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1 Australian Investor Presentation September ASX: AKA

2 Disclaimer Certain statements made during or in connection with this communication, including, without limitation, those concerning the economic outlook for the exploration industry, expectations regarding commodity prices, production, cash costs and other operating results, growth prospects and the outlook of Australia Minerals and Mining Group Limited s (AMMG) operations; contain or comprise certain forward-looking statements regarding AMMG s exploration operations, economic performance and financial condition. Although AMMG believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in commodity prices and exchange rates and business and operational risk management. AMMG undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today s date or to reflect the occurrence of unanticipated events. The Chinese version of this document translated by AMMG has been prepared with the utmost care. However, AMMG does not accept any liability for the correctness and completeness of the content of the translation and the direct or indirect consequences of acting or failing to act based on this translation. In all cases, the English document shall take precedence. Competent Person Statement Technical information in this report is based on information compiled by Mr Ric Dawson, B. App. Sc. (Geol.) EMBA, AMMG Managing Director and a member of the Australasian Institute of Mining and Metallurgy. Mr Dawson has sufficient exploration experience which is relevant to the styles of mineralisation and types 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 2004 ). Mr Dawson consents to the inclusion in this release of the matters based on his information in the form and context in which it appears. Banded iron formation (BIF) outcropping at Bencubbin 2

3 Corporate Snapshot Luke Atkins Ric Dawson David Brook Chris Forrester Dan Tenardi Piers Lewis BOARD OF DIRECTORS Non-executive Chairman Managing Director Non-executive Director Non-executive Director Non-executive Director Company Secretary/ Chief Financial Officer Major Shareholders as at 15 Sept 2011 ASX CODE: AKA OPTIONS CODE: AKAO Ordinary shares 100.9m Listed options 42m Unlisted options 11.5m Market 15 Sept m 15 Sept m Share 15 Sept c Debt Nil Top 20 Shareholders Directors, Founders & Associates Remaining Shareholders 3

4 Investment Case Experienced board & management team - Board level mining and corporate experience. - Experienced exploration, technical marketing and management team. - Diverse geological experience across various mineral sectors. Strong financial position - No debt. - $6.56m cash as at 15 September ASX listed company. Strong business case - Business case supported by China s expansion in mineral demand. - Increasing demand from India, China and SE Asia for minerals. - Close shipping distance to expanding markets of China. Diverse range of Australian mineral projects - Minerals in increasing demand from abroad such as iron ore, kaolin/high purity alumina and mineral sands. Strong relationships with Asia - Corporate marketing focus on South East Asia and China as part of corporate growth strategy. Focused project selection criteria - Targeting mineral projects with historical data and potential access to infrastructure. - Exposure to improving markets. - Potential leverage to Asian markets. - Potential joint venture opportunities. 4

5 Corporate Strategy VISION To develop a diversified suite of mineral projects, securing finite resources to take advantage of emerging markets and to create shareholder value. PRIORITIES Our current nearer term priorities are on: Evaluating the new kaolin to high purity alumina technologies Progressing the 150Mt global resources by increasing both: 16.77Mt indicated and 48.28Mt inferred resources at Meckering Project (kaolin & aluminous clay) and 85Mt inferred resource at Kerrigan Project (kaolin & aluminous clay) Advancing the Constance Range Project through the Constance Range Alliance (iron ore) Defining a Western Australian, Yilgarn Iron Ore Project (targeting iron ore) Kerrigan Project showing kaolin at surface 5

6 Project Locations SHIPPING DISTANCE TO CHINA: ~ 6,000km vs Priority project focus: 1. Kaolin & Aluminous Clay 2. Iron Ore 3. Gypsum 4. Salt 5. Mineral sands 6. Coal Exploration licences granted or under application covering approximately 10,317km² West Africa ~ 20,000km South America ~ 23,000km 6

