Matrix Metals Limited Investor Presentation Disclaimer The - PDF document

Matrix Metals Limited – Investor Presentation

Disclaimer The material used is this presentation is intended to be a summary of selected geological data, current and proposed activities, as well as resource estimates based on information available to Matrix at the time. It does not include all available information and should not be used in isolation as a basis to invest in Matrix. Any potential investors should refer to Matrix Metals Limited ASX releases and statutory reports before considering investing in the company. The presentation includes information relating to a feasibility study which is in progress and includes “forward looking statements’ which include, without limitation, estimates of potential copper production based on mineral resources that are currently being evaluated. While the Company has reasonable basis on which to express these estimates, any forward looking statement is subject to risk. Risks include, without limitation: copper metal prices, foreign exchange rate movements, project funding capacity, copper product offtake contracts and estimates of future capital and operating costs. The Company does not undertake to release publicly any revisions to forward looking statements included in this presentation to reflect events or results after the date of this presentation, except as may be required under applicable securities laws. 2 Matrix Metals Limited – Investor Presentation

Corporate Overview Capital Structure Substantial Shareholders Ordinary Shares 702.5m Independence Group 17.7% Unlisted Options 19.7m LinQ Resources Fund 8.8% Market Capitalisation Glencore 5.9% $91.3 million Based on price of $0.13 / share Top 20 43.2% Cash $5 million Debt (Glencore) $8 million $0.20 80,000,000 $0.18 70,000,000 $0.16 60,000,000 $0.14 50,000,000 $0.12 $0.10 40,000,000 $0.08 30,000,000 $0.06 20,000,000 $0.04 10,000,000 $0.02 $0.00 - Jan 06 Mar 06 May 06 Jul 06 Sep 06 Nov 06 Jan 07 Mar 07 May 07 Jul 07 Sep 07 Nov 07 Volume Share price 3 Matrix Metals Limited – Investor Presentation

Board & Management Board of Directors Senior Management David Humann Chairman Shane McBride Chief Executive Officer Shane McBride Managing Director Ian Goldberg Chief Financial Officer Clive Donner Non-Executive Director Bob Dennis GM - Operations Ronald Hing Non-Executive Director Paul Monaghan Leichhardt Ops Mgr Geoffrey Jones Non-Executive Director Barry Cloutt Project Manager Richard Procter Non-Executive Director 4 Matrix Metals Limited – Investor Presentation

5 Mt Isa Inlier – World Class Base Metals Province Matrix Metals Limited – Investor Presentation

Leichhardt Project Summary Leichhardt 5,500tpa SX/EW plant is in steady state production processing Mt Watson copper oxide resource at nameplate capacity Glencore International to buy 100% of production over life of mine Cashflow from copper sales commenced in August 2007 Total leachable copper resources in the Leichhardt Project total 8.8 million tonnes Stage 1 has 2.1 million tonnes of Mt Watson ore to be treated over 4 - 5 years at 5,500tpa (only 25% of Leichhardt total resource utilised in Stage 1) Plant upgrade for Stage 1 expansion estimated at approximately $5-6 million to increase production to approximately 9,000tpa. Most equipment for plant upgrade is already owned by Matrix. This option uses exactly the same orebody as Stage 1, no change is made to the technical aspects of the orebody mined, however the mining rate is increased Stage 2 will see an extension to mine life and/or increase in production rates Geotechnical and metallurgical drilling for Stage 2 has been completed and column test work will start soon Resource inventory increase to 8.8 million tonnes to come (Mt Watson, Hidden Treasure, Mighty Atom, Mt Earl, Mt Wonder, Tewinga, Boomerang) 6 Matrix Metals Limited – Investor Presentation

7 Mt Watson from the West to East Overall Stage 2 pit length 1.5km Matrix Metals Limited – Investor Presentation

8 Leichhardt Production Activities Matrix Metals Limited – Investor Presentation

Leichhardt Project Milestones � Leichhardt Project mining study completed October 2006 � Leichhardt Project funding completed November 2006 � Mining operations commenced at Mt Watson in April 2007 � Process plant started commissioning and crushing operations commenced June 2007 � Copper cathode production commenced June 2007 � Processing plant refurbishment and commissioning complete June 2007 � First copper cathode sales in July 2007 � Cashflow commenced in August 2007 � Nameplate production of 5,500 tpa achieved from late September � Steady state production achieved October 9 Matrix Metals Limited – Investor Presentation

