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PAYDIRT URANIUM CONFERENCE ADELAIDE1MARCH 2010

Toro Energy is an Australian resource Toro Energy is an Australian resource

1 MARCH 2010

company with a multi‐project uranium portfolio and the aim of achieving

i bl di d i

company with a multi‐project uranium portfolio and the aim of achieving

i bl di d isustainable medium‐term production at its flagship Wiluna Uranium Project in Western Australia

sustainable medium‐term production at its flagship Wiluna Uranium Project in Western Australiain Western Australia…in Western Australia…

Disclaimer

This presentation has been prepared by Toro Energy Limited (“Toro”). The information contained in this presentation is a professional opinion only and is given in good faith. Certain information in this document has been derived from third parties and though Toro has no reason to believe that it is not accurate reliable or complete it has not been independently audited or verified by Toroaccurate, reliable or complete, it has not been independently audited or verified by Toro.

Any forward‐looking statements included in this document involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, Toro. In particular, they speak only as of the date of this document, they assume the success of Toro’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Recipients of this document (“Recipients”) are cautioned to not place undue reliance on such forward‐looking statementsRecipients of this document ( Recipients ) are cautioned to not place undue reliance on such forward‐looking statements.

Toro makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued.

To the extent permitted by law, Toro and its officers, employees, related bodies corporate and agents (“Agents”) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Toro and/or any of its Agents) for any loss or damage suffered co seque t a (a d et e o ot a s g out o t e eg ge ce, de au t o ac o ca e o o o a d/o a y o ts ge ts) o a y oss o da age su e edby a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.

All amounts in A$ unless stated otherwise.

C t t P St t tCompetent Persons Statements:The information in this report that relates to Mineral Resources is based on information compiled by Mr Daniel Guibal who is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Guibal is a fulltime employee of SRK Consulting and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Guibal consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.the inclusion in this release of the matters based on his information in the form and context in which it appears.

Information in this presentation relating to exploration results of the Napperby Project and Lake Mackay is based on information compiled by Dr David Rawlings BSc (Hons) who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Rawlings is a full‐time employee of the Company. Dr Rawlings 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’ Dr Rawlings consents to the inclusion in this release of the matters based on his information in the form and context in

2

Resources and Ore Reserves . Dr Rawlings consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

Corporate snapshot

Capital structureExchanges ASX: TOE

Shareholder profile

Share Price (Feb 2010) A$0.13Options 16.14m

Shares 964.95mFully Diluted Market Cap A$125 4m

Oz Minerals 42.5%

Minorities57 5%Fully Diluted Market Cap A$125.4m

Cash (at December 31 2009) A$61.9mDebt NilEnterprise Value A$63.5m

57.5%

12 Month High / Low A$0.26 / $0.09

StrategyP d i f i id f Wil b 2012 /13Production of uranium oxide from Wiluna by 2012 /13Further enhancement of Wiluna project economicsTargeted exploration in politically supportive regionsCorporate consolidation and active business d ldevelopment

Deliver a pre‐eminent Australian uranium investment

3

opportunity

$61m Capital raising complete

Key assets

NamibianJointVenture

4

ALLIANCE RESOURCES

L I M I T E D

il i jWiluna Uranium Project

Wiluna Uranium Project

6


Total 25m lbs U3O8 [20.2mt @ 548ppm]#Lake Way L k WLake Way• 12.6Mlb U3O8 resource#

– 10.5Mt @ 543ppm

• near surface calcrete‐style deposit

Lake WayCentipede

• near surface calcrete‐style depositCentipede• 11.8Mlb U3O8 resource#

– 9.7Mt @ 554ppm@ pp

• 90% of currently defined resource now in Indicated category#

Mineralisation typeApprox12km

• Calcrete / clay hosted carnotite

• Within delta, generally below water table

• Resource estimate using uniform conditioning

12km

g g

• Lake Way all assay data

• Centipede mainly gamma data

7100% Toro owned project # Refer Competent Persons Statements on Page 2 and category of resources on Page 8

