Australian Tailings Group Pty Ltd Synergy (SNR) Investor Presentation

Australian Tailings Group Pty Ltd Synergy (SNR) Investor Presentation

Disclaimer Forward-Looking Statements This presentation contains forward looking statements concerning the projects owned by Australian Tailings Group Ltd. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on management s beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Data and amounts shown in this presentation relating to capital costs, operating costs and project timelines are internally generated best estimates only. All such information and data is currently under review as part of Australian Tailings Group Ltd s ongoing development and project studies. Accordingly, Australian Tailings Group Ltd cannot guarantee the accuracy and/or completeness of the figures or data included in the presentation until the project studies are completed. Investment advice Any reliance on this presentation is expressly disclaimed to the extent permitted by law. The information in this presentation is not investment or financial product advice. This presentation does not purport to contain all the information that you may require to evaluate a possible application for new shares in Australian Tailings Group Pty Ltd and does not take into account the investment objectives, financial situation or needs of you or any particular investor. You should conduct your own independent review, investigation and analysis of Australian Tailings Group Ltd. You should obtain any professional advice you require to evaluate the merits and risks of an investment in Australian Tailings Group Ltd before making any investment decision based on your investment objectives. Information about Australian Tailings Group Pty Ltd The information included in this presentation provides information about Australian Tailings Group Ltd s activities current as at October 2013. It is information in a summary form and does not purport to be complete. It should be read in conjunction with Australian Tailings Group Ltd information memorandum and Synergy Plus ASX announcement on 30 August 2013 at www.asx.com.au. Competent Person s Statements References to geological information in this Presentation by Synergy Plus Limited to acquire interest in mineral rights that relate to exploration results, mineral resources or ore reserves are based on and accurately reflect information compiled by Mr Pyper, who is an independent consultant for Minnelex Pty Ltd. Mr Pyper is a qualified member of The Australasian Institute of Mining and Metallurgy and 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 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Pyper consents to the inclusion of the matters based on his information in this document in the form and context in which it appears. Exploration Targets It is common practice for a company to comment on and discuss its exploration in terms of target size, grade and type. The potential quantity and grade of an exploration target is conceptual in nature since there has been insufficient work completed to define the prospects as anything beyond an exploration target. It is uncertain if further exploration will result in the determination of a Mineral Resource. 2

Australian Tailings Group Overview Iron Sands developer focused on the EL 4566 Area C Project ( Area C ) in Olary Region South Australia Large iron sands exploration license covering 6,100 ha Completing scoping study in three stages utilising existing technology and equipment Proposed listing on ASX through reverse take over of Synergy Plus Ltd Investor presentation to be read in conjunction with the accompanying Information Memorandum 3

Offer and Corporate Overview Capital Structure Offer The issue of 11,468,750 shares at an issue price $0.16 per share to raise up to $1,835,000 with 1 free option attaching to every 2 New Shares to purchase 1 further ATG Share at $0.35 with a three year term The purposes of this Offer are to: Fund part of the purchase price of $1 million under an agreement with Wentworth Metals Group Provide the Company with additional general working capital for the exploration and development of Area C Board of Directors and Management John Hillam (Director) Area C Mr Hillam is the Group CEO and principal shareholder in the company. He is a qualified geologist with many years' experience in the industry and has considerable expertise in the Olary area from his previous involvements with magnetite deposits at and surrounding Razorback Ridge, and gold projects in the Olary Province of SA. Shane Barker (Project Director) Mr Barker is an experienced metallurgist and project engineer. He has been involved in project, technical, financial, strategic and safety management across a range of commodities and stages from exploration to commissioning and production. Shane has experience with numerous mining companies including Alkane, PolyMetals, BHP Billiton (Olympic Dam and Nickel West), WMC and ALOCA 4

Investment Highlights Quality product High grade ~65% Fe from DTR analysis Relatively low impurities DTR analysis performed by ALS (2011) Simple processing No crushing required Utilise existing DF high speed drum technology Dry process minimal power and water requirements Potential low capital and operating costs Minimal crushing and processing required Weathered material Will utilise mining contractors Multiple pathways to production The lease is intersected by a major highway and railway Truck or rail options available Indian Pacific railway has 12 mtpa excess capacity Excess capacity exists at Port Pirie and Port Adelaide Scalable Large area Ability to add additional plants Plant capacity (5mtpa each) References to Fe grade above is an estimate only, is conceptual in nature and is based purely on preliminary testing results. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the 5 determination of a Mineral Resource.

Strategy Stage Activities Outcomes Capital Stage I Month 1-4 3-4 Months Collect 400 25 kg samples from EL 4566 Area C Utilise DF High Speed Magnetic Separator Plant (Plant) to process samples to produce 20 2-5 kg samples and provide to select steel mills and potential customers Calibrate configuration of final industrial plant Mining lease not required Undertake Pre-Feasibility Study Advance discussions with potential offtakers $600k Evaluate potential infrastructure solutions Define intended mining area Stage II Month 5-12 6-7 months (subject to a successful Stage I) Transition to and commission a full-scale plant Allows iron product to be sold to potential customers/offtakers identified in Stage I Execute offtake agreements (if not achieved in Stage I) Confirm commerciality of one Plant operating in isolation based on the findings in Stage I Mining lease not required (considered trial mining) PFS will confirm Stage III Month 12-18 6-7 months On the basis that the first two stages are successful, Stage III involves commissioning a further 3 Plants in order to commence full-scale mining operations Four DF plants in full scale industrial production Up to 16 mining leases required PFS will confirm 6

