MHM Metals Limited ASX : MHM

Presentation August 27-31 2012

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MHM Metals Limited (ASX:MHM) is an industrial / green-tech

company, focusing on innovative solutions for the aluminium

industry, with long term global growth potential.

MHM‟s primary focus is the implementation of a technology to

recycle waste from the aluminum industry and help to eliminate

the current practice of sending this waste to landfill. With

operations in Australia maturing, MHM is embarking on a

program of growth into the United States, and potentially beyond.

MHM retains some of its original silica assets in Tasmania, and is

continuing to develop opportunities for silicon smelting and high

purity silica flour production.

COMPANY PROFILE 2

COMPANY PROFILEF

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COMPANY SNAPSHOT

COMPANY PROFILE

Exchange ASX

Share Price $0.31

MHM / MHMO / Emp Opts 117m / 11m / 9m

Fully Diluted Market Cap $42m

Cash $4m

No debt

12 Month High / Low $1.10 - $0.27

Basil Conti Non-Executive Chairman

Phil Thick Managing Director & CEO

Ben Mead Executive Director

Simon Wells Executive Director

At 22 August, 2012 Directors & Management

Shareholder profile

Top 20 34%

Other 66%

Top Shareholders

Rogers Southern PL 10%

Brazil Farming PL 9%

UBS 8%

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Aluminum Waste Recycling Operations

ALUMINUM OPERATIONS

Aluminium Waste

• There are two sectors in the aluminium industry. The primary sector involves the production of

new aluminium metal from alumina. The secondary sector involves the recycling and re-melting of

scrap aluminium. MHM‟s core business is to recycle salt cake and black dross, which are by-

products from smelters of the secondary industry. In Australia, MHM also processes white dross,

which is another by-product of primary aluminium smelters.

• Salt cake is produced when a salt/potash flux is introduced into the furnaces, along with scrap

aluminum. The flux floats on the surface of the molten metal to provide a barrier to prevent the

metal from oxidising, increasing process efficiencies. Once the molten metal has been poured out

of the furnace the aluminum salt cake must be disposed of

• Aluminum salt cake and black dross are very similar wastes produced by the secondary

aluminum industry. They are recycled in the same manner by MHM. They have been traditionally

sent to landfill, though it is becoming increasingly problematic to do this in Australia and overseas.

The Alreco (MHM) Technology

• MHM‟s technology provides a viable alternative to traditional landfilling. The technology recovers

aluminum metal concentrate (10-20%), salt/potash (30-50%) and aluminum oxide / AL80

(balance), all valuable commodities. The recovery will vary depending on the original feedstock

material. The MHM process is „closed-loop‟ – salt cake is processed in a way

that nothing is landfilled.

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COMPETITION & IP PROTECTION

ALUMINUM OPERATIONS

Competition

• MHM has conducted extensive patent review /analysis of competing salt cake processing

technologies.

• Alternate processes fundamentally different, MHM‟s technology has significant capital &

operating expense advantages.

• The greatest competitive threat to MHM in the United States is the cost of landfill.

However, provided recycling can be provided in a manner that does not increase the cost

for industry it is reasonable to assume there will be broad acceptance of MHM‟s solution.

This will result in fundamental industry change that has been driven by innovation rather

than regulation.

IP Protection

• MHM has perpetual, exclusive global rights to salt cake processing technology.

• Technology providers opted not to apply for patent, instead adopted „black box‟ trade

secret approach. Issues surrounding ability to administer patent rights in every

jurisdiction, perceived difficulties in protecting processing patents & unwillingness to

advertise to the world how the process operates.

• MHM has procedures in place to protect technology, and is comfortable with IP

protection position.

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AUSTRALIAN OPERATIONS: STRUCTURE

ALUMINUM OPERATIONS

Alreco Pty Ltd is 100% owned Australian operating subsidiary of MHM.

Alreco owns perpetual, exclusive global rights to proprietary technology to process aluminum

salt cake from secondary aluminum industry.

