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Tellus Holdings Ltd

Chandler Project Update

Central Australia Mining Seminar

MD Duncan van der Merwe16th March 2015

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Important Notice and Disclaimer

Summary information

This presentation (Presentation) has been prepared by Tellus Holdings Ltd (ABN 97 138 119 829) (‘Tellus’) and is for information purposes only. This Presentation contains summary information

about Tellus and its subsidiaries and their activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete.

It should be read in conjunction with other periodic announcements on www.tellusholdings.com.au. The key information on detailed exploration target statements, mineral resource estimates, and

feasibility results can be found in Tellus’ publically released media announcements. Exploration target statements and mineral resources estimations are appended to comply with ASX guidelines

but investors are urged to read supporting information in full available on the company’s website, and available in their data room.

Future performance

This Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, “should”, “could ”, “may”, “plan”, “will”, “forecast”, “estimate”, “target” and other similar

expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial

position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies

which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions, and independent third party

expertise. Such forward-looking statements, opinions, and estimates are not guarantees of future performance.

Not an offer

This presentation does not constitute an offer, invitation, or recommendation to subscribe for or purchase any security and neither this presentation nor anything contained in it shall form the

basis of any contract or commitment.

Competent Person Statement – Chandler Project

The information in this presentation that relates to Mineral Resources - Chandler Project - is based on information compiled by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH

(‘ERCOSPLAN’). Jana Neubert is a senior geologist and employee of ERCOSPLAN and a member in good standing of the European Federation of Geologists registered as “European Geologist”

(Registration Number 1033). Ms Neubert has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she has

undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.

Dr Henry AM Rauche is a senior geologist and Managing Director & C.E.O. of ERCOSPLAN and a member in good standing of the European Federation of Geologists registered as "European

Geologist" (Registration Number 729). Dr Rauche has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has

undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.

Competent Person Statement – Sandy Ridge Project

The information in this presentation that relates to Mineral Resources - Sandy Ridge Project - is based on information compiled by Terra Search Pty Ltd. Mr Jenkins is Principal Geologist of Terra

Search and a Member of the Australian Institute of Geoscientists. Mr Jenkins has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and

to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.

The information in this presentation that relates to exploration targets is based on information reviewed by Dr. Simon D. Beams, a full time employee of Terra Search Pty Ltd, geological

consultants employed by Tellus. Dr. Beams has BSc Honours and PhD degrees in geology. He is a Member of the Australasian Institute of Mining and Metallurgy (Member #107121) and a

Member of the Australian Institute of Geoscientists (Member #2689). Dr Beams has sufficient relevant experience in respect of the style of mineralisation, the type of deposit under consideration,

and the activity being undertaken to qualify as a Competent Person within the definition of the 2004 edition of the AusIMM’s “Australasian Code for Reporting of Exploration Results, Mineral

Resources, and Ore Reserves”.

Exploration Target

Any statement contained in this document as to exploration results or exploration targets has been made consistent with the requirements of the Australasian code for reporting of exploration

results, mineral resources, and ore reserves (‘JORC Code’). All statements as to exploration targets of Tellus salt and kaolin, and statements as to potential quality and grade are conceptual in

nature. There has been insufficient exploration undertaken to date to estimate a resource and identification of a resource will be totally dependent on the outcome of further exploration.

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Tellus’ Strategy

Community and Stakeholder Engagement

ClayVault WA Project

Sandy Ridge Project

Chandler Project

Contractor opportunities, timelines and potential employment

Appendices

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Table of Contents

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Tellus’ Strategy1

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Strategy - Experienced Project Team1

Experienced Board team Exp. mining/ regulatory team Experienced waste management team

Shell, NSW Minerals CouncilVIC Haz Waste Consult. Committee

Ex BD Coffey Environmental, IBM

Head-AMP Capital Investors, CEO Tenix Infrast. & Lend Lease Capital

Philip GarlingNon Executive Chairman

Duncan van der MerweGroup MD

Ron Sifton NED

Noel DavisMD ClayVault WA

Robert CharterGM Sales and Marketing

Dr Nikki WilliamsNED

Mining (Gencor CSM Energy), waste & infrastructure (BOS, Nobles)

