The leading Australian uranium development company INVESTOR - PowerPoint PPT Presentation

TORO ENERGY LIMITED The leading Australian uranium development company INVESTOR PRESENTATION JUNE 2013

Disclaimer This presentation has been prepared by Toro Energy Limited (“Toro”) . The information contained in this presentation is a professional opinion only and is given in good faith. Certain information in this document has been derived from third parties and though Toro has no reason to believe that it is not accurate, reliable or complete, it has not been independently audited or verified by Toro. Any forward-looking statements included in this document involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, Toro. In particular, they speak only as of the date of this document, they assume the success of Toro’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Recipients of this document (“Recipients”) are cautioned to not place undue reliance on such forward-looking statements. Toro makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued. To the extent permitted by law, Toro and its officers, employees, related bodies corporate and agents (“Agents”) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Toro and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information. All amounts in A$ unless stated otherwise.

Highlights Toro’s Australian Footprint  Wiluna - Australia’s, and one of the worlds, leading development stage uranium projects NT  All major environmental approvals for mining in Theseus place WA  Low technical risk – simple open cut mining and Wiluna proven process flowsheet  First class mining jurisdiction in a province with Perth 100+ years of mining history Adelaide  Infrastructure and services available – power, gas, water, people  2013-2014: complete final feasibility studies and arrange project finance 100% Wiluna Uranium Project (WA) - Approved  Theseus - advanced exploration property with • 53.6mlbs U 3 O 8 calcrete resource* initial resource and follow up targets 100% Theseus Uranium Project (WA) - Exploration • Greenfield discovery in new area • Initial resource 6.9mlbs U 3 O 8 established Toro aims to become the leading global mid-tier uranium company by maximising shareholder return through responsible exploration, mining and asset growth 3

Corporate Overview Capital Structure Ordinary shares on issue # 1,042M Market cap @ 6.4 cents/share A$ 66.7M Options on issue # 99M Cash (est 30 June 2013) A$ 11.1M MBL Convertible Loan drawn down (1) A$ 12.0M Oz Minerals (2) % 39 Research Analyst Latest Report IRR - Feb 2013 Helmsec Securities R Offer, P Hyland April 2013 Phillip Capital A Shearer April 2013 RBS Morgans T Sartor May 2013 Dundee Securities D Talbot, P Williams June 2013 (2) Oz Minerals is an ASX listed copper and gold focussed producer and explorer. It also has a number of minority equity investments in ASX listed juniors. Oz’s investment in Toro was created through the merger of Nova Energy and Toro in 2007 (1) Assuming drawdown of the final $4 million under the facility by 30 June 2013 4

Board Dr Erica Smyth Peter Lester Non-Executive Chairman Non-Executive Director • Masters of Science • Bachelor of Engineering, Mining (Hons) • 30+ years experience in the mineral • Extensive experience in senior operating, and petroleum industries development and corporate roles with • Director of Australian Nuclear Science Newcrest, North, CRA and MIM and Technology Organization Andrew Coles Dr Vanessa Guthrie Non-Executive Director Managing Director • Bachelor of Economics (Hons) , MBA, • PhD in Geology, Environment CPA • Extensive executive & management • CFO of OZ Minerals Ltd experience in sustainability, • Extensive career in mining finance with environment, government & approvals, Rio Tonto, ExxonMobil , Zinifex and mine operations, community & Oxiana indigenous in Western Australia. Greg Hall Non-Executive Director • Mining engineer • Founding director of Toro The Toro Board has over 160 years • 30+ years resource sector collective experience in the experience, including 21 years mining industry managing Ranger, Jabiluka & Olympic Dam and uranium marketing with Rio Tinto 5

Leadership Team Vanessa Guthrie Todd Alder Managing Director Company Secretary & Extensive executive & General Manager, management experience in Finance & Corporate sustainability, environment, 16+ years financial government & approvals, mine management experience operations, community & within the Mining, Energy indigenous in Western Australia. and Steel Manufacturing industries Andrew Worland John Baines Richard Yeeles General Manager – Manager – Processing Approvals and 17 years of experience in a range Project Finance & Strategy Community Director - of operational and process design 20 years experience. Wiluna roles. He specialises in uranium Mining, finance, project Extensive management processing and has worked for financing and operations experience in government/ BHPB, WMC and as a general management experience community relations, ex- consultant to the industry. Marketing in bulk, base and BHPB Olympic Dam precious metals Expansion, WMC, Government. David Rawlings Greg Shirtliff Regional Exploration Geology Manager Manager 13 years experience in geology and +20 years experience in geochemistry of uranium including a PhD exploration, previously with from Australian National University. Cameco Australia, NT Mines Dept, Employed in roles within the environment, undertook PhD in NT McCarthur mining and exploration side of the River region uranium mining industry with ERA-Rio Tinto and Cameco prior to joining Toro Energy. 6

Uranium in Australia • Australia highly regarded as a reliable Tier 1 supply country • WA Government recently re-elected with supportive uranium platform • Federal Government trade agreements in place: • Russia, China, US, Japan, Korea, Europe • Currently negotiating with India, UAE • “3 mines” policy abandoned • No political impediment to mining and export • Expansion of the industry supported by both Australia’s major political parties • Robust Federal and State regulation based on almost 60 years of uranium mining in Australia • Australia a respected participant in international safeguards regime • Local anti-nuclear NGOs remain active but receive little public support 7

Wiluna Project – Status & Economics • State & Federal Environmental approvals in Parameter November 2012 hand for Centipede and Lake Way Economics* • Resource drilling completed Processing Plant 1.3mtpa • Reserve preparation and Mining Study optimization underway Head grade 716ppm * • Project largely de-risked from technical and Recovery Ramping to 86% regulatory viewpoint • Engineering and design PFS completed C1 Cash Cost AUD $41/lb USD $37/lb # • Phase 1 DFS Engineering completed Capital Cost AUD $269m • Trial mining and pilot plant test work confirms mining and process flow sheet Product (per annum) 780t U 3 O 8 (1.7mlb) • 2013-14 o Mining Duration 10 – 14 years Phase 2 DFS Engineering and Mining Study o TO Agreement o Project finance Studies have focussed on reducing project execution risk * First 10 years of production # figures based on an exchange rate AUD / USD $0.90 8

Low Project Delivery & Execution Risk • Operating environment & Infrastructure – Dry desert climate with a long mining history in area – Wiluna = established mining town – Established services transport infrastructure, bitumen air-strip and road – Power accessible from Goldfields Gas Transmission line, water – Infrastructure secured on existing tenure – capable of hosting a live in work force or fly-in/fly out on site • Mining – Abundant contractors and equipment available – Trial mining has confirmed equipment selection • Construction and Plant Operations – Pilot plant test work has confirmed the process flowsheet and recoveries – Tried and tested technology – Local engineering firms experienced in uranium plant design engineering – Competitive EPC(M) market – contractor order books have dried up – No exotic or supply constrained consumables 9

Wiluna Project Costs 10

Work Program 11

Wiluna Project Financing Concept $JV Cash Payment for partner interest Toro Energy Strategic Partner : equity contribution : equity : offtake : offtake JV Company agreement Equity ~$100 -150m Debt Wiluna Project Company Funding Finance Target $300m ~$150-200m 12

Nuclear Power and Uranium Market

Demand/Supply Imbalance 14