Braemar Bulk Export Corridor

Mining South Australia

November 26th, 2013

2

Braemar Infrastructure Objective

• To establish a low cost Logistics

Solution.

• To offer a viable logistics solution to

multiple iron producers

• Unlock stranded assets in the Braemar

region.

Location – Location - Location

Key Infrastructure all close

• Eastern States Power Grid

• Gas supplies

• Rail & Road Network

• Coastline

• Major Cities & Towns

3

4

Corporate Structure

Coffee House

Group Private investment vehicle of

Gordon Toll and Family

Lodestone

Equities

Global Bulk

Limited

Braemar Iron

Pty Ltd Investigating and acquiring

Iron ore assets in SA

22.5% ownership

Royal Resources

Braemar

Infrastructure

Pty Ltd

Olary Magnetite

Pty Ltd

Pricing Benchmark - CFR

China CFR Cost Curve

0

20

40

60

80

100

120

140

160

180

200

0 100 200 300 400 500 600 700 800 900 1000 1100

Cumulative Mt (wet, as delivered)

US

$/

dry t

on

ne C

FR

Eq

uiv

ale

nt

CFR (Cost & Freight) includes all costs

Mining + Process + Logistics + Freight + Royalties

Australia

India

Brazil

South Africa

China

Other

5

Mining + Process + Logistics + Freight + Royalties Large & suitable structure, Low Cost Conc, Logistics, Social & Other Infrastructure, Close to Market

Very thick, very

wide, long

intercepts of ore

Very thick, very

wide, long

intercepts of ore

Very thick, very

wide, long

intercepts of ore

Very thick, very

wide, long

intercepts of ore

6

Mining + Process + Logistics + Freight + Royalties Large & suitable structure, Low Cost Conc, Logistics, Social & Other Infrastructure, Close to Market

7

Braemar Formation Exploration

8

• Remaining undeveloped or under-developed DSO

deposits with Triopoly

• Other deposits are poor quality

• Concentration generates quality products with low impurity.

Concentration adds ‘Value’ not just cost • 68-70% versus 56-58% Fe (current typical Pilbara product)

• Price premium can offset the cost of concentration

• Magnetite concentrate gives customer ‘Energy’ as well

as quality Fe

• Concentration allows use of more cost effective mining

methods compared with DSO

Why IO that needs Concentration

9

Concentrate Process Flow

Diagram via Rail

Operation Mine

Waste

Crush

&

Grind

Concen-

trate

Tailings

Dewater Stock-

Pile at

mine

Load

on Rail Transport

To Port

Load

on

Barge

Trans-

ship

Load on

Export

Ship

Stock-

Pile at

Port

Unload

at

Port

10

Concentrate Process Flow

Diagram via Slurry

Mine

Waste

Crush

&

Grind

Concen-

trate

Tailings

Dewater

Operation

Load on

Export

Ship

Slurry

Concentrate

Process water

delivery

Mine Site FPSO Infrastructure Corridor

Technology subject to Patent Application

11

12

Mines

Control and

Maintenance base

Pump

Stations Floating,

Processing,

Storage, and

Offloading Facility

Braemar Bulk Export Corridor Diagram

13

Blyth KP85

Contents of the Corridor

FPSO

KP0

Process Water Pipelines

Electricity Transmission Line

Communications Cable

Service Road KP

Mine

Sites

KP339 Electricity

Transmission Line

Blyth Sub Station KP52 – This substation will provide power to the FPSO and various corridor facilities

such as pump stations west of Burra.

Grid Connection to Mines KP133 – Potential connection point between the Burra power station and the

275kv “Canowie – Robertstown (F1926)” transmission line.

Connect to Grid KP133

Slurry Pipelines

14

Preferred Corridor Route

Floating, Processing, Storage, Offloading

(FPSO) Configuration

15

16

3rd Party Services

Provisioned By BIPL

• Process Water (Seawater)

• Concentrate delivery to export vessels

• Mine Site Access

• Power Transmission

• Communications Infrastructure

Producing concentrate allows for more cost effective infrastructure

Port

DSO Port

$3.5B

Concentrate Port

$0.3B

Logistics

DSO Railway

$7.5M/km

Concentrate Pipeline

$1.7M/km

Why Concentrate Pipelines

Cost comparison for 25-30Mtpa facility

17

Producing concentrate has a lower environmental impact

Port

DSO Port Large Stock Piles

Concentrate Port Stockpile in FPSO

Logistics

DSO Railway Noise, stockpiles, continuous land

disturbance, requires groundwater

Concentrate Pipeline Almost silent, no stockpiles,

temporary land disturbance,

sea water used for process

Why Concentrate Pipelines (cont.)

Cost comparison for 25-30Mtpa facility

18

Regional and State Benefits

• Employment opportunities

– 500 jobs during construction

– 1500-1700 jobs in mines and infrastructure

for every 25 mtpa of capacity *Mine and infrastructure

– Multiplier effect 2.5-3x the jobs created to

support increased workforce and support

operations

• Infrastructure

• Royalties = $125 million/year

12

20

Project Status

• Conceptual feasibility study complete

• Approval process agreed with SA government

• Easement/Land access strategy developed with SA government

• Case management team assigned by government

• Community engagement started

• Major Development Declaration

• Foundation customer: Royal Resources MOU

• Seeking funding for Pre-feasibility studies and approvals

21

• July 2013

• Demonstrate

economics

• Certainty in

land access

and approval

pathway

• Produce

investor

presentation

• 1.5 Years

• PFS Complete

• Resource Definition

• Name brand

consultants

• Project Scope

Defined

• Land access

secured by

purchases and

options

• Initial design size

optimized

• Environmental

studies conducted

• PER, EIA, or EIS

prepared

• 0.5 - 1 Year

• DFS Complete

• Definitive

Engineering

• Definitive

Project Plans &

Contracts

• Control cost

estimates

• Procurement

packages

developed

• Final land

payments

• 2.5 year

construction

• First

Production as

early as Late

2018

• 30+ year

operation

• Additional

slurry lines and

process water

lines added to

corridor as

required

Pre-

Feasibility

Study

Appraise and

Define

Opportunity

Define

Project Execute Operation

Robust Business

Case Established

Project Scope

Defined

Project Ready

To Execute

Project Go Ahead

Define

Scope

21