Ex FD Newalta, Canada’s largest salt cavern waste storage operator

Ex WA Environmental Regulator, Managed only Class V waste facility

Employee of EPMS, Project manager at WA Kaolin

Mark ShepherdTellus RockVault NED

John CookTellus RockVault ChairMike Ingram

Kaolin – Sandy Ridge PMEx NSW Chief Mining Engineer, Ex MD Waste Service NSW

Ex MD Coffey WA, managed Australia’s only Class V waste facility

Tellus consists of an experienced board and management team with key individuals having a proven track record developing

mines, salt and kaolin projects and heavily regulated storage projects

Wiltshire Geological, Schlumberger, TerraSearch

Jaime LiveseyProject Administrator /Snr Geologist

Steve ReeceChandler Technical Advisor

Employee of Golders -managed UK salt / backfill mine for 15 years

Joanna Stewart Priestley Senior HSEC Manager

Employee of Mott MacDonald, Hyder, Parsons Brinkerhoff, PPK,

Natasha AlfordHSEC Manager and Policy

Employee of Rio Tinto Coal, Worley Parsons, DLA Phillips Fox

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Strategy - Salt Products1

Salt - Tellus’ competitive advantage

▪ Strong position to meet Asian demand by providing a guaranteed volume and quality

▪ Darwin – closest port to Asian buyers▪ Large scale resource – easily scalable▪ Reliable supplier - not influenced by climate▪ Associated minerals ▪ Cross selling storage solutions (domestic)

Cyclone map

World: Forecast demand for salt by region, 2012 and 2018 (Mt) 1 World: Forecast demand for salt by end-use, 2012 and 2018 (Mt) 1

Tellus opportunity

Drilling salts used in the oil and gas

industry, salt fluxes used in the smelting and mining industry

To Shanghai : Darwin is ~4,100 km closer than Indian ports, ~5,900km closer than Mexican ports~13,300 km closer than Chilean ports

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Strategy – Tellus Storage Service Offering1

Tellus has applied to the Office of the Clean Energy Regulator for registration of Chandler Project under the Carbon Credits (Carbon Farming Initiative) Act 2011 (CFI Act)

Upper hydrocarbon storage scenario:

Abate 4,6 M tCO2-e over LOM = 36,208 cars off the road or

33 MW solar

1 Photo of German salt/backfill mine

1 Photo of German salt/backfill mine

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Waste Acceptance Criteria Chandler

Liquid waste in barrels, lined & bunded

Dry waste multiple lined and bagged

Nuclear waste (Defence, Energy)

Uranium mining waste

Infectious (Medical) Waste

Uncertified waste

Tellus is bringing “world’s best practice” solutions and recognized high development standards

Industry Waste Sources

Oil & Gas

Mining

Heavy Industry / Power Generation

Manufacturing

Agricultural

Government/SES

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Strategy – Tellus Storage Service Offering

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Best Practice Systems

Certified Management System

Strict acceptance criteria

Packaging and transport criteria

Safety case – man made engineering

Safety case – natural engineering (geology)

Insurance, bonds, Permanent Isolation Certificates

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Tellus’ certifications and values

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309 M t JORC Measured1 Resource

Chandler Project (100% , 29 year LOM)

508 k tpa salt sales500 year LOM

Storage sales 2

Sandy Ridge Project (100%, 26 year LOM)

28k tpa kaolin sales1,475 year LOM

Storage sales 2

1 Refer to Sandy Ridge JORC ( 20 June ’14) and Chandler – JORC (1 July 14) media releases2 Photo of German salt/backfill mine, photo of West Australian clay backfill project

41 M t JORC Inferred1 Resource

Strategy - Projects

Tellus Project and Office Locations

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Strategy - Health Safety and Environment1

No reported Lost Time Injuries in 5 years from Tellus or contractors Tellus audit of contractor site

Three site visits by the NT Government regulatorsSuccessfully passed 2 years of SAI Global audits (OHS, Qty, Environment)

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Community and Stakeholder Engagement

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Community and Stakeholder Engagement

Community consultation

Supporting jobs (WA TO’s)

Supporting jobs (NT TO’s)

Pot. buyers (pit-to port visits)Radio, TV, Newspaper, Online

NT Gov. & Regulator (site visits) TO meetings & site visits

Supporting local business (20+)

Over 30 months - 118 face to face meetings

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Community and Stakeholder Engagement2

http://www.glsc.com.au/home/glsc-land-management-rangers

Support ranger programs (~ 30 rangers and trainers) Support educational training programs (Redtails and CDU)

Support local sports teams (cricket and soccer))Support local communities (Titjikala Tidy Town Award)

