April 2011 June 2011 1 Statements contained in this presentation - - PowerPoint PPT Presentation

April 2011

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June 2011

Statements contained in this presentation which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices for uranium and rare earths; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in political support for nuclear energy and rare earth technologies; changes in government regulations and policies, including trade laws and policies; demand for nuclear power and rare earth products; failure to obtain necessary permits and approvals from government authorities; weather and other natural phenomena; and other exploration, development, operating, financial market and regulatory risks. Although Stans Energy Corp. believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this release. Stans Energy Corp. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise Cautionary Note to United States and Other Investors Concerning Estimates of Measured, Indicated and Inferred Resources: Certain tables may use the terms “Measured”, “Indicated” and “Inferred” Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, however, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable. 2

Stans Energy is focused on re-starting a past producing Rare Earth Elements mine and processing facility in Kyrgyzstan Kutessay II Mine:

• Past producing open pit mining operation
• Produced equal quantities of heavy and light rare earth elements
• Known metallurgical processes
• 20-year mining license in place

Kashka Rare Earth Processing Facility (KRP):

• Processed ore from Kutessay II Mine for 30 years
• Produced 120 metal, alloy, and oxide products
• Under care-and-maintenance since 1991
• Private rail terminal provides access to Russia, Europe, and Asia

Strong Board, Technical Advisors, and Management:

• Many involved with Kutessay II and the KRP prior to 1991

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Stock Exchange HRE (TSX-Venture) Shares Outstanding

as at September 9, 2011

152,303,186 Warrants 8,646,476 Options 14,513,333 Total (fully diluted) 160,615,653 Market Cap C$130 m Share price (Oct. 17) C$0.86 52 week high/low C$3.40 / C$0.52 Net cash C$20 m Debt Nil

Major REEs to be produced by Stans Energy Properties Industry Use Yttrium Terbium Reduces Europium Weight Dysprosium Emissions Gadolinium Energy Consumption Holmium Erbium Allows Thulium Greater Efficiency Luteium Performance Ytterbium Miniaturizatoin Lanthanum Speed Cerium Durability Praseodymium Thermal Stability Neodymium Samarium

High Tech Defense Applications Hybrid Electric Vehicles Green Tech Water Treatment Other Applications

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50,000 100,000 150,000 200,000 250,000 2005 2006 2007 2008 2009 2010 2011f 2012f 2013f 2014f 2015f

ROW Supply China Supply China Demand Adjusted Global Demand

(Tonnes of REO)

Global REE Demand Pacing to Outstrip Supply

Source: IMCOA – Industrial Mineral Company of Australia

Source: US Department of Energy

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Kyrgyzstan

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CHINA

RUSSIA

JAPAN EUROPE

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• 100% ownership of former Soviet-era mine
• Produced 80% of FSU’s REE needs
• March 2011: Pit-contained mineral resources

– Measured + Indicated: 45,650 tonnes of contained TREO – Inferred: 3,560 tonnes of contained TREO

• Preliminary Feasibility Study (PFS) to be completed by end
• f 2011
• 20-year mining license and all permits are in place
• Adjacent beryllium deposit provides additional upside

– 9.245 million tonnes grading 0.128 % BeO***

***Based on historical reserves

Kutessay II Kutessay III Aktyuz

Aktyuz Ore Field: Kutessay II REE Mine And Exploration Areas

Kalesay

Historic Mill

Kutessay II REE Mine

• Beryllium deposit with historical reserves of С1+С2

category: ore – 9,245,000 t., containing 11,701 t

• f Beryllium oxide at an average grade of

0.128%*(confirming resource estimate with JORC report)

• Beryllium oxide price is >US$700,000/t
• Kalesay will be mined concurrently when Kutessay

II pit-wall is knocked back.

• Increasing Beryllium reserves is possible through

exploration of deposit pit flanks and to the depth.

• More than 70% of total reserves of the deposit

can be mined by open pit

*Reserve estimate from historical Soviet data, not NI 43-101 compliant and should not be relied on

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Kutessay II Kalesay

Kutessay II Kalesay

Classification of beryllium deposits by grade and reserves

(McLemore, 2010)

Kutessay II Kalesay

Open Pit Kutessay-II Southern Ore Zone Northern Ore Zone

View of Kutessay II open pit and Kalesay ore zones

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• Primary goal of the exploration drilling at the

Aktyuz Orefield license area in 2011 is the expansion of Kutessay II and the Aktyuz REE deposits

• At Kutessay II a 2100m drill program will explore

below the 2100m level of the Kutessay mine bottom.

• Kutessay II drilling will consist of four 450-570m

holes.

• At the Aktyuz mine, a 900m drill program will

explore the Aktyuz deposit in order to study the geological potential of recently discovered ore- bearing zones.

