April 2011 June 2011 1
Statements contained in this presentation which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices for uranium and rare earths; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in political support for nuclear energy and rare earth technologies; changes in government regulations and policies, including trade laws and policies; demand for nuclear power and rare earth products; failure to obtain necessary permits and approvals from government authorities; weather and other natural phenomena; and other exploration, development, operating, financial market and regulatory risks. Although Stans Energy Corp. believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this release. Stans Energy Corp. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise Cautionary Note to United States and Other Investors Concerning Estimates of Measured, Indicated and Inferred Resources: Certain tables may use the terms “Measured”, “Indicated” and “Inferred” Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, however, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable. 2
Stans Energy is focused on re-starting a past producing Rare Earth Elements mine and processing facility in Kyrgyzstan Kutessay II Mine: • Past producing open pit mining operation • Produced equal quantities of heavy and light rare earth elements • Known metallurgical processes • 20-year mining license in place Kashka Rare Earth Processing Facility (KRP): • Processed ore from Kutessay II Mine for 30 years • Produced 120 metal, alloy, and oxide products • Under care-and-maintenance since 1991 • Private rail terminal provides access to Russia, Europe, and Asia Strong Board, Technical Advisors, and Management: • Many involved with Kutessay II and the KRP prior to 1991 3
Stock Exchange HRE (TSX-Venture) Shares Outstanding 152,303,186 as at September 9, 2011 Warrants 8,646,476 Options 14,513,333 Total (fully diluted) 160,615,653 Market Cap C$130 m Share price (Oct. 17) C$0.86 52 week high/low C$3.40 / C$0.52 Net cash C$20 m Debt Nil 4
Major REEs to be produced by Stans Energy Properties Industry Use Yttrium Defense Applications High Tech Terbium Reduces Europium Weight Dysprosium Emissions Gadolinium Energy Consumption Holmium Hybrid Electric Vehicles Green Tech Erbium Allows Thulium Greater Efficiency Luteium Performance Ytterbium Miniaturizatoin Lanthanum Speed Water Treatment Other Applications Cerium Durability Praseodymium Thermal Stability Neodymium Samarium 5
Global REE Demand Pacing to Outstrip Supply 250,000 200,000 (Tonnes of REO) 150,000 100,000 50,000 0 2005 2006 2007 2008 2009 2010 2011f 2012f 2013f 2014f 2015f China Demand Adjusted Global Demand ROW Supply China Supply Source: IMCOA – Industrial Mineral Company of Australia 6
Source: US Department of Energy 7
RUSSIA EUROPE JAPAN CHINA Kyrgyzstan 8
• 100% ownership of former Soviet-era mine • Produced 80% of FSU’s REE needs • March 2011: Pit-contained mineral resources – Measured + Indicated: 45,650 tonnes of contained TREO – Inferred: 3,560 tonnes of contained TREO • Preliminary Feasibility Study (PFS) to be completed by end of 2011 • 20-year mining license and all permits are in place • Adjacent beryllium deposit provides additional upside – 9.245 million tonnes grading 0.128 % BeO*** ***Based on historical reserves 9
Aktyuz Ore Field: Kutessay II REE Mine And Exploration Areas Kutessay III Kalesay Kutessay II Aktyuz Historic Mill
Kutessay II REE Mine
Beryllium deposit with historical reserves of С 1 +С 2 category: ore – 9,245,000 t., containing 11,701 t of Beryllium oxide at an average grade of 0.128%*(confirming resource estimate with JORC report) Kalesay Beryllium oxide price is >US$700,000/t Kalesay will be mined concurrently when Kutessay Kutessay II II pit-wall is knocked back. Increasing Beryllium reserves is possible through exploration of deposit pit flanks and to the depth. More than 70% of total reserves of the deposit can be mined by open pit *Reserve estimate from historical Soviet data, not NI 43-101 compliant and should not be relied on 12
Kalesay Classification of beryllium Kutessay II deposits by grade and reserves (McLemore, 2010)
Southern Ore Zone View of Kutessay II open pit Kalesay Open Pit Kutessay-II and Kalesay ore zones Kutessay II Northern Ore Zone
• Primary goal of the exploration drilling at the Aktyuz Orefield license area in 2011 is the expansion of Kutessay II and the Aktyuz REE deposits • At Kutessay II a 2100m drill program will explore below the 2100m level of the Kutessay mine bottom. • Kutessay II drilling will consist of four 450-570m holes. • At the Aktyuz mine, a 900m drill program will explore the Aktyuz deposit in order to study the geological potential of recently discovered ore- bearing zones. • Aktyuz drilling will consist of three 300m holes. 15
• 100 % ownership • Processed Kutessay II ores for 30 years • 120 metal, alloy, and oxide products • Under care and maintenance since 1991 • Private Rail Terminal provides access to Asia, Europe, and Russia • Facility originally designed by VNIIHT, one of Stans Energy’s core consultants 16
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30 year proven track record of 99.99% oxide production 18
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Element Oxide REEs % REO USD/kg REE Breakdown by Value Dysprosium Dy 6.14 2,300 (FOB prices in USD October 2011) Yttrium Y 26.73 133 Terbium Tb 1.55 3095 Neodymium Nd 8.18 265 0.23 Europium Eu 4110 3.25 Erbium Er 245 3.78 Praseodymium Pr 230 3.59 Gadolinium Gd 172 4.1 Samarium Sm 95 0.57 Holmium Ho 397 0.25 Thulium Tm 790 3.29 Ytterbium Yb 155 0.5 Lutetium Lu 1,325 19.68 Cerium Ce 55 HREE LREE 16.55 Lanthanum La 58 Based on historic production 21
VNIIHT’S ROLE • Stans Energy’s feasibility studies (Q4 2011) will be conducted under the guidance of VNIIHT. VNIIHT’s sixty years of chemical technology experience combined with their capabilities of executing the complete cycle of rare earths research, development, and production will give Stans Energy a significant advantage relative to its competitors. • VNIIHT will also assist with evaluation and acquisition of other HREE properties in areas of the Former Soviet Union (FSU) 22
VNIIHT ACHIEVEMENTS Technologies developed in the Institute became the production cycle base for over 20 hydrometallurgical plants Over 150 sorbents, extractants and resins were engineered Over 3600 developments were industrially implemented Over 2600 inventors certificates and patents were issued 7 minerals were discovered Over 100 PhDs are employed 23
Canada Honorary Consul of the Kyrgyz Republic for Canada Russia Kyrgyzstan VNIIHT IGPMG RAS Kyrgyz-Russian Slavic University ARRIMR GEOTEP 24
CORPORATE STRATEGY • Complete Preliminary Feasibility Study by the end of Q4 2011 • Updated mineral resource statement • First opportunity to present mineral reserves • Bankable Feasibility Study expected in H2-2012 • Advance off-take agreement discussions with end users • Continue to explore: • Deep drilling of areas of know mineralization • Refurbish Kashka Rare Earth Processing Facility (KRP) • Optimize recovery process with new technology • Build out operating and construction teams • Assess HREE and joint-venture opportunities 25
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