Alumina Production Using Our Innovative and Proprietary Process

7/30/2019 Alumina Production Using Our Innovative and Proprietary Process

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TSX: ORT OTCQX: EORBFTSX: ORT OTCQX: EORBF

Corporate Presentation, February 2013

TSX:ORT OTCQX:EORBF

Alumina Production Using Our Innovative and Proprietary Process


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ThinkingOutsideTheBauxiteTM

Orbite Aluminae Inc. 3

Orbitesinnovativeandproprietaryhydrochloricacidprocess,canproducealuminaandhighvaluebyproductsincludingrareearths,atoneofthelowestcostsintheindustry,usingaluminousclay,bauxite,kaolin,nephiline,redmudandflyash.

Nowastesgeneratedsinceallconstituentelementsarerecoveredduringacidregeneration.

Defiesconventionalminingapproachwhichattemptstorecoveronlyafewelements.


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WhatistheOrbiteProcess?

Chemicalprocessbasedonhydrochloricacid:

Efficientlydissolvesmostrockswithinhours.

Filtrationandselectiveprecipitationofelements.

Recoveryandregenerationof99.75%oftheacid:

Lowelementconcentrationsbuildupwitheachcycle.

Allconstituentelementsarerecoveredincludingrareearths.

Nomineralwastesortailingsaregenerated.

Enabledbychemicalindustryinnovations:

Corrosionresistantglasslinedleachingvessels.

Advancesinfiltrationandprocesscontrolsystems.

Scalingachievedbyreplicatingvesselcapacityinparallel.

4Orbite Aluminae Inc.


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PatentedandPendingProtectionwith14IPFamilies

1) Processesforextractingaluminumfromaluminousores.

PatentprotectiongrantedinUSA1,Canada2 andAustralia3.

ReceivedNoticeofAllowanceinRussiaandChina4.

PatentpendinginEU,Japan,India,HongKong.

2) Processesforextractingaluminumfromaluminousores5.

3) Processesforextractingrareearthelementsfromaluminumbearingmaterials5.

4) Processesforextractingrareearthelementsfromvariousores5.

5) Methodsforpreparinghematite5.

6) Methodsforseparatingironionsfromaluminousions5.

7) Processesforpreparingaluminaandvariousotherproducts5.

8) ProcessesfortreatingRedMud6.

9) ProcessesfortreatingFlyAsh6.

10) Processesforrecoveringrareearthelementsfromvariousmaterials6.

11) Processes

for

preparing

titanium

oxide

and

various

other

products6

.12) Processesforrecoveringrareearthelementsandraremetals5.

13) Processesfortreatingvariousmaterials5.

14) Processesforpurifyingaluminumions6.

1:USAPatents7,837,961,8,241,594and8,337,789. 2:CanadaPatents2,684,696and2,711,013. 3:Australia Patents2008253545and2012100165.

4:SeeORTSeptember20,2012pressreleased. 5:TheseIPfamiliesarepatentpendingintheUSAandPCT. 6:TheseIPfamiliesarepatentpendingintheUSA.



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Vision

and

Business

Strategy Ourvisionistochangethealuminaindustrybybuildinguptotensmeltergradealumina(SGA)plants

servingQuebec,thethirdlargestaluminumproducingregionintheworld,bybuildingseveralhighpurityalumina(HPA)plantsandbylicensingourSGAtechnologyinternationally.

OurfirstHPAPlantinCapChat,QuebecwillbegincommercialproductioninQ22013.

OurfirstSGAPlantisintheFeasibilityStudystage.


SGAPlants

HPAPlants

AluminumSmelters

SmelterGradeAlumina(2N)

HighPurityAlumina

(4N6N),Gallium,Scandium

FuelCells,Alloys,Magnets,

Aerospace,Automotive

Silica,Hematite,Titanium,RM,REE

andOtherElements

Orbites

ProprietaryProcess1

MultipleFeedstocks:

AluminousClay,

Bauxite,Kaolin,Nephiline,RedMud

andFlyAsh. InternationalTechnologyLicensing

LEDLights,

Displays,Semiconductors


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OrbiteisanAluminaGameChanger

Aluminaisabundantinmostrocks,Orbitehassuccessfullytestedthefollowing:

OrbitesprocessmakesBayerobsoletewhileresolvingcriticalaluminaindustryissues:

Steadily decreasing bauxite quality Aluminous clay is an inexhaustible resource.

Rising transport costs to smelters Domestic alumina supply near smelters.

Generates red mud waste No wastes.

Red mud stockpiles are a liability Remediation converts it to an asset.

Operating costs rising each quarter OPEX is at the bottom of industry cost curve.