Photo source: http://www.redtailsfc.com.au/

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ClayVault WA Project

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ClayVault Joint Venture (WA)3

West Australian Government Facility

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Sandy Ridge Kaolin Mine Project

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Sandy Ridge– Mine to Port

1 Photo of Australian clay backfill project

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Sandy Ridge - Project Summary

Category Detail

Location ▪ 140km WNW Kalgoorlie

Business▪ Dual revenue –

▪ Kaolin/ storage sales

JORC1 ▪ 41 Mt = 1,475 year mine

Life of Mine ▪ 1 yr build +25 yrs op’s

Acts▪ Mine under Mining Act

▪ Storage under Envir. Act

Mine ▪ Open cut

Predevel ▪ $5 M

Capex* ▪ A$62 M (Incl. of pre-devel.)

Opex*▪ Labour, transport, utilities,

services

Jobs*▪ Build (40-90), operational (18),

indirect (54)

▪ Excludes O&M contractors

Additional businesses

▪ Recycle & recovery jobs

▪ 3X increase FTE (54)

▪ Other kaolin product jobs

Tax▪ Corporate tax, GST, levies,

royalties

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1 Refer to Sandy Ridge JORC ( 20 June ’14) and Chandler – JORC (1 July 14) media releases* FEL1 Scoping Study Assumptions (DCF Model v2 Mgt Case)

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SR Progress - Next Steps

Studies: PFS (FEL2), Approvals: lodge MLA and PER Commercial negotiations (kaolin, storage, consortium, finance)

Drill up to 43 aircore drill hole (JORC resource), 7 geotechnical holes

84 bulk sampling air core holes (gather 40 tonnes) Simple benefaction pilot (40t ROM refined to 15t product)

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Chandler Salt Mine Project Update

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Chandler - Pit to Port5

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Chandler - Rediscovering the Chandler Salt

Source: McGraw HillImage: Victoria Museum, Source: Colorado Plateau GeosystemsSource: Colorado Plateau Geosystems

Cambrian -580myo lifeless land teeming ocean Salt trap for oil and gasGillen 700myo-Chandler 500myo-Late Cambrian

Tellus drilling - 98% pure halite at 795mFlat thick salt bed ~ 18km wide (CH003 ~ 300m)145km seismic, 6.6km core

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Potentially Australia’s largest commercially viable salt bed

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Chandler - Project Progress5

Country of study contributors:

Project technically feasible, commercially viable, no fatal flaws

370 samples Independent experts confirmed viabilityDrilled 1,937m

Customer visitsSite investigationsEngineering - FEL 2 Update

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Chandler – Design 5

*Not to scale – underground workings not directly under surface plant

Salt dry processing plantStorage processing plant

Wet processing ponds (evaporation, crystallization, bittern ponds)

2 MW solar plant

Vertical ventilation shafts

Portal and decline

Traffic management – blue line salt traffic, orange line – waste traffic

Ventilation management –intake (2nd egress) and exhaust air

Isolation management –store like with like

Room dimensions – 250m L, 10m W 4.5m H,

Water management –decline stops above salt bed, with sump

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Chandler - Summary

Could potentially be Australia’s longest life mine Could potentially be one of central Australia’s largest private employers

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Category Detail

Location ▪ 120km South of Alice Springs

Business▪ Dual revenue –

▪ Salt/ storage sales

JORC1 ▪ 309 Mt = 500 year mine

Life of Mine ▪ 4 yr build +25 yrs op’s

Acts▪ Mine under Mining Act

▪ Storage under Envir. Act

Mine ▪ Underground

Predevel ▪ $10 M

Capex* ▪ A$464 M (Incl. of pre-devel.)

Opex*▪ Labour, transport, utilities,

services

Jobs*▪ Build (280-350), operational

(180), indirect (>540-720)

Additional businesses

▪ Recycle & recovery jobs

▪ 3X increase FTE

▪ Other salt product jobs

Tax▪ Corporate tax, GST, levies,

royalties

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Chandler – Power Requirements

2 MW solar plant

Could potentially be Central Australia’s largest solar power station or one of the biggest mine solar projects

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Chandler - Progress and Next Steps5

Studies: BFS (FEL3), Approvals: lodge EIS Accorded Major Project Status by the NT Government

Drilling geotechnical holes, JORC resource, water bore field wells Simple benefaction pilot (dry and wet)

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Chandler and Sandy Ridge – Pilot Progress5