Upgraded resource

L k W…31% increase in TOTAL …with slight increase in Lake Way

Centipederesource grade…with slight increase in

contained metal

Resource Grade* Contained U3O8#

As at June 2009 Category Mt ppm % U3O8 tonnes Mlbs

Centipede Measured 0.3 588 0.059 176 0.4p

Indicated 7.7 619 0.062 4,754 10.5

Inferred 1.7 251 0.025 424 0.9

TOTAL 9.7 554 0.055 5,355 11.8

Lake Way Inferred 10.5 543 0.054 5,718 12.6

TOTAL 10.5 543 0.054 5,718 12.6

TOTAL WILUNA PROJECT 20.2 548 0.055 11,072 24.4

*200ppm cut‐off# Refer Competent Persons Statements, Page 2

8

…grade increase significantly improves project economics


Mining• Selective mining 1.6Mtpa ore

• Intensive grade control

• Strip ratio; Centipede 2.2:1 - Lake Way 3.0:1Strip ratio; Centipede 2.2:1 Lake Way 3.0:1

• Progressive rehab after first year

• Resource test pit approved – March / April

G d t t t i l• Ground water management trials

• Selective mining tests

• Resource parameters and lithology

9


Processing• Preferred option; alkaline

heap leach

• On / off pads at a central plocation

• Direct precipitation of uranium from pregnant liquor piloted and successful

• Average head grade to pads 653ppm U3O8

• Recovery 70% from lab tests

• Average production 730tpa U3O8

Crushing Screening

Water Storage

Water by Road TankerROM

• Make up water 700Mlpa

• Spent heaps washed and returned to the mine

Agglomeration

Stacking

Heap

Reagent Mixing

10

• Project life 10 years

• Trial heap leach under approval

g

Solution Pond

Emergency Overflow Pond

Trial Heap Leach


Water• Supply – Misc water licence in place

• 700 ML pa from West Creek borefield

• Mine Groundwater

• Expect saline water flows into mining areas

• Barriers (geopolymer or clay) around mining areas to restrict inflows

• Discharge to evap ponds or Lake Way based on quality

• Rainfall runoff , flooding

• Minimise contamination and sediment

• Discharge to evap ponds or Lake

11

Way based on quality


Product Transport• One 60t road train a month (700t U3O8 per annum)

• Also regulated by Commonwealth

• Containerisation and transport systems in place

for many years at other mines – proven operations

• Requires container port class 7 ships• Requires container port, class 7 ships

• Potential export ports Port Adelaide or Darwin

• Both have existing secure facilities

• Coordination with other potential WA producers

underway

• Education process on safety and reality of radiation

from U3O8 transport underway

• Product marketing commencing

12100% Toro owned production


Current Major Work Programs• Community Relations information and education• Community Relations – information and education

• Traditional owners – information, consultation (through CD NTS), education, mining familiarity, radiation info, Heritage management plan, trial employment and training

E i l k f fl il i li i l i l l• Environmental work – fauna, flora, soils, air quality, aerial, water, materials, closure

• Approvals – assessment level ERMP, Scoping document, Federal EPBC

• Regulator Relations – DMP lead agency / Case Manager / EPA approvals work

• Resource Evaluation Pit – 45,000 tonnes - Water Barrier Trials

• Heap Leach Trial proposal – 4,700 tonnes – 3 sided “cribs” – differing material types

• Laboratory and pilot column leach testingLaboratory and pilot column leach testing

• Resource Drilling

• Sterilisation Drilling

B k bl F ibilit St d• Bankable Feasibility Study

13

BFS and Approvals

L k W

BFS ObjectivesLake WayCentipede• Confirm detailed design parameters & preferred treatment process at

Wiluna – carry out engineering and design study for construction

• Identify additional value drivers

WA Govt and Federal Approvals

• Referral documents submitted (27 October)

• Level of assessment set at ERMP after one appeal dismissed – 14 week public consultationpublic consultation

• Fed Govt deemed project nuclear action under EPBC Act – bi‐lateral with WA Govt to manage assessment and approvals process

• Scoping document being prepared for submission

• ERMP document to be submitted (~August 2010)

