveal an Inferred Resource of 28.3 Million tonnes (Mt)

of in-situ, high-quality, export-grade bauxite at Bauxite Hills’ BH1 area.

This is expected to yield 20.3 Mt of beneficiated, dry-product bauxite.

Further assay results from the extension drilling undertaken at BH1 and

the exploration of BH2 and BH6 deposits are due to be released in early

2012 and are expected to significantly increase the project’s resource

base.*

Bauxite Hills – drilling program update

*The potential quantity and grade of the deposits at BH2, BH3, BH4, BH5, BH6 and BH7 are

still conceptual in nature. There is insufficient information at this time to define a mineral

resource and there is no certainty that further exploration will result in the determination of a

mineral resource in these areas. The beneficiated grade on a dry-product basis is expected to

be in the range 48-54 per cent Al2O3 and 8-12 per cent SiO2 assuming average 65 per cent

beneficiation recovery.

Bauxite

Plateau

No. of

holes

No. of holes

interpreted to intersect

bauxite

% of holes

interpreted to

intersect bauxite

Average

interpreted

thickness

BH1 1,482 1,226 86% 2.4

BH2 144 137 96% 1.8

BH3 138 7 5% n/a

BH4 166 75 45% 0.8

BH5 134 61 45% 1.0

BH6 505 428 92% 1.8

BH7 n/a n/a n/a n/a

Total 2,569

A reconnaissance and hand-auger sampling program at the

project’s BH7 plateau is planned to start in early December.

Planning for an infill drilling program for the 2012 dry season

has begun. This will lead to improved resource definition for

the project – specifically a Measured Resource for the deposits

at BH1, BH2 and BH6.

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Establish new barge loader <2 nautical

miles upstream from existing Skardon River

Port and ~2.5km from proposed BH1 mine.

Commence mine development at BH1 with

initial production rate of 2 Million tonnes per

annum rising to 5 Million tonnes per annum.

Utilise 10,000t self discharge barges for

offshore trans-shipment.

Sequential development of BH1-BH7 to

stage and defer capital expenditure.

Future development of BH1 and BH6 will

benefit from their proximity to the proposed

port and infrastructure sites for the project.

Bauxite Hills development concept F

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2010 2011 2012 2013 2014

Preliminaries

Access Agts 1

Reconnaissance 1

Definition

Drilling ## ##

Analysis ##

Resources ## ##

Metallurgy ##

Scoping Study ##

IAS/Draft TOR ##

ILUA 1

Feasibility

Final TOR 1

EIS Base line studies 1

EIS Write-up/submission 1

EIS Public consultation 1

Draft EA 1

Final EA/ML grant 1

PFS 1

Marine & Port Studies 1 1

Geotechnical Studies 1

DFS 1

Commitment

Capital Raising 1

Construction 1

Production 1

2010 2011 2012 2013 2014

Preliminaries

Access Agts 1

Reconnaissance 1

Definition

Drilling ##

Analysis ##

Resources ##

Metallurgy ##

Scoping Study ##

IAS/Draft TOR ##

ILUA 1

Feasibility

Final TOR 1

EIS Base line studies 1

EIS Write-up/submission 1

EIS Public consultation 1

Draft EA 1

Final EA/ML grant 1

PFS 1

Marine & Port Studies 1 1

Geotechnical Studies 1

DFS 1

Commitment

Capital Raising 1

Construction 1

Production 1


Bauxite Hills proposed development timeline

This timeline is for illustration purposes..

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Continuous mining and continuous rehabilitation

Integrated mining process F

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Page 2

Integrated mining and continuous rehabilitation

Cape Alumina has developed an innovative, integrated mining and progressive

rehabilitation process – based on proven technology – that reduces capital and

operating costs and minimises any long-term environmental impacts.

This includes:

in-pit beneficiation and fines disposal

use of conveyors

progressive and continuous environmental rehabilitation

use of self-discharge barges for offshore trans-shipment

All of which eliminates the need for large tailings dams, reduces capital and

operating costs, minimizes emissions and reduces the mine’s overall

environmental footprint.

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A small port and barge loading facility will

be located in the Skardon River.

Shallow draught barges will then tranship

the product 15 to 20 nautical miles

offshore to a mooring in the Gulf.

The product is then loaded and exported

to market.

Low environmental foot print, with

minimal onshore buildings, stockpiles and

reduced dust emissions is a key benefit

of the proposed transhipping system.

Cape alumina will develop its transhipping operations from the

ground up, with no existing infrastructure available.

Transhipment – the obvious solution

Transhipment is an obvious and innovative solution for the Bauxite Hills project as it is

in an area of Western Cape York where there is shallow water, sheltered seas and no

infrastructure.

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Port facilities The function of the barge loading terminal is to load beneficiated bauxite on to self

unloading barges of approximately 10,000 DWT. Production levels of 3, 5, 7 and 10

Mtpa have been considered.

The size of ship that the marine operation must be capable of handling is a

Panamax vessel up to 75,000 DWT with an option to facilitate loading of Cape size

vessels of 160,000DWT.

The facility would be designed to operate on a 24 hours per day, 7 days per week

basis and would only be shut down for scheduled maintenance, emergency

breakdowns and cyclones.

The limiting conditions for transhipping at sea would be winds gusting to 20 m/s.

The following port capacities have been assumed: 3.0 Mtpa 5.0 Mtpa 7.0 Mtpa

Maximum load out rate t/h 2,500 2,500 2,500

Average load out rate t/h 1,250 1,385 1,385

Ship capacity (average) t 75,000 160,000 160,000

No. of vessels per year 40 33 47 For

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Investment highlights

Cape Alumina has high-quality shareholders, an experienced board and an

established, experienced management team.

Cape Alumina has developed a world-leading innovative, low-cost mining and

continuous rehabilitation process.

Low-cost, efficient transhipment operations by Cape Alumina will be a key to the success of the Bauxite Hills Project.

Our product is export-grade quality, close to port and close to market.

Global demand for bauxite will remain strong over the long-term.

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Office Suite 6/56 Peel Street, South Brisbane Qld 4101

Postal GPO Box 291, Brisbane, 4001, Qld Australia

Phone + 61 7 3844 9911 Facsimile + 61 7 3844 9919

Email [email protected] Web www.capealumina.com.au

Cape Alumina Limited Office Suite 6/56 Peel Street, South Brisbane, Qld 4101

Postal PO Box 3732, South Brisbane, Qld 4101, Australia

Phone + 61 7 3844 9911 Facsimile + 61 7 3844 9919

Email [email protected] Web www.capealumina.com.au

ABN 88 107 817 694

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