14th and 15th July 201114th and 15th July 2011

For

per

sona

l use

onl

y

Oregon Resources (ORC) project overview

Since 1990, Oregon Resources Corporation (ORC) has been exploring, drilling, q ntif ing nd n l ing e ie of niq e he mine l depo it in the t tequantifying and analyzing a series of unique heavy mineral deposits in the state of Oregon, U.S.A. These mineral deposits contain high purity concentrations of Chromite, Zircon, G t d hi h i / Il it d t th ith l t f l iGarnet and high iron/ Ilmenite sands together with several types of alumina silicates. A pilot plant, capable of processing and separating 10 tons per hour, was

ll d d d d d h hinstalled and processed mined ore, separating and concentrating the heavy mineral sands for foundry evaluations.This plant can be modified and used for test work, mineral separation and wet stage processing of additional deposits of heavy mineral sands. Significant comparative, blending and stand alone testing confirmed the Chromite as an exceptional and unique value adding mineral, particularly in foundry related applications.Engineering design produced an efficient and scalable mineral processing plant capable of handing variations in feed from multiple deposits and produce p g p p pmultiple products. Commissioning commenced June 2011.

For

per

sona

l use

onl

y

LOCATION

• Deep Water Port

• Major Highway Connection

• Rail Access

• Process Site (full utilities)

L l Ai• Local Airport

• Logging – Natural Resources

• Population of Skilled Labor

For

per

sona

l use

onl

y

COOS COUNTY CHROMITE MINING CHROME LAKE - BANDON DUNES

Lagoons Deposit (Chrome Lake)(Chrome Lake) Bandon Dunes

For

per

sona

l use

onl

y

PROJECT HISTORY

Strategic mineral during WW II– Chromite– US Bureau of Mines Drilling

Krome and Humphreys Corporationso e a d u p eys Co po at o s– Krome Plant in Coquille– Bandon Dunes

Th i l d l ti– The spiral and relocation

ORC Drilling in 1990’s– Verification of USBM and USGS drilling– Extension into adjacent areas

Today– Commissioning / production– Exploration / resource addition

For

per

sona

l use

onl

y

Project Overview (cont.)

E t l i d it t i 43% h i l t t Unique mineral

Extremely unique deposit contains < 43% heavy mineral content covering >2,600 acres of terraced mineral sand near Coos Bay in Southern Oregon. Only emerging producer of foundry grade Chromite in the United States deposit in the United States. Existence of multiple minerals including Chromite, garnet, zircon,

magnetite/hi-iron product. Ore body relatively close to surface <60 f t d i f di ( bl t hi f t i l)

Growth platform

feet and is free dig ( no blast or crushing of material). Long term project based in Coos bay. Current resource of 10 years

expected to be increased to a mine life exceeding 20 years on a plant platform throughput rate of one million tpa.

Foundries that produce high value castings, require quality Chromite & i d E hi h lit fi i h d d th ft t High product

demand

& zircon sand. Ensures high quality finish and reduces the after cast costs of grinding and sanding (often result from using poor quality foundry sands). Stable pricing of niche market Chromite grades has been retained through the recent economic cycle as the majority of

been retained through the recent economic cycle as the majority of South African Chromite supply is driven by demand for ferrochrome.

Security of Secured mineral lease agreements with land owners.

All requisite permitting been applied and approvedSecurity of tenure

All requisite permitting been applied and approved. Leading environmental and legal consultants involved in project

permitting, environmental and third party review.

For

per

sona

l use

onl

y

Project Overview (cont.)

• ORC has been involved in the Coos Bay project development since 1990 with an investment of $100 million by time of commercial 1990 with an investment of $100 million by time of commercial production. Targeted mine life of 30 years, from ongoing exploration

• Value additions expected through new product stream and vertical

Long term project

opportunities Strong relationships with major distribution companies that include HA

International, Possehl.-Erzkontor & IGC TechnologiesSustainable

relationships

g 3+ years of material testing with foundries, using test material produced

from 100,000 tpa pilot plant. Positive test results with major foundries including Columbus Steel ME

Positive test results with major foundries including Columbus Steel, ME Global etc., have validated the unique attributes and quality of the material.

