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REE Rare Earth Elements The Value of REEs Jeffery Snow SVP & - PowerPoint PPT Presentation

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REE Rare Earth Elements The Value of REEs Jeffery Snow SVP & General Counsel Pierre Pelletier VP, Metallurgy Stephen Eddy Director, Corporate Development IAMGOLD.COM | TSX: IMG | NYSE: IAG April, 2012 Cautionary Statement This

  1. REE Rare Earth Elements The Value of REEs Jeffery Snow SVP & General Counsel Pierre Pelletier VP, Metallurgy Stephen Eddy Director, Corporate Development IAMGOLD.COM | TSX: IMG | NYSE: IAG April, 2012

  2. Cautionary Statement This presentation contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding expected, estimated or planned gold and niobium production, cash costs, margin expansion, capital expenditures and exploration expenditures and statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward -looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or p redict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to meet expected, estimated or planned gold and niobium production, cash costs, margin expansion, capital expenditures and exploration expenditures and failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, changes in world gold markets and other risks disclosed in IAMGOLD’s most recent Form 40-F/Annual Information Form on file with the United States Securities and Exchange Commission and Canadian provincial securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement. The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as "mineral resources" , that the SEC guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosure in the IAMGOLD Annual Report on Form 40-F. A copy of the most recent Form 40-F is available to shareholders, free of charge, upon written request addressed to the Investor Relations Department. Total Resources includes all categories of resources unless indicated otherwise. All currency numbers are in US$ unless otherwise stated. 2

  3. What are Rare Earth Elements?  Group of 17 chemical elements in the periodic table  Referred to as “rare” because they are not commonly found in commercially viable concentrations  2 main subgroups: i) Light rare earths (LREE) and ii)Heavy rare earths (HREE) VITAL IN CLEAN ENERGY AND HIGH TECHNOLOGY MARKETS  REE mineral deposits are usually rich in LREE or HREE, but rarely contain both in significant quantities 3 3 3

  4. REE Properties and Applications LIGHT RARE EARTHS PROPERTIES APPLICATIONS  Silvery-white/gray in colour (La) Lanthanum (Ce) Cerium  High luster but tarnish readily in air (Pr) Praseodymium  Most REE compounds are strongly (Nd) Neodymium paramagnetic (Sm) Samarium  Catalytic, chemical, electrical, metallurgical, nuclear, magnetic and optical properties HEAVY RARE EARTHS  High electrical conductivity (Eu) Europium  Many REE fluoresce strongly under (Gd) Gadolinium UV light (Tb) Terbium  High melting and boiling points (Dy) Dysprosium  Reacts with dilute acid to release (Ho) Holmium H 2 rapidly at room temperature (Er) Erbium (Tm) Thulium  Reacts with H 2 O to liberate H 2 , slowly when cold/quickly upon (Yb) Ytterbium heating (Lu) Lutetium (Y) Yttrium* *Yttrium is lighter than the light rare earths, but included in the heavy rare earth group because of its chemical and physical associations with heavy rare earths in natural deposits 4

  5. Rare Earths are Integral to a Wide Range of Growing Markets REO Usage (2010) Estimated Compound Annual Magnets 25% Application Growth Rate 2010-2015 Fluid Cracking Catalysts 15% Phosphors 30% Battery Alloy 14% Rechargeable Batteries 18% Polishing Powder 14% Permanent Magnets 16% Metallurgy, excl. Batteries 9% Polishing Powder 15% Auto Catalysts 7% Auto Catalysts 8% Glass Additives 6% Fluid Cracking Catalysts 6% Phosphorous 6% Glass Additives 4% Other 4% Source: CIBC World Markets, March, 2011 5

  6. REE Plays a Key Role in the Clean Energy Sector Hybrid and electric cars can contain 20 – 25 pounds 1 of rare earths (Twice the amount found in standard gasoline cars) UV Cut Glass Cerium Glass and Mirrors Polishing Powder Cerium Diesel Fuel Additive LCD Screen Cerium Europium Lanthanum Yittrium Hybrid NIMH Cerium Lanthanum Component Sensors Cerium Yttrium Catalytic Converter Hybrid Electric Motor Cerium/Zirconium and Generator Lanthanum Neodymium 25+ Electric Motors Praseodymium throughout Vehicle Headlight Dysprosium Terbium Nd Magnets Neodymium 1 Source: “The Race for Rare M etals”, Globe and Mail, July 16, 2011 6