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AUSTRALIAN OPERATIONS: BACKGROUND

ALUMINUM OPERATIONS

Salt cake has traditionally been placed in landfill in Australia. The EPA has designated

salt cake a hazardous material and as such must be disposed of in landfills which are

cost prohibitive for the industry. The US government is considering similarly classifying

salt slag as a hazardous waste. Landfilling is banned in Europe.

Frank Rogers has worked with the aluminum industry since 1998; developing

technology, building a pilot plant, testing landfill, progressing relationship with Alcoa.

MHM started life as an exploration company but acquired the aluminum business in

January 2010. MHM directors appointed financial/technical experts to assess

technology, acquisition of Sims business which was to be upgraded to the Alreco

technology. Financial/technical due diligence was satisfied & transaction settled 15 Jan

2010.

Jan 2010: Aluminum salt cake business & underlying land purchased from Sims for

$3m. The Sims plant has been substantially upgraded with the Alreco technology.

Capital cost has been approximately $6m, for construction of the salt cake plant, dross

plant and AL80 plant.

Processing using some of the Sims equipment continued while upgrading the

technology, thus permitting MHM to generate income during the upgrade, but also

enabling Alcoa and Sims to continue operating using the highly efficient salt cake

producing re-melting technology.

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ALUMINUM OPERATIONS

3-year contract with Alcoa to process 11,000-13,000t aluminum salt cake pa for $300 per tonne.

Alcoa retains ownership of recovered metal & salt, Alreco retains aluminum oxide. $250 per

tonne paid during plant upgrade, extra $50 per tonne once salt/potash returned to Alcoa.

Contract due for renegotiation before end 2012.

1-year contract with Sims to process aluminum salt cake, aluminum non-salt cake & aluminum

dross. Contract expired though Alreco still processing material for Sims under contract terms:

$300 per tonne for salt cake, $165 per tonne for non-salt cake and white dross. MHM retains

ownership of salt and potash flux and aluminum oxide.

Access to Alcoa-owned landfill to process 160,000t material. Landfill contains ~20% metal,

~50% salt & ~30% aluminum oxide. Alcoa relinquished ownership of all reclaimed material.

Company founder Frank Rogers & his associates, through a JV, currently own the Alcoa

processing & Alcoa landfill contracts. These were brought to MHM by the JV. Alreco (MHM)

owns 100% of Sims contract and processing.

The Alcoa processing is structured as profit-sharing contract. Alreco gets full recovery of all

costs plus a 10% management fee, then operating profit is split between the JV and Alreco

(MHM). Alreco owns all plant, equipment and land and the overseas expansion. Frank Rogers

company will receive a 5% royalty on the US income.

Acquisition of JV interests remains an option for MHM once steady-state operations

are achieved.

AUSTRALIAN OPERATIONS: DETAIL

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US OPERATIONS

ALUMINUM OPERATIONS

Supply volume potential

Executed Supply Contracts

Total US volume in excess of 1million tonnes per annum

Believed the North American industry can justify 2-4 plants.

Landfilled material also provides opportunity for revenue - a number of sites have been

identified.

Four US supply contracts have been executed, for both salt cake and black dross recycling on a

tipping and tolling basis. Identity of most contract counterparties will remain confidential during

construction to avoid short-term negative business impacts - current volumes contracted ~65,000 tpa

(35,000 tpa 5 year tolling contract, 30,000 tpa 1 year tipping contracts).

Anticipated that additional supply contracts will continue to be added during the construction and

commissioning stages, and once operational. It is expected that the full capacity of stage 1 will be

reached after start-up.

MHM Metals Corp is 100%-owned operating subsidiary for US operations.

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FIRST US FACILITY - RUSSELLVILLE, KENTUCKY

ALUMINUM OPERATIONS

Purchased 115-acre site in February 2012 for US$838,000.Site also contains 90,000sf of

buildings and offices. Site is zoned correctly for its intended purpose.

Plant layout and design is in final stages and is expected to be completed with full costing

in October 2012.

