Taronga Tin Project –Update on Preliminary Feasibility StudyUpdate on Preliminary Feasibility Study

12 February 201412 February 2014

Disclaimer

Forward Looking StatementThis presentation may contain certain statements and projections provided by or on behalf of Aus Tin Mining Limited (Aus Tin Mining) with respect to the anticipated future undertakings. These forward-looking statements reflect various assumptions by or on behalf of Aus Tin Mining. Accordingly, these statements are subject to significant business, economic and competitive uncertainties and contingencies associated with exploration and/or mining which may be beyond the control of Aus Tin Mining which could cause actual results or trends to differ materially, including but not limited to price fluctuations, exploration results, reserve and resource estimation, environmental risks, physical risks, legislative and regulatory changes, political risks, project delay or advancement, ability to meet funding requirements, factors relating to property title, native title and aboriginal heritage issues, dependence on key personnel, share price volatility, approvals and cost estimates. Accordingly, there can be no assurance that such statements and projections will be realised. Aus Tin Mining makes no representations as to the accuracy or completeness of any such statement of projections or that any forecasts will be achieved.

Additionally, Aus Tin Mining makes no representation or warranty, express or implied, in relation to, and no responsibility or liability (whether for negligence, under statute or otherwise) is or will be accepted by Aus Tin Mining or by any of their respective officers, directors, shareholders, partners, employees, or advisers as to or in relation to the accuracy or completeness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or any omission from this presentation or of any other written or oral information or opinions provided now or in the future to any interested party or its advisers. In furnishing this presentation, Aus Tin Mining undertakes no obligation to provide any additional or updated information whether as a result of new information future events or results orundertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in Aus Tin Mining Limited.

Competent Persons StatementThe information in this presentation that relates to Exploration Results is based on information compiled by Mr Nicholas Mather B.Sc (Hons) Geol., who is a Member of The Australian Institute of Mining and Metallurgy. Mr Mather is employed by Samuel Capital Pty Ltd, which provides certain consultancy services including the provision of Mr Mather as a Director of Aus Tin Mining. Mr Mather has more than five years experience which is relevant to the style of mineralisation and type of deposit being reported 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, Minerals Resources and Ore Reserves’ (the p g p (JORC Code). This public report is issued with the prior written consent of the Competent Person(s) as to the form and context in which it appears.

The information in this Announcement that relates to Mineral Resources is based on information extracted from the report entitled “Maiden JORC Resource Estimated for the Taronga Tin Project” created on 26th August 2013 and is available to view on www.austinmining.com.au Aus Tin Mining confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves that all material assumptions and technical parameters underpinning the estimates

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in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Aus Tin Mining confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement

Summary

Updated Pre-Feasibility Study (PFS) for Taronga Tin Project due during the quarter − PFS delayed following a review of the Project in late 2013 to improve financial metrics

L i i CAPEX d OPEX tt ib t bl t l t i ti− Lower mining CAPEX and OPEX attributable to lower strip-ratio− Lower plant CAPEX following revised production rate of 2.5Mtpa− Areas of upside identified and to be evaluated during Bankable Feasibility Study (BFS)

i l di ti b d t dit d i i t t i iincluding tin recovery, by-product credits and owner mining vs contractor mining

Proposed Future Funding Models− BFS funding from mezzanine finance and/or partial asset saleg p− Project construction funding from project finance, off-take finance and other

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Revised mine design to deliver lower CAPEX and OPEX in early years

Focus on reduced mining costs− Work being undertaken by GHD

P li i Whittl ti i ti t− Preliminary Whittle optimisation generates reduced strip ratio (0.9x) pits in early years^

− Significant reduction in total movement^ compared to Newmont* design in early yearscompared to Newmont design in early years

Mine ProductionYears 1-3

ANW^ Newmont*

Ore (Mt) 7 5 Mt 11 1 MtNorthern Zone Pits 1 to 3

Ore (Mt) 7.5 Mt 11.1 Mt

Waste (Mt) 6.7 Mt 20.1 Mt

Total (Mt) 14.2 Mt 31.2 Mt

− Reduced pre-production costs attributable to

Attributable OPEX Reduction ($M)#

$60M

p plower strip ratio and revised site layout

^ Preliminary mine schedule based initial optimisation but subject to finalisation as part of the Updated PFS

Southern Zone Pits 1 to 3

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*Newmont Holdings Pty Ltd Relinquishment Report October 1984# Attributable OPEX reduction based on a mining 17Mt less material in Years 1 to 3

