Bonython Metals Group Mining, Exploration and Investment Private - PowerPoint PPT Presentation

Bonython Metals Group Mining, Exploration and Investment Private & Confidential - Not for Circulation without Written Approval

Bonython Metals Group Investor Presentation June 2010 John Hillam CEO +61 424 441 086 johnh@cfmmedia.com www.bonythonmetals.com Private & Confidential - Not for Circulation without Written Approval

Bonython Metals Group (BMG) is currently developing a number of attractive iron-ore tenements across New South Wales and South Australia  Founded in 2009 by John Hillam to become a major Australian iron-ore producer by 2015  Seeks to develop a number of attractive iron-ore tenements through joint venture arrangements  Currently proving resources in a number of tenements across New South Wales and South Australia Background  Forecast demand for iron-ore remains high due to China and Indian demand for infrastructure development  First major project is Hawsons Iron in western New South Wales – Estimated to have greater than 1bn tonnes iron ore and potentially exceed 6bn tonne – Project located close to major infrastructure (rail & port) Situation – Superior ore body  Significant pipeline of additional projects with joint venture partners – Majority located in South Australia – Highly attractive in terms of estimated resource size, ore quality and infrastructure proximity  Up to AUD$81 million required to take the Hawsons Iron project through the proven resource and bankable feasibility study stages prior to commence mine operations Investment – Estimated four year feasibility project Opportunity – Attractiveness is in securing direct supply for China based steel mills  ASI investment will secure total of 50% equity in BMG (before dilution). Current ASI equity is 25% Private & Confidential - Not for Circulation without Written Approval

Contents  BMG ‘s strategic direction, partners & projects  Hawsons Iron project  Capital / investment requirements  Collaboration and investment opportunities Private & Confidential - Not for Circulation without Written Approval

BMG has an ambitious strategy based on attractive tenements and joint venture partners Strategy  BMG aims to become a major Australian iron-ore producing company by 2015  It will achieve this objective by consolidating existing tenements and develop new iron-ore deposits into the largest magnetite project in Australia  Potential to exceed 10 billion tonnes of high grade iron- ore from NSW and SA sites  CEO John Hillam is a qualified geologist with considerable experience in developing magnetite deposits Joint venture partners  Carpentaria Exploration Limited  Giralia Resources NL  Pacmag Metals Limited  Helix Resources Limited  Mega Hindmarsh Pty Limited  Wentworth Metal Group Pty Limited Private & Confidential - Not for Circulation without Written Approval

Through the JVs, BMG has an attractive pipeline with the initial project estimated to consist of 1billion tonnes of JORC standard high grade iron ore JORC Resource Resource Hawsons Increased Confidence Drilling Target (EL7208) Project Progression CAP- Fold Up or Out Advanced CAP-South Limb Drilling CAP-Wonga Tenement EL4516 Tenement ELA05/10 Intensive Tenement ELA24/10 Tenement 3848 Aeromagnetic Tenement EL4395 Survey & Tenement EL3426 Tenement 4022 Tenement EL3956 Interpretation Green -- Farm in Private & Confidential - Not for Circulation without Written Approval

Contents  BMG ‘s strategic direction, partners & projects  Hawsons Iron project  Capital / investment requirements  Collaboration and investment opportunities Private & Confidential - Not for Circulation without Written Approval

Burta-BMG JV Hawsons Iron project Burta-BMG  JV exploration and farm in agreement with Carpentaria Exploration (80% BMG, 20% CAP)  One of the largest magnetite exploration targets in Australia with identified target of 2.2 – 4.8 billion tonnes  330 km 2 tenement consisting of outcrop and shallow magnetic anomalies extending for at least 50 km total strike length Attractive project features  Close to infrastructure – 60km SW of Broken Hill o Mining workforce o Mining services – 40km to rail line leading to Port Pirie – 30km to NSW electricity grid – 30km to main road / interstate highway – No native title claims Private & Confidential - Not for Circulation without Written Approval

Hawsons Iron project timeline and funding requirements up to commencement of mining operations A JORC Exploration B Bankable Feasibility Study C D 24 months 24 months Equity investment Exploration funding Stage BMG JV equity position (cash to CAP) (cash to JV) AUD$8m A February 2010 Stage 1 AUD$5m (exploration to JORC 40% standard) B February 2012 Stage 2 AUD$25m 51% AUD$20m February 2014 (Prove resource to C bankable feasibility study) Stage 3 AUD$23m February 2014 (Delivery of bankable 80% D feasibility study) Commence TBC mining operations Indicates funds to be paid Private & Confidential - Not for Circulation without Written Approval

Contents  BMG ‘s strategic direction, partners & projects  Hawsons Iron project  Capital / investment requirements  Collaboration and investment opportunities Private & Confidential - Not for Circulation without Written Approval

BMG / Hawsons Iron JV – corporate and project and financial structure to date ASI invested for A 25% share in BMG ASI B $5m for 40% BMG CAP C $8m Hawsons Iron JV SPV Recipient of Equity Key Transaction Source of funds Amount of Funds Funds consideration Equity – Cash Transactions ASI invested for 25% share in BMG A ASI BMG 25% Confidential *Includes option to acquire additional 25% BMG invests AUD$5m for 40% JV BMG CAP 40% AUD$5m B BMG invests AUD$8m in JV BMG HI JV SPV n/a AUD$8m C Private & Confidential - Not for Circulation without Written Approval

BMG corporate and project and financial structure for Hawsons Iron stages 2 - 3 ASI exercises option for D additional 25% ASI E $48m BMG Option balance CAP G Option for 25% equity for OPEX F $20m Hawsons Iron JV SPV Recipient of Equity Amount of Key Transaction Source of funds Funds consideration Funds Equity – Cash Transactions D ASI exercises option ASI BMG 25% Confidential E BMG pays CAP BMG CAP 80% $48m F BMG funds exploration expenditures BMG JV SPV N/A $20m Option Transactions G Option for 25% equity in Stage 2 ASI BMG 25% Confidential Private & Confidential - Not for Circulation without Written Approval

Contents  BMG ‘s strategic direction, partners & projects  Hawsons Iron project  Capital / investment requirements  Collaboration and investment opportunities Private & Confidential - Not for Circulation without Written Approval

There are a number of different ways in which potential investors and partners can collaborate with BMG FOR DISCUSSION Private & Confidential - Not for Circulation without Written Approval