DISCLAIMER. Competent Persons Statement

Transcription

1 AUGUST 2011

2 DISCLAIMER This document has been prepared as a summary only, and does not contain all information about the Company s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company s securities. This document should be read in conjunction with any public announcements and reports (including financial reports and disclosure documents) released by Aquia Resources Limited. The securities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on the Shares or that there will be an increase in the value of the Shares in the future. Further details on risk factors associated with the Company s operations and its securities are contained in the Company s prospectuses and other relevant announcements to the Australian Securities Exchange. Some of the statements contained in this release are forward-looking statements. Forward looking statements include but are not limited to, statements concerning estimates of tonnages, expected costs, statements relating to the continued advancement of the Company s projects and other statements which are not historical facts. When used in this document, and on other published information of the Company, the words such as aim, could, estimate, expect, intend, may, potential, should and similar expressions are forward-looking statements. Although the company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forward-looking statements include the potential that the Company s projects may experience technical, geological, metallurgical and mechanical problems, changes in product prices and other risks not anticipated by the Company or disclosed in the Company s published material. The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position. Competent Persons Statement The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Fernando Tallarico who is a member of the Association of professional Geoscientists Ontario. Dr Tallarico is a full-time employee of Aquia Resources Limited. Dr Tallarico 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 ( JORC Code ). Dr Tallarico consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

3 COMPANY OVERVIEW POTASH AND PHOSPHATE PROJECTS IN BRAZIL BUSINESS MODEL = Explore, Develop and sell into Brazilian Domestic Market BRAZIL IS AN AGRICULTURAL POWERHOUSE Excellent infrastructure Primary fertiliser markets Heavily reliant on imports Atlantic Potash Project Adjacent to Brazil s only operating potash mine Drilling to commence 3 rd quarter Phosphate Projects Lucena, Diamond Drilling currently underway Rio Grande, Carbonatite style drilling 3 rd quarter Mata da Corda - surface results up to 23.1% P 2 O 5, Excellent mineralogical results STRONG BOARD, INDUSTRY FERTILSER EXPERTS BASED IN BRAZIL WELL FUNDED FOR AGGRESSIVE EXPLORATION

4 KEY COMPANY INFORMATION Executives Tony Wonnacott - Non-Executive Chairman -Lawyer Securities Lawyer, +15 years experience as a consultant or officer of several resource companies. Has been involved with a number of successful IPOs and M&A transactions, as well as over CAD$3 billion in capital raises. Simon Taylor - Managing Director & CEO Geologist and founding Director of Aguia with 18 years exploration, development and operational experience in the resources sector. Corporate experience as a resource analyst with a major focus on the phosphate sector. Dr. Fernando Tallarico - Technical Director 19 years experience in Brazil in exploration and project generation for Noranda, Falconbridge and BHP Diamond South America. Graham Ascough - Non-Executive Director Over 21 years exploration experience evaluating resource projects globally, includes Falconbridge and on-ground experience in Brazil. Top Shareholders 1. Officium Emerging Res A/C 6.78% 2. Nefco Nominees Pty Ltd 4.59% 3. Arredo Pty Ltd 3.79% 4. Forbes & Manhattan Barbados 3.64% Top 20 Shareholders 45.9% Potash & Phosphate Experience Paulo Souza - General Manager - Potash Key engineer involved in the design and development of Vale s Carnallite Project and Pilot Plant and an experienced Mining Engineer with 26 years in mine planning and operation, with Vale, Rio Tinto and others Allan Pickett - Fertilizer Professional Business Development 15 years with British Sulphur Consultants, the fertilizer and chemical division of CRU International Ltd John Sinden - Phosphate Processing Engineer Renowned consultant engineer with more than 45 years in the field of phosphate processing, leading phosphate rock to acid specialist Capital Structure Market $49.6M Ordinary Shares 99.1M Cash (June ) $17.4M Unlisted Options 15.1M Phosphate Performance Shares* 40.0M Potash Performance Shares** 80.0M *Conversion milestones: 30Mt, P 2 O 5 JORC. Peer Comp example MBAC (TSX) P Mcap = $224mill = $1.60/share **Conversion milestones: proof concept 100Mt, KCl JORC. Peer Comp example Karnalyte (TSX) - Mcap = $249mill = $1.40/share

