FORWARD LOOKING. forward looking statements which are made in good faith and are believed to have reasonable basis.

Transcription

1 March 2012

2 FORWARD LOOKING STATEMENTS This presentation contains forecasts and forward looking statements which are made in good faith and are believed to have reasonable basis. However, such forward looking statements are subject to risks, uncertainties and other factors which could cause the actual results to differ materially from the future results expressed, projected or implied by forward looking statements.

3 AGENDA INTRODUCTION TO MAGNETIC RESOURCES REVIEW OF TARGET PROJECTS ECONOMIC BUSINESS CASE OTHER PROJECTS/INFORMATION

4 DIRECTORS George Sakalidis: Managing Director, geophysicist, 30 yrs exp. Roger Thomson: Technical Director, geologist, 40 yrs exp. Peter Thomas: Chairman, lawyer, 26 yrs exp.

5 COMPANY STRUCTURE Total Shares 67,517, Shares held by IMA 7,248,011 (10.7%) Partly Paid Contributing Shares (20c unpaid) Market Cap (21/7/2011) 17,418,862 $12.8M Cash 1.6M

6 HIGHLIGHTS >200km of iron ore potential strike extent over the South West Region of WA Targeting near surface coarse grained premium quality magnetite with characterisation drilling over a number of large projects Iron projects targeting 1300M M tonnes of magnetite and/or DSO BIF Resource and Scoping Study in preparation on the Jubuk premium quality magnetite project

7 MAGNETITE What is it and why is it important? t? Magnetite is iron oxide, a spinel (FeO. Fe 2 O 3 ) Pure magnetite is about 72.4% iron content; it generally occurs as low grade ore (25-40% Fe) compared to Hematite ores Processing is required to separate the magnetite from its siliceous host rocks; its mineralogy allows high grade, fine concentrates to be produced by simple magnetic separation Magnetite projects capable of producing high-quality concentrate with up to 68-69% Fe, which is higher grade than many hematite resources Accounts for approximately 50% of global iron ore production; demand from China and India continue to drive demand for quality iron ore Many Magnetite projects have been acquired or joint ventured by Chinese companies. This is believed to be because of the diminishing supply of DSO material in Australia

8 IRON ORE PRICING SINCE JULY 2009 Metal Bulletin Spot Iron Ore 62% Fe Fines $200 $150 $100 $50 USD cfr Quindao "Japanese $0 17-May Jul Aug Oct Dec Jan-10 Contract" 13-Mar May Jun-10

9 IRON PROJECTS TARGETS Project Area Name Target Tonnage Target Type Target Grades % Fe 1 Wubin Mt BIF 20 to Mt DSO 50 to 60 2 Dalwallinu Mt BIF 20 to 30 3 Quairading Mt BIF 20 to 30 4 Jubuk Mt BIF 20 to 25 5 Sewell Mt BIF 20 to 30 6 Mt Vernon Mt Gneiss 15 to 20 7 Malara Mt Gneiss/BIF 20 to 25 8 Wanara Mt Gneiss 20 to 25 Target tonnage based on drilling results, aeromagnetic and ground magnetic models, historical data, density of 3.5 and target depth of 100m for BIF styles and density of 2.8 and target depth of 250m for gneiss styles. The potential quality and grade is conceptual in nature as there has not yet been sufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.

10 TENEMENT LOCATIONS AEROMAGNETICS

11 CITIC Cape Lambert Ridley Mt Oscar LOCATIONS OF OTHER WA MAGNETITE PROJECTS Karara Magnetite Range Extension Hill Southdown

12 AGENDA INTRODUCTION TO MAGNETIC RESOURCES REVIEW OF TARGET PROJECTS ECONOMIC BUSINESS CASE OTHER PROJECTS/INFORMATION

13 PROJECT LOCATIONS RAIL INFRASTRUCTURE U Substantially all project locations benefit from close proximity to rail infrastructure Significant advantage due to lower investment required to transport t ore

