SA Exploration and MiningConference Hon. Tom KoutsantonisTreasurer Minister for FinanceMinister for State DevelopmentMinister for Mineral Resources and EnergyMinister for Small Business

05 December 2014

OPEN THE DOOR TO SOUTH AUSTRALIA

October 2014 JUMEX SurveyAustralian junior mineral explorersTop ten issues – Exploration industry performance

Funding constraints at crisis point for some

Very strong competition for capital

Commodity price volatility is a major constraint

Regulatory challenges persist

Ongoing constraints will limit operational activities

Future discovery pipeline weak

Employment conditions remain depressed

Mergers and acquisitions outlook is up

Early signs of hope that investor interest may be starting to improve

Improvements will not be dramatic

SA Mineral and Petroleum Production Value2013-14: $7.5 billion ($5.6b – Minerals and $1.9b – Petroleum)

RECORD PRODUCTION

2000-1 to 2013-14

Olympic Dam – long life

Olympic Dam > 200 years resource life - longest life core asset of global mining major, BHP Billiton Contained resource:

78 Mt copper, 2.5 Mt uranium, 95 Moz gold & 307 Moz silver

world’s largest uranium deposit world’s 5th largest copper

deposit ~65% of Australia’s copper

resources

Resource Life - BHP Billiton’s core assets

SA Exploration ExpenditureMinerals and Petroleum exploration expenditure 1998-99 to 2013-14For 2013-14 $647.6 million ($531.3m – Petroleum and $116.3m – Minerals)

Source: ABS data cat. 8412.0 June 2014

Olympic Dam – way forward

2013-14 production

• 184 400t copper, 3988t uranium oxide, 121 335 oz gold, 972 000 oz silver

Lab scale leach testing at Bureau Veritas –results encouraging

Approved to construct heap leach pilot trial

Heap leach trial plan to commence construction Q4 2015

Execution of the 235 Project has begun to expand production by ~50 kt Cu

21 Mtpa Underground Expansion, to deliver ~450 ktpa copper from FY24 is expected to progress to pre-feasibility in 2015 (subject to approval)

GEO-MEMBRANE LINED COPPER HEAP LEACH IN ARIZONA, USA

SA Mineral Exploration Highlights 2014 - 1

Havilah Resources – Crozier Dam Cu prospect (January 2014)

Ironclad Mining – Hercules East Prospect - Mn (January 2014)

Musgrave Minerals – Menninnie Dam Pb–Zn discovery , Frakes Ag prospect (February 2014)

Adelaide Resources – Moonta Cu-Au Project, Alford West deposit (April, July 2014)

Marmota Energy – West Melton Cu Project, Champion discovery (April 2014)

Trafford Resources – Wilcherry Hill , Zealous Tin prospect ( April 2014)

Minotaur Exploration – Mingary Au Project (May 2014)

OZ Minerals – Khamsin IOCG deposit- Maiden Resource 202Mt at 0.6% Cu, 0.1g/t Au, 1.7g/t Ag and 86ppm U, for 1.1Mtcontained Cu, 900,000oz Au and 11Moz Ag (May 2014)

Centrex Metals - Kimba Gap Maiden Resource, 487Mt average head grade 24.7% Fe with DTR 18.5% (July 2014)

Archer Exploration –Campoona/Wilclo South, Australia’s largest graphite resource (August 2014)

Kalyan Resources /Orogenic Exploration Flinders Island micro diamond discovery (October 2014)

Havilah / MMG Exploration – Birsksgate prospect, new copper discovery (October 2014)

Investigator Resources - Paris Ag deposit, continuing significant results after Maiden Resource last year,5.9Mt 110g/t Ag and 0.6%Pb – for 20Moz Ag and 38kt Pb (October 2014)

Apollo Minerals – Commonwealth Hill- Titan Project Fe, ilmenite, apatite (November 2014)

SA Mineral Exploration Highlights 2014 - 2

SA Major Mining Developments 2014

Quasar Resources/Alliance Resource – Four Mile Uranium Mine opened (June 2014)

Havilah Resources – Portia Gold Mine Approved (October 2014)

Rex Minerals – Hillside Cu-Au Project Mineral Lease Approval (September 2014)

Iron Road – Central Eyre Iron Project DFS released (February 2014)

Oz Minerals – Carrapateena Cu-Au deposit PFS released (August 2014)

BHP-Billiton – Olympic Dam Heap Leach Trial Approval (September 2014)

Hillgrove Resources – Kanmantoo Cu mine additional Mining Lease and Revised PEPR (July 2014)

PACE – 10 years of economic impact

Fifteen significant exploration successes from collaborative drilling

Extra $700 million in private mineral exploration expenditure

Extra state mineral production value of $2.4 billion

PACE Frontiers - Collaborative Drilling Round 2015

Opening Date: 5th December 2014.

Closing Date: 30th January 2015.

Industry-Government partnership

Unlocking prospective frontiers

Driving drilling dollars further

PACE collaborative drilling – delivering results

For more details contact PACE General Manager – Miles Davies

SA Eastern Gawler Craton – 3D Model

SA Mineral Systems Drill Program 2015

The Department in partnership with DET CRC is embarking on a mineral systems drilling program in the eastern Gawler Craton.

Funding ~$2M (PACE Frontiers) Q1/Q2 2015 calendar year

Key benefits

More drilling metres for funds expended

Drill-rig mobilisation

Native title clearances will be undertaken by the

Department

Test DET CRC technology in the field, mineral

systems mapping concept and prospectivity indices

WUDINNAKIMBA WHYALLA

PORT AUGUSTA

IronDuke

PORT LINCOLN

MinotaurExploration

KingstonResources

Junior Explorers

Mineral Systems Drill Program – Target Region

Geoscientist Assistance Program (GAP) 2015

GAP Recommencing 2015– partnership with SACOME

2009 –2012 GAP Success– 33 placements with high

retention rate– 22 companies involved

AIG Report FindingsSignificant increase in exploration geoscientistsunemployment - 2014

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Thank you