5 THE OPPORTUNITY WHY BRAZIL? IMPORT DEPENDENT, CUSTOMERS AN AGRICULTURAL POWERHOUSE LUCENA PHOSPHATE Atlantic Potash Project 4 th largest consumer of fertilizer but accounts for only 4% of global fertilizer production. In 2008 country accounted for 8.5% (3.2Mt) of world s P 2 O 5 and 12.9% (6.5Mt) of world s KCL consumption and growing. ATLANTIC POTASH MATA DA CORDA PHOSPHATE Rio Grande Project RIO GRANDE PHOSPHATE Brazil is an advanced economy, 11 th largest exchange globally (by market capitalisation) (Australia 10 th ) and attracts substantial investment from North America and Europe.

6 ATLANTIC POTASH PROJECT HIGHLIGHTS ATLANTIC POTASH PROJECT Adjacent to Brazil s only operating potash mine Taquari-Vassouras Mine (Vale) produces <10% of country s consumption, with reserves in place until Concurrently Vale is developing a 1.2Mt KCl per year carnallite solution mine environmental licenses in place start-up is scheduled for 2015 DEVELOPMENT OF A CARNALLITE SOLUTION MINE Initial target resource potential of billion tonnes of carnallite at ~12% KCl grade 1 Resource to support production of 1.0Mt KCl per year over a year mine life Project substantially de-risked Potash intersections in historical drilling by Petrobras Key management designed and developed Vale s Carnallite Project and Pilot Plant nearby Close to infrastructure power, gas, road, port facilities AND FERTILISER CUSTOMERS It will use proven technology - solution mining, supported by ERCOSPLAN GOING FORWARD Drilling Environmental Licenses granted drilling first 4 holes to commence in 3 rd quarter 2011 Gas contract and off-take agreements are being developed Targeting a N43-101/JORC Resource by end 2011, early This is a conceptual resource estimate and will need exploration drilling to confirm potential size, the estimate is based on suitable size to enable commercial project economics and historical data obtained from historical drilling by CPRM including over 300 drill holes and 32,000 km of 2D seismic data. The potential tonnage range and average grade is conceptual in nature and insufficient work has been completed to report a Mineral Resource in accordance with the JORC Code (2004). It is uncertain if further exploration work w ill result in the determination of a Mineral Resource.

7 INFRASTRUCTURE IN PLACE Aracaju Aerial View Taquari-Vassouras Mine-Vale Carnallite Pilot Plant-Vale Carnallite Pilot Plant - Vale Aracaju Port PROJECTS Power Station Jardim - CHESF Power Sub-Station Off Take Partners in Region

8 EXCEPTIONAL DISCOVERY POTENTIAL Taquari-Vassouras Mine - Vale Underground / Room and Pillar 700,000t KCl pa Associated to Bull s-eyes Gravity Low Large land holding, 178,200 ha Historical exploration data obtained from Brazilian Geological Survey Petroleum exploration and production data more than 300 wells analyzed Seismic data basin is well covered with public 2D seismic data (2D lines- 32,000 km) AGUIA PROJECT Cover Similar Gravity Lows With Oil Exploration Wells That Intercepted Potash Oil Exploration Wells Vale Mining Permit Aguia Project Potash Claims - Other

9 ATLANTIC POTASH PROJECT WELL HOLE ANALYSIS Taquari-Vassouras Mine - Vale AGUIA Potash Projects

10 AREA 1 DRILL TARGETS HISTORICAL POTASH INTERSECTIONS WELL: 1RPX0001DSE DEPTH 19 metres carnallite 25metres carnallite CARNALLITE HALITE ANHYDRITE SHALE SAND LIMESTONE TACHYDRITE KNOWN POTASH INTERSECTIONS FROM PETROBRAS DRILLING GAMMA RAY CALIPER SONIC WELL: 1CSM 0001 SE

11 AREA 1 PROPOSED DRILL HOLES PERMITS IN PLACE WELL: 1RPX0001DSE DEPTH 19 metres carnallite 25metres carnallite PROPOSED DRILL HOLES GAMMA RAY CALIPER SONIC WELL: 1CSM 0001 SE

