WIM150 Mineral Sands Project15th Anniversary Mineral Sands Conference 24-25 March 2015

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Legal statements

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DisclaimerThis presentation does not comprise a prospectus, disclosure document or other offering document under Australian Law or any other Law. It does not constitute provision of financial product advice. None of the directors of AZC, its related bodies corporate, officers, employees or advisors makes or gives any representation, warranty or guarantee in relation to this presentation (whether orally, in document form or in any form whatsoever) or in relation to any information (“Information”) contained in it to the recipient of this presentation or any of its related bodies corporate, officers, employees and advisors (“Recipient(s)”). Information sourced from third parties and reported in this presentation has not been verified or updated; it is important that Recipient(s) take care to verify and update before taking in to account in any process of evaluation. The presentation is provided expressly on the basis that the Recipient(s) will carry out its own independent inquiries into the Information and make its own independent decisions about the affairs, financial position or prospects of AZC. AZC reserves the right to update, amend or supplement the Information at any time in its absolute discretion (without incurring any obligation to do so).

Forward Looking StatementsThe information in this presentation includes statements containing forecasts and forward looking information. Although AZC believes that the statements, estimations, projections, beliefs and opinions reflected in such forward looking statements arereasonable, such statements involve risks and uncertainties and no assurance can be given that actual results and outcomes will be consistent with these forward looking statements.

Competent Persons Statement

The Mineral Resource estimates for the WIM150 deposit were prepared by Mrs Christine Standing (Principal) and reviewed by MrIan Glacken (Director and Principal) of Optiro. Mrs Standing visited the WIM150 Project in March 2013 and observed the drilling andsampling procedures used for collection of the density data. Mrs Standing is a Member of the Australasian Institute of Mining andMetallurgy and the Australian Institute of Geoscientists, and Mr Glacken is a Fellow of the Australasian Institute of Mining andMetallurgy and a Chartered Professional Geologist. Mrs Standing has sufficient experience that is relevant to the style ofmineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 edition of theAustralasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC 2012).

The Ore Reserve statement was as reported to the ASX on the 26 July 2013 and compiled in accordance with the guidelines ofthe Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC 2012). The Ore Reserves statement was compiled by Andrew Law of Optiro, Fellow of the Australasian Institute of Mining and Metallurgy. Mr Lawhas sufficient experience in Ore Reserve estimation relevant to the style of mineralisation and type of deposit underconsideration to qualify as a Competent Person as defined in the Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC 2012).

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The WIM150 Joint Venture comprises

• 80% Australian Zircon NL

• 20% Orient Zirconic Resources (OZR) (Australia) Pty Ltd

WIM150 Offtake Agreement

• 50% of life-of-mine production is secured by OZR

WIM150 Project - ownership and offtake

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Standing on the shoulders of Giants • Discovered early 1980s by CRA/Rio

Tinto

• The Project was developed to pilot scale

• Titanium Minerals focus

• Extensive progress made to address issues of fine grain size material by using mineral flotation

• Rio Tinto withdrew in the late 1990s

WIM150 - History

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Australian Zircon NL• Has worked on the WIM150 Project since 2004, focussed exclusively since 2012

Orient Zirconic Resources (Australia) Pty Ltd. • Current majority shareholder in Mindarie Mineral Sands mine.

• Owned by Guangdong Orient Zirconic Industry Science and Technology Co., Ltd (OZC), one of China’s leading zircon processing companies.

• OZC is listed on the Shenzhen Stock Exchange with a market capitalisation approx. RMB 6.7 Billion (A$1.25 billion).

• OZC has the most comprehensive range of zirconium products in the world, including zirconium dioxide, zirconium oxychloride, fused zirconia, zirconia structural ceramic as well as zirconium sponge and other products.

WIM150 – Joint Venture Partners

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Location Plan

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WIM150 Project

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The Project’s principal characteristics are:

• Quality product suite and attractive ore grade

• Excellent logistics, infrastructure and services.

• Large and shallow ore body

• Low Waste/Ore Ratio - of 0.5 to 1.

• Stable sovereign regime

• Off-the-shelf equipment for all mining and processing operations.

• Long productive life

• 55 years underwritten by Ore Reserves,

• 160 years by Mineral Resources.

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Logistics and infrastructure

kilometres

0 5

AZ_WIM_31

5,940,000 mN

620,000 mE

Horsham

5,920,000 mN

Railway

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Major road

Gas pipeline

National

Park/Reserve River

Lake

275kv power line

Production facilities

Water Authority TrunkLine

Project Area

Ore Reserve boundary

RL2007 and part EL4521

WIM150Project area

Substation

TAS Tas

SANSW

QLD

Vic

WIM150Project area

Social amenities

and engineering

services

Existing 66,000 voltline to beupgraded

State Electricity

Victoria substation ‘SEP’ 275,000volts to 66,000

volts

Regional road-rail

freight hub

Standard gauge

railway to PortMelbourne and PortAdelaide

275,000volt SEV

line

Water Authority trunk line

Natural Gas trunk

line

Western highway to Port Melbourne and Port Adelaide

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Site Plan

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Mineral resources

Ore reserves

Independent mining expert Optiro Pty Limited has determined a Waste/Ore ratio - after removal of soiland subsoil - of 0.5 to 1.