14• Approval – estimated late 2011 to early 2012

Wiluna project milestones

• Wiluna Resource Upgrade

• Wiluna Prefeasibility / Optimisation Study

• Approvals underway level of assessment at ERMP• Approvals ‐ underway – level of assessment at ERMP –Scoping document under preparation

k bl ibili d d• Bankable Feasibility Study – underway – management in place – Resource test pit and trial heap leach ‐ EPCM contractor selectioncontractor selection

• Indigenous Engagement – Heritage, consultation, agreement

• Financing – BFS & Approvals funded – Options under review for construction financing – Product marketing

15A$27m over two years to a project development decision

Optimisation study

L k W200

A$m Initial Construction Capital

$45

US$lb Operating Cost

Lake WayCentipede

19516275

100125150175

40.43$$20$25$30$35$40

.255075

PFS '08 Optimisation Study

29.79

$0$5$10$15


• low mining cost

• Piloted back end treatment

600

700

U3O8t Average Production/Yr

Study Study

600

700

ppm Average Grade U3O8

Piloted back end treatment process

• low capital intensity

563660

200

300

400

500

472653

200

300

400

500

600

• competitive cash costs

• access to significant existing*

0

100


0

100


access to significant existing infrastructure

16

Steady state production 730t/yr*

Wiluna timeline

2009 2010 2011 2012 2013

Optimisation

Approvals Preparation

Approvals

Metallurgical Trials

Decision to Proceed with BFS

Bankable Feasibility Study (“BFS”)

Indigenous Engagement

Native Title Agreement

Off‐take Agreements

Decision to Proceed with Construct

Design and Construct

Commissioning & Prod ctionCommissioning & Production

Completed

17…towards first production in 2012 / 13

i kUranium Market

Uranium market

Demand • Ongoing long term contracting by utilities

• New power station construction still increasing

• New reactors in Western countries now being • New reactors in Western countries now being planned and supported

• Short term softer demand – discretionary

• Uncertainty over China’s future purchasing • Uncertainty over China s future purchasing methodology

S l Supply • Kazakhstan now largest global producer – recent

change in Kazak internal control

• Locking up of future potential production sources by utilities and majors

• New projects and discoveries – time to d l li i i d

19

development – reality creeping into costs – need for supportive pricing

Source: Ux Consulting

Australia: Total Production

Perhaps something poorly appreciated by h ff h ili i i 16000

Available New Production Per Yearthe offshore utilities is the relatively small amount of uranium resource that is available. 10000

12000

14000

16000

(ton

nes)

AVALIABLE

Most material is either fully committed or in the hands of the major companies. 4000

6000

8000

Prod

uced

U3O

8 (

MAJOR

ALLOCATED

Toro holds a significant portion of this ‘available’ production.

0

2000

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

P

2,500

3,000

nes) Toro

Year

1,000

1,500

2,000

duced U3O

8 (ton

New production excluding Majors

200

500

Prod

Source: Public announcements and Toro estimates.

Project Pipeline & ExplorationProject Pipeline & Exploration

‐ A$4.5m in 2010 on NT and WA projects‐ Napperby project evaluationpp y p j‐ Namibian projects farm in‐ Project and consolidation opportunities

Central Australia Exploration Tenement snapshotsnapshot

22

Napperby Project

JORC Resource: Currently 9.34 Mt @ 359 ppm (0 036%) U3O8 for 3,351 tonnes (7 39 ppm (0.036%) U3O8 for 3,351 tonnes (7.39 million pounds) Inferred of contained uranium oxide using a 200ppm U3O8 cut off.

The outcomes from Scoping Study being augmented by additional work to improve project viability.

23

Lake Mackay Project (WA)

Uranium in Tertiary reduced sands and clays

24

Hole LP0029 - 6m @ 216ppm U3O8 (assays) OR 4.5m @ 365ppm U3O8 (gamma)Hole LP0031 - 2m @ 646ppm U3O8 (assays) OR 3m @ 175ppm U3O8 (gamma)** Refer Appendix 1 for full drilling results

Namibia

Namibia Uranium ProspectNAMIBIA [TOE: currently 90%]

Plans• Toro in JV with Deep Yellow (DYL to earn 65%)

[ y ]