14 RAILWAYS/SHIPPING OPTIONS Shipping options include Albany, Kwinana and Bunbury for southern areas. Wubin and northern areas probably would use Geraldton or Oakagee in the future

15 JUBUK IRON DETAILED AEROMAGNETICS E70/3535 Target 1 - Target 50-80Mt Target 2 - Target 20-40Mt Target 3 - Target 10-40Mt Target 4 - Target 10-20Mt Target 5 - Target 10-20Mt E70/3536 Total Target Tonnage Mt Target tonnage based on drilling results, aeromagnetic and ground magnetic models, historical data, density of 3.5 and target depth of 100m for BIF styles and density of 2.8 and target depth of 250m for gneiss styles. The potential quality and grade is conceptual in nature as there has not yet been sufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. E70/3716 Railway 30km to South 360km to Albany, 380km to Kwinana

16 JUBUK IRON Resource and Scoping Study being prepared Coarse crystalline magnetite High grade metamorphic terrane Access agreements in place At least 4km in length 78 RC holes drilled for 8400m Further 45 RC holes planned for 5500M

17 JUBUK IRON COARSE CRYSTALLINE MAGNETITE BIF

18 JUBUK IRON 150Mt Exploration Target in Jubuk Region DTR Conc. 70.5%Fe, 1.3% SiO 2, 90.4% recovery, P100-75µm 193 DTR completed & 297 in progress LIMS Conc. 70%Fe, 1.4% SiO 2, 87.8% Fe recovery, P80-75µm. Conceptual Study to fast track Jubuk carried out by Engenium Pty Ltd

19 JUBUK IRON PLANNED DRILLING AREAS

20 JUBUK CROSS SECTION

21 JUBUK CONCEPTUAL FINANCIAL STUDY Production of 0.5 Mtpa of magnetite concentrate, road freighted to Kwinana port in containers. CAPEX A$ Included Contingency OPEX A$/t NPV (10%) IRR Nominal Payback 153M A$20M 106 A$40M 18% 4 years Additional exploration targets are being investigated in order to enhance the project economics.

22 JUBUK CONCEPTUAL FINANCIAL STUDY Mining rate of Mtpa, producing 500, ,000tpa of magnetite concentrate; A Life of Mine of 14 years based on 29 Mt of mineralisation; Long term iron ore price of US$ $1.77/dmtu (including 10% premium for quality product) and a long term exchange rate of 0.8 US$/A$; Strip ratio increasing from 1.4:1 1 to 3.6:1 over the Life of Mine; Mass recovery of 25%; Concentrate iron content of 67%; Royalty rate 5%; Tax rate 30%; Discount rate of 10%;

23 JUBUK 3-D MODEL Conceptual open pits, study completed

24 JUBUK REGIONAL TARGETS

25 COMPARISON OF VARIOUS WA MAGNETITE PROJECTS TO JUBUK DTR RESULTS Name of Project Magnetic Resources Jubuk Fox Resources Mt Oscar Gindalbie Karara Grange Southdown Project Accent Magnetite Range Atlas Iron Ridley Magnetite Asia Iron Extension Hill Resources (tonnes) Production Rate (Mtpa) Mass Recovery (%) Feed Grade (Fe) TBA 800 Million tonnes 2.5 Billion tonnes 654 Million tonnes 391 Million tonnes 2 Billion tonnes Multi billion tonnes TBA TBA 16 Mtpa 6.6 Mtpa 5 Mtpa 15 Mtpa 20 Mtpa 29.7% TBA 45.9% 37.2% 46.4% 25.9% Fe 35-39% Fe 35.9% Fe 36.5% Fe 30% Fe Product Grade (Fe) 69.7% Fe 55.82% Fe 68.2% Fe 68.8% Fe 68.3% Fe >68.5% Fe Product Grade (SiO 2 ) 1.36% SiO 2 7% SiO % SiO % SiO 2 4.2% SiO 2 3.8% SiO 2 4.1% SiO 2 Jubuk has premium product suitable for direct reduction (10% premium) versus standard blast furnace grade for competitors projects Information taken from Company announcements on their websites and from ASX announcements

26 WUBIN IRON DETAILED AEROMAGNETICS Geraldton 290 km Total Target Tonnage Mt BIF Mt DSO Mt 4,000m aircore, 55km gravity in progress Kwinana 330km Target tonnage based on drilling results, aeromagnetic and ground magnetic models, historical data, density of 3.5 and target depth of 100m for BIF styles and density of 2.8 and target depth of 250m for gneiss styles. The potential quality and grade is conceptual in nature as there has not yet been sufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.

