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1 South American Ferro Metals Limited Expanding, Profitable Iron Ore Producer. Alan Doyle Director ASX:SFZ 2 nd Annual LatAm International Mining Conference March 2013 Rio de Janeiro

2 Investment Highlights Expanding to 8Mtpa then to 16Mtpa Only non-brazilian listed pure play iron ore producer in South America Located in prolific Iron Ore Quadrilateral (Neighbouring property Vale) Near customers and infrastructure JORC resource of 277.9Mt at 41.3% Fe (5 th richest Fe grade in Brazil) Phase III program underway to expand resource (target between Mt) DFS for Stage I expansion from 1.5 to 8Mtpa underway Stage II expansion to 16Mtpa targeted for end 2016 Growing Profitability - Newly commissioned Stage I concentrator Stage II Concentrator in final stages of completion (April 2013 production) Highly experienced and successful Brazilian Leadership Team 2

3 Company History: Accelerated Growth Nov Mining commenc ed Feb Mtpa plant refurbished and upgraded Sept 2011 Attained full 1.5Mtpa licensed capacity Feb 2012 Approved the Definitive Feasibility Study June 2012 Commissioned First Concentrator 3

4 Why Brazil? Large Resource Base 2nd largest global iron ore producer 1 & 2 nd largest reserves. 2 30% remains unexplored with high potential. Salvador 480Mt produced in 2011 increase ~92% over 10 years. 2 Vale World s largest iron ore producer SAFM s neighbour. Ranked 8 th best country for resources investment & operation. 3 Extensive logistics and existing infrastructure in project area iron and steel plants, mills, rail, ports and roads. Sao Paulo Rio de Janeiro 1 hour flight / 4 hour drive north of Rio de Janeiro 1 RBC Capital Markets, June 15, US Geological Survey 3 Resource Stocks 2011 World Risk Survey 4

5 Infrastructure in Place Over 100 iron ore mining and infrastructure facilities within 150 km Rail Ports Mines Pelletizing plants Pig iron plants Smelters Steel plants Rail Lines Available rail lines and port capacity. 5

6 Commercial and Technical Overview Technical Overview Shared deposit with Vale - SAFM s JORC Resource is currently 41.3% Fe. Updated JORC Resource in November th Highest grade resource in Brazil. 1 Lowest tercile on the Brazilian cost curve. 1 Total cost of beneficiation production $19 per tonne. Total cost of beneficiation production drop with the commissioning of the Second Concentrator. 1 RBC Prospector - 15 Jun

7 Strong Geology & Resource Base SAFM VALE Setting Ore body runs NE to SW Deposit split with Vale Herculano & Vale s Pico mines to the north of SAFM s site Ore body open to the north, west and south west Geology Hematite-rich itabirite ore Resource % Fe 1 Exploration Target between 300Mt and 350Mt@ 40-44% Fe 2 Located in the heart of Brazil s prolific and historic Iron Ore Quadrilateral (1) The JORC Resource of 277.9Mt is comprised of Measured Resources of 70.4 Mt at 41.64% Fe, an Indicated Resource of Mt at 40.97% Fe, and an Inferred Resource of Mt at 41.39% Fe. (2) The Exploration Target is based on the geological model associated with the defined JORC Resource as stated, and has been determined by a JORC Competent Person Mr Philip Hopkins. It is uncertain if further exploration of the Exploration Target will result in the determination of Mineral Resources

8 Ponto Verde Fly Over Video 8

9 Product Range Commercial Optimisation Current 1.5 Mtpa ROM Feed 15% or 225 ktpa Lump 27% or 405 ktpa Sinter Feed v 16% or 240 ktpa Stage I Concentrate v 21% or 315 ktpa Stage II Concentrate Start up April % Mass Recovery or 1,185 ktpa 9

10 Growth Stages I & II 10

11 Growth: Stage I Operations Expansion From 1.5 to 8Mtpa ROM by end 2015 Stage I Definitive Feasibility Study (DFS) Underway Off-the-Shelf approach - Reduced time and cost risk Will include Footprint and Tie-ins for Stage II Expansion to 16Mtpa Accessing export markets +30 year mine life Will commission by late

12 Growth Plan: Stage II Operations Expansion From 8 to 16Mtpa ROM by 2016 Stage II DFS to begin upon Stage I Study Completion Mirror image of Stage I Plant Foot print and tie in established during 8Mtpa Expansion design +17 year mine life Expected commissioning late

13 SAFM and Brazil SAFM has a strong focus on its local reputation and relationships. SAFM is seen as one of the region s best employer: Excellent relationship with workers union. Low staff turnover rate. No accidents recorded since inception (759 days without any safety or environmental incident at 11 March 2013). 13

14 SAFM and Brazil SAFM works closely with the State Public Ministry and municipal authorities to ensure sustainable mining: Every environmental commitment has been completed ahead of time. SAFM has invited the public ministry to establish their regional rural environment office and facility on its mine site. Public Minister has given high praises to SAFM s environmental efforts on all his visits to the mine-site. SAFM has received a number of environmental awards, including the Empresa Verde Green Award. 14

15 Environmental Stewardship SAFM s environmental programs focus on achieving the requirements outlined by the Public Minister in association with the mining license. The Public Ministry and other environmental authorities have praised SAFM s environmental activities, including: Rehabilitating erosion areas. Backfilling and revegetation of mining areas that are no longer in use. Installing a 26km fence surrounding the adjacent environmental park. Repairing the structural foundations of a public bridge. Restoring historical building ruins (on going). 15

16 SAFM and Brazil SAFM has a strong focused on its local reputation and relationships. During its 2 years of production SAFM has successfully established good strategic relationship with: Vale Cristal Mining NAMISA LGA MRS MMX, 16

17 The Future SAFM believes in the Brazilian story, and is well placed within the region to share on its future economic growth. SAFM has strong management with the proven ability to successfully operate between Australia and Brazil. SAFM will expand its production to 8Mtpa (2014) and 16Mtpa (2016) with its continuous focus on mining sustainability. 17

18 Disclaimer South American Ferro Metals Limited and each of its respective directors, officers and agents believe that the information contained in this presentation is correct and that any estimates, opinions or conclusions contained in this presentation are reasonably held or made as at the time of compilation. However, no warranty is made as to the accuracy or reliability of any estimates, opinions, conclusions or other information contained in this document. South American Ferro Metals and its directors, officers and agents disclaims all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything contained in or omitted from this presentation. This presentation is for the intended recipient. No part of this document may be reproduced without the permission of South American Ferro Metals Limited. Forward Looking Statements This announcement contains certain forward looking statements which by nature, contain risk and uncertainty because they relate to future events and depend on circumstances that occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements. Competent Person s Statement Information in this statement that relates to the JORC resource at Ponto Verde is based on information compiled by Mr Bernardo Hurta de C Viana (Phase I) and Mr Porfirio Cabaleiro (Phase II) both of Coffey Mining (Brazil). Both are Members of the Australasian Institute of Mining and Metallurgy. Mr Viana and Mr Cabaleiro have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken 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 (the JORC Code). Mr Viana and Mr Cabaleiro have consented to the inclusion in this announcement of the statements based on his information in the form and context in which they appear. 18

19 Thank You Alan Doyle Director 19