• Covers three EPLs • Total acreage: 1326km2

• Toro to retain 25% interest• Namibian BEE Company 10%*

Targets• Palaeochannel calcrete; Rossing‐style bedrock• Palaeochannel calcrete; Rossing‐style bedrock • Possible extensions of Langer Heinrich palaeo‐valley

Budget• A$3.5 million spend over 2.5 years

25* Sixzone Investments Limited (Black Economic Empowerment)

Birrindudu JV with Cameco (NT)

4850

00 m

E

4900

00 m

E

4950

00 m

E

5000

00 m

E

4800

00 m

E

4600

00 m

E

4650

00 m

E

4700

00 m

E

4750

00 m

E

4550

00 m

E

4400

00 m

E

4450

00 m

E

4500

00 m

E

4250

00 m

E

4300

00 m

E

4350

00 m

E

7940000 mN

4100

00 m

E

4150

00 m

E

4200

00 m

E

7945000 mN

7950000 mN

7920000 mN

7925000 mN

7930000 mN

7935000 mN

7915000 mNBirrindudu Group

c 1650

GORDON DOWNS

Brown'sBrown'sBrown'sBrown'sBrown'sBrown'sBrown'sBrown'sBrown'sRange Range Range Range Range Range Range Range Range

E 8003554E 8003554E 8003554E 8003554E 8003554E 8003554E 8003554E 8003554E 8003554E 8003553E 8003553E 8003553E 8003553E 8003553E 8003553E 8003553E 8003553E 8003553

7895000 mN

7900000 mN

7905000 mN

7910000 mN

Killi Killi Beds

Brow ns RangeMetamorphics

c. 2500

c. 1650

E 8003556E 8003556E 8003556E 8003556E 8003556E 8003556E 8003556E 8003556E 8003556

E 8003558E 8003558E 8003558E 8003558E 8003558E 8003558E 8003558E 8003558E 8003558

E 8003559E 8003559E 8003559E 8003559E 8003559E 8003559E 8003559E 8003559E 8003559 DomeDomeDomeDomeDomeDomeDomeDomeDome-REE-REE-REE-REE-REE-REE-REE-REE-REE

Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1E 8003555E 8003555E 8003555E 8003555E 8003555E 8003555E 8003555E 8003555E 8003555

E 8003557E 8003557E 8003557E 8003557E 8003557E 8003557E 8003557E 8003557E 8003557

7885000 mN

7870000 mN

7875000 mN

7880000 mN

7890000 mN c. 1855 Ma

Birrindudu

STURT CREEKLEWIS CREEK

E 8003560E 8003560E 8003560E 8003560E 8003560E 8003560E 8003560E 8003560E 8003560

Mt. Junction-U (Cu)Mt. Junction-U (Cu)Mt. Junction-U (Cu)Mt. Junction-U (Cu)Mt. Junction-U (Cu)Mt. Junction-U (Cu)Mt. Junction-U (Cu)Mt. Junction-U (Cu)Mt. Junction-U (Cu)Don-U, Au (REE)Don-U, Au (REE)Don-U, Au (REE)Don-U, Au (REE)Don-U, Au (REE)Don-U, Au (REE)Don-U, Au (REE)Don-U, Au (REE)Don-U, Au (REE)

Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1Mount Mansbridge 1-U (Au, Xen)-U (Au, Xen)-U (Au, Xen)-U (Au, Xen)-U (Au, Xen)-U (Au, Xen)-U (Au, Xen)-U (Au, Xen)-U (Au, Xen)

Mount Mansbridge 2-UMount Mansbridge 2-UMount Mansbridge 2-UMount Mansbridge 2-UMount Mansbridge 2-UMount Mansbridge 2-UMount Mansbridge 2-UMount Mansbridge 2-UMount Mansbridge 2-U

Oracle UO l UO l UOracle UO l UOracle UO l UO l UO l UJaimani-UJaimani-UJaimani-UJaimani-UJaimani-UJaimani-UJaimani-UJaimani-UJaimani-U