Emphasis on reducing Plant CAPEX in early years

Focus on reducing Plant CAPEX in early years− Work being undertaken by DRA PacificWork being undertaken by DRA Pacific− Initial production rate of 2.5Mtpa

i. Plant 30% smaller than Newmont* designdesign

ii. Reduced CAPEX by utilising modular equipment where possible

iii Reviewing tailings disposal optionsiii.Reviewing tailings disposal options− Revised plant layout closer to power

and water with less civil work required− BFS to evaluate use of centrifugal

Example of a modular crushing plant

− BFS to evaluate use of centrifugal separators to replace tables

Potential remains to expand operations at future date

5.*Newmont Relinquishment Report October 1984

Location, location, location

Proposed Project Site

8km to Emmaville

E ill

Existing Power

New England Hwy 27kmEmmaville

Existing Power @6km

Glen Innes 42km

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Updated PFS is progressively addressing the Operating Risks

Operating Risk Consultant Progress

Resource Model MiningOne − Mineral Resource (JORC 2012) completedResource Model MiningOne Mineral Resource (JORC 2012) completed

Mining GHD − Preliminary optimisation and mine scheduling undertaken− Preliminary mine OPEX undertaken

Metallurgy / Processing DRA Pacific − Metallurgical flow sheet confirmed and material balance completed

− Engineering estimate almost completed for CAPEX to ±25%P li i i OPEX d t k− Preliminary processing OPEX undertaken

Infrastructure GHD − Preferred water supply identified− Availability of power confirmed

P f d it f t d t ili b ildi id tifi d− Preferred sites for waste dumps, tailings, buildings identified

Marketing ANW − Provisional concentrate off-take terms received

Upside Potential − Additional tin recovery, specifically fine tinp(to be confirmed during BFS)

y p y− By-product credits, including copper & silver− Mining OPEX savings by employing smaller equipment

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Objective is to also reduce the funding risk to production

M i

Target Funding Structure Proposed funding for BFS work− Mezzanine finance

MezzanineRoyalty

Asset Sale Equity − Partial asset divestment Target funding for Construction

− Project FinanceProject Finance

Financing -Offtaker

Project Finance− Financing Other to possibly include

Equipment Finance or Export Credit Agency (ECA) with Supplier finance

Finacing Other

( )− Financing Off-taker to possibly include

subordinated debt or pre-payment Minimise equity contributionq y

CEO has over 11 years banking & finance experience in the resourcesCEO has over 11 years banking & finance experience in the resources sector, including project finance at BankWest, ANZ and NAB - and understands what’s required to get funding

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Why Taronga Tin should be attractive to Project Financiers

Attributes of the Taronga Tin Project

Low Operating Risk - Mining via open cut with low strip ratio and minimal pre-development- Simple metallurgy reduces complications for tin recovery and commissioning

P d ti f di d t t (55%) t bl t lt- Production of a medium grade concentrate (55%) acceptable to smelters

Other Risks - Project located in NSW with low political risk- Low landowner risk- Initial 2013 environmental assessment identified no material risks#

Low Financing Risk − Forecast short payback with significant Reserve Tail− Forecast sound financial ratios

# based on Review of Environmental Factors completed in July 2013 but more comprehensive studies p y pwill be completed in conjunction with the Environmental Impact Statement

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Focussed program and clear path for developing the Taronga Tin Project

2014 2015 2016 2017

Project Development

Pre-Feasibility Study

Bankable / Definitive Feasibility Study

Project Finance / Funding

Construction

Commissioning / OperationsCommissioning / Operations

Statutory Approvals

Environmental Impact Statement / Development ApplicationMining Leaseg

Other, including Local & Commonwealth

10.

Value Proposition

Short term− Uplift in Enterprise Value based on average EV/t multiple of $310/t for companies which

have completed a PFS (refer below)have completed a PFS (refer below)

Moving into

Completion

Development & Production

Completion of PFS

1 Peer multiples based on share price at 11/02/14

Medium / Long Term− Potential to accelerate project development by securing Project Construction funding

1 Peer multiples based on share price at 11/02/14

11.

− Re-rating based upon production multiple

Summary

Updated PFS due to be completed this quarter− Delivery of PFS delayed to enable project review to improve financial metrics

P li i lt i di t i ifi tl i d hfl ti l l i l− Preliminary results indicate significantly improved cashflow, particularly in early years Proposed Future Funding Models

− BFS funding from combination mezzanine finance and/or partial asset divestment− Project construction funding from project finance, off-take finance and other

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Current Tin Price and LME stocks

Source: ITRI February 2014

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Source: ITRI February 2014