1 Western Australia

There's never been a better time to invest in Western Australia

Rick Rogerson

Executive Director

Geological Survey of Western Australia

Minerals Investment Seminar Tokyo, October 2015

2

Times are tough

Downturn in equity markets an opportunity for new investment :

• Desperate sellers

• Less competition for service companies — lower operating and capital costs

• Less competition for labour — lower wages

• Major cost cutting possible

3

Many ASX-listed companies cash-poor

• Currently* 726 ASX-listed mineral companies

• 43% have less than $AUD 1 million in cash

• 60% have less than $AUD 2 million in cash

• 20 ASX listed companies have morphed into non-mineral ventures

• 15 were delisted on 1 September for not paying their annual ASX listing fees (< $24,373)

• 212* ASX-listed companies have projects in WA

* As at 14 September 2015

4

WA mineral licence map has large gaps

• Many licence holders looking for JV partners

• Some quality projects need JV partners

• Time of opportunity at all development stages, including off-take agreements

0

10

20

30

40

50

60

70

80

2011-12 2012-13 2013-14

Mining Infrastructuretenure

Mining Leases

Exploration Licences

Prospecting Licences

Are

a (m

illio

n h

ecta

res)

Area of WA under various licence types

25% reduction in area under exploration

licence over 3 years

5

WA ranked highly as resources investment destination

• Western Australia among the top-rated jurisdictions for investment attractiveness in 2014

• 5th in World for quality of geoscience databases

Fraser Institute’s Policy Potential Index (Australian States only)

Fraser

Institute

ranking

2006-

2007

2007-

2008

2008-

2009

2009-

2010

2010-

2011

2011-

2012

2012-

2013 2013 2014

1 SA SA SA SA SA NT WA WA WA WA

2 QLD TAS NT NT WA SA SA SA SA

3 TAS NT WA WA NSW QLD NT NT TAS

4 VIC WA NSW NSW NT VIC QLD NT

..

7 WA

6

WA policy environment improves

• Commonwealth Mineral Resources Rent Tax and Carbon Tax removed

• Long-running review of State Government Royalty rates completed with Mines Minister deferring recommended changes

• Commonwealth Exploration Development Initiative introduced

• Continuation of the State Exploration Incentive Scheme

• Royalty relief provided for struggling iron ore producers

• Most environmental bonds replaced by small annual contribution to Rehabilitation Fund

7

Diversity of Japanese projects

Producing

Iron ore

Salt

Gypsum

Silica sand

Heavy mineral sands

Exploring

Gold

Zinc

Uranium

• Japan is an investor into 27 WA mineral projects — 16 of these iron ore

• Other commodities include uranium, base metals, industrial minerals, heavy mineral sands and recently gold

• Japanese companies also have offtake agreements with a number of projects including rare earths

• Gold Road project (South Yamarna JV) has been a very successful investment for Sumitomo

8

Base metals* potential increases • Copper production

increasing in WA

• More copper discoveries in WA, mainly in Proterozoic rocks, but some in Archean

• Many have good by-product Au grades

• Area near DeGrussa still a hot spot with discovery of Monty, and Horseshoe Lights resource growing with more exploration

Early Exploration &

Exploration

Advanced Exploration

Pre-feasibility & Feasibility

Mine (includes under

construction, care &

maintenance)

*Base metals: Cu Pb Zn

Discoveries 2014-15

55

45

19

5 8

Early Exploration

Exploration

Advanced Exploration

Pre-feasibility & Feasibility

Mine*

Horseshoe Lights, DeGrussa & Monty

Yeneena Cu

* May include under construction and care & maintenance

9

Horseshoe Lights Cu-Au gets bigger

• Abandoned Cu–Au mine being explored by Horseshoe Lights Ltd (ASX-listed)

• VMS style with supergene enrichment of Au

• Hosted by same unit as DeGrussa

• Total resource – 138,000 tonnes Cu – 52,600 oz Au – 1.1 mill oz Ag

10

Yeneena

Innovative base metals exploration — Yeneena Cu–Zn project

• Innovative exploration by Encounter Resources (ASX-listed) with JVs to reduce risk at early stage of exploration

• Proterozoic base metal VMS targets adjacent to major faults in under-explored area; enormous upside

• Possible IOCG target in JV with Antofagasta

• Cu and Zn targets

Yeneena BM1

Millenium Zn

Aria ?IOCG

Yeneena BM7

11

Millenium discovery opens new Zn province

• Early stage exploration at boundary between black shales and dolomite

• 91.8 m @ 1.6% Zn from 344 m

• 38.7 m @ 0.9% Zn from 255.8 m including 8.6 m @ 2.2% from 285.9m

• 7 m @ 4.8% Zn from 233 m

• Untested 1 km zone and open at depth

12

Nickel is booming despite low price

• New nickel province established in Albany – Fraser in 2013; Nova mine is being constructed

