VibraniteThe Future of Sustainable Energy

B2Z Consulting Ltd.April 3, 2014

History

• ENSUS Exploration• Channa Mining Corp.

– US Government Support– 20 year Vibranite demand

• Miles City, Montana, USA

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United States

Proposed Solution

• Tonnage• Political risk• LOM• Gov’t Support• NPV• Transportation• Tax Rate

Miles City, MT, USA

100Mt75.5%35 yearsSubsidized$44.8B USD1,700km17%

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United States Canada

Sweden China

4 Deposits – 1 Strategy

Block Caving100Mt0.08% gradeHigh Recovery

Block Caving80Mt

0.1% gradeHigh Recovery

Cut & Fill5Mt1.5% gradeMed-High Recovery

Open Pit115Mt

0.15% gradeMedium Recovery

1,700km 1,100km

10,400km7,100km

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United States Canada

Sweden China

4 Deposits – 1 Strategy

Med-High Capex75.5% Political Risk17% Tax$44.8B USD NPV

High Capex93.6% Political Risk21% Tax$46.6B USD NPV

Low-Med Capex28.5% Political Risk

65% Tax$43.8B USD NPV

Medium Capex59.9% Political Risk

30% Tax$36.9B USD NPV

Note: NPV is after-tax & multiplied by Political Risk5

Proposed Solution Cont.

• The Mineral– Safe Mining– Safe Transportation

• United States1. Transparency2. Skilled Work Force3. Athletic & Sports Facilities

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Proposed Solution Cont.

• Alternatives– Joint Venture with another

multinational company– Canada

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Thank You

B2Z Consulting Ltd.

Assumptions (1/3)

• Lower bound of Rule of Thumb mining method rates are acceptable

• Higher bound of Rule of Thumb mining method costs are acceptable

• Vibranite Price is based on 75% of Uranium at $51 per kg

• Cash Flow Base Case:– Block Caving Production Delay is 3 years

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Assumptions (2/3)

– Open Pit Production Delay is 1 year– Cut and Fill Production Delay is 2 years– High, Medium, & Low Recovery are 90%, 70%, and

50%, respectively– High, Medium, & Low CAPEX are $6B, $3B, &

$100M, respectively– Operating Days per year is 290– Open Pit Avg. T / Day is 100,000 tonnes per day

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Assumptions (3/3)

– Open Pit Cost per tonne is $5 per tonne• Mineral Processing Costs are the same for

each location

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Cash Flow Analysis (1/2)

Deposit Location

Recommended Mining Method

Tonnage (Mt)

Average Grade (%)

Estimated Metallurgical Recovery

Canada Block Caving 80 0.1 High

China Open Pit 115 0.15 Medium

US Block Caving 100 0.08 High

Sweden Cut and Fill 5 1.5Medium to

High

CAPEX Tax RateAvg. T / Day Life of Mine

Cost per Tonne

Medium 30% 10,000 28 $ 2.50 Low to Medium 65% 100,000 4 $ 5.00 Medium to High 17% 10,000 35 $ 2.50

High 21% 500 35 $ 70.00 12

Cash Flow Analysis (2/2)

Deposit Location

Total Cost of Extraction ($M)

Cost per Year ($M)

Recoverable Metal (Mkg)

Total Revenue ($M)

Canada $ 200 $ 7 7200 $ 367,200

China $ 575 $ 144 12075 $ 615,825

US $ 250 $ 7 7200 $ 367,200

Sweden $ 350 $ 10 6000 $ 306,000

Revenue per Year ($M)

Before Tax Income per Year ($M)

After Tax Income per Year ($M)

NPV ($M) @ 10%

NPV*Political Risk ($M)

$ 13,114 $ 13,107 $ 9,175 $ 61,625 $ 36,913

$ 153,956 $ 153,813 $ 53,834 $ 153,702 $ 43,805

$ 10,491 $ 10,484 $ 8,702 $ 59,302 $ 44,773

$ 8,743 $ 8,733 $ 6,899 $ 49,781 $ 46,595 13

References

• http://www.femp.org/wp-content/uploads/2011/07/CAT-workshop-Rio-Tinto-Block-Caving.pdf

• https://maps.google.ca/maps?q=miles+city+montana&ie=UTF-8&ei=tM88U9SbAoSr7AbPtIDoCw&ved=0CAgQ_AUoAQ

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