Cobalt – 2011 Supply Source Cobalt

mineralisation

near Broken Hill

Ian Pringle Managing Director

Broken Hill Prospecting

Limited (‘BPL’) (20-21 May, 2012)

Sydney – Adelaide railway line

Disclaimer This presentation contains forward-looking statements that involve subjective judgement and analysis and

accordingly, are subject to significant uncertainties and risks, many of which are outside the control of, and are unknown to,

Broken Hill Prospecting Pty Ltd ( “BPL”). In such circumstances, the forward-looking statements can be identified by the use

of forward-looking words such as “may”, “will”, “expect”, “intend”, “seek”, “estimate”, “believe”, “continue” or other similar

words.

No representation, warranty or assurance is given or made in relation to any forward-looking statement by BPL or it’s

representatives, In addition, no representation, warranty or assurance is given in relation to any underlying assumption or

that any forward-looking statements will be achieved. Actual future events may vary materially from the forward-looking

statements and the assumptions on which the forward-looking statements are based. Accordingly, presentation readers are

cautioned not to place undue reliance on such forward-looking statements as a result of the uncertainties.

In particular, BPL wishes to caution readers that these forward-looking statements are based on economic predictions and

assumptions on reserves, mining method, production rates, metal prices and costs (both capital and operating) developed

by BPL management in conjunction with consultants.

This presentation and the forward-looking statements made in this presentation, speak only as of the date of the

presentation. Accordingly, subject to any continuing obligations under the Corporations Act and the New Zealand and

Australian Stock Exchange Listing Rules, BPL disclaims any obligation or undertaking to publicly update or revise any of the

forward-looking statements in this presentation, whether as a result of new information, or any change in events, conditions

or circumstances on which any such statements is based.

The exploration target and potential being reported under Section 18 of the JORC Code is based on assessments of

prospects within BPL’s tenure which are supported by drilling, geophysics, geological studies, imagery analysis,

metallurgical test-work and preliminary modelling. However, the potential quantity and grade is conceptual in nature, there

has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in discovery

of a Mineral Resource.

Competent Person Statement The review of exploration activities and results contained in this report is based on

information compiled by Dr Ian Pringle, a Member of the Australasian Institute of Mining and Metallurgy. Dr Pringle is the

Managing Director of Broken Hill Prospecting Pty Ltd and also a Director of Ian J Pringle & Associates Pty Ltd, a

consultancy company in minerals exploration. He has sufficient experience which is relevant to the style of mineralization

and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as

defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and

Ore Reserves (the JORC Code). Dr Pringle has consented to the inclusion in this report of the matters based on his

information in the form and context in which it appears.

Important notices

What is cobalt? Cobalt is a minor metal with many special qualities....

• Co is hard, heavy and has a high melting point. It used extensively in superalloys and high pressure and temperature resistant metals in energy turbines, jet motors, military hardware, aircraft, space craft etc...

• Co is a major component in many new rechargeable batteries (electric cars, mobile phones, laptops....). Many lithium-ion batteries contain up to 60% Co.

• Co is strongly magnetic and is used in magnets in preference to Ni and Fe

• Co pigments have been used for many centuries for bright blue colouring.

• Co is a principle component of vitamin B12, essential for blood and brain. Co is used in food supplements for both man and beast.

• Co is used as; a catalyst, in jewellery, medical isotopes, cosmetics, ......

Cobalt is a metal of the future with growing demand in technology, health and energy industries of the modern world.

Co is integral to defence, aerospace,

and the energy industry. Co is threatened by supply disruptions due to limited domestic production and is a designated ‘Strategic Metal’ in the USA, China, Japan and Europe.

Cobalt price range over last 5 years;

$12-$50/lb or $22,000-$110,000/t Co

Why are BPL’s cobalt deposits special?

Deposits of cobalt of significant size and mine-grade are few and geographically isolated. Near Broken Hill, a distinctive type of deposit has been recognised by BPL and a new depositional model has assisted BPL to successfully find large areas of near-surface cobalt mineralisation.