Product Specification Product Specification Source of the magnetite sands are derived from weathering primary sources of outcropping magnetite rich hosts rocks which include the nearby outcropping Braemar Iron Formation and the Curnamona Province rocks Davis Test Recovery (DTR) performed by ALS The DTR test results reveal that Area C has potential to house a high grade iron product with a relatively low impurities which enhances the potential economics and marketability of the product Additionally, given the weathered nature of the mineralisation it is expected that no crushing or screening is required to process the material which has the potential to minimise operating and capital costs 7 The potential grade is an estimate only, is conceptual in nature and is based purely on preliminary testing results. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Mining & Processing Mining Large scale conventional mining using mining contractors to reduce capital costs The diagram to the right depicts the planned mining process from extract of sand from the creek bed to magnetic separator that will produce the 65% Fe concentrate. All residual sand is returned back to the creek bed and levelled. Dry sand will be stockpiled near to the creek banks so any disruption by rainfall will be minimized. Proven off the shelf equipment Processing The DF High Speed Drum Magnetic Separator plant will process an average of 300 cubic metres (1,000 tonnes) of alluvial type material per hour. It will operate for 16 hours per day, 7 days per week (~5Mtpa) Process consists of gravity, magnetic separation and inertia Common process not new technology Mechanical process, not chemical Proven off the shelf equipment 8

Rail & Port Options Rail or Truck Truck Potential to Truck iron ore in containers to either: Port Pirie 277km Port Adelaide 400km Rail Indian pacific rail has 12Mtpa capacity intersect exploration license links to Port Pirie and Port Adelaide Port Options Potential rail routes significantly shorter than Pilbara and Brazilian routes Port Pirie No bulk loading facility potential to ship iron product in containers Trans-ship options may also be available Port Adelaide No bulk loading facility potential to ship iron product in containers Trans-ship options may also be available Whyalla Trans-ship options potentially available if agreement with Arrium can be reached Other infrastructure utilities Water, Power, etc. Given the Plant is a dry process it is expected that there will be minimal water and power requirements to run the Plant 9

Economic and Competitive Advantages No drill and blast Free dig, truck and shovel operation Potentially low operating costs Potential to lower capex through use of contractor miners No crush and screen Proven technology prevalent in the US coal industry Very low cost modular units US$600k for one 5mtpa Plant Reduction in energy and construction costs compared with other magnetite operations Truck and rail options Distance significantly shorter then Pilbara and Brazilian routes May initially truck iron ore in containers Indian rail has significant capacity at 12mpta Numerous potential options Port Pirie 277kms Port Adelaide 400 kms Potential to Tranship from Port Pirie / Whyalla Scalable 10

Proposed Synergy (ASX:SNR) Transaction ASX Announcement As per SNR ASX announcement on 30 August 2013 it is proposed that ATG will be acquired by SNR under the following terms Terms Synergy (SNR) to undergo 1:100 consolidation which will reduce the issued capital of Synergy to a maximum of 7,764,078 fully paid ordinary shares ATG will provide an unsecured, interest free convertible loan to SNR of $200,000 (Loan) payable in tranches by 27 September 2013 Subject to receiving consent from third party lender to forgive $200,000 loan for 1,250,000 shares SNR will acquire ATG via the issue of 152,020,215 at a post consolidation issue price of $0.20 per share Acquisition will result in SNR inheriting a 2.5% revenue royalty in favour of WMG up to a total of $2m payable once revenue from production from Area C exceeds $10m but is payable on the first $10m Minimum Risk Pty Ltd to forgive loan to SNR for 2,200,000 shares and 2,200,000 options (post consolidation) ATG to complete a placement of 12,500,000 at $0.16 to raise $2,000,000 pre re-listing of SNR ($165,000 already raised) 11

Summary Potential large scale iron sands project with more than 60 square kilometres in which the drainages carry iron sands Potential high spec product based on initial samples Simple dry process of separating iron ore from sands in large, wide and dry creeks bed, no water required Potential for low operating costs and capital requirements Multiple Infrastructure options Pilot Plant ready to mobilize on site which utilises USA developed DF high speed drum technology Close to major mining town of Broken Hill serviced by commercial flights from Sydney and Adelaide Site is located on either side of a major highway and railway line (Indian Pacific) Rail line has 12mtpa excess capacity Port is 250 kms from site with 7mtpa approved capacity available 12

Appendices 13

Iron Ore Market Demand to 2020 China continues to grow rate slowing but expected to be positive for the rest of the decade China is expected to produce around 1 billion tonnes of steel per year by 2025, up from 735 million tonnes currently Consumption off high base, even modest growth will generate large incremental volume Chinese growth, with gradual global recovery anticipated to drive incremental demand Beyond 2020 Chinese consumption slowing but global demand continuing to gradually grow If this occurs, supply expected to better balance demand Therefore reasonable to expect additional supply of large volumes to become progressively more challenging Offset by the effect of increasing Indian demand Our current expectations World iron ore production needs to almost double in next 20/25 years to meet expected demand Anticipated declining Chinese iron ore production would require seaborne trade to increase at a faster rate 14

Magnetite Operations Have become the black sheep of the Australian iron ore industry Reputation impugned by DSO incumbents and failures of project management, not necessarily quality or size of deposit Not all ores are created equal WA s difficult to process banded iron formations are not necessarily representative of the sector DSO quality continues to fall product quality gaps continue to widen and will only increase Magnetite operations with long and successful history in North America, Sweden, China, Russia, Ukraine Magnetite more energy efficient, less carbon intensive in the steel making process Increasing market need for magnetite producers Magnetite concentrate remains a consistent premium product as DSO grades decline 15