Element AluminousClay Bauxite RedMud Kaolin Clay FlyAsh Nepheline

Al2O3 1825% 4060% 1825% 18%80% 1217% 3040%

Fe2O3 710% 220% 2835% 02% 1015% 01%

SiO2 >50% 17% 812% 10%65% 2735% 3545%

REE/RMPotential Ga2O3,Sc2O3,REE Ga2O3,Sc2O3 Ga2O3, Sc2O3 None None None

Other Potential MgO, K2O,TiO2 TiO2 TiO2 Not Determined NotDetermined K2O, Na2O

Note:Grade rangesandpotentialelementsareonlyprovidedforgeneralcomparisonbetweenfeedstocksandshouldnotberelieduponasbeingrepresentativeoreconomic.


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SGA

Plant Economics

as

per

PEA

(1)

1: See ORT May 31, 2012 press release for detailed breakdown of resource and PEA Scenario 2. *:Assumes 85% REE/RM recovery instead of 75% used in PEA Analysis. **:REE and RM lowcase pricing is a 65% discount to Aug 2011 China domestic price. Additional Notes: SGA plant will produce >98.5% purity SGA, 99.5% purity hematite, 95%99.9%, purity silica, and >99% purityREOs and RMOs. SGA spot price for 96% purity was $425 per tonne in Aug 2011 and $325 per tonne in Dec 2011. Hematite spot price is for 62% purity. Silica spot price is for a low quality

product. EBITDA includes 3% Net Operating Profit Royalty (option to purchase $0.5M after year 5). Financials and NPV are pre

tax using $500M capex.

PEASensitivityAnalysis1

Alumina,

$175.449%

Hematite$23.7

7%

Silica,$12.3

3%

OtherOxides,

$8.62%

RareEarths,$137.5

39%

PEALowCaseRevenues($M)


AluminaPrice

($/tonne)

Hematite

Price($/tonne)

SilicaPrice

($/tonne)

REO/RMO

Average

BasketPrice

($/Kg)

RareEarth

Revenues(Million$)

TotalAnnual

Revenues(Million$)

Annual

EBITDA(Million$)

Capex

(Million$) IRR

Payback

(Years)

NPV@10%

(Million$)

$425 $200 $25 $479 $393 $702 $572 $500 114% 0.9 $4,782

$325 $125 $10 $167 $138 $358 $237 $500 48% 2.1 $1,690

Product PurityRecovery

Rate

Tonnes

ProducedPer

Year

SmelterGradeAlumina >98.5% 93.2% 539,711

Hematite 99.5% 92.1% 189,298

HighPuritySilica >95.0% 100.0% 1,228,628

MagnesiumOxide >95.0% 86.6% 27,816

MixedOxides >95.0% 99.8% 104,089

RareEarth&MetalOxides >99% *85% 1,097

Total 2,090,639

REO/RMO

ProductSymbol Purity

Tonnes

Oxidesper

year

Gallium Ga 99.99% 86.3

Scandium Sc 99.99% 54.5

Yttrium Y 99.999% 124.4

Lanthanum La 99% 177

Cerium Ce 99% 366.4

Praseodymium Pr 99% 45.8

Neodymium Nd 99% 158.6

Samarium Sm 99% 29.9

Europium Eu 99.90% 5.6

Gadolinium Gd 99% 23.7

Terbium Tb 99% 3.5

Dysprosium Dy 99.90% 20.9

Total 1,096.6

TotalCAPEXof$500Mor$925pertonneofproductioncapacity. TotalOPEXof$113Mor$209.59pertonneSGA(100%costallocation). Byproductsareessentiallyproducedatzerocost.


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SGAOPEX2 versusAluminaIndustry Cost Curve3

1:SeeORTOct2,2012pressreleaseforSGAPlantFinalDesignimprovementsoverthePEA2:SeeORTMay31,2012pressreleasefordetailedbreakdownofresourceandPEA Scenario2. Operatingcostsof$113Mdividedby539,711tonnes.3:CommodityResearchUnit(CRU)InternationalLtd. Q32012Report.4:Operatingcostsof$113Mallocationonapproximatebasisof15GJforalumina,14GJforhematite3 and12GJforMagnesiumOxide.5:Operatingcostsof$113Misreducedbylowcasebyproductrevenuestotalling$183Mresultingin $70M.

Note:ChinaRefineryproductionisanadditional20MtonnesSGAperyear.

Alumina

FOBAustralia

SpotPrice

PEA2 100% of Opex Allocation - $210 / tonne Alumina

PEA2 100% of Opex Allocation $210 / tonne AluminaPEA2 Co-Product Opex Allocation by Energy4 $91 / tonne AluminaPEA2 Opex Net of Low-Case By-Product Revenues5 -$129 / tonne Alumina

CRUs World ex-China Alumina Refinery CashCosts for Q3-2012 (nominal US$/t)3

Industry Avg. Cash Cost3



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QuebecisanImportantAluminaMarket

Quebecs Gasp region is strategically situated near 14 smelters1 producing 8% of theworlds aluminum, representing the worlds 3rd largest producing region after China andRussia, importing up to 8M tonnes SGA per year.

