Investor Presentation • February 2013 Growth in North American Copper TSX/NYSE MKT:AZC
Forward-looking Statement Certain of the statements made and information contained in this presentation may contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. Such forward-looking statements and forward-looking information include, but are not limited to statements concerning: the Company’s plans at the Rosemont Project; estimated production; and capital and operating and cash flow estimates. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain acti ons, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward -looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; no history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of Common Shares; insurance; competition; hedging activities; currency fluctuations; loss of key employees; as well as those factors discussed in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 19, 2012. Should one or more of these risks and uncertainties m aterialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discu ssion of the Company’s business contained in the Company’s reports filed with the securities regulatory authorities in Canada and the United States. CAUTIONARY NOTE TO U.S INVESTORS The tables quoted on this website use the terms "Measured", "Indicated" and "Inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, 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 an Inferred Mineral Resource exists, or is economically or legally mineable. ALL DOLLARS ARE IN US DOLLARS, ALL TONS ARE IN SHORT TONS. TSX/NYSE MKT:AZC TSX/NYSE MKT:AZC 2
About Augusta Share Price (TSX: AZC) C$2.61 100%-owner of Rosemont Copper Share Price (NYSE MKT: AZC) US$2.53 Subject to 20% Joint Venture with KORES/LGI Basic shares outstanding 144.1M on Rosemont JV Fully diluted 153.0M Augusta is manager and operator o Market capitalization (basic) ~US$365M Experienced management team and Institutional ownership ~60% established Board Insider ownership ~15% North American growth in Copper TSX/NYSE MKT:AZC 3
About Rosemont • Located in Arizona, 50 km southeast of Tucson • Stable mining laws and regulatory regime • Accessible via highway • Power, rail, port & all necessary infrastructure nearby • Water rights approved • Arizona produces 65% of the U.S. copper supply TSX/NYSE MKT:AZC TSX/NYSE MKT:AZC 4
About Rosemont Rosemont Land Ownership • Patented claims – approx. 2,000 acres • Unpatented claims – approx. 16,000 acres • Fee lands – approx. 1,800 acres • Total of approx. 20,100 acres* Ranch Lands Rosemont Deposit *Not shown on map are distal lands acquired for well field, pump stations, utilities and ranch operations – approx. 300 acres TSX/NYSE MKT:AZC 5
Rosemont Environment West View Sierrita Mine Mission Mine Twin Buttes Mine Green Valley Waste Rock Storage Area Plant Site Open-Pit Dry Stack Tailings Facility TSX/NYSE MKT:AZC 6
Increased Copper Sulfide Reserve & Resource Rosemont Copper Sulfide Reserve and Resource (B lbs) From 2008 20% 7.5 5.9 5.6 Proven & Probable Sulfide Reserve (Cu lbs) 4.9 34% Measured & Indicated Sulfide Resource (Cu lbs) From 2008 Proven & Probable Measured & Indicated 2008 2012 TSX/NYSE MKT:AZC 7
Mining & Processing Metrics (1) First 3 years average annual copper production (lbs) 255M First 3 years average annual moly production (lbs) 6.9M LOM average annual copper production (lbs) 243M LOM average annual moly production (lbs) 5.4M LOM average copper grade 0.44% LOM average moly grade 0.015% LOM average copper recovery 87% LOM average moly recovery 58% Waste to ore ratio (2) 1.9:1 1. Production plan is based on the 2012 mineral reserve which is confined by a pit shell based on $1.88/lb Cu. 2. Waste includes oxide material. If oxide minerals are excluded from waste, the waste to ore ratio would be 1.7:1 TSX/NYSE MKT:AZC 8
Rosemont Production When in production, Rosemont will be the third largest mine in the US 2011A US Copper Production By Mine (Mlbs) 614 430 Rosemont LOM Avg.: 243M lbs (1) 216 194 177 151 145 95 66 47 42 36 Morenci Bingham Ray Bagdad Sierrita Safford Mission Robinson Miami Silver Bell Mineral Park Other Canyon 1. Based on Rosemont 2012 Feasibility Study Update. Sources: Company disclosure and Rosemont 2012 Feasibility Study Update. TSX/NYSE MKT:AZC 9
Rosemont is low cost Rosemont average cash cost, net (First 3 years) (1) $0.87/lb Cu Rosemont average cash cost, net (LOM) (1) $1.02 /lb Cu ($/lb Cu); cash costs, net of by-product credits $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 Rosemont $1.00 $0.50 $- 1997 1999 2001 2003 2005 2007 2009 2011 Median Cost 9th Decile Marginal Cost LME Cash Price 1. Net of by products, using the 60/40 pricing scenario for Molybdenum of $14.19/lb Mo and Silver Wheaton agreement for precious metals pricing of $3.90/oz Ag, $450/oz Au . Sources: 1. LME prices are annual averages with 2012 YTD based on current copper price as at June 30, 2012 2. Source: Goldman Sachs report June 6, 2011 using data from www.minecost.com; Brook Hunt; GS&PA Research Estimates 3. Rosemont 2012 Feasibility Study Update TSX/NYSE MKT:AZC 10
Rosemont is construction ready Most major equipment procured – fixed $90M already spent on equipment price contracts set in 2008/2009 Grinding mills and drives paid for and delivered TSX/NYSE MKT:AZC 11
Barrel Alternative: USFS Preferred Alternative N N TSX/NYSE MKT:AZC 12
Site Layout Tailings Filtration Mine Shop Area Primary Crusher Concentrator Area N TSX/NYSE MKT:AZC 13
Rosemont CAPEX CAPEX Breakdown ($M) General Site/ Contingency Ancillary Facilities General Site / Ancillary Facilities $60 Mine $252 Concentrator & Tailings $471 Owner’s Costs Power / Water Supply $122 Mine EPCM/ EPCM/Commissioning/ Spare Parts $104 Commissioning/ Spare Parts Owner’s Costs $163 Contingency $51 Power/Water Supply Sunk Costs (Equipment & EPCM) ($113) Concentrator & Tailings Total Construction & Commissioning $1,110 Mine Pre-development CAPEX $116 Total CAPEX $1,226 TSX/NYSE MKT:AZC 14
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