  7. Global Supply of Rare Earth Elements 2011 Global Rare Earth Reserves 1 (E) 114 Million Tonnes 3.1 Mt 1.6 Mt Australia India 55 Mt 19 Mt 13 Mt 22 Mt China CIS U.S.A. Others 48% 17% 11% 3% 1% 20% % of global reserves 1 Source: “The not -so-rare issue with rare- earth investing”, Globe and Mail, Mar. 13, 2012 | Projects in China may be underestimated China accounts for 48% reserves 7

  8. The China Factor China accounts for 95% of global production Bayan Obo deposit (Mongolia) supplies >70% of China’s LREE (ie . 46% China’s production and 42% globally) China In 2010, China Rare Earth forecasts drop Prices reduced prices surged Demand in production export quota to record highs dropped restored from Bayon by 40% in 2010 Obo deposit Source: “The Rare Earths Race, Identifying the Formula One Cars”, Dundee Capital Markets, March 5, 2012 8

  9. Growing Gap between Supply and Demand 160,000  Since 2000, global demand for rare 140,000 earths has grown ~4.7% per year Demand tpa - REO 120,000  Over the next decade, demand is expected to grow at 7-9% CAGR 100,000 80,000 60,000 40,000 20,000 0 '05 '06 '07 '08 '09 '10 '11F '12F '13F '14F '15F China Export Quota China Demand ROW Demand Source: D. Kingsworth IMCOA 2011 9

  10. Race is on to Fill the Growing Gap Global Rare Earths Supply and Demand 2005-2015  Number of exploration stage companies has significantly increased 250,000 since China announced quotas 200,000 Demand tpa - REO 150,000 100,000 50,000 0 '05 '06 '07 '08 '09 '10 '11F '12F '13F '14F '15F China Supply ROW Supply China Demand Total Demand Source: D. Kingsworth IMCOA 2011 10

  11. Critical Rare Earth Elements Critial  Heavy rare earth oxides (HREO) Rare Oversupply Symbol Name Earth IMG’s REE Risk are less commonly occurring Oxides (CREO)  Significantly more expensive Ce Cerium High 47.9%  Higher risk of future shortage LREO La Lanthanum High 24.5%  U.S. Department of Energy Nd Neodymium * Low 18.4% Pr Praseodymium Low 5.3% forecasts higher growth in demand for critical REEs Sm Samarium High 2.1% Gd Gadolinum Low 1.0%  Extent of shortage dependent on Eu Europium * Low 0.4% success of REE exploration projects Dy Dysrosium * Low 0.3% Tb Terbium * Low 0.1% HREO Ho Holmium n/a Er Erbium n/a Tm Thulium n/a Yb Ytterbium n/a Lu Lutetium n/a Y Yttrium * Low Integral to fastest growing green energy & high tech sectors 11

  12. IAMGOLD’s REE Resource Geological Map and Cross Section of the St. Honoré Carbonatite Total Inferred Resource (NI 43-101) 466.8 tonnes Pyrochlore, magnetite, blotite, Total Rare Earth Oxide (TREO) (grade %) 1.65% apatite, and white to pink dolomite TREO 7.7 million tonnes Heavy Rare Earth Oxides 2% Light Rare Earth Oxides 98% Pyrochlore, magnetite, Key REE Mineralization Bastnaesite/Monazite blotite, apatite, and pink to red dolomite Host Rock Carbonatite 12

  13. Major REO Projects Potentially largest REE deposit outside of China Lynas Molycorp Australia USA 1.4 Mt 1.1 Mt China’s Mongolian deposit IAMGOLD Bayan Obo 7.7 Mt TREO 40 Mt TREO Avalon Quest Rare Element Northwest Territories, Canada Canada USA 4.3 Mt TREO 1.3 Mt 0.9 Mt Source: Company reports 13

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