2012 Slide 2
This presentation has been prepared by Royal Resources Limited (ABN 34 108 102 432) (“Royal”) based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Royal, its related bodies corporate, its or their directors, employees or agents, advisers, nor any other person accepts any liability for any loss arising from the use of or reliance on this presentation or anything contained in, omitted from or otherwise arising in connection with it, including, without limitation, any liability arising from fault or negligence on the part of Royal, its related bodies corporate or its or their directors, employees or agents.
The details contained in this report that pertain to ore and mineralisation is based upon information compiled by Mr Marcus Flis, a full-time employee of the Company. Mr Flis is a Fellow of the Australasian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit 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” (JORC Code). Mr Flis consents to the inclusion in this report of the matters based upon his information in the form and context in which it appears.
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This presentation is not an offer, invitation, solicitation or recommendation to invest in Royal and neither this document nor anything in it shall form the basis of any contract or commitment. The information in this presentation does not take into account the investment objectives, financial situation and particular needs of investors and does not constitute investment, legal, tax or other advice. Before making an investment in Royal an investor should consider whether such an investment is appropriate to their particular investment objectives , financial situation and particular needs and consult a financial adviser if necessary. This presentation does not purport to constitute all of the information that a potential investor may require in making an investment decision. Investments are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Royal does not guarantee the performance of the investment referred to in this presentation, the repayment of any capital invested or any particular rate of return.
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DISCLAIMER AND COMPETENT PERSON’S STATEMENT
2012 Slide 4
Issued Shares c306 million
Share Price $0.075
Market Capitalisation c$25 million
Cash c$6 million
CAPITAL STRUCTURE & SHARE HOLDINGS
Rank Name % 1 LODESTONE EQUITIES LIMITED 19.51
2 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 12.71
3 RAGGED RANGE MINING PTY LTD & ASSOCIATES 7.26
4 CITICORP NOMINEES PTY LIMITED 4.49
5 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 3 3.28
6 MR RICK WAYNE CRABB 1.47
7 NORILSK NICKEL AUSTRALIA PTY LTD 1.36
8 JP MORGAN NOMINEES AUSTRALIA LIMITED <CASH INCOME A/C> 1.18
9 MR FRANK DEMARTE 0.88
10 FORSYTH BARR CUSTODIANS LTD <FORSYTH BARR LTD-NOMINEE A/C> 0.88
11 THUNDELARRA EXPLORATION LTD 0.86
12 UOB KAY HIAN PRIVATE LIMITED <CLIENTS A/C> 0.72
13 MR CHING WOO GOH 0.72
14 WESTESSA HOLDINGS PTY LTD 0.66
15 MR ROSS SPENCER 0.64
16 RENIQUE HOLDINGS PTY LTD <RANDALL SUPER FUND A/C> 0.56
17 MR MARCUS FLIS 0.55
18 MR EDWIN L DAVIES + MRS SUSAN L DAVIES <L & S DAVIES SUPER FUND> 0.53
19 BNP PARIBAS NOMS PTY LTD <DRP> 0.51
20 MR WILLIAM JANSEN + MRS MARILYN GAIL JANSEN <W & M G JANSEN S/F> 0.49
Totals: Top 20 holders of ORDINARY SHARES (198852427 shares) 59.24
Total Remaining Holders Balance (136800603 shares) 40.76
2012 Slide 6
CORPORATE
Lodestone Equities Limited bought out the SinTang Development Pte Ltd
block of Royal shares and has become a significant shareholder in Royal
A capital raising of approx. $3.7 Million was undertaken at a 14%
premium to the market share price at the time. The placement was made
to Lodestone
Mr Brian Richardson resigned as a Non-executive Director
Mr Tony Heslop was appointed Company Secretary