• Co is mostly produced as a bi-product from some copper or nickel mines

• From the estimated 98,000t (216mlb) of cobalt produced in 2011; – >60% came from the Democratic Republic of Congo (DRC)

– >40% was refined in China

– Over 80% was consumed by the USA, Japan and the EU

– No cobalt was mined in the USA, Japan, or the EU

– China produced a small amount of cobalt from its own mines

• The DRC contains about half of the world’s

known cobalt resources

Broken Hill Prospecting (BPL) has large cobalt resources which could be mined by open cut, can be readily upgraded to a Co-pyrite concentrate and may provide a reliable and alternative source for the world cobalt market.

BPL has several future options.... BPL could mine and export a cobalt-pyrite concentrate, process the concentrate on site or at another location and use one of a number of processing options.

DR Congo Canada Others China Russia Zambia Australia Cuba

2011 Cobalt Mine Production

Source: USGS

Mineral Commodity Summary

2012

Location - important for future development

• BPL’s project is located 25km SW

of Broken Hill in western NSW

• Main highway to Adelaide joins the

northern part of the project

• Main trunk railway line 500 metres

from the deposits

• Exploration license (EL6622) and

two mining leases (ML86, ML87)

• Geophysics (IP survey) and Pyrite

Hill resource confirmation drilling

completed in late 2011

• New drilling has intersected

spectacular zones of cobalt

mineralization

• The Railway Prospect is a new and

very large deposit which will likely

become a significant world cobalt

producer

Pinnacles mine

Project Geology – Co in surface deposits

PYRITE HILL Inf Res; 16.4Mt at 1.83lb/t Co

(plus 14-24Mt potential)

BIG HILL Inf Res; 4.4Mt

at 2.00lb/t Co

(open to NE &

at depth)

View of Big Hill looking east from Pyrite Hill

Albite-quartz-cobaltiferous pyrite gneiss

Big Hill outcrop

bedding / layering

channel fill

Conglomerate/breccia with rip-up clasts of f.g. ‘sediments’, monolithic Channel cuts through layered, and well laminated beds

Big Hill outcrops Sedimentary textures include layering of graded beds and slump breccia horizons.

Typical of sediment deposition on a deep sea floor.

Geology - sediment-hosted pyrite

Age - 1.7 billion years

Model - Co mineralisation formed

by bacteria in a saline sea

quartz-albite-pyrite gneiss

More cobalt – great potential beside the tracks!

PYRITE HILL Inf Res; 16.4Mt at 1.83lb/t Co

(plus 14-24Mt potential)

BIG HILL Inf Res; 4.4Mt

at 2.00lb/t Co

(open to NE &

at depth)

Railway Prospect

IP survey areas

drill hole BER004

2cm

massive cobaltiferous pyrite 40-90 metres

Scale; 500 metres

IP plan with conductivity (colour) and chargeability (contours) Railway Prospect

Railway Prospect • Continuity of outcropping

pyrite-quartz-albite gneiss

• Numerous gossans (after pyrite, some shown in red)

• Correlation with anomalous cobalt in soil (range to 500g/t Co)

• 2012 drilling at about 250m spacing

• Pyrite gneiss outcrop 50-300m wide, >2.5km long

• Steep west to vertical dip

• New, very large strata-bound cobalt deposit

• Drill results with high grade cobalt - expected to be fully complete by early June 2012

Railway Prospect – drill section 1

Anomalous zinc (3.5%) , Co (2.41lb/t) and silver

(6g/t) between 120-126m

Railway Prospect – drill section 2

BER012 27-72*m (>45m) of 3.85lb/t Co (incl 48-57m of 4.89lb/t Co)

BER009 33-47m(14m) of 2.42lb/t Co 57-92m (35m) of 2.01lb/t Co

Cobalt – 2011 Supply Source • No residence within 5km • Limited land use area • Environmental impacts are manageable • Granted MLs and EL • Great future mine site location!!

RC drilling BER004 at the Railway Prospect April, 2012

Railway Sydney - Adelaide

Cobalt – much more along trend?

