Responsibly Lead

Magellan Metals Pty Ltd

Responsibly Lead

Magellan Metals Pty Ltd

1

Corporate

Presentation

October 2012

Responsibly Lead

Magellan Metals Pty Ltd Forward looking statements

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Certain statements contained in this presentation constitute forward-looking information within the meaning of securities laws. All statements included herein (other than statements of historical facts) which address activities, events or developments that management anticipates will or may occur in the future are forward-looking statements, including statements as to the following: the Ivernia Board’s approval of the management services agreement with Enirgi Group, the execution of a definittve agreement and receipt of any necessary regulatory approvals with respect to the management services agreement with Enirgi Group, the direct and indirect cost savings from the service agreement with Enirgi Group, the decision to restart and timing of the restart of operations, the financing requirements to restart the Mine, the cost and timing for completion of capital projects prior to restart, the timing of any steps required under the Operating Conditions before the end of the suspension of the Company’s transportation of lead carbonate from the Mine, the Company’s ability to comply with the new Operating Conditions, the duration of the period of care and maintenance commenced in April 2011 and the commencement of transportation of lead carbonate concentrate from the Mine, future targets and estimates for production, capital expenditures, operating costs, cash costs, mineral resources, mineral reserves, life of mine, recovery rates, grades and prices, business strategies and measures to implement such strategies, competitive strengths, estimated goals and plans for Ivernia’s future business operations, lead market outlook and other such matters. Forward-looking statements are often, but not always, identified by the use of words such as ‘‘seek’’, ‘‘anticipate’’, ‘‘contemplate’’, ‘‘target’’, ‘‘believe’’, ‘‘plan’’, ‘‘estimate’’, ‘‘expect’’, and ‘‘intend’’ and statements that an event or result ‘‘may’’, ‘‘will’’, ‘‘can’’, ‘‘should’’, ‘‘could’’ or ‘‘might’’ occur or be achieved and other similar expressions. These statements are based upon certain reasonable factors, assumptions and analyses made by management in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. However, whether actual results and developments will conform with management’s expectations is subject to a number of risks and uncertainties, including factors underlying management’s assumptions, such as, the duration of the suspension of the Company’s transportation of lead carbonate from the Mine, the duration of the period of care and maintenance commenced in April 2011, the timing, need and ability to raise additional financing, risks relating to the operations being placed on care and maintenance, matters relating the restart of mining and milling operations, matters relating to ramping up mining and milling throughput and operations, regulatory compliance and approvals, metal price volatility, lead carbonate concentrate treatment charges, exchange rates, regulatory proceedings and litigation, the fact that the Company has a single mineral property, resources and reserves, health and safety, environmental factors, mining risks, metallurgy, labour and employment regulations, government regulations, insurance, dependence on key personnel, constraints on cash flow, the nature of mineral exploration and development, matters relating generally to the transportation of lead carbonate, presence of a majority shareholder, matters related to public opinion, matters related to the Esperance settlement and shipments through the Port of Fremantle, and common share price volatility and the dilution of the Company’s common shares. Additional factors and considerations are discussed in the Company’s 2011 AIF under “Description of the Business of the Company – Risk Factors” and elsewhere in this presentation and in other documents filed from time to time by Ivernia with Canadian securities regulatory authorities. While Ivernia considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. These factors may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and there can be no assurance that the actual results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected results on the Company. Undue importance should not be placed on forward-looking information nor should reliance be placed upon this information as of any other date. Except as required by law, while it may elect to, Ivernia is under no obligation and does not undertake to update this information at any particular time.

Responsibly Lead

Magellan Metals Pty Ltd Magellan Operations

100% Ownership

A Unique Mine - The world’s largest pure lead mine,

commenced operations in 2005

Best practise concentrate transport system – 88,000

dmt successfully shipped since new system introduced

in 2009

Operations placed on Care & Maintenance in April

2011

New Operating Conditions received on July 27, 2012

– A restart of operations is antcipated in the second

quarter of 2013.

