DR. GAVIN ENGLAND – ADELAIDE – 11 DEC 2015 MawsonIron Province · DR. GAVIN ENGLAND – ADELAIDE – 11 DEC 2015 MawsonIron Province ... Lottermoser& Ashley, 2000 ... Exec Director

D R . G AV I N E N G L A N D – A D E L A I D E – 1 1 D E C 2 0 1 5

Mawson Iron ProvinceSA Explorers Presentation - Magnetite Mines Limited -Mawson Iron Project

DISCLAIMER AND COMPETENT PERSONS STATEMENT

Slogan XXXX

IRON ORE STORY NOT OVER – Strongly driven by Urbanisation in the developed world

Source: Metalytics, AUSIMM Iron Ore 2105

World Steel Production

1. Asian countries outside China and the Rest of the World will take up the slack on steel growth in the medium-long term future

2. Current price unsustainable3. Future is high grade, low impurities = lower pollution, better furnace efficiency

SA Explorers Presentation - Magnetite Mines Limited -Mawson Iron Project

THE MAWSON IRON PROVINCE IS POSITIONED TO BECOME THE NEXT FORCE IN IRON ORE

1. Potentially the largest undeveloped magnetite project in the world

2. Metallurgy has shown Braemar Iron Formation concentrate can produce high grade > 67% Fe1, with low impurities, which is where the future of iron ore will be

3. Project can compare with Pilbara DSO for OPEX costs4. South Australia is the right place to build a major resource

project

1ASX announcement 27/11/2013


WHY REBRAND ROYAL RESOURCES TO MAGNETITE MINES?

1. Provide focus being the Mawson Iron Province 2. Magnetite is the future in iron ore3. First phase of a amalgamation of assets 4. Be part of a South Australian wave of innovation


WHO IS LODESTONE EQUITIES?

• Gordon Toll Executive Chairman of Royal and Lodestone• Lodestone + Royal Resources = Magnetite Mines


WHY CHANGE FROM BRAEMAR TO MAWSON IRON PROVINCE?

or


MAWSON IRON PROVINCE LOCATED IN SOUTH AUSTRALIA - A GOOD JURISDICTION TO DO BUSINESS


HOST ROCK - BRAEMAR IRONSTONE FORMATION

Lottermoser & Ashley, 2000

• Neoproterozoic iron formation• Deposited during Sturtian

Glaciation• Part of the Lower Umberatana

Group, Adelaide Geosyncline• > 200 km of strike length


RAZORBACK DEPOSIT – HOST ROCKS


BRAEMAR IRON FORMATION – HOW DID IT GET THERE?


WHY IS THE BRAEMAR IRON FORMATION SO ATTRACTIVE COMPARED TO PILBARA OR MID WEST BIFS?


MAWSON IRON PROVINCE LARGEST UNDEVELOPED MAGNETITE PROVINCE IN THE WORLD

• Consortium has over 4500km2

of tenure• Magnetite Mines exploration

potential of 16 to 35 Billion tonnes1

• Lodestone also with large exploration potential

• Studies2 to determine viability of 100 Mtpa for 25 years +

1 ASX Announcement 29/10/2015. Note that there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration willresult in the determination of a Mineral Resource. The estimate of an exploration target tonnage should not be construed as an estimate of Mineral Resource.2Conceptual Feasibility Study has been completed by the Lodestone Group for the Braemar Iron Project, which shows the the proposed Infrastructure Solution achieve a capacity of up to 100 mtpa. The Company advises that this conceptual feasibility study is not based on any assumptions of actual use of the Ito a infrastructure Solution by the Company or any other users in the Braemar region with the exception of the Braemar Iron Project.


RAZORBACK AND IRONBACK HILL DEPOSITS –JORC2004 RESOURCE OF NEARLY 4 BILLION TONNES1

WITH POTENTIAL TO GROW

1 The Mineral Resource information for the project was prepared and first disclosed under the JORC Code 2014 and the informationhas not been updated since to comply with the JORC Code 2012 on the basis the information has not materially changed since it was last reported;.


RAZORBACK – GOOD MINING QUALITIESRazorback Ridge Outcrop


CONCENTRATE FROM THE BRAEMAR IRON FORMATION WILL BE A SUPERIOR STEEL MAKING PRODUCT

• Concentrate grade of >67 % Fe1 compared to a large portion of Pilbara production at ~62% or less

• Deleterious impurity level will be very low (P < 0.02%, Al304 < 0.5%, S <0.001%)

• Reductions in pollution and improved energy efficiency in the Furnace need high grade magnetite

1ASX announcement 27/11/2013


METALLURGY AND BENEFICIATION • 38 to 45 μm grind sizes, coarser than WA magnetite• Standard magnetite processing flowsheets was designed during the

Razorback PFS1

• Low rock hardness and abrasiveness = lower energy budget • Optimisation underway -

o viability of 25 Mtpa concentrate1

o SAG mill v high pressure grindingo Hydroseperation to remove final impurities

1There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised


RAZORBACK DEPOSIT– RESOURCE INCREASE IS REQUIRED FOR INCREASED PLANNED OUTPUT FOR 25 YEARS +


INNOVATION – THE KEY TO LOW COST

• Target OPEX of < US$30 in the first quarter of the cost cost curve, thus ensuring survival even at the bottom of the commodity cycle

• Utilising known technologies in an innovative approach to bulk mining and transport will reduce cost

• Magnetite Mines will apply innovation in the areas of:1. Mining2. Beneficiation3. Transportation of magnetite concentrate4. Port


SOFT ROCK AND ORE BODY GEOMETRY IN THE MAWSON IRON PROJECT ENABLES THE APPLICATION OF FULLY MOBILE IN-PIT CRUSHING AND CONVEYING (IPCC)

Images supplied by Braemar Iron Pty Ltd, for illustration purposes only

Based on Braemar Iron Pty Ltd Conceptual Feasibility Studies


RAZORBACK DEPOSIT – NEW PIT OPTIMISATION REQUIRED


SLURRY PIPELINE OVER TRAIN TRANSPORT HAS SIGNIFICANT COST SAVING, AND ENVIRONMENTAL AND SOCIAL BENEFITS


OFFSHORE SHIP LOADER TECHNOLOGY• Slurry delivered to a floating filter plant and port (FFPP)• Technology applied in FFPP, already proven• Facility located ~ 4 miles off the coast, north of Wallaroo,

Spencer Gulf• Water depth suitable for Cape-size and Valemax vessels• Calm seas, cyclone free• Government support• Less permitting

For illustration purposes only


PREFEASIBILITY STUDY HAS DETERMINED ROUTE FOR INFRASTRUCTURE CORRIDOR

Slurry pipeline + floating port = 8 x cheaper than convention port and rail*

* Based on Braemar Infrastructure Pty Ltd Conceptual Feasibility Studies


WHERE DO WE GO FROM HERE?

1. Get the story out and raise cash2. Offtake and construction agreements3. Merge assets4. Optimisation5. DFS

Information: www.royalresources.com.au

ASX Code: ROY

Royal Resources ManagementChairman Gordon TollExec Director Frank DeMarteNon Exec Director Mal RandallGeneral Manager Dr Gavin England


Documents

DR. GAVIN ENGLAND – ADELAIDE – 11 DEC 2015 MawsonIron Province · DR. GAVIN ENGLAND – ADELAIDE – 11 DEC 2015 MawsonIron Province ... Lottermoser& Ashley, 2000 ... Exec Director