12 SEISMIC INTERPRETATION & PROPOSED NEW WELL LOCATIONS Seismic Line POTASH TARGET ZONE

13 SOLUTION MINING PROCESS Solution Mining Process for Carnallite Two wells drilled ~70m apart are drilled to salt layer. Hot water (85 c) pumped into salt layer, to dissolve salt into brine. Brine extracted, and two caverns develop. Caverns merge into one large cavern. Water then pumped down through one well, and brine extracted from the second well. Each cavern lasts between 2 and 3 years. Multiple wells connected on the surface to the processing plant. Carnallite brine separated into KCl and MgCl using established technology Overburden Rock Salt Carnallite Rock Salt KCl Plant Cavern SERGIPE Key Project Metrics Target steady state production of ~1,000,000 tpa KCl Proven technology for brine production and processing Engineering studies supplied by Ercosplan Main consumables locally available natural gas and electric power Reduced time to production < 6 years including exploration Project substantially de-risked by Vale s Carnalitta Project Allows extraction of deeper potash deposits KCl horizons in Sergipe are between 1,500 and 1,800m Well positioned to dispose of residual brine off-shore Vale already permitted Rock Salt Carnallite Production Wells Dual Well Solution Mining Technique

14 PROJECT ECONOMICS ILLUSTRATIVE ANALYSIS Assumptions For illustrative purposes only, not based on actual project studies 2, based on 1.25 Bt resource = 25 year mine life Investment (US$ million) 850 Brine Field OPEX (US$ / t) 35.0 Beneficiation Plant OPEX (US$ / t) 93.0 Annual Production (t) 1,000,000 Commodity Price Assumption Sales Price (US$ / t) Illustrative NPV Calculation discount rate (US$ million) 895 Notes: 1. A key feature of this project is that, in addition to the savings in freight and port handling costs versus producers outside Brazil, consumers are currently prepared to pay a premium for the convenience of having the service associated with a local supplier. Any future prices are speculative, however PAC believes a long-term real price of $500 to be realistic based on current and forecast market conditions. 2. Due to the highly prospective nature of the Brazilian exploration opportunity and the absence of any detailed technical studies, assessments of the value of the Brazilian opportunity are highly speculative and unreliable. The analysis above relies on assumptions that are not based on any detailed technical or economic evaluations of the project and are provided for illustrative purposes only.

15 PHOSPHATE PROJECTS RIGHT LOCATION, RIGHT MARKET Key parameters, location, infrastructure, markets, mineralogy Business model = Explore, develop and sell into Brazilian domestic market Initial resource targets² of 50 10% P 2 O 5 Scoping to produce 500 ktpa of concentrated rock and/or SSP production. Ball-Park numbers CapEx = $150m Cash Costs = $50-60/t Sale Price = $ /t 2. This is a conceptual resource estimate and will need exploration drilling to confirm potential size, the estimate is based on a suitable size to enable commercial project economics. The potential tonnage range and average grade is conceptual in nature and insufficient work has been completed to report a Mineral Resource in accordance with the JORC Code (2004). It is uncertain if further exploration work will result in the determination of a Mineral Resource.

16 LUCENA SOUTH DRILLING TARGETS CPRM discovered shallow phosphate mineralisation up to 22% P in several deposits to the west Phosphate mineralisation is hosted by a limestone unit (Gramame Formation) that extends through project towards the east. Desktop modelling outlines large areas for shallow drill testing. DRILLING TARGETS 1,500 metre first pass Diamond Drilling program is currently underway Initial drilling results include up to 23.25% P 2 0 5

17 RIO GRANDE PROJECT DRILLING TARGETS Early stage signs similar to the carbonatite style hosted phosphate deposits mined by Vale within Brazil, examples including the Araxa (Reserve: % P 2 O 5 ) and Cajati (Reserve: % P 2 O 5 ) Untested Drill Target Untested 1 km long target zone Drilling in 3 rd qtr 2011 Surface rock chip sampling includes high grade phosphate mineralisation 31.70%, 25.80% and 22.90% P 2 O 5

18 MATA DA CORDA INFRASTRUCTURE NEW DISCOVERIES Located within 100km of the three largest phosphate mines in Brazil and near 32 major bulk blenders Excellent infrastructure, roads, power, water 250km west of Belo Horizonte, State capital and Aguia office On main transportation route for expanding agricultural districts of Mato Grasso Brazil