7860000 mN

7850000 mN

7855000 mN

7865000 mN

Killi Killi Bedsc. 1855

BirrinduduGroupc. 1650

Redclif fe Pound Groupc. 800 Ma

Slatey CreekGranite

c. 1790 Ma

White's BeachWhite's BeachWhite's BeachWhite's BeachWhite's BeachWhite's BeachWhite's BeachWhite's BeachWhite's Beach-REE (P, U)-REE (P, U)-REE (P, U)-REE (P, U)-REE (P, U)-REE (P, U)-REE (P, U)-REE (P, U)-REE (P, U)

Oracle-UOracle-UOracle-UOracle-UOracle-UOracle-UOracle-UOracle-UOracle-U

E 8003561E 8003561E 8003561E 8003561E 8003561E 8003561E 8003561E 8003561E 8003561

• Over $1m of airborne geophysics completed by

7845000 mN

7825000 mN

7830000 mN

7835000 mN

7840000 mN

KOOKABURRA-Au

LARRANGANNI BLUFF-Au

Birrindudu 2-UBirrindudu 2-UBirrindudu 2-UBirrindudu 2-UBirrindudu 2-UBirrindudu 2-UBirrindudu 2-UBirrindudu 2-UBirrindudu 2-UCameco• Multiple unconformity uranium

targets

26

7815000 mN

7820000 mN

Killi Killi Hills-UKilli Killi Hills-UKilli Killi Hills-UKilli Killi Hills-UKilli Killi Hills-UKilli Killi Hills-UKilli Killi Hills-UKilli Killi Hills-UKilli Killi Hills-U

• Toro $1m farm-in for 51%

Outlook

• Wiluna Uranium Project– Approvals, Bankable Feasibility Study, Indigenous engagement, product marketing

underway

• Exploration initiatives– Lake Mackay – new uranium discovery in greenfields project

Namibia leveraging on ground expertise through Deep Yellow– Namibia – leveraging on‐ground expertise through Deep Yellow

– Birrindudu – new uranium exploration province

• Scoping Study at Napperby Uranium Project• Scoping Study at Napperby Uranium Project– Additional work to augment project viability with various regional options

• Continuing evaluation of corporate and project opportunitiesContinuing evaluation of corporate and project opportunities

• Long term uranium demand fundamentals remain strong, driven by: i d ili i / i l lif i / i i li

27

– improved utilisation / operational life extensions / construction pipeline– delayed supply / new production / current soft pricing

Greg HallManaging Director

Toro Energy Limitedgy3 Boskenna AvenueNORWOODSouth Australia 5067

Telephone: +61 8 8132 5600Facsimile: +61 8 8362 6655

Email: [email protected]: www.toroenergy.com.au

Appendix 1: 2009 Drilling details at Lake Mackay GDA94 zone 52

LP0026 AC 477290 7486191 102LP0027 AC 472198 7488577 90

Drill Hole Drill type East (GDA)North (GDA)DepthLD00001 RC/DDH 446698 7491600 500

GDA94 zone 52

LP0027 AC 472198 7488577 90LP0028 AC 472111 7488346 117LP0029 AC 464333 7488573 120LP0030 AC 466382 7488363 93LP0031 AC 465855 7488349 120

LD00001 RC/DDH 446698 7491600 500LD00002 RC/DDH 463802 7488674 106LD00003 RC/DDH 449111 7491138 112LP0001 AC 442056 7492325 105LP0002 AC 442887 7492280 102LP0003 AC 443667 7492130 72


LP0003 AC 443667 7492130 72LP0004 AC 444459 7492005 104LP0005 AC 445613 7491775 108LP0006 AC 446853 7491594 96LP0007 AC 447165 7491538 93LP0008 AC 448131 7491420 96 LP0036 AC 452710 7486718 90



LP0042 AC 466432 7483347 120LP0043 AC 468525 7483016 77LP0044 AC 470572 7482769 106LP0045 AC 472677 7482383 102


LP0047 AC 476259 7481919 120LP0048 AC 477863 7481661 105LP0049 AC 479717 7481361 69LP0050 AC 467509 7483147 120


29

LP0050 AC 467509 7483147 120LP0051 AC 465525 7483915 120LP0052 AC 463694 7484247 18

LP0023 AC 471194 7487605 114LP0024 AC 473356 7487365 99LP0025 AC 475104 7487291 105

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