7 Priority Projects - Locations PROJECT TARGETING South West, WA Kaolin & Aluminous Clay Yilgarn, WA Iron Ore Constance Range, QLD Iron Ore East Pilbara, WA Iron Ore Potential rail, power and water services at Meckering Kaolin Project Lake Macleod, WA South West, WA Gypsum Mineral Sands Banded iron formation (BIF) outcropping at Bencubbin South West, WA Salt AMMG representatives inspecting banded iron formation (BIF) outcropping at Bencubbin AMMG representatives inspecting kaolin located at Meckering test pit Banded iron formation (BIF) outcrop located at Bencubbin 7

8 Projects in Focus South West, WA kaolin & aluminous clay Constance Range, Qld targeting iron ore Yilgarn, WA targeting iron ore Canning Coal, Kimberley WA targeting coal Advancing the kaolin to high purity alumina technology process Marketing of the high purity alumina (99.99) Achieved 150Mt indicated and inferred; now seeking to increase: 16.77Mt indicated and 48.28Mt inferred JORC resources at the Meckering Project. 85Mt inferred JORC resource at the Kerrigan Project. Seeking to advance historical work at Kellerberrin and Bobalong project areas. Evaluation of historical data progressing. Seeking regional ground consolidation. Analysis of potential iron ore beneficiation/processing techniques underway. Drilling program logistics underway. Evaluation of potential areas in relatively close proximity to infrastructure (road, rail, port) ongoing. Evaluation of available aeromagnetic data to create targets. Program of follow-up ground magnetics, field reconnaissance and RC drilling. Progressing MOU objectives with Anhui Bureau. Evaluation of historical data progressing. Follow-up recent field reconnaissance. Progressing MOU objectives with Anhui Bureau. Kaolin test pit at Meckering Aerial view of Constance Range project Existing rail network, South West WA Anhui delegates inspecting Derby wharf 8

9 South West Kaolin & Aluminous Clay Projects *The term target should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve. 9

10 New Processing Technology Alumina Al 2 O 3 AMMG submitted a crude kaolin sample (trialled 4 kg) to a Chinese technology holder and successfully produced 86 grams of high purity alumina and 1.06kgs of 99 metallurgical grade alumina from its150mt Meckering kaolin(aluminous clay) resource. The Chinese technology holder used a laboratory scale acid-based process for the separation of alumina and silica from the kaolin or aluminous clay. Two samples have been submitted for analytical verification in Australia by independent consultants. Chinese test results of alumina from AMMG s Meckering project Metallurgical Alumina (Al 2 O 3 ) High purity Alumina (Al 2 O 3 ) Experimental water Industrial and decationised water (third grade) Decationised water (third grade) Sample Weight 1065g 85g Ignition loss <1 wt <1 wt Purity,Al 2 O 3 >99 wt >99.99 wt Crystal Form (XRD) Alpha (α) Alpha (α) Impurities, Fe 2 O 3 <0.02 wt <30ppm Impurities, SiO 2 <0.05 wt <45ppm Impurities, Na 2 O 0.02 wt <25ppm AMMG believes that its kaolin may be able to accommodate a number of different product applications simultaneously, and is not confining itself to a sole focus on paper filler applications. AMMG is evaluating the merits of the Chinese process technology, as well as a number of other potential process technologies that may be suitable for the Company s kaolin. 10

11 High Purity Pricing Alumina Al 2 O 3 Alumina is the most common crystalline form of aluminum and can be extracted aluminous clay deposits. World production of metallurgical alumina exceeded 82Mt in 2010, and is expected to grow to nearly 156Mt by Ultra-high pure alumina ( purity) is used in fillers for magnetic media to boost thermal conductivity, or composite resins and ceramic parts used in electronic components and semi-conductor manufacturing equipment. Demand is expected to increase in the expanding markets for hybrid cars, electric vehicles, modern electronic appliances, and LED lighting. It is reported that various high purity grade alumina ranges from $US141,000 per tonne to $US396,000 per tonne, depending on purity and particle size. High Purity Alumina Pricing from Manufacturers Type Purity Particle size Price Alumina alpha μm $396/kg Alumina alpha nm $221/kg Alumina alpha μm $155/kg Alumina alpha μm $142/kg Alumina alpha μm $141/kg Source: Skyspring Nanomaterials Type Purity Particle size Price alpha-alumina μm $176/kg alpha-alumina μm $79.4/kg alpha-alumina nm $122/kg Source: Inframat Advanced Materials 11

