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Titanium  mining  and  processing  

INVESTOR  PRESENTATION   February  2014  AJM  PRESENTATION  

MARCH  2014  

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Statements  

Forward  Looking  Statements  •  Certain  informa>on  contained  in  this  presenta>on,  including  any  informa>on  on  MDL’s  plans  or  future  financial  or  opera>ng  performance  and  other  statements  

that  express  management’s  expecta>ons  or  es>mates  of  future  performance,    cons>tute  forward-­‐looking  statements.  Such  statements  are  based    on  a  number  of  es>mates  and  assump>ons  that,  while  considered  reasonable  by  management  at  the  >me,  are  subject  to  significant  business,  economic  and  compe>>ve  uncertain>es.  MDL  cau>ons  that  such  statements  involve  known  and  unknown  risks,  uncertain>es  and  other  factors  that  may  cause  the  actual  financial  results,  performance  or  achievements  of  MDL  to  be  materially  different  from  the  company’s  es>mated  future  results,  performance  or  achievements  expressed  or  implied  by  those  forward-­‐looking  statements.  These  factors  include  the  inherent  risks  involved  in  explora>on  and  development  of  mineral  proper>es,  changes  in  economic  condi>ons,  changes  in  the  worldwide  price  of  zircon,  ilmenite  and  other  key  inputs,  changes  in  mine  plans  and  other  factors,  such  as  project  execu>on  delays,  many  of  which  are  beyond  the  control  of  MDL.  

•  Nothing  in  this  presenta>on  should  be  construed  as  either  an  offer  to  sell  or  a  solicita>on  to  buy  or  sell  MDL  securi>es.  

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Mineral  Deposits  –  corporate  snapshot  

CapitalisaDon   10  years  in  Senegal  

Lis>ng   ASX  (MDL)  

12  mth  price  range   A$4.21  –  $1.70  

Shares   103.5M  

Market  cap   US$216M  

Cash  (31/01/2014)   US$52M  

Investments   19%  World  Titanium  Resources  US$5M  

2002   Started  evalua>ng  Grande  Côte  

2004   Awarded  Sabodala  gold  project  

2007  -­‐  2009   Constructed  Sabodala  mine    

Mar  2009   First  gold  poured  at  Sabodala  

2011  -­‐  2013   Construc>on  of  Grande  Côte  

   

Shareholder  Structure    (Dec  2013)  

Dec  2010   Sabodala  gold  assets  “demerged”  into  Teranga  Gold  Corpora>on  (TSX/ASX:  TGZ)  

Oct  2011  Commencement  of  TiZir    –  JV  with  Eramet  –  combining  Grande  Côte  and  ilmenite  upgrading  plant  

Corporate  TransacDons  

Australian Institutions

53%

UK/Europe 27%

USA 8%

Other Institutions

8%

Retail 4%

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Via  50%  of  TiZir,  we  own  two  highly  strategic  mineral  sands  assets  

Smelts  ilmenite  to  produce  a  high-­‐TiO2  Dtanium  slag  and  high  purity  pig  iron  

Tyssedal  (Norway)  Ilmenite  upgrading  plant  

•  Opera>onal  since  1986  •  1  of  only  5  such  assets  globally  (only  one  in  Europe)  •  Access  to  compe>>vely-­‐priced  hydro  power  and  close  to  customer  base  

•  2013  EBITDA  =  US$52m  

A  major  new  mineral  sands  mine  

Grande  Côte  (Senegal)  

•  Construc>on  complete,  produc>on  to  commence  March  2014  

•  20+  year  mine  life  –  poten>al  for  significantly  longer  

•  Expected  to  produce  ≈7%  of  global  zircon  &  ≈5%  of  >tanium  feedstock  

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Tyssedal  ilmenite  upgrading  facility  

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Tyssedal  –  What  does  it  do?  