• Kambalda-type Ni outlined in Northeastern Goldfields by Rox Resources in 2014 – new nickel province

• Discovery in King Leopold Orogen in West Kimberley opens another new Ni province in 2015

Early Exploration &

Exploration

Advanced Exploration

Pre-feasibility & Feasibility

Mine (includes under

construction, care &

maintenance)

Discoveries 2014-15

77

72

33

16

19 Early Exploration

Exploration

Advanced Exploration

Pre-feasibility & Feasibility

Mine*

Double Magic

West Musgrave

Albany – Fraser Orogen

Fisher East

* May include under construction and care & maintenance

13

Musgrave Ni district moves closer to mine development

• Innovative exploration by Cassini Resources (ASX-listed)

• Nebo–Babel: 203Mt @ 0.41% Ni + 0.42% Cu (0.3% Ni cut-off)

• Upside in Succoth, Babylon & Esagila

14

Gold hot in WA • Current gold price =

$AUD 1590/oz

188

201

158

38

70 Early Exploration

Exploration

Advanced Exploration

Pre-feasibility & Feasibility

Mine*

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

Jul-

03

Jul-

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Jul-

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Jul-

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Jul-

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Jul-14

Pri

ce

pe

r o

un

ce

Precious Metal Price ($ of the day)

Au ($AUD/ounce)

Au ($US/ounce)

Pt ($US/ounce)

Discoveries 2014-15

Early Exploration &

Exploration

Advanced Exploration

Pre-feasibility & Feasibility

Mine (includes under

construction, care &

maintenance)

* May include under construction and care & maintenance

15

Baloo is latest exciting Au discovery

• Baloo: blind brownfields discovery beneath a salt lake made by S2 Resources Ltd (same team that discovered Nova Ni)

• Typical structurally-controlled mesothermal Au

• Up to 600m long, 100m wide, 40m thick

• Surrounded by 30 million ounces of Au endowment

Norseman (town)

Baloo Au

Lake Cowan

Lake Cowan

16

Uranium & rare earths opportunities

Early Exploration &

Exploration

Advanced Exploration

Pre-feasibility & Feasibility

Mine (includes under

construction, care &

maintenance)

51.2% 35.5%

13.0%

0.3%

Calcrete-hosted

Roll-front sandstone-hosted

Unconformity & vein-type

Carbonatite-hosted

Total U resources: 234,000 tonnes U3O8

Uranium

Light Rare Earths

Heavy Rare Earths

• Just over 50% of WA’s U3O8 resources of 234,000 tonnes are contained in easily mined calcrete-hosted lake bed deposits

• 4 uranium deposits at pre-feasibility or feasibility stage awaiting U price rise

• Browns Range heavy rare earth project is at feasibility stage

Mulga Rock

Browns Range

17

Total U3O8 resources = 234,000 tonnes in June 2015

Project Owners Resource (Mt) Grade (ppm)

Resource U3O8 kilotonnes

Yeelirrie Cameco 36.640 1,562 57.24

Mulga Rock Vimy Resources 65.600 520 34.11

Kintyre Cameco, Mitsubishi 5.266 5,583 29.40

Lake Way - Centipede Toro Energy 27.100 539 14.61

Manyingee Paladin Energy 13.780 850 11.71

Lake Maitland Toro Energy 20.800 486 10.10

Oobagooma Paladin Energy 8.300 1,200 9.96

Yanrey Cauldron Energy 36.120 270 9.76

Calcrete-hosted Sandstone-hosted (roll-front)

Unconformity-associated

18

Mulga Rock second largest WA U deposit

• 100% owned by Vimy Resources Ltd (ASX-listed)

• 4 deposits (Emperor, Shogun, Ambassador & Princess) along a Cenozoic palaeo-channel; roll-front deposits

• Now at Pre-feasibility stage; 16 year mine life; easily mined, unconsolidated sands, silts, lignite

• Has base metal + scandium credits

19

When investment times are tough, the tough invest

• Still in the red zone at 4:30 to 5 o’clock

• A strategic time to invest

• Time to invest more into WA!

20

Thank You

• The companies named in this presentation have not necessarily indicated to DMP that the

prospects mentioned or described are available for joint venture or purchase.

• The projects and prospects mentioned or described should be taken as examples of commodities,

mineralization styles or the size of deposits that occur in Western Australia.

• The Government of Western Australia does not endorse the companies, projects or prospects

mentioned or described in this presentation.

• Due diligence is recommended before any investment decision.