Leichhardt Stage 1 Project to Date Feasibility July – Sep 07 Study Ramp up progressed Nameplate Production Rate 5,500 tpa 5,500 tpa on schedule Grade (% Cu) 1.17 1.16 Mined grades and widths reconcile with Operating Cost the resource model $1.59 $1.71 - US$/lb $2.18 $1.99 - A$/lb Copper cathode production at Total Revenue (A$) $163 million $6.8 million nameplate capacity Stage 1 ore of 2.1mt @ 1.2% Cu Price Annual Net Capital $ Payback US$/lb Operating Cashflow Time Feasibility Study Prices Average 2.66 $16 million 15 months Spot Prices 3.42 $20 million 14 months 10 Matrix Metals Limited – Investor Presentation

Leichhardt Stage 1 Expansion Stage 1 development utilising only 2.1 million tonnes @ 1.2% Cu of the existing Mt Watson leachable resource of 8.8 million tonnes @ 1% Cu The current mining inventory of 2.1 million tonnes is not a JORC compliant reserve, however it is expected to be a reserve during January 07 Plant capacity to increase from 5,500tpa to approximately 9,000tpa of copper cathode Plant upgrade capital estimated at approximately $5-6 million Utilise EW equipment already owned by Matrix No additional ore feed is required to justify this production upgrade 11 Matrix Metals Limited – Investor Presentation

Leichhardt Stage 1 Expansion Scoping Study 3 years Significantly increased cashflow Nameplate Production Rate 9,000 tpa Same orebody as Stage 1 Grade (% Cu) 1.17 Minimal capital investment for Operating Cost substantial return -US$/lb $1.54 Stage 1 ore of 2.1mt @ 1.2% Total Revenue (A$) $179 million Cu Price Annual Net Stage 1 Expansion US$/lb Operating Cashflow Capital Payback Time Scoping Study Prices Average 3.00 $26 million 5 months Spot Prices 3.42 $34 million 4 months 12 Matrix Metals Limited – Investor Presentation

Leichhardt Project – Stage 2 Stage 1 utilises only 2.1 million tonnes @ 1.2% Cu of the existing Mt Watson leachable resource of 6.5 million tonnes @ 1% Cu Resource to reserve conversion work is currently underway Additional ore feed to come from the remainder of the current Mt Watson resource (approximately an extra 4 million tonnes), anticipated growth at Mt Watson and other existing deposits nearby Depending on the outcome of a feasibility study the plant capacity could increase beyond 9,000tpa Stage 2 is likely to see a significant reduction in operating costs Anticipated average grade of Stage 2 ore is 1.00% Mine life expected to increase to 6 years 13 Matrix Metals Limited – Investor Presentation

Projection of Leichhardt Stage 2 Expansion Purely a projection of Assumes current study potential but with 6 years life Mined grades and Nameplate Production Rate 9,000 tpa tonnages assume 70% Grade (% Cu) 1.0 conversion from resource to reserve Operating Cost Overall costs are -US$/lb $1.50 assumed to be similar Total Revenue (A$) $360 million to the current 9,000 tpa scenario Mine Life increased from 3 years to 6 years Cu Price Annual Net Project Life US$/lb Operating Cashflow Scoping Study Prices Average 3.00 $26 million 6 Years Spot Prices 3.42 $34 million 6 Years 14 Matrix Metals Limited – Investor Presentation

Leichhardt Project - Margin Comex Copper US$/lb $4.00 Leichhardt Project - Stage 1 $3.50 Average 2007 Copper Price $3.00 Operating cost US$1.70/lb $2.50 Margin Average operating margin of US$1.50/lb $2.00 US$1.50/lb $1.50 Operating Cost $1.70/lb $1.00 $0.50 $0.00 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Leichhardt Project - Stage 2 Operating cost estimated to drop to US$1.50/lb Margin US$1.70/lb Average operating margin increasing to US$1.70/lb assumes US$/A$ exchange rate of 80 cents 15 Matrix Metals Limited – Investor Presentation

16 Project Locations Matrix Metals Limited – Investor Presentation

Leichhardt Regional Exploration - Prospector Prospector is a Iron Oxide Copper Gold Deposit “IOCG” Prospector is associated with intense magnetic anomalies Olympic Dam, Ernest Henry and Selwyn are associated with intense magnetic anomalies and are IOCG mines Prospector area - Cu ± Au (previous intersection at Leichhardt Prospect by Sons of Gwalia 71.5m @ 1.72% Cu, 0.18g/t Au Matrix is mapping and sampling the area and have discovered several new zones of mineralisation Matrix will fly high resolution magnetics to improve the magnetics and allow depth to body modelling Drill holes have been located Grid lines = 2 sq kilometre 17 Matrix Metals Limited – Investor Presentation