Investor Update May 2011 Forward Looking Statements This - PDF document

Investor Update May 2011

Forward Looking Statements This presentation contains certain forward-looking statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, reserves and resources, the financial position of Troy Resources NL (the “Company”), industry growth or other trend projections. Although such forecasts and forward-looking statements reflect current beliefs and are based on information currently available and assumptions believed to be reasonable there is no assurance that actual results will be consistent with such forecasts and forward-looking statements. A number of factors could cause actual results, performance, or achievement to differ materially from the results expressed or implied in such forecasts and forward-looking statements. For a description of such factors please see the section entitled “Risk Factors” in the Company’s amended and restated preliminary prospectus dated 10 January 2008 available under the Company’s profile at sedar.com. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. 2

Background  Listed on ASX (TRY) in 1987 as a Gold Explorer  Became a producer in Western Australia in 2000  Opened our first mine in South America in 2002 (Sertão)  Dual listed on the TSX in 2008  Commissioned the Andorinhas gold mine in Brazil in 2008  Acquired the Casposo gold silver project in Argentina in 2009  Paid 10 consecutive cash dividends  First gold pour at Casposo in November 2010  Gold and silver exposure at a compelling valuation  No hedging  Significant exploration potential 3

What We Own Gold Assets  Andorinhas Gold Mine – Brazil  Casposo Gold Silver Mine – Argentina  Sandstone Gold Mine – Australia (Closed) Andorinhas Belém Performance Gold Mine  FY2011 H1 Profit of A$6.05m BRAZIL  FY2011 production guidance of 80,000 to Brasilia 100,000 oz Au_eq Belo Horizonte Rio de Janeiro Sao Paulo Daly R iver San Juan Casposo Gold Buenos Aires Silver Mine S ands tone Q ue e nsla nd We ste rn Gold Mine Austra lia So uth X Austra lia N. S. W. P erth S ydney 500 km A.C.T . Vic to ria 4

Corporate Snapshot Key Statistics (A$) Troy Share Price Ordinary Shares: 87.97M 4.5 Options: 4.8M Troy Share Price A$ Share Price as at May 5, 2011: $3.63 4 52 Week Range: $1.85 - $4.29 3.5 Market Cap as at May 5, 2011: ~$320M 3 Board & Senior Management 2.5 Non-Executive Directors 2 David Dix, Non-Executive Chairman  1.5  Gordon Chambers, Non-Executive Director Fred Grimwade , Non-Executive Director  1 John Jones, Non-Executive Director  0.5  Robin Parish, Non-Executive Director 0 Senior Management Paul Benson, CEO & Managing Director  Peter Doyle, VP Exploration & Bus. Development  Ken Nilsson, Executive Director Operations   David Sadgrove, CFO & Company Secretary 5

Sandstone – Care and Maintenance  Closed on September 16, 2010 and moved to care and maintenance  FY2010 - 29,885oz at A$1000/oz  September quarter production – up 2% to 4,945 oz  September quarter costs – down 21% to A$846/oz  Ongoing exposure to nickel exploration JV with Western Areas  WSA have the right to earn 51% of any nickel discovery by spending A$4m over 4 years. 6

Andorinhas Gold Mine – Brazil  Small narrow vein underground supplemented by low grade open cut stockpiles  FY2010 - 31,568oz at US$634/oz  March FY11 Qtr production – 11,369oz @ US$582/oz  9 months to March 31, 2011 34,364 oz @ US$584/oz – Already exceeded FY10 production at a lower cost 7

8 Andorinhas, Mamão Underground Mine

9 Melechete Lode Drilling and Grade Distribution

Andorinhas – Summary  Moving into higher grade areas  FY2010: 31koz  FY2011: > 40koz  Potential at depth and regionally to add Reserves  Monetising iron ore 10

Andorinhas – Monetising Iron Ore Resource  Colluvial Iron Ore  Reserves 2.8 Mt  Resources 6.5 Mt  LOI with MFA to mine the iron ore  Payments  US$4m over FY11 and FY12  Over US$3m pa (1) (1) based on production and iron ore market price assumptions 11

