INDUSTRIAL METALS, MINERALS AND MINEABLE ENERGYINVESTMENT SUMMIT 2010

LONDON CHAMBER OF COMMERCE & INDUSTRY ● WEDNESDAY, 30 NOV 2010www.ObjectiveCapitalConferences.com

Thorium: the future of energy?Ahmet Arda – CEO, AMR Resources

AMR Resources Ltd

Rare Earths, Minor Metals & Thorium Project

TURKEY

www. amrminerals.co.uk

AMR Resources Ltd. (AMR), is a mineral exploration company with along term strategy of discovering and advancing big deposits with strongproduction potential - Mine-to-Market Strategy

100% ownership of mineral exploration licences in Turkey coveringapproximately 1860 sq km in Turkey – a country rapidly emerging as alocation where the potential for finding and developing an economicdeposit is favourable. The exploration licences are located in an area,named Isparta Angle in Southwestern Turkey which is recognised ashaving a unique structural and geological history. AMR’s explorationlicence area is a composite of exploration project ground held under titleby the AMR Group and designated as

AKSU DIAMAS PROJECT

Company Overview

Why Thorium ?

Only Uranium-235 (U-235), Plutonium-239 (Pu-239) and Thorium/Uranium-233 (U-233) are being used all over the world as Nuclear Energy Fuel.

U-235 Only 0,7% of the total Uranium recovered from the nature is U-235.

Pu-239 There are no minerals containing Pu. At the Reactors run by Uranium Fuel, Pu is created due to the break-down of Uranium.

U-233 In the nature Thorium is found as Th-232. By absorption in very small amounts of U-235 or Pu-239, Thorium is converted to U-233 and all of it is used as a nuclear fuel.

To be able to produce 1,000MW electricity 1,000Kg Thorium would be sufficient.

The only Thorium producing country is India. It is known that India is producing about 1000-1500 Tons of REO/year. Since, it is known that the Monazites of India are containing 7-8% of Thorium, it is estimated that Thorium Production of India is approximately 100 Tons/year.

During the last years apart from countries like India, USA, China, Russia, Canada and Norway and also Nuclear Reactor Manufacturing firms like Westinghouse, AREVA and GE put a certain weight on Nuclear Reactor Technologies based on Thorium but currently prefer not to disclose anything.

THORIUM

Why Thorium ?

USA based firm Thorium Power which has been active for many years, has been in cooperationwith Russia’s Kurchatov Institute. On December 2008, Thorium Power has established a jointventure with one of the leading groups of India, Punj Lloyd, in the field of Thorium Fuel.

The overall Thorium Resource of the world currently known is calculated according to the Thcontent of the monazites containing ratios between 0,1% and 7-8%.

As in Norway, generally Monazites are in fine grain sizes of 40-50µ, and the Th containingminerals in them are in the grain size of 1-2µ.

Besides the ones in India, one of the largest Thorium Resources currently known is Lemhi Passdeposit in USA which belongs to Thorium Energy Inc. and its proven reserve is 194 Ton ThO2and probable reserve is 3,579 Ton ThO2. China is producing Thorium as a result of their RareEarth production.

Any Thorium Resource based on THORITE Mineral is not known in the world yet.

THORIUM

Why Thorium ?

The rationale behind Thorium fuel SIGNIFICANT BENEFITS

• Huge global thorium (Th) resources – not in pockets • Excellent material properties in reactor operations• Superior proliferation resistance• Efficient plutonium (Pu) destruction• Generated fissile material (U233) can be re-used in

LWRs• Improved environmental credit in a closed fuel cycle• Improved waste characteristics (less volume and

toxicity / more stabile)• Can be used in existing commercial reactors• Ordinary fuel fabrication techniques can be applied• Licensable in ordinary regulatory environment

Source:

Global Th-Resources, tons;Australia 300,000

India 290,000Norway 170.000

USA 160,000Canada 100,000Others 90,000

South Africa 35,000Brazil 16,000

Malaysia 4,500*US Geological Survey

■ India has nuclear and Thorium as main energy strategy

■ Use surplus Pu-239 as seed fuel

■Only 450 kg Th/år

Indian 500 MWe Thorium reactor construction

WORLDWIDE ACTIVITES ON THORIUM

Why Thorium ?

India

Russia

The prototype of Thorium’s design will be tested in a commercial 1,000-megawatt reactor in Russia.

Scientists at Kurchatov have been crucial to Thorium’s work.

Why Thorium ?

Thorium in Norway

Fen areaThis geological site in the Telemark region is anancient volcano that contains a unique collection ofminerals. Rare earth elements and uranium inaddition to at least 1 million tons of thorium arealso of commercial interest.

Thorium Norway ASAThree parties have mineral rights in Fen : Thehistoric iron miner Cappelen Holding ASA, theNorwegian state and Thorium Norway AS. The lattershares the vision for a cheap and disruptive thoriumenergy infrastructure.

