Toro Energy Limited An Emerging Uranium Producer Market, Projects - PowerPoint PPT Presentation

Toro Energy Limited An Emerging Uranium Producer Market, Projects and Uranium Politics Sydney Mining Club – April 2008

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.

T oro Energy – Sydney Mining Club Uranium Market Update T oro Energy Projects and Exploration Australian Uranium Politics 3

Historical and Future Uranium Production From UxC Consulting – Jan 08 Uranium Market Outlook

Uranium Market Fundamentals Strong • 439 existing plants – significant upgrades & efficiency improvements • 34 under construction in 11 countries, 90 under planning, 200 additional proposed • Eight new nuclear plant applications in USA • UK, Japan, China, Russia, Scandinavia, Canada, etc planned nuclear expansion • New potential plants – Turkey, Egypt, etc • Uranium production issues – optimistic projections on start-ups and expansions • African & Eastern Europe production push • Many Australian resources politically constrained • Spot price varying US$70 to 90 – long term price remains firm at US$95

Uranium Market Fundamentals Strong • Spot price – barometer of short term sentiment • Spot volume declines at higher spot prices • Physical reality – stable long term price at US$95 • Increased long term contracting – quantity and duration

Uranium Market Fundamentals Strong • Prices being forecast to remain +US$80 per lb out to 2014 • Needed to ensure production replaces the declining secondary supplies

Increase in Uranium Supply – Current to 2015 2006 All sources of Uranium 2015 All sources of Uranium (73,289t U3O8) (100,371t U3O8) 5% 8% 6% 4% Existing mines Existing mines 11% Planned mines Planned mines FSU supplies FSU supplies HEU feed HEU feed 32% 57% 14% USEC USEC 63% Other Other Source UxC Consulting – Jan 07 Uranium Market Outlook

Greenhouse Gas Emissions from Electricity Production 1400 Indirect, from life cycle 1200 289 Direct emissions from burning 1000 Twin bars indicate range 176 grams 800 CO 2 113 equivalent 600 1017 77 400 790 575 200 362 280 236 4 100 48 10 21 9 0 Coal Gas Hydro Solar PV Wind Nuclear Source: IAEA 2000

Nuclear Power Cost Competitive Depending on location

oro Energy Limited 11 T

Corporate Overview High Level History � Toro ASX listing March 2006 from Oxiana and Minotaur Exploration uranium assets � Napperby Option Agreement with Deep Yellow, July 2007 [Option based on 13.2mlb U 3 O 8 ] � Nova Energy merger completed December 2007 [JORC Resources 19.8mlb U 3 O 8 ] Capital Structure � 494.67m issued shares (incl. 72m escrowed to Mar 08) � 10.07m unlisted options � Market Cap. ~A$124m@A$0.25/share (~US$112m) In under 2 years Toro has evolved from a South Australian focused uranium explorer to now having 20mlb U 3 O 8 JORC resource in 2 potentially economic deposits in the Northern Territory and Western Australia, along with exploration in 3 Australian states and 3 African countries. 12 12

Corporate Overview MOROCCO LAKE WAY & Haute Moulouyament CENTIPEDE PROJECT project is hard-rock 20mlb JORC resource. sandstone hosted Scoping studies confirm target. potential for production of ~750t/pa U 3 O 8 (1.6mlb per annum) @ A$28/lb. GUINEA Pre-feasibility studies Proterozoic sandstone now underway. hosted uranium . NAPPERBY PROJECT NAMIBIA 1.5mlb JORC resource Targeting Rossing-style Extensive mineralised bedrock mineralisation system at 3-6m depth. And extensions of Resource extension Langer Heinrich underway. palaeo-valley. ESPERANCE, GAWLER AMADEUS BASIN IOCG PROJECT CRATON & Exploring for Targeting Olympic-Dam WARRIOR PROJECTS Palaeozoic roll-fronts style mineralisation Targeting lignite-bearing south of Alice Springs. proximal to palaeochannels in SA & WA. Prominent Hill, SA. Geopolitical Diversity: Focused on exploration and development throughout Australia and Africa Experienced Board – Founding Directors + Oxiana + ex Nova 13