A Pure & Unique Product – Lead carbonate

concentrate produced from Magellan is very low in

impurities and unlike lead sulphide concentrates, can be

used in both primary and secondary smelters

Updated Technical Report – On March 30, 2011,

updated Mineral Resources and Reserves add

significantly to the size of the deposit

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Responsibly Lead

Magellan Metals Pty Ltd Board of Directors

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The Honourable J. Trevor Eyton Chairman of the Board

Past Chairman & CEO of Brascan Limited (now Brookfield Asset Management) & Officer of the Order of Canada. Sits

on the board of several prominent companies, including Brookfield Asset Management & Magna International

Wayne Richardson

Wide ranging experience in the lead industry and a career in strategic business development. President and CEO of the Enirgi Group, a 58.90% shareholder of Ivernia

Alan De’ath President & CEO

Over 30 years experience in senior management positions in the mining industry, including positions with Rio Tinto and TVX Gold. Joined Ivernia in 2000; President & CEO since 2003

David N. Murray

Over 30 years operating experience in the mining industry, including senior positions with Rio Tinto, TVX Gold & Avgold

Michael Agnew

Over 30 years of metallurgical operating experience as an executive, corporate director, consultant and lecturer. Former Senior Vice President, Technology for Noranda Inc.

David Ming Qi

Deputy General Manager at China Yunnan Metallurgical Group Co. and an experienced executive having a broad range of experience in China and internationally.

Peter Robson

An experienced company director with a professional background as a senior engineer with both Australian and

Asian manufacturing firms.

Responsibly Lead

Magellan Metals Pty Ltd Management

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Wayne Richardson Magellan Metals Chairman and Ivernia Director

A career in strategic business development at the senior management level in domestic and international markets including approximately 18 years with Pacific Dunlop Ltd and 10 years establishing a private international

enterprise based on a concept and business model he developed in Australia. He has a track record of successful

management of turnaround, growth and start-up companies. Currently the CEO of the Enirgi Group Corporation.

Robert Scargill Magellan Metals Managing Director Mining Engineer with over 20 years management & technical experience, including senior positions at BHP’s

Cannington Mine & Perilya’s Broken Hill Operations.

Doug Grimmond Magellan Metals GM Operations A Chemical Engineer with general management experience with Rio Tinto Alcan and Alcan Gove. Has over 10

years of general management experience including mining, mineral processing and rail operations.

Alan De’ath Ivernia President, CEO & Director Over 30 years experience in senior management positions in the mining industry, including positions with Rio Tinto

and TVX Gold. Joined Ivernia in 2000, President & CEO since 2003.

Brent Omland Ivernia VP Finance & CFO Chartered Accountant with extensive auditing & corporate experience in the Canadian mining & accounting

industries; previously with Teck Resources.

D’Arcy Doherty IverniaVP Legal & General Counsel Member of the Ontario bar, specializing in corporate & securities law, previously a partner with Gowling Lafleur

Henderson LLP .

Responsibly Lead

Magellan Metals Pty Ltd Ivernia at a Glance

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Capital Structure & Ownership (all figures in C$ unless otherwise noted)

Recent Share Price $0.10-$0.12

52 Week Low-High $0.06-$0.175

Shares (I&O) 745.1M

Shares (FD) 769.1M

Cash Position (As at October 11, 2012) Last Reported US$2.0M

Debt Outstanding (As at October 11 2012) Last Reported $4.0M

Remaining Debt Facility (As at October 11, 2012)

Last Reported $2.0M

Market Capitalization (FD) Approx. $75M (Based on price of $0.10 per share)

Ownership 95% Institutional, incl. 58.9% Enirgi Group Corporation (“Enirgi”)

Responsibly Lead

Magellan Metals Pty Ltd Ivernia Financings 2011/2012

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• Enirgi Group has demonstrated strong

financial support for Ivernia through 2011 and

2012.

• Today Enirgi Group owns 58.90% of Ivernia’s

issued and outstanding common shares.

• On June 29, 2012, the Company announced a

C$6 million loan facility with Enirgi Group at

competitive terms – further demonstrating

Enirgi Group’s financial support for Ivernia.