St t ith ll i j t l i li t i Strong management with all senior project personnel specialists in mineral sands. Established relationships with foundries, industry and the local

it i C B

Expertise of management community in Coos Bay.

g

For

per

sona

l use

onl

y

GEOLOGY - OREBODY GENESIS

Source– Klamath Mountains– Igneous and metamorphic

Transporta spo t– Rogue, Illinois, Coquille rivers– Long shore current

Deposition– Hook-like landforms– Wave segregation

PreservationPreservation– Subduction zone– Uplift and mountain buildingFor

per

sona

l use

onl

y

MINERAL SAND DEPOSITS

For

per

sona

l use

onl

y

TERRACE EXPLORATION

Terraces– Stair steps– Tectonically activated

Post Deposition ErosionPost Deposition Erosion– Incised valleys– Younger terrace formation

Peterson, C.D., Komar, P.D., and Scheidegger, K.F., 1986

For

per

sona

l use

onl

y

JORC RESERVES AND RESOURCES

Table 1. Summary of Ore Reservesy

Deposit Reserve Category

Ore Tons (short tons)

HM Grade (%)

Chromite Grade %

Garnet Grade %

Zircon Grade %

North Seven Devils Proved 948,469 33.67 11.79 2.62 0.63Section 33 Deposit Proved 205 664 19 48 8 54 1 41 0 34

In Situ Assemblage

Section 33 Deposit Proved 205,664 19.48 8.54 1.41 0.34Shepard Proved 755,859 42.87 10.05 5.41 0.60South Seven Devils Proved 793,500 28.74 12.49 2.81 0.83West Bohemia Proved 5,124,902 15.04 5.33 0.74 0.23West Section 10 Proved 30,000 18.00 6.00 1.00 0.30Westbrook Proved 824,344 21.90 8.53 1.00 0.43Grand Total Proved 8 682 738 21 5 7 5 1 6 0 4Grand Total Proved 8,682,738 21.5 7.5 1.6 0.4

Table 2. Summary of Mineral Resources

In Situ Assemblage

Deposit Resource Category

Ore Tons (short tons)

HM Grade (%)

Chromite Grade %

Garnet Grade %

Zircon Grade %

South Slough Indicated 2,593,000 --- 7.4 --- ---Pioneer Eagle Indicated 800,000 --- 13.8 --- ---Section 36 Deposit Indicated 121,400 --- 7.3 --- ---

In Situ Assemblage

Butler Indicated 121,480 --- 15.7 --- ---Rose Indicated 38,900 --- 14.4 --- ---Grand Total Indicated 3,674,780 --- 9.1 --- ---

For

per

sona

l use

onl

y

MINING 100% HMC IN PLACE

For

per

sona

l use

onl

y

MINERALS

Chromite – FeCr2O4

– Main commodity; only domestic source– Spherical/well rounded grains; well sorted– Marketed as foundry sand– Zircon replacement; value added productco ep ace e t; a ue added p oduct

Garnet – (Fe,Mg)2Al3(SiO4)3

– Water-Jet cutting medium

Zircon – ZrSiO4Zircon ZrSiO4

– Foundry sand– Tile glazingFor

per

sona

l use

onl

y

Wet Plant spirals

For

per

sona

l use

onl

y

SPIRAL CONCENTRATOR SEPARATION

For

per

sona

l use

onl

y

DRY SEPERATION

High Tension (Conductivity) Separation

For

per

sona

l use

onl

y

DRY SEPERATION

Magnetic Separation

For

per

sona

l use

onl

y

MINING AND RECLAMATION

Topsoil Removal– Berms around open pits

Ore Excavation and Screening– Grade control in-pit

Pebbles roots logs retained in pit– Pebbles, roots, logs retained in pit

Trucked to Coos Bay for ProcessingConventional wet process water– Conventional wet process water requirements too great

Tailings Returned to PitTailings Returned to Pit– Highway rated belly-dump truck

(low moisture required)

Reclamation Begins– Dry tailings = reclamation success– Grading plan executed– Grading plan executed– Timber, housing, golf course