19 PEER COMPARISON POTASH & PHOSPHATE EV Diluted (A$m) Company Code Location EV Diluted Status Global Resource Potash Grade KCl Phosphate Grade P₂O₅ ($M) (mt) (%) (%) Potash One KCL:TSX Saskatchewan $417 Developer 3, Elemental ELM:ASX ROC $321 Exploration Allana Potash AAA:TSX Ethiopia $224 Exploration Verde Potash NPK:TSX Brazil $222 Exploration 1, * South Boulder Mines STB:ASX Eritrea $213 Expl/Devel Karnalyte Resources KRN:TSX Saskatchewan $190 Exploration Mag Industries MAA:TSX ROC $153 Developer 1, MBAC Fertiliser Corp MBC:TSX Brazil $134 Developer Minemakers MAK:ASX Australia/ Namibia $79 Exploration 2, Aguia Resources AGR:ASX Brazil $43 Exploration N/A N/A N/A Legend International LGD:OTB Australia $40 Exploration 1, *Cerrado Verde thermal potash project in Brazil. Equivalent KCI grade calculated from published K20 grade, $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 KCL: TSX ELM: ASX AAA: TSX NPK: TSX STB: ASX KRN: TSX MAA: TSX Source- Figures and Graph -Taylor Collison MBC: TSX MAK: ASX although KCI is not a product of thermal potash EV Diluted A$m LHS $417 $321 $224 $222 $213 $190 $153 $134 $79 $43 $40 AGR: ASX LGD: OTB

20 Enquiries: Simon Taylor Managing Director Telephone: Aaron Wolfe Vice President, Corporate Development, Forbes & Manhattan Telephone:

21 APPENDIX 1. MANAGEMENT WORK PLAN TIMELINE Management has prepared the timeline below for purposes of planning work around the Brazilian exploration opportunity. This timeline is not based on a detailed assessment of the project requirements and is subject to material revision when technical reports and/or feasibility studies, if any, are completed for the project. POTASH ATLANTICO PROJECT RESOURCES INVESTIGATION Analysis of available information Drilling / Analysis / Modeling NI Initial Resource 6 months (Dec 2010) 12 months (Aug 2012) 6 months (Jan 2012) ENVIRONMENTAL PERMITTING Drilling License EIA-RIMA for Industrial Project Preliminary / Installation Licenses ENGINEERING STUDIES July 2011 LP-Dec months (Aug 2012) LI-Dec 2013 Scoping Studies Feasibility Studies 6 months (June 2012) 12 months (May 2012) Detailed Engineering Construction/Commissioning/Start-up 30 months 15 months (June2014) Start-up Dec 2016

22 APPENDIX 2. BRAZILIAN PLAYERS DATA Company Project Status Type Reserve Av. Grade Conc. Grade Prod. (Mt) P 2 O 5 (%) P 2 O 5 (%) Capacity (ktpa) (A) (B) (C) (D) Vale Tapira Operating Carbonatite 1, ,030 Copebrás/ Anglo Ouvidor Operating Carbonatite ,300 Vale Araxá Operating Carbonatite / Vale Catalao Operating Carbonatite / 34 1,209 Vale Cajati Operating Carbonatite Vale Patos Operating Metasediments Vale Salitre Development Carbonatite 852.0* ,600 forecast Vale Anitápolis Development Carbonatite 54.0* forecast MBAC Itafós Operating Metasediments /30 50 <(E) Average Grade Brazilian P₂O₅ Deposits 9.0% Yara Siliinjarvi- Finland Operating Carbonite * Denotes resource figures Sources: (A) > Resource and Grades: Salitre DNPM 1975 / Anitápolis: DOU 1980 (DOU = Official Diary of Brazil) (B) > Reserve and Grades: DNPM 2006 Mineral Annuary (C) > Concentratio/ Production: ANDA Annuary 2008 (D) > Major phosphate rock producer by Bete, Inc for Cargill Fertilizer, Inc Values updated to 2010 including exchange variation and inflation o. (E) > BMO MBAC Report Figures April 2010 and Website info Sep/2010