27 WUBIN REGION HIGH PRIORITY TARGETS >50% Fe

28 WUBIN IRON MASSIVE GOETHITE-HEMATITE 58.4% Fe, 3.76% SiO 2

29 CHEESEMAN PROSPECT RC AND AIRCORE DRILLING Hole Collar Co-ordinates Azimuth Dip From m To m Interval m East North BRC BRC BRC BRC including BRC BRC BUNAC BUNAC Including Fe %

30 WUBIN EAST IRON ROCK SAMPLE RESULTS >50%Fe

31 WUBIN PROSPECTS IMMEDIATE TARGETED DRILLING Project Target Strike No Holes Metres Est Drill Days Total Expl Cost NW Buntine Follow Up 2,000m $36K Buntine Undrilled 4,000m+ 42 1, $76K Cheesemans Follow Up 1,500m+ 70 2, $126K Fitzsimons Infill 5,000m $51K Sub Total 12,500m $289K

32 DALWALLINU IRON DETAILED AEROMAGNETICS Geraldton 220km Geraldton 325km Total Target Tonnage Mt BIF Kwinana 250km Kwinana 300km Target tonnage based on drilling results, aeromagnetic and ground magnetic models, historical data, density of 3.5 and target depth of 100m for BIF styles and density of 2.8 and target depth of 250m for gneiss styles. The potential quality and grade is conceptual in nature as there has not yet been sufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.

33 QUAIRADING IRON DETAILED AEROMAGNETICS Kwinana- 180km Target Tonnage Mt BIF Target Target area 30km south of Rail Target tonnage based on drilling results, aeromagnetic and ground magnetic models, historical data, density of 3.5 and target depth of 100m for BIF styles and density of 2.8 and target depth of 250m for gneiss styles. The potential quality and grade is conceptual in nature as there has not yet been sufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.

34 SEWELL IRON DETAILED AEROMAGNETICS Target 1 Target Tonnage 30-60Mt Target 2 Target Tonnage 20-40Mt Total Mt Albany 360km Kwinana 380km Target 1 Target 2 Albany 340km Target tonnage based on drilling results, aeromagnetic and ground magnetic models, historical data, density of 3.5 and target depth of 100m for BIF styles and density of 2.8 and target depth of 250m for gneiss styles. The potential quality and grade is conceptual in nature as there has not yet been sufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.

35 NUNGARIN GROUND MAGNETICS AND DRILLING 3 major target areas 8km in length 2 targets have ironstone intersected in shallow drilling Programme being designed to test 3 targets Any near surface material could potentially add value to the Jubuk economics

36 CALINGIRI SAMPLE LOCATIONS 8.5km of targeted aeromagnetics Prospective for DSO and premium magnetite Only 10km south of Atlas Yerricoin magnetite deposit Initial sampling up to 57% iron

37 PROJECT LOCATIONS Substantially all project locations benefit from close proximity to rail infrastructure Significant advantage due to lower investment required to transport t ore

38 MT VERNON IRON AEROMAGNETICS AND DRILLING RESULTS First Drilling Wide Intersections Granite Hosted DTR Concentrate 67.5%Fe, 1.6% SiO 2, 47% Fe recovery, P100-75µm