12 Processing technology Alumina Al 2 O 3 Exploration Orbite V.S.P.A Inc. Canadian-based company that owns the mining rights on the site of a large aluminous clay deposit in Quebec s Gaspéregion, Grande-Vallée. Orbite developed a patented process to produce metallurgical and high purity alumina (>99.999) from aluminous clay deposits (high-value elements and rare earths are also extracted). Orbite s $7.4M pilot plant in Cap-Chat produced its first tonne of high-purity alumina in one day (17/02/11). Orbite s patented process involves crushing and then acid leaching the aluminous claystone. AMMG s kaolin samples were sent to Orbite for trialling and results are pending Market Cap. (Million USD) 200 Kaolin/Claystone Resources (Mt x 10) ASX: AKA 80 TSX: ORT.A 23 Alumina Grade () 12

13 South West Kaolin & Aluminous Clay Projects JORC Resources & Exploration Targets* Project Indicated (Mt) Inferred (Mt) Exploration Target* (Mt) Land Holding Grant/App (km²) Meckering Kerrigan Kellerberrin Bobalong TOTAL ,433 *The term Target should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve Ric Dawson, Managing Director of AMMG, and Anhui Lianghuai Resources executive team at the Meckering project test pit 13

14 Meckering Kaolin & Aluminous Clay Project JORC kaolin resource of 65Mt comprising 16.77Mt indicated and 48.28Mt inferred. Tenement bisected by: Trans-Australian railway Great Eastern Highway Kalgoorlie goldfields water pipeline; SWIS Kalgoorlie Goldfields power line Private freehold land Native Title extinguished Key landowner agreement in place Access to substantial historical database. Electricity Water Rail View of Meckering project 1. Mediterranean moderate to dry climate year round accessibility 2. Low average annual rainfall (~341mm) limited dewatering 3. Cleared broad farms (wheat, sheep) lower environmental impact 4. Gently undulating flat terrain with surface and near surface deposit low stripping ratio 5. Approx 135km to Western Australian capital city, Perth 6. Low rural population density low environmental impact Potential available infrastructure 14

15 Meckering Kaolin & Aluminous Clay Project Meckering kaolin project test pit Inside the test pit 15

16 Meckering Kaolin & Aluminous Clay Project JORC Resources Tonnage -45 micron 1 Brightness 2 Indicated resource 16,770, Inferred resource 48,280, Total resource base 65,050, Exploration Target* m - - JORC: Joint Ore Reserves Committee, common reference to the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves, 2004 *The term Target should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve Mineral Analysis (dry screened -45μm micron metres) 38 alumina (Al 2 O 3 ) Low impurity, iron (Fe 2 O 3 ), titanium (TiO 2 ) SiO₂ Al 2 O 3 Fe 2 O 3 TiO 2 CaO MgO Na 2 O K 2 O MnO P 2 O 5 Ig. loss Total lg.loss: removal of chemically bound water 16

17 Kerrigan Kaolin & Aluminous Clay Project An inferred JORC resource of 85Mt with 85 ISO brightness at its Bradley Deposit, 335km ESE from Perth. E70/4177 is a 166 sub-block licence covering approximately 480km². The resource was estimated using a minimum cut-off of 80 brightness (where results were available). Previous CRA (Rio Tinto) drilling and Rio Tinto historical data available on the project. Exploration target* determined based on historical drill hole data and outcrop geology. Bradley Deposit contains crude kaolin to depth of 30 metres (<10micron kaolin clay at a grade of 45 kaolin). Bradley Deposit located at Kerrigan project 17