1 million tons of Th containminimum 300 yrs of global energy.

1 ton of Th powers the city of Oslo for1 year - using the MSR !

Debate and opinionSome see thorium taking over from North Sea oil. Vocal environmentalists have criticized both the Accelerator Driven System proposed by Dr Egil Lillestøl and varying Water Reactors proposed by Thor Energi AS. A stable majority of public opinion perceives thorium as acceptable as opposed to uranium.

LinksFen area (in Norwegian) Thorium Norway ASThor Energi Cappelen Holding Egil Lillestøl Norsk Thorium

© Thorium ElectroNuclear Ltd Svarvargatan 5, 11249 Stockholm, SWEDEN http://www.torium.se

Why Thorium ?

The ReportIn February 08 Thorium report committee chairman Mikko Kara handed over the document to the Norwegian Minister for Oil and Energy. The Molten Salt Reactor actually comes out in style : The Report recognizes the fact that the MSR is the only GenIV machine that can run on a closed thorium fuel cycle. Also thorium energy should be recognized as CO2-free and sustainable. a Nordic collaboration is recommended

Our commentaries to the ReportWe think that more emphasis should be have been focused in practical detail on reactor safety, operation simplicity, non-proliferation and cost.

The committee echoed the Norwegian Geological Survey, NGU, that mining costs for Fen thorium are uncertain. We remind that 10 000€per kg Th is fully acceptable. Due diligence in Fen will reveal primary revenue streams from Rare Earth Elements REEs allowing for high environmental standards.

Thorium Electro Nuclear published commentaries to the Thorium report on the Minister's website.

The MSR was mentioned in the Norwegian technical weekly TU.

© Thorium ElectroNuclear Ltd | Svarvargatan 5, 11249 Stockholm, SWEDEN | http://www.torium.se

Nuclear power is set to make a comebackNuclear industry has huge potential for new technologies and new

approachesMiners can easily mine thorium instead or as well as uranium

Thorium is the Greener alternative to traditional nuclear fuel promising alternative energy source that is safe and sustainableUsing Thorium as Nuclear fuel could generate low cost power

1 Kg Th = 1 MWeSubstantial long term investment upside

Thorium as an additional Greener investment potential to an investors nuclear portfolio along with uranium and nuclear technology

Why Thorium ?

Energy Extraction Comparison

Uranium-fueled light-water reactor: 35 GW*hr/MT of natural uranium

1000 MW*yr of electricity

33% conversion efficiency (typical

steam turbine)

3000 MW*yr of thermal energy

32,000 MW*days/tonne of heavy metal (typical

LWR fuel burnup)

39 MT of enriched (3.2%) UO2 (35 MT U)

Conversion and fabrication

365 MT of natural UF6 (247 MT U)

293 MT of natural U3O8 (248 MT U)

Thorium-fueled liquid-fluoride reactor: 11,000 GW*hr/MT of natural thorium

Conversion to UF6

1000 MW*yr of electricity

50% conversion efficiency (triple-

reheat closed-cycle helium gas-turbine)

2000 MW*yr of thermal

energy

914,000 MW*days/MT 233U (complete burnup)

0.8 MT of 233Pa formed in reactor blanket from

thorium (decays to 233U)

Thorium metal added to blanket salt through

exchange with protactinium

0.8 MT of thorium metal

0.9 MT of natural ThO2

Conversion to metal

Uranium fuel cycle calculations done using WISE nuclear fuel material calculator: http://www.wise-uranium.org/nfcm.html

Waste generation from 1000 MW*yr uranium-fueled light-water reactor

Mining 800,000 MT of ore containing 0.2% uranium (260 MT U)

Uranium fuel cycle calculations done using WISE nuclear fuel material calculator: http://www.wise-uranium.org/nfcm.html

Generates ~600,000 MT of waste rock

Conversion to natural UF6 (247 MT U)

Generates 170 MT of solid waste and 1600 m3 of liquid waste

Milling and processing to yellowcake—natural U3O8

(248 MT U)

Generates 130,000 MT of mill tailings

Enrichment of 52 MT of (3.2%) UF6 (35 MT U)

Generates 314 MT of depleted uranium hexafluoride (DU); consumes 300 GW*hr of electricity

Fabrication of 39 MT of enriched (3.2%) UO2 (35 MT U)

Generates 17 m3 of solid waste and 310 m3

of liquid waste

Irradiation and disposal of 39 MT of spent fuel

consisting of unburned uranium, transuranics, and fission products.