• The Company will require further financing to

restart the Magellan Mine which will be

dependent on the finalization of restart plans

and general market conditions (mainly lead price and f/x rate). Initial estimates indicate funding requirements in the range of

approximately US$20 to US$25 million which

includes the repayment of the fully drawn

down $6 million facility in June 2013

• Ivernia has requested an extension to the

scheduled repayment date for the facility in an

effort to reduce the overall funding

requirements during restart, however any such

repayment extension remains at the sole

discretion of Enirgi Group.

C$ Millions

Shares in Issue

(Millions)

Shares in Issue 12/31/2010 529.3

2011 Equity Issues

January 2011 @ $0.34 18.0 52.9

May 2011 @ $0.214 20.0 93.5

December 2011 @ $0.085 5.9 69.4

Shares in Issue - 06/08/2012 745.1

Gross Proceeds 2011 43.9

Market Capitalization (C$ Millions) - December 30, 2010 212$

Market Capitalization (C$ Millions) - August 20, 2012 82$

Responsibly Lead

Magellan Metals Pty Ltd Enirgi Group Corporation

8 Enirgi Group Corporation is a private, Canadian company

Business Unit Ivernia Enirgi Metal

(EMG)

Natural

Resources

(NRUC)

ADY Resources

(Rincon)

Commodity Lead Concentrate Lead metal Sodium Bicarbonate Lithium carbonate, potash

Principal Asset Magellan Mine RMT/ARA/Orbitas Piceance Creek Basin Salar del Rincon

Jurisdiction Canada

(corporate)/Australia

(operations)

Australia USA Argentina

Public (or Private) Listed (IVW:TSX) Private Private Private

Ownership 59% 100% 100% 100%

Status Care & Maintenance Production Production Lithium (small

commercial scale)

Potash (feasibility)

Responsibly Lead

Magellan Metals Pty Ltd Magellan Mine Overview

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Location – The Magellan Mine is located in

central Western Australia, 30 km west of

Wiluna and 750 km northeast of Perth. The

Goldfields Highway passes the front entrance

to the mine and Wiluna has an all-weather

airstrip.

People – Under normal operations the mine

employs ~220 people commuting on a FIFO

roster from Perth.

Simple mining – Open pit mining is carried

out to depths of only 50 metres with an

average stripping ratio of 2.4:1.

Processing opportunity – The milled ore is sulphurdized and then concentrated using

traditional froth flotation. The processing plant was achieving best ever performance

immediately prior to being placed on care and maintenance.

Magellan Metals developed Best Practice concentrate transport system –

Concentrate is loaded into 2 tonne bulka bags which are then sealed, vacuumed clean

and then placed into shipping containers for transport by road, rail and sea to smelters

around the world.

Responsibly Lead

Magellan Metals Pty Ltd Magellan – a significant resource

Mineral Resources & Reserves for the Magellan Mine

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Mineral Resources (1-6) Tonnage (Mt)

Pb grade (%)

Contained Pb (‘000 t metal)

Measured & Indicated 40.2 4.5 1,790

Inferred 12.1 4.0 480

Mineral Reserves (1, 6-11) Tonnage (Mt)

Pb grade (%)

Contained Pb (‘000 t metal)

Proven & Probable 19.7 5.6 1,111

1. As at December 31, 2011. Table entries are rounded to the second significant figure. For more information see Ivernia’s annual information form dated March 29, 2012 at www.ivernia.com or www.sedar.com. 2. Mineral resources are inclusive of mineral reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental,

permitting, legal, marketing, or other relevant issues. 3. Mineral resources have been reported based on a cut-off grade of 2.1% lead. Mineral resources are based on the Mineral Resource Report prepared by CSA Global Pty Ltd (“CSA”) titled “Magellan Lead Project – 2011 Mineral

Resource Estimate” dated March 29, 2012 (the “Mineral Resource Report”). 4. Mineral resources are reported in accordance with the 2004 update of the JORC code, which is consistent with the Canadian Institute of Mining, Metallurgy and Petroleum Estimation of Mineral Resources and Mineral Reserves Best