100% of 34km2 aluminous clay property at GrandeValle, Quebec contains a 1 billiontonne Indicated Resource2 that could potentially satisfy 50% of Quebecs annual aluminaimports for >50 years.

1:Thereare9smeltersinQuebec,2inupstateNewYorkand3inIceland. 2:SeeORTMay31,2012pressreleasefordetailedbreakdownofresource.

3:SeeORTNov14,2012pressreleasefordetails. Orbitemustincurexplorationexpenditurestotalling$1MbyDec31,2013, produceatechnicalreportandissue2.4Mshares.

100% of 550km2 along the same aluminous clayformation near CapChat and Rimouski.

Option agreement3 to earn 100% on the 26km2

Chaswood kaolin property near Halifax, Nova Scotia.

Orbites vision is to build up to ten SGA plants servedby several different openpit mines.



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GrandeVallePropertyandResourceEstimate

GrandeValles Marin sector hosts a NI 43101 compliant 1.04 billion tonnes Indicated Resource grading 23.37%Al2O3, 52.62% SiO2, 8.42% Fe2O3 and 563ppm TREO+RMO

2 to a depth of 100m 2.

1:BCCResearchAVM018G,RareEarths:WorldwideMarkets,Applications,Technologies,Jan2012. 2:SeeAppendixandORTMay31,2012pressreleasefordetailedbreakdownofresource.


Aluminous clay is homogeneous

throughout the deposit.

Already ranks 11th worldwide forREE insitu value1.

Ranks Top 10 worldwide forheavy REE content at 22.4%.

Received 70 million tonne 20year renewable mining lease.

Signed agreement with theMicmac First Nation in support ofdevelopment.


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Highpurity alumina (HPA) is used primarily to manufactureindustrial sapphires which are used as substrates in LED lights anddisplays.

CapChat HPA plant is a showcase of the SGA technology:

Plant commissioning is currently in progress.

Produced first tonne of 4N HPA (99.99% purity) in January,independently verified by EAG.

Commercial production of 4N to 6N HPA by Q2 2013:

Orbite will focus on 5N to 6N HPA market.

Production will ramp to 3 tpd by mid2013 and 5 tpd by 2014.

Smallscale scandium and gallium production as of mid2013.

PEA was not completed therefore OPEX and CAPEX estimates areunavailable. Additional CAPEX will be required throughout 2013.

HPAPlantinCapChat,Quebec


Figure 10. High Purity Alumina Demand and Price Forecast

Source: Secor-KPMG; Company reports; Euro Pacific Canada

0

5000

10000

15000

20000

25000

30000

$0

$20

$40

$60

$80

$100

$120

$140

2009 2010 2011 2012 2013 2014 2015

Demand 5NPrice 4NPrice


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TechnologyLicensingOpportunities

Orbite intends to license its SGA technologyinternationally in return for a revenue royalty:

New Orbite alumina plants will be at the bottom of

the industry cost curve.

Addon Orbite plant could treat red mud effluentand existing stockpiles while moving existing Bayerplants down the cost curve.

Provides stable domestic supply of alumina.

Other potential licensees include:

Coal power utilities with fly ash stockpiles.

RareEarth companies seeking alternatives tocapital intensive and inefficient sulphuric acidcracking processes.

Mining companies seeking technology alternatives.

Orbite does not intend to license HPA technology.

3 Billion Tonnes of Red Mud World Wide

Over 100M Tonnes Produced per Year

BayerProcess OrbitesProcess(1)

ApplicabilityHighGradeBauxite

(lowsilicacontent)

AluminousClays,Bauxite(lowand

highgrade),Kaolin,Nepheline,Red

Mud,Flyashandotheraluminous

sources

ResiduesRedMud

(1.52.0TonnespertonneofAlumina,

pH13,concentration1030%)**

Minimal

CAPEX/tonneofAlumina

(IncludingInfrastructure) $1500* $1000

OPEX/tonneofAlumina $180to$400(Avg$265in2011)*** $91to$210****

ByProducts SomehavegalliumValueAdded&Marketable

(Silica,Hematite,MgO,otheroxides,

Scandium,Gallium,RareEarths)

1: Revised PEA dated May 2012. *: 2011 Aluminum Summit. **: The Red Mud Project.***: Commodity Research Unit (CRU). ****:Co-Product and Alumina-only opex allocation.