Smelts  ilmenite  to  produce  a  Dtanium-­‐rich  slag  and  pig  iron  co-­‐product  

Ilmenite   Electric  Furnace  

Titanium  Slag  

Pigment  Producers  

High  Purity  Pig  Iron   Foundries  

~345ktpa  mostly  sourced  from  Tellnes  mine  (Norway)  containing  ~44%  TiO2  

~200ktpa  containing  ~80%  TiO2  

~110ktpa  

Input   SmelDng   Outputs   Customers  

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Tyssedal  opDonality  creates  market  flexibility  

Ilmenite  source  

Sulphate  Process  

70% Tellnes (44% TiO2) 30% Grande Côte (54% TiO2)

235kt Sulphate Slag (80% TiO2)

Chloride  Process  

100% Grande Côte (54% TiO2)

185kt Chloride slag (87% TiO2) 45kt Chloride fines (87% TiO2)

Slag  type  

Pigment  producDon  feedstock  source  

OpDon   OpDon  

Smelt   Smelt  

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IndicaDve  earnings  potenDal  of  the  two  operaDons  

Grande  Côte  (2015+)   Tyssedal  (2016+)  

Volumes   85kt  zircon,  575kt  ilmenite,  16kt  ru>le/leucox  

Pricing   Zircon  =  US$1,300/t,  sulphate  ilmenite  =  US$195/t,  chloride  ilmenite  =  US$265/t  

AssumpDons:  

Volumes   185kt  chloride  slag,  45kt  chloride  fines,  100kt  pig  iron  

Pricing   Chloride  slag  =  US$950/t,  chloride  fines  =  US$700/t,  pig  iron  =  US$500/t  

AssumpDons:  

Assumed  20%  capacity  upgrade  as  part  of  2015  shutdown  and  producing  chloride  slag  

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Senegal  

Grande  Côte  

Concession:      

25  years  extendable  

Ownership:    

TiZir  90%,  Senegal  Govt.  10%  

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Grande  Côte  Geology  

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•  No  overburden  •  Minor  vegeta>on  

•  Free  flowing  sands  –  no  hard  lenses  

•  Minimal  (<1.0%)  slimes  

•  Shallow  water  table  

•  Deeper  aquifer  for  makeup  water  •  Uniform  grain  size  and  mineral  assemblage  

A  simple  ore  body  

Zircon  &  Dtanium  minerals  are  of  approximately  equal  monetary  value  

in  the  ore  

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Grande  Côte  –  What  makes  it  special?  

Large Scale

Grande Côte 20+ year mine life

Excellent logistics

Simple ore body

Top quartile on Revenue / Cost

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Grande  Côte  …  a  2+  year  build  cosDng  $650m  

•  Conven>onal  wet  mining  opera>on  …  large  throughput  with  a  highly  sophis>cated  control  system  

•  Purpose-­‐built,  flexible  mineral  separa>on  plant  

•  Own  36MW  power  sta>on  

•  Own  railway  system  

•  Own  port  facili>es  

•  Quality/experienced  opera>onal  team  

What  have  we  built  …  

•  A  very  well  engineered  project  built  specifically  for  the  ore  body  

•  Scale/simplicity  =  high  revenue/cost  ra>o  (nearly  2x  at  current  prices)  

•  Power  self-­‐sufficiency  

•  Logis>cs  self  sufficiency  

•  20+  year  mine  life  

…  with  the  result  being  

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2014Q 4 Q 1Q 4Q 3Q 2Q 1Q 4Q 3Q 2Q 1 Q 2

2011 2013Q 3

2012

DREDGE

Engineering & Procurement

Engineering & Procurement

Offsite Construction

WET CONCENTRATOR

PLANT

Construction

Site Re-

Assem

blyConstruction

Comm

ission

Ore

Comm

issionCom

mission

Comm

ission

Construction

PRODUCTION RAMP-UP

RAIL & PORT

POWER STATION

MINERAL SEPARATION

PLANT

Comm

ission

Engineering & Procurement

Construction & RefurbishmentEngineering & Procurement

ProducDon  to  commence  late-­‐2013  

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