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June 2011 AGM PRESENTATION

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Page 1: AGM PRESENTATION - Stans Energy · AGM PRESENTATION . Statements contained ... former REEs mine, Kutessay II. ... the Kutessai II depositthe Kutessai II depositthe Kutessai II depositthe

June 2011

AGM PRESENTATION

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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. United States investors are advised that

while the term "inferred" resources is recognized and required by Canadian regulations, the SEC does not

recognize that term. Investors are cautioned not to assume that all or any part of mineral deposits in this

category will ever be converted into reserves.

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IMMEDIATE GOAL:

‘Stans Energy will become the first Heavy Rare Earth Elements (HREEs) producer

outside of China by revitalizing its 100% owned, former REEs mine, Kutessay II.

Long Term, Stans will become a world leader in HREE development.’

AGENDA:

1. Optimize scale and design of Stans’ newly acquired RE Processing

Complex.

2. Establish relationships with the end-users of REEs and evaluate

partnership opportunities.

3. Create a new mine plan for Kutessay II following consultation with Stans’

geology, mining engineering and science partners.

4. Complete feasibility study for Kutessay II, KRP, and the Kalesay Beryllium

Deposit by the end of Q4 2011

5. Further team building in Kyrgyzstan to implement the new mine plan

6. Evaluate additional HREE acquisitions

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Kutessay II

Kutessay III

Element Oxide REEs % REO$/Kg USD July 7, 2011

Yttrium (Y) 26.73 177.00

Dysprosium (Dy) 6.14 2520.00

Terbium (Tb) 1.55 4200.00

Neodymium (Nd) 8.18 330.00

Europium (Eu) 0.23 5880.00

Erbium (Er) 3.25 295.00

Praseodymium (Pr) 3.78 25.00

Gadolinium (Gd) 3.59 255.00

Samarium (Sm) 4.10 136.00

Holmium (Ho) 0.57 200.00

Thulium (Tm) 0.25 790.00

Ytterbium (Yb) 3.29 155.00

Lutetium (Lu) 0.50 1000.00

Cerium (Ce) 19.68 159.00

Lanthanum (La) 16.55 153.00

Aktyuz

Kutessay II REE Mine

JORC Estimate - 46,540 tonnes TREO, 0.264 grade, 48% HREEs (Note: Resource estimate does not include stockpiled ore in the pit, the resource is open to depth, and higher grades

HREEs are present at higher elevations)

Kalesay

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• Stans Energy finalized the acquisition of the

RE processing complex ‘KRP’, and rail

terminal on May 26th, 2011

• KRP was designed to separate REEs from

Kutessay II RE concentrate

• Almost all equipment remains on site, 97% of

which is in good or satisfactory working

condition

• Produced 120 different oxides, metals, and

alloys up to 99.99%

• Under care and maintenance since 1991,

continued to produce HRE metals from

stored concentrates until 2010

• Rail terminal connects to Russia, China,

Korea, by ferry to Japan, and to the Middle

East

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I

Northern Northern Northern Northern Northern Northern Northern Northern Northern

ore bodyore bodyore bodyore bodyore bodyore bodyore bodyore bodyore body

Central Central Central Central Central Central Central Central Central

ore bodyore bodyore bodyore bodyore bodyore bodyore bodyore bodyore body

DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007

DHPr008DHPr008DHPr008DHPr008DHPr008DHPr008DHPr008DHPr008DHPr008

IIIIIIIII

IIIIIIIII

IIIIIIIIIIIIIIIIII

IIIIIIIIIIIIIIIIII

Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of

the Kutessai II depositthe Kutessai II depositthe Kutessai II depositthe Kutessai II depositthe Kutessai II depositthe Kutessai II depositthe Kutessai II depositthe Kutessai II depositthe Kutessai II deposit

Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m

Designed drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its number

Section line I-ISection line I-ISection line I-ISection line I-ISection line I-ISection line I-ISection line I-ISection line I-ISection line I-I

2213м2213м2213м2213м2213м2213м2213м2213м2213м

DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007

2293м2293м2293м2293м2293м2293м2293м2293м2293м

2263м2263м2263м2263м2263м2263м2263м2263м2263м

Open pit outlineOpen pit outlineOpen pit outlineOpen pit outlineOpen pit outlineOpen pit outlineOpen pit outlineOpen pit outlineOpen pit outline

Schematic layout of designed drill holes

for estimation of rare earth resources

at deep levels of the Kutessay II Deposit

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Section Along I-I

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Section Along II-II

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Exploration Licence Area

40 Km2, 50+ mineralized targets

While mining the Aktyuz deposit for lead in the 1950s, the Soviets found significant levels of all 15 REEs, plus Ag, Th, Zr, Zn, Sn, Mo, Nb, Ta, Hf and Be in the process. Once they discovered Kutessay II, the entire empire’s RE needs were scheduled to derive from Kutessay II for the next 80 years at historical production rates. Soviet surface drilling and trenching identified a total of six main zones of mineralization, but no further exploration work was completed to identify reserves in each area. Stans Energy Corp. hopes to expand its identified historical RE resources by continuing a modern exploration program on the Aktyuz Ore Field in 2011.

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Layout of designed drill holes on the deep levels of the Aktyuz Deposit

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Beryllium deposit with historical reserves of С1+С2 category:

ore – 9,245,000 t., containing 11,701 t of Beryllium oxide at

an average grade of 0.128%*… Beryllium’s price is

>$700,000.00/t USD

Due to their close proximity, the Kalesay Beryllium deposit

could be developed in conjunction with Kutessay II. Stans is

in the process of completing a JORC resource estimate for

Kalesay.

Increasing Beryllium reserves is possible through exploration

of deposit pit flanks and to the depth.

More than 70% of total reserves of the deposit can be mined

by open pit

*Reserve estimate from historical Soviet data, not NI 43-101 compliant and should

not be relied on

Kutessay II

Kalesay

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Kutessay II

Kalesay Classification of beryllium

deposits by grade and reserves

(McLemore, 2010)

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Kutessay II

Kalesay

Southern Ore Zone

Northern Ore Zone

Wireframe of ore bodies of the

Northern and Southern zones

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Kutessay II

Kalesay Open Pit Kutisay-II

Southern Ore Zone

Northern Ore Zone

View of Kutesay II open pit

and Kalesay ore zones

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Kalessay Ber

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What’s Next?

Confirm the extensive Russian and Kyrgyz geological data on Kalesay by producing a JORC resource estimate and complete a new mine design

Test the depth potential of the known REE mineralization under Kutessay II

Test the depth potential of historic Yttrium rich REE mineralization under the Aktyuz mine

Complete geophysical survey of the entire Aktyuz Ore Field to locate additional drill targets

Continuation of the program to refurbish and redesign the KRP to optimize production and to maximize efficiency using the latest technological innovations.

Establish relationships with end users of REEs and evaluate partnership opportunities

Upgrade the past metallurgical process (specifically at the concentrate stage) to implement new technologies, chemicals, and solvents

Complete a feasibility study on resuming production at Kutessay II by end of Q4 2011

Continue to assemble mining, milling, and metallurgical experts to restart Kutessay II, and KRP

Evaluate additional HRE acquisitions in areas of the former Soviet Union

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Kutessay III

TSX-V: HRE

STANS ENERGY CORPORATION 8 King St. East, Suite 205 Toronto, ON, M5C 1B5

Tel: 647 426 1865, Fax 647 426 1869 [email protected] www.stansenergy.com

INVESTOR RELATIONS

David Vinokurov Manager of Investor Relations

[email protected]

OTCQX: HREEF