Environmental permitting applications being prepared and preliminary civil works,

renovation of the office facilities, and any site works that do not require approval have been

completed.

Plant will be built in two 125,000 tonnes per annum phases to reduce up-front capital and

deliver cash flow as early as possible.

Consideration of financing options is underway and discussions have progressed with

many parties. Full debt financing is preferred to reduce any further dilution of shareholders,

but it is expected that a combination of debt and equity is more likely. It is expected to have

completed review of all financing options and have funding agreements drawn up in line

with completion of design and costing, to allow the construction to commence at the

beginning of 2013.

It is planned to complete construction of the first phase ready for operation by end 2013.

Long lead items may require commitment out of current cash prior to funding to meet this

deadline.

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RUSSELLVILLE, KENTUCKY PLANT SITE

ALUMINUM OPERATIONS 11

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REGIONAL ALUMINIUM PRODUCERS

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GRANTS AND INCENTIVES

ALUMINUM OPERATIONS

$825,000 cash rebate, paid over ten years

Committment made on the basis of

creation of at least 10 jobs and a minimum

of US$100,000 investment

Kentucky Department of

Economic Development

Russellville Industrial

Development Authority

Tennessee Valley Authority

$250,000 cash incentive to be used for

infrastructural development eg rail spur

Extremely “pro-business” environment

Potential for significant energy cost credits,

paid monthly against utility bill

Low interest financing available, 3% pa

The economic and political climate in the United States is positive for business

developers

Rail Company

Possible interest-free finance on balance of

rail spur costs

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SILICA BUSINESS

SILICA BUSINESS 14

Silica assets to be spun off into a wholly owned subsidiary of MHM, Silco

Industries Pty Ltd, which will be responsible for its own budget, staff and capital

raising, to allow MHM to focus on the Aluminium business and to prevent loss of

further MHM funds on the Silica business.

Seeking pre-IPO capital raising into Silco to fund mining and smelting

opportunities.

Advanced discussions continue with a number of parties around acquisition of

resources, feasibility studies for potential smelters for both rock silica and high

quality silica flour and implementation of new technologies.

Significant interest and support being received from State and Federal

Governments.

Existing deposits that cannot be developed or sold will be relinquished so as to

not burn any more cash on these assets.

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CONTACTS

CONTACTS

MHM Metals Limited

52 Channel Highway, Kingston TAS 7050, Australia

Alreco Pty Ltd

80 Buckley Grove, Moolap VIC 3221, Australia

MHM Metals Corporation

1500 W9th Street, Russellville KY 42276

Postal Address

PO Box 21, Kingston TAS 7051

p: +61 3 6229 9955

f: +61 3 6229 8430

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DISCLAIMER

DISCLAIMER

This document has been prepared by MHM Metals Limited (“MHM” or the “Company”). It should not

be considered as an offer or invitation to subscribe for, or purchase any, securities in the Company

or an as inducement to make an offer or invitation with respect to those securities. No agreement to

subscribe for securities in the Company will be entered into on the basis of this presentation.This

presentation contains forecasts, projections and forward looking information. Such forecasts,

projections and information are not a guarantee of future performance and involve unknown risks

and uncertainties, many of which are out of MHM‟s control. Actual results and developments may

differ materially from those expressed or implied. To the maximum extent permitted by applicable

law, MHM makes no representation and can give no assurance, guarantee or warranty, express or

implied, as to, and takes no responsibility and assumes no liability for (1) the authenticity, validity,

accuracy, suitability or completeness of, or any errors or omissions from, and information,

statement or opinion contained in this presentation and (2) without prejudice to the generality of the

foregoing, the achievement or accuracy of any forecasts, projections or other forward looking

information contained within this presentation.Throughout this presentation all figures are quoted in

A$ unless otherwise stated. You should not act in reliance on this presentation material. This

overview of the Company does not purport to be inclusive or contain all information that recipients

may require in order to make an informed assessment of MHM‟s prospects. You should conduct

your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy

and completeness of this information, statements and opinions contained in this presentation

before making any investment decision.

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