2/15/2012

Investor Update

Heavy Rare Earth (HREE) Discovery

in the Northern Territory of Australia

IAN BAMBOROUGH, Managing Director

TUC Resources Eastern States Road Show,

15 February – 17 February 2012

TUC Resources Ltd - ABN: 94 115 770 226

RESOURCES

• HREE Market

• Stromberg HREE Prospect – Xenotime, Clay Style and Roll Front

Contents

• Planned Work 2012

• A Brief Introduction to the Company

• TUC’s Unique Value Position

• Scaramanga & District HREE’s

• Value Proposition

About TUC Resources Ltd

Company Position; ASX TUC

• 124.4M Shares at A$0.185

Market Cap. A$22M (13 February 2012)

Darwin

Tennant Creek

16,800km2

8 Greenfields Projects

across the NT

• Well Funded ~$3.55M (31 December 2011)

• Supportive Registry

+1200 Shareholders

What is TUC’s Unique Value Position?

• 85% HREE and Importantly, Evidence of Simple Mineral Processing Options

Dy2O3

Er2O3 Eu2O3

Gd2O3 Ho2O3

Lu2O3

Nd2O3

Pr6O11

Sm2O3 Tb4O7

Tm2O3

Yb2O3

Y2O3

Stromberg HREE Rare Earth Mix

Ce%

La%

Gd% Nd%

Pr% Y%

Typical Light REE Mix, Similar to Mt Weld - Lynas

LREE

HREE

Other HREE Prospects ~21%-40% HREE eg Avalon Nechalacho

In-situ Values/Kg No recovery implied,

Deposit grades must also be

considered;

~$250-260/Kg

Dec 2011Prices

~$100-$120/Kg

~$175/Kg

1377 1902

2799

1353

2240

3447

0

500

1000

1500

2000

2500

3000

3500

4000

2010 2015 2020

Ton

nes

per

An

nu

m

Dysprosium Oxide

Demand Supply Gap Forecast to Grow

Source: IMCOA – Öko-Institut; Northern Minerals Investor Presentation Jan 2012

$-

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

$3,000.00D

ec

-09

Fe

b-1

0

Ap

r-1

0

Ju

n-1

0

Au

g-1

0

Oc

t-1

0

Dec

-10

Fe

b-1

1

Ap

r-1

1

Ju

n-1

1

Au

g-1

1

Oc

t-1

1

Dec

-11

Fe

b-1

2

Nd - LREE

Dy - HREE

2 per. Mov. Avg. (Nd - LREE)

2 per. Mov. Avg. (Dy - HREE)

Price Sensitivity of HREE’s – deposit grade implications

Dysprosium Oxide

vs.

Neodymium Oxide

• Dysprosium Price Curve Steeper

• Dysprosium Price Level Since December 2011

Source: Metal Pages

Pri

ce $

/Kg

FO

B C

hin

a

• Higher HREE Prices mean lower grade deposits are very significant

Multiple Active REE Prospects

= Multiple TUC REE

targets delineated

= Existing/Historic

prospects

= TUC Tenements

= TUC Application

Tenement

Stromberg

HREE Discovery

Quantum LREE

Discovery

Scaramanga

HREE Prospect

Daly

Pine Creek

Clean Energy Use

Stromberg HREE Prospect

Rich in Valuable:

• Dysprosium

• Terbium

• Yttrium

N

Further Airborne

Radiometric

Anomalism

7m @ 1% TREO,

95%HREE/TREO

7.5% Dy/TREO

0.8% Tb/TREO

64% Y/TREO

Stromberg - Serious Prospect Strike Length

5m @ 0.47% TREO,

80%HREE/TREO

8.7% Dy/TREO

0.9% Tb/TREO

71% Y/TREO

3m @ 0.74% TREO,

81%HREE/TREO

8.8% Dy/TREO

1.2% Tb/TREO

60% Y/TREO

1m @ 0.22% TREO,

87%HREE/TREO

7% Dy/TREO

0.8% Tb/TREO

66% Y/TREO

6m @ 0.43% TREO,

78%HREE/TREO

7.5% Dy/TREO

1.1% Tb/TREO

59% Y/TREO

Serious Economic Potential HREE’s – shallow – quicker to drill/develop

50 Metres

200m

150m

Section facing

Northwest

STRC53:

8m @ 0.72% from surface

718,800m 718,900m

Recent Drilling

Previous Drilling

>0.2% TREO

>0.1% TREO

>0.05% TREO

Target Zone

Sandstone Siltstones and Shales

= 6m average thickness at 0.56% TREO;

Dysprosium Oxide 7.34% TREO;

Terbium Oxide 0.86%/TREO;

Yttrium Oxide 71%/TREO

(2ppm Thorium) .

Stromberg Mineralogical Xenotime Concentrate

• A possible simple processing flow sheet could lead to speedier development.

• Average of 3.5ppm Thorium for all assays above 0.2% TREO;

• Average of 195ppm Uranium for all assays above 0.2% TREO.