Practices Guidelines. 5. Jeff Elliott and Steve Rose of CSA are the “Qualified Persons” for purposes of National Instrument 43-101 of the Canadian Securities Administrators (“NI 43-101”), independent of Ivernia and have verified the above mineral resource

figures, including the underlying sampling, analytical and test data. Data was verified by a site visit and review of Magellan Metals’ data. 6. Contained lead is total lead mined; planned plant recovery is over 75% as per the life of mine plan and 95% payable contained lead. 7. Mineral reserves are based upon mineral resource estimates set out above, which, in turn, are based on the Mineral Resource Report prepared by CSA. 8. Mineral reserves are a subset of measured and indicated mineral resources. All mineral reserves are reported in accordance with the JORC Code. The JORC Code uses the term “ore reserve” which is equivalent to the term “mineral

reserve”, as defined in NI 43-101. 9. Mineral reserves have been reported based on a cut-off grade of 2.1% Pb, an exchange rate of US$0.95/A$1.00, a lead price of US$2,200 per tonne (approx. A$2,316 per tonne) and estimated operating costs. 10.Mr. Andy Robb (General Manager, Technical Services of Magellan Metals) is a Fellow of the Australasian Institute of Mining and Metallurgy and is responsible for the mineral reserves and has prepared and verified the above mineral

reserve figures. Mr. Robb is a “Qualified Person” within the meaning of NI 43-101. 11.Mineral reserves have a waste to ore ratio of 2.4 to 1. 12.Based on production rates of 1.7 to 2.0 million tonnes of ore processed per annum; such increase in production rates is subject to regulatory approval.

+10 years mine life (12)

http://www.ivernia.com/http://www.sedar.com/

Responsibly Lead

Magellan Metals Pty Ltd Magellan Value Proposition

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255$ 0.80$ 0.85$ 0.90$ 0.95$ 1.00$ 1.05$

1,800$ $193 $166 $136 $106 $76 $47

2,000$ $261 $236 $211 $187 $159 $129

2,200$ $329 $305 $280 $255 $230 $206

2,400$ $397 $373 $349 $325 $300 $275

2,600$ $465 $442 $418 $394 $369 $345

2,800$ $533 $510 $486 $462 $438 $414

3,000$ $601 $577 $554 $530 $506 $482

3,200$ $668 $645 $622 $598 $574 $550

3,400$ $735 $712 $689 $666 $642 $619

3,600$ $802 $779 $756 $733 $710 $687

3,800$ $870 $846 $823 $800 $777 $754

• In March 2011, Ivernia published an updated technical report on Magellan

– with significant increases in

resources and reserves and a mine

life extending beyond 10 years.

• With this significantly larger resource and reserve base Magellan has

tremendous leverage to lead prices as

this NPV (8%) table showing lead

price and A$/US$ f/x rates from the

technical report demonstrates.

• The NPVs above are based on a static reserves (from the previous slide) in which only ~49% of the M&I resources are converted into 2P reserves. At higher metal prices, more of the M&I

resources convert into reserves and higher NPVs can be expected. At metal prices of $3,800

per tonne, it is expected that over 90% of the M&I resources convert into 2P reserves.

• The Enirgi Group and Ivernia are committed to working together to restore shareholder value for all shareholders of Ivernia with a business model for a long term sustainable Magellan

operation.

• Additional areas of opportunity to enhance the 43-101 report valuation are being explored through a number of projects being worked on with the Enirgi Group

Responsibly Lead

Magellan Metals Pty Ltd Lead Markets and Price performance

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• In 2011 the world consumed 10.3 million tonnes of lead – a 2.4 million

tonne or 30% increase since 2005.

• Approx. 90% of the world’s lead is consumed in batteries.

• China consumed approx. 4.6 million tonnes or 45% of the worlds lead in

2011 – 2.0 million tonnes of which

was for E-bike batteries (CHR

Metals).