18 Kerrigan Kaolin & Aluminous Clay Project JORC Resources and Exploration Target Tonnage -45 micron 1 Brightness 2 Inferred resource 85,000, Exploration Target Range* m - - The minus 45 micron was measured by wet screening. Brightness is the ISO brightness of minus 45 micron kaolin. AMMG representatives inspecting kaolin road at Kerrigan project *The term Target should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve Mineral Analysis (dry screened -2μm micron metres) 38 alumina (Al 2 O 3 ) Low impurity, iron (Fe 2 O 3 ), titanium (TiO 2 ) Kerrigan kaolin project showing kaolin at surface Kaolin Grade SiO₂ Al 2 O 3 Fe 2 O 3 TiO 2 MgO SO 3 Na 2 O K 2 O P 2 O 5 Ig. loss Total Sample grade from -2 micron kaolinite fraction Calcined Grade lg.loss: removal of chemically bound water 18

19 South West Kaolin & Aluminous Clay Projects The Company is currently investigating different processing techniques for the use of its kaolin: 1. Dry processing kaolin This technique uses no water and its applications are for the fibre glass and ceramic industries. Dry processing produces air float kaolin, a soft clay, which is used as a filler in the asphaltic roofing, rubber, adhesive and paper industries. The process also produces a hard clay kaolin (reinforcement clay) product, which is used in automotive parts and rubber products. 2. Wet processing This technique uses water and its applications are for paint, paper, polymer, cosmetic, pharmaceutical and ceramic industries. Various chemical processing methods are used such as bleaching, leaching with sulphuric acid, filter pressed, dried and calcining for use as a filler or refractory material. Other Kaolin Processing Techniques 39mtpa kaolin global production distribution* Paper filling & coating 45 Refractories 16 Ceramics 15 Fibreglass 6 Cement 6 Rubber & plastics 5 Paint 3 Catalyst 2 Others 2 *Roskill Information Services Ltd 19

20 Constance Range Iron Ore Project China ~5,500 kms 5.1Mt zinc, 0.6Mt lead, 47.3Mo silver resources 20

21 Constance Range Iron Ore Alliance A Memorandum of Understanding (MOU) signed between AMMG and three Constance Range project holders: 1. Viento Group Ltd 2. Icon Resources Ltd 3. Resolve Geo Pty Ltd The MOU parties will work together towards: Potentially consolidating their respective tenement areas into a single corporate entity under the banner of the Constance Range Iron Ore Alliance. Communicate on behalf of the Constance Range Iron Ore Alliance on issues affecting the iron ore industry in the Constance Range region of northwest Queensland. The parties to the Alliance have three granted EPM and seven pending applications comprising 1,186km²in total area. The Alliance has 92 kilometres strike length of the bedded ironstone outcrop sequence. 21

22 Constance Range Iron Ore Project Aerial view of outcropping Train Range Ironstone member, Constance Range 22

23 Constance Range Iron Ore Alliance Substantial historical BHP database available. BHP explored between ; delineated 15 outcropping deposits over 100km strike length. DSO product could conceptually be transported by road train to Burketown. Magnetite slurry could conceptually be slurry piped to existing facilities at Port of Karumba. Deposit A, BHP (pre 1963) drilled 16,256m of BQ diamond core. Deposit A, 2007 drilling consisted of 1,275m of HQ diamond core. Deposit A has a current JORC/43:101 Compliant Inferred Resource of 236Mt at 53.2 Iron, 10.3 Silica, 1.6 Alumina, 0.02 Phosphorus, and 11.2 Loss of Ignition (LOI). Deposit A has a current JORC/43:101 Compliant Inferred DSO in Deposit A of 15mt at 56.5 Iron. Constance Range Iron Ore Alliance Tenement Holdings In addition Deposits B, C, D, H, I, J and P are also included in the MOU Alliance. Source: Kimberley Metals 2009 Prospectus 23