Salt Dry Pilot - select optical sorter design

Salt Dry Pilot– run pilot

Salt Wet Pilot – run pilot

Kaolin - Collect 40 tonnes (ore)

Kaolin - Run pilot – 15 tonnes (2 grades)

Kaolin - Manufacture paint, ceramic, fibreglass

Salt - Optical sorter results

Small and bulk samples sent to customers

International partners

Pilots: UK Germany USA Australia Samples: Japan China Korea SE Asia

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Contractor opportunities, timelines and potential employment

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Opportunities for the Alice Springs region and NT

Category Pre mine Mine build Mine operations

Jobs Limited Mine & plant build Mine & plant operations

Training Limited work experience

Apprenticeships, traineeships, work experience

Apprenticeships, traineeships, work experience

Investment Studies, approvals, team & internal & customer processes

Capex (civils, plant &equip), team & internal & customer processes

Investment (sustaining capex & opex) team & internal & customer processes

Business opportunities

Contractor labour, drilling, studies, equip. & supplies

Mine build contractor services, equipment & supplies

Mine contractor services Equipment & suppliesSalt related spin off businesses

Sponsorships & trust

Sponsorships Sponsorships SponsorshipCommunity benefits trust

Environmental Work exp. (rangers) Work exp. (rangers) Offset program (ranger programs)

Infrastructure Industrial shed/ office

Improved roads, bridges, power, comm’s

Improved roads, bridges, power, comm’s, training & visitor centre

RoyaltiesTaxes & rates

Exploration Agr’t, Fed & NT taxes

Exploration Agreement Federal, NT , Local taxes/ rates

Royalties - MineralFederal, NT , Local taxes and rates

Tellus has a commitment to local employment, training and supply of equipment and services

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Doing Business with Local Companies6

Tellus’ contract management lifecycle

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Doing Business with Local Companies6

Initial engagement is via registration with:

Industry Capability Network (ICN) www.chandlersaltmine.icn.org.au or contact ICN NT 08 8922 9422

ICN matches projects with potential suppliers

Tier I Primary contract –overarching contract

Tier II Secondary/ sub contracts

Category Business must demonstrate Evidence

Service Track record “deliver on spec, on time, within budget & value add”

Capacity Human resources (experience , A team vs B team, availability) /equipment /supplies

Qualifications (certificates, licences & tickets- current and appropriate)

Financial viability

Insurances -Public Liability, PI, Vehicle, Workers Comp., Damage to Property

Policies (Environ., Quality, OH&S, local content, supporting local people)

Safety management plan and systems

Price Competitive in market comparison, value for money

Terms Contractual terms are acceptable (risk management)

Companies need to demonstrate track record, capacity, price competitive and risk management

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Sandy Ridge (SR) and Chandler (CH) – Timelines6

Chandler – End of 2015 would have completed baseline monitoring & initial bankable feasibility study and lodged EIS

SRCH

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Opportunities – Local contracts awarded during BFSCategory Service / equipment provided Local

Industrial real estate Shed/ office rental & utilities

Studies - environmental contractors & TO’s Field surveys

Station / Landholder Earthworks machinery, accommodation

Mining service providers Camp and equipment supply

Wholesale fuel distributor Diesel supply

Vehicle rental supplier Vehicle rental

Freight provider Freight service

Geotechnical contractors Personnel

Camping & safety equipment supplier Field equipment supply

Helicopter charter service Charter flights

Accommodation & food and beverage Hotels, taxis, catering, room hire

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Doing Business with Local CompaniesInitial engagement is via registration with: Industry Capability Network (ICN) www.chandlersaltmine.icn.org.au or contact ICNNT 08 8922 9422ICN matches projects with potential suppliersTier I Primary contract –overarching contractTier II Secondary/ sub contracts

35Chamber of Commerce, Local Business Employment and Government Reps at Site Visit

Chandler – Any Questions?6

Tellus is a Member

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Contact Details

Duncan van der Merwe

Group Managing DirectorE: info@tellusholdings.com.au

A: Suite 2, Level 10, 151 Castlereagh Street, Sydney, NSW, 2000 T: +61 2 8257 3395 F: +61 2 8233 6199

www.tellusholdings.com.au

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Appendix

General - archives

Licensed - disposal

Licensed - storage

K+S-German salt Mine

Compass Minerals – Deep Storage

4 Chandler - Underground design

Salt mining

K+S-German salt Mine

K+S-German salt Mine

Tellus is planning to develop the safest mine in Australia