PYRITE HILL Inf Res; 16.4Mt at 1.83lb/t Co

(plus 14-24Mt potential)

BIG HILL Inf Res; 4.4Mt

at 2.00lb/t Co

(open to NE &

at depth)

Railway Prospect Shaping up to be a

very large Co deposit

IP survey areas

Offset Prospect 1 hole , 22m of 1.8lb/t Co

North Big Hill Prospect 1 hole , 17m of 2.2lb/t Co

Cobalt Resources • Combined Inferred Resources at Pyrite Hill and Big Hill of

20.8Mt of 1.87lb/t Co (H&S, Nov 2011) • Also potential for 14 – 24Mt of cobalt mineralization of similar grade peripheral to the resource at Pyrite Hill (H&S, Nov 2011) • April-May 2012 drilling has discovered considerable amounts of new cobalt at Railway, Offset and North Big Hill Prospects • All of the Co deposits are open at depth and along trend • Co mineralization can be concentrated (gravity/flotation) into pyrite concentrate with plus 0.5% cobalt grade (with separation of feldspar/quartz) • Concentrate process options include bacterial leach, pressure leaching or oxidation of pyrite to produce cobalt, sulphuric acid and iron. • Next month BPL plans to commence a scoping study for a 7.5Mta open cut mine with annual production of 7,000t of cobalt in pyrite concentrate.

Concept time-line for BPL development plans

Q2 2012 Complete evaluation of current drilling at Railway, Offset

and North Big Hill Prospect areas – determine conceptual target for

open cut mine planning.

Q3-Q4 2012 Scoping Study to determine basic parameters for a 7.5

million tpa open cut mine to produce about 7,000t cobalt in pyrite

concentrate each year over a 15 year mine life.

2013 Pre-feasibility studies (resource drilling, metallurgical test work,

engineering, processing and marketing studies), commence

environmental, historical, cultural and land studies.

2014 Complete Feasibility studies, EIS, development funding and

marketing. Commence Development Approval, community

consultation.

2015 Development Approval completion – construction start-up in

mid 2015.

2016 Initial production in early 2016.

Corporate snapshot

Capital

Shares total Listed Unlisted

82,581,900 29,257,511 53,324,389

Options total Listed (20c, 17/2/14) Unlisted (20c, 17/2/16) Unlisted (24c, 17/2/13)

46,340,950 11,190,950 33,650,000 1,500,000

Public capital raising of $A4.5m & Commenced Trading 17 Feb 2011

ASX and NZSX Code: BPL and BPLOA

Current Cash: AUD2.0m

Share price 16 May 2012: 9-10 cents

Shareholders Shares (m) %

So Co Limited 34.37 42%

New Talisman Gold Mines Ltd (previously Heritage Gold NZ Ltd)

17.93 22%

Top 20 63.65 77%

Total shareholders: 620

Directors/Management

Creagh O’Connor (Ch) Dr Ian Pringle (MD) Geoff Hill (Matt Hill) Ralph Stagg Peter Atkinson

Corp Advise Consultant Geologist Finance Geologist Geologist

Donald de Boer Francesco Girotto John Elliot Wolf Leyh Rob Barnes

Company secretary Office manager Consultant Geologist Consultant Geologist Consultant Geologist

ASX trades for BPL over 12 months, courtesy of E*TRADE Australia

Why is Broken Hill Prospecting different?

• BPL is focussed on a new mineral development near Broken Hill.

• BPL is finding large, near-surface cobalt resources located within sight of the main Sydney-Adelaide railway, 25km from Broken Hill.

• Cobalt is a metal of the future with rapidly growing use in batteries and superalloys and many other evolving technologies.

• There are worrying worldwide supply and demand issues for future cobalt production and these could result in +Co price fluctuation.

• BPL will soon commence a scoping study for a 7.5Mtpa open cut mine with an annual production of pyrite concentrate containing about 7,000 tonnes of cobalt.

• BPL’s goal is to become one of the world’s largest and lowest cost cobalt producers.

• Co price could rise above 2007/8 levels of $50/lb, current price on LME is $31-32,000/tonne or about $15/lb.

• BPL could also supply sulphuric acid processing bi-product to a growing local market demand.

• BPL could also benefit from other value adding bi-products; – Feldspar for ceramics/tiles

– High-grade iron ore residue

Summary

Broken Hill Prospecting Ltd is well positioned to

take advantage of increasing cobalt demand and

rising cobalt prices as it develops into a low cost

cobalt producer.

----------------- Thank you -----------------

Dr Ian Pringle, Managing Director

(ipringle@bhpl.biz, +61 408 548767)

Broken Hill Prospecting Ltd is listed on the ASX and NZX(code BPL)

Please visit our booth, meet our people and find out more about BPL, our

deposits and the cobalt industry