24 Yilgarn Iron Ore Projects Esperance Port Kwinana Bulk Terminal Bunbury Port 24

25 Yilgarn Iron Ore Projects BIF outcrop at Bencubbin Targeting hematite/goethite and magnetite. 3 exploration licences granted, with 9 applications pending. Total tenement area is 3,180km². Relatively close proximity to established rail, road and port networks. Targeting potential BIF s using aeromagnetic analysis. Ground magnetic fieldwork and follow up drilling of granted tenements in preparation with heritage surveys being planned for Q3,2011. Signed MOU with Anhui Bureau for potential capital investment and project development. Existing rail line at Bencubbin BIF outcrop at Bencubbin AMMG representatives at Pingaring BIF outcrop at Bencubbin 25

26 Yilgarn Iron Ore Projects Bencubbin Project Aeromagnetic data shows the geological structure under the surface for ~14km strike length. EIS Co-Funding Status Pingaring Aeromagnetic data shows the geological structure under the surface for ~5km strike length Burngup Project Aeromagnetic data shows the geological structure for ~13km strike length 26

27 Yilgarn Iron Ore Projects Goomalling Project Aeromagnetic data shows the geological structure for ~5km strike length Kukerin Project Aeromagnetic data shows the geological structure for ~5km strike length 27

28 East Pilbara Iron Ore Project Six exploration licence applications in the Pilbara Mineral Field; total tenement area is 1190km². Tenements in relatively close proximity to the Mt Goldsworthy rail line and Port Hedland port facilities. Magnetics, radiometrics and Landsat imagery available for identifying targets* with potential magnetite iron ore mineralisation. One tenement has the along strike potential from the Mt Ridley magnetite deposit. *The term Target should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve. 28

29 Canning Coal Project Seven exploration licence applications totalling approximately 1,402km². Relatively close proximity to established road and port networks. Currently evaluating historical data available. Signed MOU with Anhui Provincial Bureau of Coal and Geology for potential capital investment and project development. Anhui personnel inspecting Derby wharf facilities Location of Canning Coal tenements (red) with previous drilling (blue) over aerial photography 29

30 South West Projects Relatively Close Proximity to Road, Rail & Ports Rail Sizes 30

31 Why invest in Australia? Western democracy stability for overseas investors ~6,000 kms from Australia to China Western Australia one of the world s richest mineral provinces Pro-mining Western Australia State Government with mandate to expedite approval processes Low sovereign risk vs. other high risk nations Skilled mining workforce Mining-based economy Close proximity to emerging markets and competitive shipping freight advantage Same time zone as China Well developed legal system 31

32 Why invest in AMMG? Mr Wang Xin Chairman Yankuang Group Shandong Province, Mr Luke Atkins Chairman AMMG Mr Jiang Daming Governor of Shandong Province 32

33 China s Iron Ore Imports Million tonnes Australia exported $23.7 billion AUD in 2009 of iron ore to China Source: Interfax China Ltd China imported million tonnes of iron ore from Australia in Australia Brazil India South Africa Ukraine Canada Russia Iran Indonesia Mauritania Peru Others Iron ore being loaded onto a ship at Cape Lambert port, Pilbara, WA Port Hedland port, North West, WA 33

34 Strategic Co-operation Investment opportunities with AMMG Opportunity for: Direct investment by way of issue of new shares. Strategic co-operation for exploration. Strategic co-operation for project development processing facilities and infrastructure development. Strategic co-operation for off-take sales agreements. 34

35 Thankyou from the AMMG corporate management team Piers Lewis BComm CA Highly experienced Chartered Accountant. Company Secretary/CFO of several ASX listed resource companies. Summer Qi ME(ChemEng) Born in Weifang, Shandong Province, China. Manages research and development in mineral processing technologies, feasibility studies, technical and overseas marketing. Michael O Mara BSc(Geol.) Highly experienced geologist, with over 16 years experience in the mining industry. Manages exploration, geological investigations, historical data and project planning. Jane Carew-Reid BA(Comm) Qualified in communications, marketing, and administration. Manages project and corporate marketing, human resources, IT support, and accounts. 35