Statements contained in this presentation which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices for uranium and rare earths; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in political support for nuclear energy and rare earth technologies; changes in government regulations and policies, including trade laws and policies; demand for nuclear power and rare earth products; failure to obtain necessary permits and approvals from government authorities; weather and other natural phenomena; and other exploration, development, operating, financial market and regulatory risks. Although Stans Energy Corp. believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this release. Stans Energy Corp. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise Cautionary Note to United States and Other Investors Concerning Estimates of Measured, Indicated and Inferred Resources: Certain tables may use the terms “Measured”, “Indicated” and “Inferred” Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, however, 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 a Mineral Resource is economically or legally mineable. 2
Stans Energy is focused on re-starting a past producing Rare Earth Elements mine and processing facility in Kyrgyzstan Kutessay II Mine: • Past producing open pit mining operation • Produced equal quantities of heavy and light rare earth elements • Known metallurgical processes • 20-year mining license through 2029 Kashka Rare Earth Processing Facility (KRP): • Processed ore from Kutessay II Mine for 30 years • Produced 120 metal, alloy, and oxide products • Start-Up of Operational Testing for REO production in Q3 2012 • Private rail terminal provides access to Russia, Europe, and Asia Strong Board, Technical Advisors, and Management: • Many involved with Kutessay II and the KRP prior to 1991 3
Stock Exchange HRE (TSX-Venture) Shares Outstanding 157,263,986 as at Oct. 16, 2014 Warrants 0 Options 15,490,000 Total (fully diluted) 172,753,986 Market Cap C$25m Share price (Dec. 10) C$0.11 52 week high/low C$0.265/ C$0.045 Net cash (Q3 2014) C$1.6 m Debt Nil 4
Asset Overview: • Kutessay II and Kalesay • Kargysh • Kyzyluraan • Kashka Rare Earth Processing • Didim Inc. – Skolkovo Fund Legal Overview: • General Prosecutor of Kyrgyzstan vs. State Agency for Geology and Mineral Resources of Kyrgyzstan (GPO vs. SGA) • Arbitration Tribunal at Moscow Chamber of Commerce and Industry Case For Collection: • Ontario Court of Justice Issues Mareva Injunction • 47,000,000 Centerra Gold Shares Arrested • Established Precedent: Oct 2014: Sistem Case to be resolved 5
Kutessay II and Kalesay: • Kutessay II and Kalesay licenses are in possession of Stans’ Kyrgyz subsidiaries • Licenses subject to stop work order since Q2 2013 • Licenses can only be revoked/annulled by State Geological Agency of Kyrgyzstan (SGA) under specific circumstances • Preliminary Economic Assessment not completed due to stop work order • Engineering studies nearing completion Kargysh • SGA issued a three year exploration licence for the Kargysh Area • Exploration Licence area is 701 ha 6
Kyzyluraan • Stans awaiting approval of application to reduce Kyzyluraan Prospecting Area from 252 sq. km. to 124 sq. km. Kashka Rare Earth Processing Plant (KRP) • KRP not associated with any legal action • Facility will be put under care and maintenance 7
ASSET OVERVIEW DIDIM Inc. • Recently formed subsidiary is an approved resident company of Skolkovo Initiative • Through Skolkovo Foundation, DIDIM Inc. can now apply for government grants of up to RUB 100 million (~ USD $2.8 m) • Grants to be used to develop Intellectual Property (IP) for RE and rare metal projects • IP will be owned by Stans through DIDIM Inc. and will be developed in cooperation with Russian Institutes and Engineering firms acting as subcontractors • Part of Stans ongoing initiatives to diversify outside of Kyrgyzstan • Stans to commit RUB 50 million over three years (~USD $1.7m) 8
Timeline to Arbitration April 2013: GPO KG Summer 2012: KG Parliamentary 2009: Stans Acquires Files Claims to revoke July 2014: Stans Committee Recommends Licence 20 year licence for Stans’ 20 yr. Licence Awarded US$ 118mm Revocation Kutessay II ✓ ✓ ✓ ✓ ✓ ✓ Summer 2012: March 2013: Kyrgyz Courts October 2013: Licence Agreement Uphold Stans Rights Stans Files International Extended to Licences Arbitration
LEGAL OVERVIEW GPO vs. SGA • Kyrgyz State Prosecutor applied to lift 3-year statute of limitations to allow challenge to procedure in which mining licence for Kutessay II was acquired by Kutisay Mining LLC. Work injunction put in place • Inter-District Court and City Court of Bishkek upheld GPO case in July 2014 • Licences for Kutessay II and Kalesay still remain in possession of Stans’ subsidiaries • Only SGA can revoke mining licences and only under specific circumstances to which Stans’ subsidiaries are not subject 10
LEGAL OVERVIEW International Arbitration Tribunal Moscow Chamber of Commerce and Industry • July 12, 2014 Stans Awarded USD $118,206,057 by Arbitration Tribunal at Moscow Chamber of Commerce and Industry in final and binding decision • Stans legal teams have received Ontario Court of Justice injunction freezing 47,000,000 shares of Centerra Gold • Stans in process to seize full international arbitration award • Dialogue remains open with Kyrgyz Government for amicable solution 11
LEGAL OVERVIEW Ontario Superior Court of Justice • October 10, 2014: Stans legal teams have received 10 Day Mareva injunction freezing 47,000,000 shares of Centerra Gold (TSX: CG – Oct 17: $256,150,000) • October 24, 2014: Mareva Injunction extended for indefinite time • October 2014: Final appeal from Ontario Court of Appeal hearing by Kyrgyz Republic to revoke earlier (April 2014) asset arrest by Sistem Muhendislik for ~ US$ 12mm • Kyrgyz Government has set aside funds from State Budget to prevent Sistem Muhendislik from asset seizure 12
• Market Capitalization (Oct 2014): $1,413m CAD • Shares Outstanding: 236,398,296 • Latest Fiscal Revenues: 963.94m • Kyrgyz Ownership: ~77m shares • Dividend Rate: 0.16 13
LEGAL OVERVIEW Impact of Arrest and Seizure • Kyrgyzstan prevented from exchanging its 32.7% equity in Centerra for a 50% interest in a joint venture company which owns Kumtor Project • Represents significant increase to Kyrgyz state budget • Kumtor: 9.6 mm ounces produced to date 8.5 mm ounces P + P – open pit 600, 402 oz. – 2013 Production 13 % of Kyrgyz Republic GDP • Asset arrest prevents HOA between Centerra Gold and Kyrgyz Republic ***Information publicly available on Centerra Gold website 14
Corporate Strategy • Pursue collection of damages from International Arbitration • Shareholder Distribution of Award: ~ US$0.66/share **There can be no assurance that Stans will be successful in obtaining an order for recognition and enforcement of the Award in Ontario • Continue discussions and negotiations with potential strategic partners • Secure assets for development outside of Kyrgyzstan 15 15
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