• A number of analysts continue to forecast strong growth in lead

consumption – driven by demand in

China. • In September 2012, BNP Paribas forecast a lead price of $2,550 per tonne for 2013 and $2,825

per tonne for 2014.

• In the Q2 2012Thompson Reuters survey of base metals analysts, a median price of $2,250 per tonne was forecast for 2013.

• Lead prices peaked around $3,700 per tonne in late 2007 – the last slide demonstrates the Magellan valuation leverage in the event of a return to those lead price levels.

Responsibly Lead

Magellan Metals Pty Ltd Lead prices relative to Copper and Zinc

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• Lead and Zinc prices have traded in

very close ranges in recent years.

• Both have significantly

underperformed Copper.

• A number of analysts forecast

stronger lead and zinc prices as we

move through this decade.

• In lead, a number of significant mine

closures are slated for the middle part

of this decade with few large new

projects coming on stream.

• Ivernia continues to hold the view that

this could create the environment for

stronger lead prices during the

second half of this decade.

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02/01/2008 02/01/2009 02/01/2010 02/01/2011 02/01/2012M

etal

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Lead, Zinc and Copper Prices Since January 1, 2008

LME Lead(US$)

CopperPrices

Zinc Prices

-80.00%

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

02/01/2008 02/01/2009 02/01/2010 02/01/2011 02/01/2012

% in

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rom

jan

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200

8 p

rice

Relative Lead, Zinc and Copper Peformance Since January 1, 2008

LMELead(US$)

CopperPrices

ZincPrices

Responsibly Lead

Magellan Metals Pty Ltd Historical Market Cap. per Current Shares o/s

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• An earlier slide showed a

market cap of C$212 million

immediately prior to the

events of early 2011 –

equivalent to $0.36 cents per

current share outstanding.

• This graph shows the Ivernia

market cap per current share

outstanding since we

embarked on development of

the Magellan project in 2003,

showing it peaked at approx.

$0.43 cents per current share outstanding in 2006.

Responsibly Lead

Magellan Metals Pty Ltd

Magellan - A Significant Producer at

Full Production

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0

10

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60

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Q1 Q2 Q3 Q4

The Company’s two best production quarters

(Q4 2006 and Q4 2010) show significant lead

metal production on an annualized basis. See

the graph below.

As the mine moves to steady state production

levels, recoveries are expected to improve.

The graph to the right demonstrates the

recovery improvements made during 2010

which are expected to continue to improve.

2010 Recovery

% r

eco

very

‘00

0 t

on

nes

lea

d m

eta

l in

co

nce

ntr

ate

54%

69% 76% 78%

0

20

40

60

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Q4 2006 ProductionAnnualized

Q4 2010 ProductionAnnualized

Lead Metal in Concentrate Produced

Responsibly Lead

Magellan Metals Pty Ltd Concentrate transportation system

• Magellan Metals has implemented a concentrate transport system which is acknowledged by the Western Australian EPA as best practice

– Concentrate is placed in waterproof and sift proof bags and sealed

– The bags are loaded into cleaned containers which are then locked

– Containers are trucked to Leonora and then railed to Fremantle for export

– Over 3,000 samples taken at over 300 sample sites along the transport

route have shown no evidence of concentrate escaping from the bags or

containers

– The trigger levels for some sample sites are less than 100th of the national

health standards

– The Magellan Metals process eliminates potential dust-generating

transfer points in the transport process

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Responsibly Lead

Magellan Metals Pty Ltd

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Bags as arriving at the smelter

Outer seal

Inner seal

Container as opened at the arrival port

Bags contain up to 2,000kg, and are

water proof, sift proof and sealed

Responsibly Lead

Magellan Metals Pty Ltd

Eliminating potential dust generation

points

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Load road transport at mine site

Discharge road transport

Load rail transport

Discharge rail transport

Conveyor(s)

Shiploader

Discharge ship

Load road transport

Discharge road transport at smelter

Load & seal bags at filter discharge at mine site (30km from nearest residence)