A strategic decision was made to completely exit the Pilbara
Launch of the company’s newsletter, “Razorback”
2012 Slide 10
NON CORE PROJECTS
Royal exited the Pilbara on the basis of the stranded nature of the
prospects and the lack of size potential
The Warriedar Iron and Gold JVs were exited for a total consideration of
$8 million, alleviating the need for capital raising during the year
Successfully finalised the disposal of the bulk of our US uranium assets to
TSX listed Aldershot Resources Ltd
Buyers are being sought for the Fields Find and Water Tank tenements in
WA, with only minor field work been undertaken during the year
Drilling on our NT uranium tenements did not return any significant
results with work now being curtailed going into the wet season
2012 Slide 11
RED DRAGON VENTURE – FOUR AREAS ESTABLISHED & TWO AREAS EXPLORED
Razorback
Iron Peak
Iron Back Hill
Interzone
Dragon’s Head
Manunda
2012 Slide 12
RED DRAGON VENTURE: 3 Billion tonnes in total resources
In two years, Royal has grown the total resource to 3 Bt, the second largest resource in Australia and the largest outside WA
Three deposits have been defined
Total costs in defining those Resources is less than $0.009/t
Sufficient resources now exist for a PFS on two separate projects
2012 Slide 13
RAZORBACK PREMIUM IRON PROJECT : 1.8 Billion tonnes of resources
JORC Resource Classification
Million Tonnes
Fe% SiO2% Al2O3% P%
Inferred 621 19.9 45.6 7.40 0.24 Indicated 1193 21.5 43.3 7.07 0.20 Total 1815 21 44.1 7.2 0.22
Current Inferred and Indicated Resources at the Razorback Deposit stand at:
Importantly, the indicative product grade is a premium grade concentrate*:
Premium Product Yield% Fe% SiO2% Al2O3% TiO2% V2O5% P% S%
Magnetite 16.3 68.3 3.80 0.43 0.098 0.017 0.013 0.003
LG Product Yield% Fe% SiO2% Al2O3% TiO2% V2O5% P% S%
Haematite 5.8 58.5 11.78 0.97 0.702 0.019 0.102 0.015
with the potential to increase yield to c22% by recovering a haematite concentrate*:
* Indicative grades only. Final product specification will depend on the final adopted flow sheet and project economics
2012 Slide 14
RAZORBACK PREMIUM IRON PROJECT: Pre-Feasibility Study near completion*
Completed To be done
Pit optimisation with annual
mining schedule
Beneficiation plant – flow sheet
Train load-out and transport to Pt
Pirie
Slurry pipeline options
Ship loading options
Water options
Power draw & options
Full equipment list
CAPEX estimates
OPEX estimates
Risk analysis
Financial Model
Getting the PFS in on time is nice, Getting it right is essential!
*Results of the PFS are due for release on its completion; currently planned for the end of 2012
2012 Slide 19
An exploration Native Title Mining Agreement is in place
A mining Native Title Mining Agreement has begun to be negotiated in
preparation for a Mining Licence Proposal application
A compensation package for the mining NTMA is likely to include
(based on peer packages):
• A monetary per tonne exported amount
• A commitment to employ aborigines
• Education and vocational training scholarships
• Cultural enhancement programmes
RAZORBACK PREMIUM IRON PROJECT : Native Title
2012 Slide 20
Source: Brook Hunt, BREE, Credit Suisse, Aug ‘12
RAZORBACK PREMIUM IRON PROJECT : Scoping Study Financials
Range of RPIP CFR OPEX
* Based on preliminary assessment; to be finalised CFR: Cost & Freight Source: Credit Suisse, Metalytics, Aug ‘12
Over 800Mt of higher cost iron ore needs to drop out of the seaborn iron market before affecting the RPIP product – RPIP is robust*
RPIP
*
2012 Slide 22
RAZORBACK PREMIUM IRON PROJECT : Next steps
2012 2013 2014 2015 2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Drilling to define min 1Bt
Pre Feasibility Study (PFS)
PFS Optimisation
Feasibility Study Funding
Feasibility Study
Permitting & Native Title
Project Financing
Board Approval
Design & Procurement
Construction & Commissioning
Razorback Start-up