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PotentialCatalysts


Dec 2012Q1 2013

Q2 2013Q3 2013

Q4 2013

2014

HPA PlantCommissioningInitiated

HPA PlantInitialProduction

CommercialHPAProduction

SGA Plant

FeasibilityStudyProductionof Scandiumand Galliumat HPA Plant

SGA PlantPhase IConstructionBegins

SGA PlantInitialProduction

2015


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TSX: ORT OTCQX: EORBF

Capital

Structure

SharePricePerformance ThreeYearsMarketCapitalization(AsofJanuary11,2013)

(inCAD)

ClosingSharePrice(TSX:ORT) $2.69

BasicSharesOutstanding 184.1M

Options@$1.35wap 14.4M

WarrantsExpiringJul2013@$4.36wap 10.1M

ConvertibleDebenture($25M@$3.50pershare) 7.1M

FullyDilutedSharesOutstanding 215.7M

FullyDilutedMarketCap. $580M

Asof

September

30,

2012

CashandShortTermInvestments $43M

LongTermDebt $2.4M

WarrantsExpiring2013@$4.36wap $43.8M

Orbiteisinthefollowingindices:

S&P/TSXGlobalMining

S&P/TSXGlobalBaseMetals

S&P/TSXCleanTech Index

S&P/TSXSmallCap Index

AnalystCoverage:

LuisaMoreno EuroPacific

PhilShen RothCapital

MattGowing MackieResearch

Orbite Aluminae Inc. 18


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ContactUs

ORT

EORBF

ExecutiveOffice:

6505,routeTranscanadienne,Suite610StLaurent,Qubec,CanadaH4T1S3Tel: 5147446264Fax: 5147444193www.orbitealuminae.com

Tickers:

MarcJohnson,VPCorporateDevelopmentTel: [email protected]

JacquesBdard,VPFinance&ChiefFinancialOfficerTel: 5147446264

[email protected]

[email protected]

TM



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Appendix

GrandeValle NI 43101 Compliant 1.04B tonnes Indicated Resource1

SiO2 (Silica) 52.62% Ga2O3 (Galium) 43ppm

Al2O3 (Alumina) 23.37% Sc2O3 (Scandium) 28ppm

Fe2O3 (Hematite) 8.42% Y2O3 (Yttrium) 49ppm

CaO (Calcium) 0.48% La2O3 (Lanthanum) 76ppm

MgO (Magnesium) 1.64% Ce2O3 (Cerium) 152ppm

Na2O (Sodium) 1.06% Pr2O3 (Praseodymium) 19ppm

K2O (Potassium) 2.86% Nd2O3 (Neodymium) 71ppm

MnO (Manganese) 0.16% Sm2O3 (Samarium) 11

ppmCr2O3 (Chromium) 0.01% Eu2O3 (Europium) 2ppm

TiO2 (Titanium) 0.85% Gd2O3 (Gadolinium) 13ppm

P2O5 (Phosphate) 0.14% Tb2O3 (Terbium) 1.5ppm

SrO (Strontium) 0.02% Dy2O3 (Dysprosium) 9ppm

BaO (Barium) 0.05% Other Contained REO 88ppm

V2O5 (Vanadium) 0.03% Total RM & REO 563ppm

H2O (LOI) 6.50% Other Elements 1.79%

Notes: Content in oxide form. CIM definitions were followed for mineral resources. Effective date is Nov 23, 2011. Assumes a cutoff of 18% Al2O3 and a density of 2.6g/cm3.Amounts may not add due to rounding. Mineral resources have no demonstrated economic viability. There is no certainty that all or part of the mineral resources will beconverted to reserves.

1:

See

ORT

May

31,

2012

press

release

for

detailed

breakdown

of

resource

estimate.



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ExperiencedManagementTeamandBoard

Mr.RichardBoudreault,M.Eng,MBA,Adm.A Director,PresidentandCEO

Mr.JacquesBdard,CPA/CGA VPFinance&CFO,CorporateSecretary

Mr.DenisPrimeau,Eng.,MBA ChiefEngineer

Mr.YvesNol,Eng.,MBA ChiefMarketingOfficer

Mr.MarcJohnson,CFA VicePresidentCorporateDevelopment

Mr.GuyLouisBoucher LL.L. VicePresidentSustainableDevelopment

Mr.JonathanLabranche LL.B. DirectorLegalandCorporateAffairs

Dr.MarcFilion,PhD,Eng.,MBA StrategicandResourcesAdvisor

Mr.PierreDesprs,B.A.LL.L CommunicationsandPublicAffairsAdvisor

Mr.LionelLveill, ChairmanoftheBoardofDirectors

Mr.RichardBoudreault,

PresidentandCEO

Mr.CharlesChevretteLL.B.MBA.

Dr.TobyGilsig,Eng

Mr.Stphane Bertrand

Mr.PierreMeunier LL.L.

Mr.ChristianVanHoutte

Mr.MichaelHanley,CPA/CA

Mr.JeanSbastien David,MPM,Geo.

Management Team Board of Directors

*Seeappendixfordetailedbiographies.



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Alumina Production Using Our Innovative and Proprietary Process

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