Split & discharge bags at smelter

Whilst the amount of dust at each transfer point may be small it

can be significant over the life of a project

Traditional concentrate transport system

Magellan concentrate transport system

Responsibly Lead

Magellan Metals Pty Ltd

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Bags being vacuum cleaned

Bags being loaded into containers Truck being washed before leaving site

Bags being loaded at Magellan Mine

Responsibly Lead

Magellan Metals Pty Ltd Magellan Metals today

– Following a series of events in early 2011, we voluntarily took the hard decision in

April 2011 to put our only operation on Care & Maintenance and reduced our

employee and contractor workforce from 235 to ~30

– We have used this down time to upgrade our compliance and risk management

systems as well as improve our capabilities in a number of different areas

– We have worked pro-actively with the WA Government and Regulators to address

their concerns and those of the community resulting in the receipt of updated

operating conditions (“Operating Conditions”) on July 27, 2012

– In general, the Operating Conditions preserve and, in some cases, enhance the

already strict auditing, monitoring, management and reporting requirements

previously imposed on Magellan Metals.

– The Company is strongly committed to meeting the obligations outlined in the

Operating Conditions and demonstrating that the containerized shipping of the

Company’s product is both safe and appropriate.

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Responsibly Lead

Magellan Metals Pty Ltd Operating Conditions

– Below are two quotes from the Minister for Environment upon releasing the

Operating Conditions on July 27, 2012:

– “Despite the detection of several lead exceedances last year, no lead concentrate

was found to have escaped into the environment from the double lined bags within

Magellan’s locked shipping containers.

– “Some of the lead exceedances to date were attributed to historical lead handling at

various sites and not from Magellan’s recent operations. Others were a result of

naturally occurring lead levels in the environment.”

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Responsibly Lead

Magellan Metals Pty Ltd Magellan Mine Restart – Key Points

– A restart of operations is targeted for the second quarter of 2013.

– The Operating Conditions require that certain actions be undertaken by the Company prior to the re-

commencement of transport.

– In the fourth quarter of 2012, the Company will commence restart capital projects and order long lead

time items.

• Capital projects in Q4 2012 and Q1 2013 including upgrades of the hard-stand areas, wash-down facilities and dust extraction capability.

• It is estimated that the Company will spend approximately $5 to $6 million on capital projects over the course of the next 9 months

– A successful restart will be dependent on ensuring key personnel are in place and will involve some

capital projects to meet the new operating conditions

• Recruitment of key personnel is well progressed with more general recruitment planning to continue in Q4 2012. Significant training and onboarding process for all personnel.

• General recruitment to occur in Q1 2013.

– Considering a proposal to transfer the day to day management of the mine to a management service

agreement under the management of the Enirgi Metal Group, a wholly owned subsidiary of the Enirgi

Group.

• Potential material cost savings in the range of approximately $3 million to $4 million per annum

• Access to economies of scale and increased technical and operating experience and executive management

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Responsibly Lead

Magellan Metals Pty Ltd

Ivernia and Enirgi Group

Rebuilding Shareholder Value Over the Long Term

How will we do this?

– Leveraging off the strengths and experience of Enirgi Group, with Enirgi Metals Group to

take the lead on the restart of Magellan’s operations anticipated in the second quarter of

2013.

– Unlocking the value of the global secondary smelting market using Enirgi Group’s secondary

smelting capacity – a unique and potentially very profitable market segment for Magellan

concentrate given the scarcity and high cost of used lead acid batteries in Europe and the

US.

– Technical improvements, with the assistance of Enirgi Group’s in house engineering and

technical skills that increase recoveries and efficiencies.

– Long term planning designed to take advantage of Magellan’s resource, mine life and lead

price leverage.

– Implementing innovative solutions that minimize the impact of the escalating cost pressures

and labor scarcity in Western Australia.

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Responsibly Lead

Magellan Metals Pty Ltd Contact us

For additional information please contact:

Ivernia Inc.

130 Adelaide Street West, Suite 3303

Toronto, ON, Canada

416.867.9298 ●info@ivernia.ca

www.ivernia.com

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