HONG KONG MINES AND MONEY CONFERENCE CONFERENCE Charging forward with Lithium March 2015
DISCLAIMER This presentation has been prepared by Altura Mining Limited (“Altura” or the “Company”). It should not be considered as an invitation or offer to subscribe for or purchase any securities in the Company or as an inducement to make an invitation or offer with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation is provided on the basis that none of Altura nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the presentation and nothing contained in the presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. the past or the future. The Company hereby excludes all warranties that can be excluded by law. The presentation contains forward looking information and prospective financial material which is predictive in nature and may be affected by inaccurate assumptions or by known or unknown risks and uncertainties, and may differ materially from results ultimately achieved. All references to future production, production targets and resource targets and infrastructure access are subject to the completion of all necessary feasibility studies, permitting, construction, financing arrangements and infrastructure-related agreements. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources and Exploration Results, as well as the Competent Persons' Statements. All persons should consider seeking appropriate professional advice in reviewing the presentation and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the presentation nor any information contained in the presentation or subsequently communicated to any person in connection with the presentation is, or should be taken as, constituting the giving of investment advice to any person. 2
Presentation contents � Corporate overview � Delta Coal � Tabalong Coal � Iron Ore � Pilgangoora Lithium � Catalysts for 2015 � Questions 3
CAPITAL STRUCTURE (as at 28 February 2015) BOARD OF DIRECTORS Shares on issue 467,812,181 James Brown Managing Director Share price A$0.03 Paul Mantell Director Market Capitalisation A$14.0m Allan Buckler Director Cash on hand (31 st December A$0.831m BT Kuan Director 2014) 52 week Trading Range A$0.225 - A$0.024 Dan O’Neill Director MAJOR SHAREHOLDERS Shazo Holdings Pty Ltd 17.35% MT Smith 8.98% Hartco Nominees Pty Ltd 8.90% Navibell Services Ltd 7.46% Farjoy Pty Ltd 6.25% Top Twenty 68% 4
DELTA COAL Samarinda Delta Coal 5
DELTA COAL: PRODUCTION � Fully infrastructure integrated coal mine located in East Kalimantan, Indonesia – commenced production in 2004 � Altura ⅓ interest in early 2013 - providing technical support to mine operations � � Currently producing at 1.4 mtpa rate of thermal coal - 5,600 kcal – air dried basis – plan to Currently producing at 1.4 mtpa rate of thermal coal - 5,600 kcal – air dried basis – plan to increase to 2 mtpa with minimal capital input � Competitive Average Life of Mine (LOM) operating cash cost of US$36.92/tonne FOB barge � JORC Reserve and Resource update planned for Q2 2015 6
DELTA COAL: MINE TO MARKET 7
TABALONG COAL 1 Ownership 70% Altura and 30% PT UJI to form the Tabalong JV 2 Ownership 80% Tabalong JV and 20% Local partner 8
TABALONG COAL � Five (5) IUPs covering 17,000 hectares located in South Kalimantan, Indonesia • Tabalong JV - 70% Altura and 30% local partner • Targeting high energy coals with exploration highlighting significant potential for PCI and metallurgical coal products Aim to produce up to 1.5 mtpa blend of thermal and metallurgical coals • • Consistent with company strategy of low capital intensity, low operating cost and straightforward pathway to market via third party infrastructure � Operation Production status achieved for all five (5) IUPs • All five (5) IUPs taken from Exploration to Operation Production • In-principle Forestry Land Use Permit approval for SPK received in September 2014 • Mine construction planned for 2015 • Parallel approval for SCC substantially complete 9
SINGAPORE NEWCO � Spin-out of Altura’s coal assets into new Singapore company (Newco) • Altura and partners plan for consolidation of coal assets into new Singapore based vehicle • Newco intends to list on SGX-ST Catalist, the Sponsor-supervised listing platform of the Singapore Exchange Securities Trading Limited (“SGX-ST”) AJM Shareholder approval for coal asset divestment on 12 February 2015 • • New funds to be raised as part of the listing to allow for development of the Tabalong coal project in 2015, and to grow the new coal business • • Newco will have a new board and Altura will be a controlling shareholder (as defined by the Newco will have a new board and Altura will be a controlling shareholder (as defined by the SGX-ST) Altura’s final shareholding in Newco will depend on the valuation of the coal assets and the • ultimate capital raising • Subject to the approval of the draft Offer Document by the SGX-ST, the IPO launch of Newco is proposed for 1H 2015 • Consolidation of its coal assets into a separate coal focused entity will allow for recognition of Altura's investment in these Indonesian coal assets, build on the existing coal business and provide financial resources required for the development and further exploration of the Tabalong Coal project 10
IRON ORE As per ASX announcement 24 th December 2014 Altura divested its stake in the Mt Webber project � � Risk free exposure to recovery in Iron ore price or deprecation in Australian Dollar � Altura retains a royalty over production from Mt Webber project and surrounding exploration leases � Royalty of 1% in excess of A$95/t Pilbara 62% fines 11
PILGANGOORA LITHIUM 12
ALTURA LITHIUM – Pilgangoora deposit � Pilgangoora project, Pilbara Region Western Australia (100% Altura) � Top 5 global deposit (by resource size) of hard rock Lithium (Spodumene) � Technically straightforward characterised by shallow, thick and high grade lithium intercepts with consistent Li 2 0 grade � JORC Mineral Resource estimate of 25.2 million tonnes @ 1.23% Li 2 0* – contained Lithium 310,000t � � Resource extendable and open in several directions Resource extendable and open in several directions � Sufficient resource established for 20yr plus mine life � 25.2 Mt Ore Resource estimate (17.3 Mt Indicated / 7.9 Mt Inferred) with potential to increase � 12 Spodumene-rich pegmatite dykes identified – up to 70 metres thick *See Altura’s ASX release of 3 October 2012 * Refer to Appendix for Resource Table and Competent Persons Statement 13
Pilgangoora Lithium Deposit – 3D View 14
ALTURA LITHIUM – Charging forward � Progressing to pre-feasibility in 2015 � Post scoping study November 2012, several optimality's being pursued including potential for high grading first 7 years of production with potential to mine at circa 1.8% Li 2 0 closely resembling Greenbushes feedstock � Altura pursuing low capital option for convention dig, crush, grind, floatation circuit producing Chemical grade >6.5% Li Lithium concentrate for export to third party processing � Recent concentrate prices for chemical grade concentrates trading at A$600 � Consolidation in sector with Talison transacting at circa 16x EBITDA earnings � Strengthening concentrate prices highlight strategic value of Pilgangoora and compelling fundamentals of underlying Lithium market � Altura currently conducting process to attract offtake / strategic investment partner for project 15
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