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

RECLAIMED EXAMPLEF

or p

erso

nal u

se o

nly

REQUIRED PERMITS

PROCESSING PLANTPermit Permitted Activity Regulatory Agency

NPDES Individual Permit Stormwater Discharges DEQ

NPDES 1200C Permit Construction Stormwater DEQ

ACDP Air Discharges DEQ, DOGAMI

CUP Site Development and Use Coos County

MSHA ID Mine ID MSHA

MINE SITESMINE SITESPermit Permitted Activity Regulatory Agency

JPA Impacts to Wetlands DSL, Corps

MOP Mining DOGAMI

WPCF Stormwater Management DEQ, DOGAMI

CUP Site Development and Use Coos County

Radioactive Waste Exemption Disposal of Tailings DOE

Solid Waste Exemption Disposal of Tailings DEQ

Blockage of fish passage atFish Passage Plan Blockage of fish passage at NSD ODFW

ACDP Air Discharges DEQ, DOGAMI

For

per

sona

l use

onl

y

WHAT IS IT USED FOR?

For

per

sona

l use

onl

y

CHROMITE MARKET

For

per

sona

l use

onl

y

CHROMITE MARKET

GIFA 2011International Foundry Trade Fair

For

per

sona

l use

onl

y

CHROMITE MARKET

7000

8000

Chromite 7/11‐ 7/12

3000

4000

5000

6000

Short T

ons

Sales

0

1000

2000

S

Production

ForestmentResources Pty.Ltd. 富瑞盟资源有限公司

For

per

sona

l use

onl

y

CONVENTIONAL FOUNDRY CHROMITE MARKET

$400 00

$500.00

$600.00

Chromite, standard foundry, 46-47% Cr203, wet bulk, FOB

South Africa $/ ton$200.00

$300.00

$400.00

$-

$100.00

Apr-

09ay

-09

un-0

9Ju

l-09

ug-0

9ep

-09

Oct

-09

ov-0

9D

ec-0

9an

-10

eb-1

0M

ar-1

0Ap

r-10

ay-1

0un

-10

Jul-1

0ug

-10

ep-1

0O

ct-1

0ov

-10

Dec

-10

an-1

1eb

-11

Mar

-11

Apr-

11ay

-11

un-1

1

A M J J A S O N D J F M A M J J A S O N D J F M A M J

ForestmentResources Pty.Ltd. 富瑞盟资源有限公司

For

per

sona

l use

onl

y

CHROMITE MARKET

For

per

sona

l use

onl

y

PRODUCTION

Production at 95,000 TPY (Sales Capped for Garnet and Hi Iron)

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Tons Produced

Chromite 95,000 95,000 95,000 95,000 95,000

Garnet 16,502 16,045 19,505 25,808 10,875

Zircon 4,948 4,079 6,473 4,215 3,892

Hi Iron 27,863 27,996 70,176 90,033 90,273

Total 144,313 143,120 191,153 215,056 200,039For

per

sona

l use

onl

y

ECONOMIC IMPACT

75 DIRECT FULL TIME EMPLOYEES

187 INDIRECT JOBS (FACTOR OF 2 5x) 187 INDIRECT JOBS (FACTOR OF 2.5x)

$95 MILLION TOTAL CAPITAL EXPENDITURE (PLANT $58 MILLION)

$3.5 MILLION ANNUAL PAYROLL

$4 MILLION ANNUAL EXPENSES FOR GOODS AND SERVICES $4 MILLION ANNUAL EXPENSES FOR GOODS AND SERVICES

MINING & HAULING CONTRACT ~$7.5 MILLION ANNUAL EXPENDITURE

UTILIZATION OF THE NATURAL GAS LINE, RAILROAD AND MARITIME INFRASTRUCTURE

>140,000 TONS OF FINISHED PRODUCT SHIPPED YEARLY BY WATER, RAIL AND TRUCK

ROYALTY VALUE TO LANDOWNERS RANGES FROM $32,000 - $130,000 PER ACRE

For

per

sona

l use

onl

y

Product storage

For

per

sona

l use

onl

y

Wet plant

For

per

sona

l use

onl

y

Site view prior to completion

For

per

sona

l use

onl

y

PROCESS FACILITY

For

per

sona

l use

onl

y

INVESTMENT SUMMARY

• Plant commissioning underway

• Positive market demand for primary products

Strong balance sheet• Strong balance sheet

• Supportive shareholder baseSupportive shareholder base

• Growth potential with additional mineral suite

For

per

sona

l use

onl

y