Waste generation from 1000 MW*yr thorium-fueled liquid-fluoride reactor

Mining 200 MT of ore containing 0.5%

thorium (1 MT Th)

Thorium mining calculation based on date from ORNL/TM-6474: Environmental Assessment of Alternate FBR Fuels: Thorium

Note: Special Thanks to Kirk Sorensen of Teledyne Brown Engineering Inc. for these slides

Generates ~199 MT of waste rock

Milling and processing to thorium nitrate ThNO3 (1 MT Th)

Generates 0.1 MT of mill tailings and 50 kg of aqueous wastes

Conversion to metal and introduction into reactor blanket Breeding to U233 and

complete fission

Disposal of 0.8 MT of spent fuel consisting

only of fission product fluorides

AMR Project AreaLocation

General Location of the Aksu Diamas Project

AMR Project AreaOverview

AMR exploration licence area is a composite of adjoining ground held under title by AMR Group and designated as ;

135 Lıcences coverıng 185,608 hectares

AMR, is advancing the following exploration projects collectively called the Aksu Diamas Project, within theIsparta Angle –Turkey

Thorite and REE Mineralizations in, Canaklı 1-2-3-4 , Kuyubasi, Cobanisa, Kurucaova, Kuzca, Derekoy 1, Derekoy 2, Beskonaklar, Pecenek, Karaseki and Golcuk and possibly other structurally controlled locations in Licence Areas.

Potential mineral commodities in hard volcanic rocks namely Karakaya Tepe (Golcuk) and Gonen Area-target minerals are Radioactive Minerals and Base Metals.

AMR also owns an extensive exploration database which contains information about further prospective sites in Turkey. This database provides the Company with a competitive advantage to identify prospective areas for project generation in Turkey.

All projects are 100% owned by AMR

Exploration Success: Resource Inventory

Technical Summary Findings

Potential Th & REE Deposits in the Aksu Diamas Project

Name of Deposits Estimated Resource CANAKLI 1 A 50.000.000 TonCANAKLI 1 150.000.000 TonCANAKLI 2,3,4 500.000.000 TonKUYUBASI 80.000.000 TonCOBANISA 150.000.000 TonKUZCA 1,2,3,4 800.000.000 TonKURUCAOVA 200.000.000 TonDEREKOY 1 40.000.000 TonDEREKOY 2 40.000.000 TonBESKONAKLAR 1,2,3,4 80.000.000 TonKIBRIT OVASI 30.000.000 TonPECENEK 70.000.000 TonKIZILALAN 40.000.000 TonKARASEKI 20.000.000 TonINALAN 30.000.000 Ton

Technical Summary Findings

TETRAGONAL AMR THORITE GRAINS

The tetragonal nature of the thorite crystals which were obtained during processing of samples from the recent drilling at Çanaklı

THORIUM MINERALISATION

EDS Analysis results

Quantitative Results AMR 2 Element

Net Counts

Weight %

Atom %

Formula

Compnd %

O 8092 19.31S 66.52 --- Na 115 0.12 0.29 Na2O 0.16 Si 16403 8.17 16.02 SiO2 17.47 Th 54838 67.92 16.13 ThO2 77.29 U 2742 4.48 1.04 UO2 5.08 Total 100.00 100.00 100.00

Thorium in our Thorite

ORE TYPE : Mantle Origin, Heavy Mineral Sand like, Liberated, Pyroclastic Tuff

MINING METHOD Quarry : Hydromining - DredgeConcentrator : Hydrocyclone + Spiral + Magnetic Seperator

TOTAL RESOURCE : Up to 2 Billion Ton

RECOVERABLE RESOURCE BY CONVENTIONAL METHODS : Up to 700Million Ton (35%) (-0,70mm+0,015mm Fractions)

AVERAGE GRADE : 1 Kg / Ton TREO 0,1 Kg / Ton Nb2O55 Kg / Ton TiO2 60 Gr / Ton ThO21 Kg / Ton ZrO2 30 Kg / Ton Fe3O4 (Micronized Magnetite)

RECOVERABLE PRODUCTS BY CONVENTIONAL METHODS : 700,000 Ton TREO3,500,000 Ton TiO2

700,000 Ton ZrO270,000 Ton Nb2O542,000 Ton ThO2

21,000,000 Ton Fe3O4 (Micronized Magnetite)

MINING AND CONCENTRATOR PLANT ESTIMATED OPERATIONAL COST : USD 2–2.50 per Ton

IMPORTANT NOTE :The rate of the Recoverable Resource by Conventional Methods is 35% of the Total Resource.This amount was obtained by numerous Gravimetrical Tests applied to our ROM Material.We are aware of the presence of the liberated economical minerals within grain size of -15/25µ.In order to gain these fine economical minerals, Flotation Mineral Enrichment studies are continuing.Once successful Flotation Test-Work is achieved the Recoverable Resource would reach up to 60-70%.

Our Resources

Our Thorite (75% Thorium)

ABC Yolu, ABC Plaza Kat:434460 Istinye, IstanbulTel: +90 212 323 3435Fax: + 90 212 229 5463amr@amrmadencilik.com.tr

AMR Resources Ltd

Alliance House12 Caxton StreetLondon SW1H 0QSTel: +44 20 7799 1000Fax:+44 20 7799 1020ahmet.arda@amrminerals.com

www.amrminerals.co.uk

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