12 Casposo Project – San Juan Province

San Juan Province Mineral Endowment Mines and Casposo Project Access 13

14 at 2,400m AMSL Mine is 20km from Calingasta

Delays in Ramp Up  Relatively complex circuit  Merrill Crowe (due to silver)  Dry Tailings (due to seismically active area)  Closed circuit for water balance  Initial difficulty with tailings filter performance  Clay blinding filter cloth  New Flocculent  Introduction of antiscalant Tails Filtering January 2011  Introduction of diatomaceous earth and cellulose  Various challenges with:  Merrill Crowe filters  Thickeners/clarifiers  Commissioning of electronics/plant monitoring and control systems  Training and supervision  Expect to reach budget throughput in June quarter Tails Filtering March 2011 15

Casposo Ramp Up  March Quarter Produced:  4,318 oz Au @ US$974/oz (net of 72koz silver credits)  or 6,118 oz Au_eq @ US$1,153/oz Au_eq (co-product costing)  Averaged 250tpd compared to design of 1100tpd  Month of March:  2,465 oz Au @ US$477/oz net of silver credits  Averaged 360tpd  Increasing throughput will increase gold production and decrease unit costs  In first week of April averaged 570 tpd  Achieved over 700tpd in last week of April  Mining comfortably ahead of the plant – stockpile at March 31:  145,877 t @ 7.1g/t Au and 97.7 g/t Ag  Approx 5 months stockpile at budget rates! 16

Open Cut, Underground and Processed Tonnes Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up Year 3 Year 4 Year 1 Year 5 Year 6 Year 2 17

Total Gold Equivalent Production Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up Aim to avoid the drop in production in Years 3 and Aim to extend mine life 4 through proving up additional higher grade ore – through proving up additional eg Kamila SE Extension surface and underground Reserves Year 2 Year 4 Year 6 Year 1 Year 3 Year 5 18

Unit Costs and Production Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up NI 43-101 Assumed silver at $17/oz falling to $15/oz Unit Costs and Production Life of FY 2017 Year 3 Year 4 Year 5 Year 6 Year 1 Year 2 Mine 30 ‐ Jun ‐ 17 Unit Cost: By ‐ Product Costing (after Silver credits) Gold Produced Oz 320,841 81,846 90,394 43,741 35,012 49,901 19,946 ‐ USD/ Oz (Au) Unit Cash Cost (net Ag net of Silver credits) 120.49 127.00 151.39 349.36 387.83 (88.18) (495.32) ‐ Total unit Cost net of silver (inc deprn & amort) USD/oz 448.85 455.38 505.01 779.50 681.63 157.85 (238.07) ‐ Unit Cost: Co Product Costing Equivalent Gold Produced Oz 463,494 96,056 110,705 60,681 64,576 92,520 38,956 ‐ USD/ Oz Equivalent Gold (Au+Au unit cash cost Ag) 382.05 270.94 307.08 517.03 645.20 390.05 209.97 ‐ Total Equivalent Gold unit total cost (deprn & amort) USD/oz 609.03 550.74 595.83 827.10 804.49 522.75 341.68 ‐ Based on forecasts given in May 2010 43-101 Report . The table will be updated in 2011 once actual operating costs are established 19

20 Blue Sky

Casposo – Low Sulphidation Epithermal Deposit South American Low Sulphidation Epithermal Deposits Total Endowment 8 7 6 5 million ounces 4 3 2 1 0 21

Lessons Learned from Goldcorp’s Cerro Negro Project 14 years of exploration with the biggest orebody Eureka found after 12 years in 2007:  1995: Newcrest Eureka Vein outcrop discovery  1997-2001: Newcrest-Pegasus-MIM: 21 RC holes - Eureka Vein (7,000m drilled)  2003: Andean buys MIM’s 51% of Cerro Negro  2005: Andean explores Vein Zone (0.5Moz Au Res - 115 holes/23,171m drilled)  2008: Andean announces Resource at Eureka (273 holes/72,416m drilled)  2010: Goldcorp takes Andean 3.5Moz Resource Cerro Negro Project: 215km 2 area 22

Kamila – Mercado Deposit Geology The NW- SE Structural Corridor is a Key Driver in Placement of Mineralisation 23

Casposo 2010 Mining Reserves Highest value intercept on the property to date HOLE: CA08250 7.2m @ 108.7g/t Au 4,423g/t Ag Contained metal value over US$10,000 per tonne at US$1500/oz Au and US$35/oz Ag. 24

25 Initial 2011 Drilling