39 MT VERNON IRON GROUND MAGNETICS AND DRILLING

40 MALARA IRON TARGET AREAS

41 WANARA IRON TARGET AREA

42 AGENDA INTRODUCTION TO MAGNETIC RESOURCES REVIEW OF TARGET PROJECTS ECONOMIC BUSINESS CASE EVALUATED BY ENGENIUM PTY LTD OTHER PROJECTS/INFORMATION

43 EXPLORATION BUDGET TWO YEARS Project Target Strike No Holes Metres Est Days Total Expl Cost Likely Expl Costs Wubin/Dalwallinu , $10M $5M Jubuk and Regional , $7M $3M Malara , $4M $2M Others , $3M $1M $24M $11M Budget implies JORC resources for all projects and includes metallurgical testwork Assume two stand out projects proceed to feasibility. Joint venture arrangements and foreign investment are possible options to spread risk and cost

44 TIMETABLE Wubin : 4,000m AC drilling on surficial detrital iron concentrations at Cheesemans plus 2 targets awaiting results Reconnaissance drilling: over 4 targets totalling 14km within 15km of Jubuk, currently drilling Calingiri and others : February to April sampling and drill planning Jubuk: Maiden resource(subject to land access) and Scoping Study in preparation

45 COMPARISON OF VARIOUS WA MAGNETITE PROJECTS CAPEX AND OPEX Name of Project Fox Resources Mt Oscar Gindalbie, Karara Grange Southdown Project Accent Magnetite Range Atlas Iron Ridley Magnetite Asia Iron, Extension Hill OPEX TBA $46.00/t concentrate US $55.00/t pellets $51/t concentrate $36.22/t concentrate Est. $59.00/t Information taken from Company announcements on their websites and from ASX announcements WPG Western Plains( in South Aust) ACS Accent Resources (Magnetite Range) AXO Aurox (Balla Balla) GBG Gindalbie (Karara) ARH Australasian Resources (Balmoral South) SPH Sphere (Mauritania) AGO Atlas (Ridley) Information taken from Lodge Partners review of Accent Resources NL

46 RETURNS CAN BE SUBSTANTIAL Assumptions include: Capital costs similar to other projects Operating Costs factored as for other projects, but rates varied according to project location Ore production is three times the rate of concentrate production Magnetite stripping ratio 2:1 and DSO stripping ratio 3:1 Tonnages are within the target tonnage ranges Long term contract price for DSO is $60/t and Magnetite concentrate is $85/t. The DSO spot price is approximately $120/t The projects can start within a couple of years of each other

47 SUMMARY >200km of potential iron ore strike extent within the South West Region of WA. Target potential ti for greater than 2.5 billion tonnes over all projects Near surface premium coarse grained magnetite being sampled and drill characterised Early encouraging coarse grained magnetite at Jubuk with plus 100Mt potential Resource and Scoping Study being prepared over p g y g p p premium quality magnetite at Jubuk (subject to land access)

48 AGENDA INTRODUCTION TO MAGNETIC RESOURCES REVIEW OF TARGET PROJECTS INESS CASE ECONOMIC BUSINESS CASE OTHER PROJECTS/INFORMATION

49 MAGNETITE TESTWORK REQUIREMENTS Rejection of silica is critical - aim is usually below ~5% Application of comminution technology Liberation (Grade/Recovery relationship) of ores at a coarsest particle size Low Intensity Magnetic Separation (LIMS) testwork t Davis tube results P 80 can be micron (for silica liberation) Concentrate Sizing for moisture content and pelletising behaviour

50 MAGNETITE PLANT PROCESSING FLOWSHEET

51 DAMPLING SPRING IRON GROUND MAGNETICS AND SAMPLING

52 HARRIS IRON GROUND MAGNETICS

53 NUNGARIN IRON AEROMAGNETICS AND SAMPLING

54 TAMPIA NORTH JV GOLD Pacific Ore earning 51% by spending $550,000 in 3 years Three separate projects covering 320sq km Magnetic are the operators

55 HOLLAND ROCKS JV GOLD RECONNAISSANCE SAMPLING

56 LAKE GRACE JV GOLD HISTORICAL SAMPLING, 34g/t

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