Corporate Overview JORC Resource Inventory : Expandable in the short to medium term JORC Inferred Tonnes % U 3 O 8 kg/t U 3 O 8 lb/t U 3 O 8 Contained Contained U 3 O 8 Resources (m) U 3 O 8 (t) (mlb) Lake Way 8.51 0.054 0.54 1.19 4,600 10.12 Centipede 7.00 0.063 0.63 1.38 4,400 9.68 Wiluna Project 15.51 0.058 0.58 1.27 9,000 19.80 Total Napperby 1.9 0.036 0.36 0.79 670 1.47 Total 17.41 0.056 0.56 1.23 9,670 21.27 Resource Expansion at both Wiluna and Napperby possible in the short-medium term (1-2 years) Medium Term Potential at Wiluna ~ targeting 12,000t U 3 O 8 – 25mlbs Medium Term Potential at Napperby ~ targeting 6,000t U 3 O 8 – 13mlbs 14

Corporate Overview The Toro Project Pyramid Production Feasibility Studies & Centipede – Regulatory Approvals Lake Way Resource Definition & Napperby Scoping Studies Advanced Warrior Project, SA Warrior Project , Guinea, IOCGU Exploration Namibia Calcrete, SA IOCGU SA & WA Palaeochannel, Namibia Greenfields Alaskite, Morocco Sandstone, WA SA Palaeochannel Exploration Meekatharra, NT-WA Palaeozoic Sandstones 2006 2008 Assets on Toro ASX listing Assets post Toro-Nova Merger 15

Projects 16

Napperby Uranium Project Current 1.5mlb JORC under evaluation and extension Scoping study to commence 2008 Toro has Option to purchase 100% of project at capped price on per lb resource basis from Deep Yellow. Valuable infrastructure (sealed road from Alice Springs, nearby gas pipeline, rail to Darwin port) Exploration Agreement with CLC in place The Northern Territory is politically favourable for uranium mine development and operations 17

Napperby Uranium Project Focused on converting historical resources to JORC standards Currently 1.5mlb U3O8 resource under JORC @ 0.04%. Targeting estimated 13mlb historic mineralisation defined by Uranerz. Additional drilling and two resource extensions planned this year. Close to surface (<10m) with strip ratio circa 1:1. 18

Napperby Uranium Project Evaluating most effective drilling methods Fast track resource expansion – up to 15 people employed Piling Rig (Auger) 300mm diameter holes � � large sample dry and split � � potential bulk sampling MiniSonic Core Rig coring unconsolidated sediment at >90% recovery � � qualitative data for geological model and met testing good drilling rate for long term applications � 19

Napperby Uranium Project Recent Drill Program Results Confirm Historical Mineralised Zone o Consistent mineralised intersections at shallow depth (<10m) o Bulk of assays in the range 200 to 700ppm (0.02% to 0.07%) U 3 O 8 o Assays averaging ~550ppm (0.06%) U 3 O 8 at 200ppm cut-off o Individual assays ranging up to 2,070 ppm (0.21%) U 3 O 8 o Mineralised width averaging 1.3m at 3m to 7m depth below surface o Undertaking QA & QC controls, and awaiting additional assays for release and resource calc – est May 2008 o Second drilling program commencing May 2008 20

Napperby Uranium Project Working with local stakeholders � 15 staff, consultants and drilling-related contractors � External contractors for airborne geophysics & biogeochemistry � Local content includes accommodation (Tilmouth), mining supplies, sampling crew, hire vehicles, transport and construction (Alice Springs) � Regular update meetings with Alice Springs Council, Central Land Council and local Members � Indigenous stakeholder interaction � Radiation information sessions at CLC � Site anthropological clearance � Traditional Owners site visit during drilling � Information session with local pastoralists 21