Xenotime can offer simple physical processing (lower capital costs possible)

Magnetic Separation

Gravity Spirals

Xenotime Concentrate

Possible processing route for Xenotime ores at Stromberg; Adapted from British Geological

Survey – Minerals UK paper on ‘Rare Earth Elements’, November 2011Xenotime Concentrate

200m

150m

719,650m 719,700m

Significant thickening

of REE mineralisation

in vicinity of interpreted

fault (damming).

Section facing Northwest 50 Metres

Mineralisation also associated with clays and still moving

CLAY ZONE

5m @ 0.40% from 5m;

• HREE Clay Zones - Potential for Chinese Ionic Clay Style Zones

• Offers potential for simpler leach and precipitation of HREE’s (metallurgical test work

in progress)

Hidden Potential

Altered

Sandstone

In Context of

Planned TUC

Drilling

Source and

Feeder Fault

Model

Roll Front

Model,

HREE In Context of

Recent TUC Drilling

Stromberg

Prospect

0mRL

-100mRL

Targeting via completed detailed Airborne Geophysics (EM)

Potential for an

in-situ leach

prospect

Scaramanga HREE Prospect

(Stromberg District)

Scaramanga HREE Prospect

Good XRF soil survey results

comparable to parts of

Stromberg soil anomalism –

HREE potential Confirmed

Stromberg

HREE Prospect

N

Scaramanga –Nearby HREE Potential

District HREE Potential

• Potential for critical mass

Stromberg

HREE

Further

Potential in

Application

Tenement

• Possible to Significantly Impact

ROW HREE Market

HREE

Exploration

Target

Scaramanga

HREE

Prospect

EL27151 Moratorium

George and Damian Huddlestone

Traditional Owners of land under EL27151

Native Title Claimants over EL25222 (Stromberg)

At Stromberg November 2011 (Annual site visit)

Stakeholders – Building Relationships

PLANNED WORK FOR 2012

Timing Area Commodity Exploration Type

March – August Stromberg Dysprosium

Yttrium

Terbium

HREE’s

RC & Diamond

Drilling (towards

mineral Inventory)

March - July Stromberg Dysprosium

Yttrium

Terbium

HREE’s

Metallurgical

Diamond Drilling

September Scaramanga

Stromberg District

Potential

HREE First Phase

Exploration Drilling,

RC

September District Potential –

Pine Creek Project,

HREE First RC Drill Test

August -

November

Stromberg Dysprosium

Yttrium

Terbium

HREE

RC & Diamond

Drilling (towards

resource definition)

Stromberg 2011 2012 2013 2014 2015 2016 2017

Stakeholder Engagement

Exploration

JORC Resource Drilling

Strategic Alliance Partner

Engagement

Scoping Study

Metallurgy Test Work & Drilling

Environmental EIS

Pre Feasibility Study

Sales Contracts

Metallurgy Pilot Plant

Feasibility Study

Project Financing and Approvals

Processing Design and

Construction

Establish Mining Operation

Start Up & Production

Scaramanga District Targets Stromberg

Planned Stromberg Development Schedule – Parallel Opportunities

Stromberg Scaramanga District Targets

Stromberg Scaramanga District Targets

!

Cert

ain

ty

+

-

Cert

ain

ty

At Stromberg (and district); Investors and TUC, have the

opportunity to take a ‘First Mover Advantage’, with respect to

discovering a possible supply, of a significant portion of ‘The Rest

of the World’s’ Dysprosium and HREE Market;

The Company has prepared this presentation. Whilst the information contained in this presentation has been

prepared with all reasonable care from information provided by the Company and from sources, which the Company

believes are reliable, no responsibility or liability is accepted by TUC Resources for any errors or omissions or

misstatements, however caused. To the maximum extent permitted by law, TUC Resources, its directors officers,

employees and agents disclaim liability for any loss or damage which may be suffered by any person thought the

use or reliance on anything contained in or omitted in this presentation.

Certain information in this presentation refers to the intentions of TUC Resources, but these are not intended to be

forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or

any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors

that may cause TUC Resources actual results, performance or achievements to differ from those referred to in this

presentation. Accordingly, TUC Resources Ltd, its directors officers, employees and agents do not give any

assurance or guarantee that the occurrence of the events referred to in this presentation will actually occur as

contemplated.

TUC Resources Ltd Directors and associates own shares in TUC Resources. The Company recommends investors

obtain their own independent financial and accounting advice before making any financial investment in reliance

upon information contained in this publication.

Competent Person

The information in this report that relates to Exploration Results is based on information compiled by Ian

Bamborough, who is a Member of The Australian Institute of Geoscientists. Ian Bamborough is a fulltime employee

of TUC Resources Ltd. Ian Bamborough has sufficient experience which is relevant to the style of mineralisation

and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person

as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources

and Ore Reserves’. Ian Bamborough consents to the inclusion in the report of the matters based on his information

in the form and context in which it appears.

Disclaimer

Ian Bamborough

Managing Director

ibamborough@tucresources.com.au

+61 (0)8 8947 0944

Main & Exploration Office

Unit 2, 59 Winnellie Road,

WINNELLIE NT 0820

Phone: +61 (0)8 8947 0944

TUC Resources Ltd

15 Lovegrove Crescent

Mount Claremont WA 6010

Phone: +61 (0)8 9384 3284

www.tucresources.com.au

ASX:TUC