Resources and Reserves

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Classification Million tonnes

% THM Slimes Particle Classification % within –75+20 µm THM

(–75+20 µm) (–20 µm) Zircon Monazite Xenotime Rutile Leucoxene Ilmenite

Measured 415 4.3 18.1 21.7 2.3 0.41 11.5 5.8 32.2

Indicated 580 4.0 18.4 20.4 2.0 0.37 11.6 6.1 31.0

Inferred 655 3.1 21.9 20.1 1.9 0.35 11.8 6.2 31.1

1,650 3.7 19.6 20.7 2.1 0.38 11.7 6.0 31.4

Category Million tonnes

HM Grade (%)

HM Mineral Assemblage (%)

Zircon Monazite Xenotime Rutile Leucoxene Ilmenite Other HM

Proved 268 4.5% 22.0 2.4 0.4 11.7 5.9 32.7 24.9

Probable 283 4.2% 21.3 2.2 0.4 11.6 5.9 30.8 27.7

552 4.3% 21.6 2.3 0.4 11.7 5.9 31.7 26.4

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Planned mining methodology

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Mining Unit Plant – scrub, screen, slurry ore

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Mineral processing

Mineral concentration

Mineral separation

Oversize removed Spiral and jig concentration

Heavy Mineral Concentrate– feed to the Mineral Separation Plant

Heavy Mineral Concentrate

Raw zircon to upgrade Raw rare earth mineralsto upgrade

Titanium minerals to upgrade

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Mineral processing

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Wet Concentrator Plant

• Desliming• Pre-screening - to remove barren oversize• FM1 spirals• Kelsey jigsTo produce heavy mineral concentrate

Mineral Separation Plant

• Flotation to produce • Zircon followed by CSIRO Pure Zircon Process to reduce U+Th• Rare Earth Concentrate, with a gravity upgrade

• Conventional Titanium mineral circuit to produce• T95• T90• T65• Sulphatable Ilmenites

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Mineral product suite

Zircon flour

Rare Earth Mineral Concentrate

Titanium Minerals

Sulphatable Ilmenite

T95 T90 T65

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50% of the Project’s production is secured by OZR for life-of-mine

Offtake discussions for the balance of production are well-advanced

Product offtake

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The WIM150 product suite will be approximately comprise:

Zircon flour 56%

Rare earth mineral concentrate 23%

Titanium products 21%

T95

T90

T65

Sulphatable ilmenites #1 and #2

WIM150 is principally a zircon development project.

Product suite by value

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Ports of export

AZ_Aus_01

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Port Adelaide

Export fordrummed andcontainerised Rare EarthMineral Concentrate

Port of Melbourne

Export for containerised:

• Zircon flour

• T95

• T90

• T65

• SulphatableIlmenite #1 & #2

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Project Financial Modelling Australian Zircon holds an 80% interest in the WIM150 Joint Venture.

Project Value (Pre-Tax, assuming 50/50 debt: equity funding for AZC share)Nett Present Value (10%)

Internal Rate of Return

Payback period

$1286 million

34.2%

2.75 years

Project Costs (nominal, AUD)Base Construction Cost

Contingency

Working Capital

$458 million

$37 million

$55 million

Project Key Metrics (life of mine average, 100% project)Annual Total Site Operating Costs

Annual Total Site Revenue

Annual Gross Operating Margin

Annual Inflation

AUD/USD Exchange Rate

State Royalty (% of market value)

Discount Rate

$94 million

$233 million

59%

2.5%

87.5 cents

2.75%

10%

The Project has an Ore Reserve mine-life of 55 years and a Mineral Resource life of more than 160 years at the planned throughput rate of 10 million tonnes annually.

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AZC – Marketing plan Product by description Product by value Actual or probable

contracted destinationContract with Joint Venture

PartnerBalance ofAZC product

Zircon flour of exceptional purityZrO2 >66%TiO2 <0.1%Fe2O3 >0.01%Al2O3 >0.01%U + Th <500 ppm

Zircon flour 56%

50% of production contracted for life-of-mine

Contracts to be finalised withceramic manufacturers in 2015.

Rare earth mineral concentrate with enhanced levels of heavy rare earth elementsMonazite + Xenotime >88% Light REO >45%Heavy REO >10%

Rare earth mineral concentrate 23%

Contracts to be finalised withend-users in 2015

Titanium mineralsIlmenite to supply sulphate pigment plants. T95, T90, T65 to supply welding electrode producers.Marketing discussions underwaywith end-users

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Sulphatable Ilmenite #1 & #2

T95

T90

T65

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Project schedule

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• Project Funding 2015

• Development – pre-site access 2016

• Site access and approval including work authority 2017

• Development – on-site 2017

• Name-plate production 2018

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