• Aktyuz drilling will consist of three 300m holes.

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• 100 % ownership
• Processed Kutessay II ores for 30 years
• 120 metal, alloy, and oxide products
• Under care and maintenance since 1991
• Private Rail Terminal provides access to

Asia, Europe, and Russia

• Facility originally designed by VNIIHT, one
• f Stans Energy’s core consultants

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30 year proven track record of 99.99% oxide production

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REE Breakdown by Value

(FOB prices in USD October 2011)

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HREE LREE

Element Oxide REEs % REO USD/kg Dysprosium Dy 6.14 2,300 Yttrium Y 26.73 133 Terbium Tb 1.55 3095 Neodymium Nd 8.18 265 Europium Eu 0.23 4110 Erbium Er 3.25 245 Praseodymium Pr 3.78 230 Gadolinium Gd 3.59 172 Samarium Sm 4.1 95 Holmium Ho 0.57 397 Thulium Tm 0.25 790 Ytterbium Yb 3.29 155 Lutetium Lu 0.5 1,325 Cerium Ce 19.68 55 Lanthanum La 16.55 58

Based on historic production

VNIIHT’S ROLE

• Stans Energy’s feasibility studies (Q4 2011) will be conducted

under the guidance of VNIIHT. VNIIHT’s sixty years of chemical technology experience combined with their capabilities of executing the complete cycle of rare earths research, development, and production will give Stans Energy a significant advantage relative to its competitors.

• VNIIHT will also assist with evaluation and acquisition of
• ther HREE properties in areas of the Former Soviet Union

(FSU)

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VNIIHT ACHIEVEMENTS

 Technologies developed in the Institute became the production cycle base for over 20 hydrometallurgical plants  Over 150 sorbents, extractants and resins were engineered  Over 3600 developments were industrially implemented  Over 2600 inventors certificates and patents were issued  7 minerals were discovered  Over 100 PhDs are employed

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Kyrgyz-Russian Slavic University VNIIHT GEOTEP IGPMG RAS ARRIMR Russia Kyrgyzstan Canada

Honorary Consul of the Kyrgyz Republic for Canada 24

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CORPORATE STRATEGY

• Complete Preliminary Feasibility Study by the end of Q4

2011

• Updated mineral resource statement
• First opportunity to present mineral reserves
• Bankable Feasibility Study expected in H2-2012
• Advance off-take agreement discussions with end users
• Continue to explore:
• Deep drilling of areas of know mineralization
• Refurbish Kashka Rare Earth Processing Facility (KRP)
• Optimize recovery process with new technology
• Build out operating and construction teams
• Assess HREE and joint-venture opportunities

Chairman of the Board; RODNEY IRWIN, MA , Honorary Consul of Kyrgyz Republic in Canada

From 1972 to 1974, Rodney joined the Department of External Affairs, in Ottawa, then in 1978 through to 1980, he served abroad in New-Delhi, Moscow & Port of Spain. From 1988 to 1990 Rodney served as High Commissioner, then in 1992, was named Ambassador to Yugoslavia. Due to the war with Croatia, he served as Ambassador to Albania, Bulgaria, Slovenia & Croatia. From 1993 to 1996, he was Ambassador to Hungary while retaining his Balkan country

• accreditations. From 1999 to 2003, he served as Ambassador to the Russian Federation with concurrent

accreditation to the Republics of Armenia & Uzbekistan.

President, CEO & Director, Stans Energy Corp; ROBERT MACKAY, BSc Mining

Robert worked in various facets of Mineral Exploration from 1969 to 1975 including diamond drilling, geophysics, geological mapping and prospecting. In 1975, Robert graduated from the Haileybury School of Mines. From 1975 to 1980, he gained extensive experience in mining, including mine planning, surveying, grade control, industrial engineering, open pit and underground production. Robert graduated from The South Dakota School of Mines Technology in 1980 with a Mining Engineering Degree and over the next twenty years he worked in the investment business and was a Vice President of two national investment firms. In 2000 Robert started a consulting business and

• ver the next 5 years he worked as a Project Engineer on projects in Canada, United States, China and Africa.

26 Chief Operating Officer & Director; BORIS ARYEV, MSc, Peng

After migrating to Canada in 1983, he worked as a software development consultant with NCR Canada Limited & OPTIMOD Inc. until 1986 and then with Verifact Inc. until 1996. In 1990, Boris became and still is President of Marhope Systems Inc., providing management and consulting services to both public and private sectors. Boris is the founding Director of the Canada-Eurasia-Russia Business Association, founder and chairman of its Mining & Northern Development Committees and co-founder of IEC Minerals Working Group.

Managing Director of STANS ENERGY KG; DR. GENNADY SAVCHENKO, CGeol, FGS, Qualified Person (QP)

• Dr. Savchenko graduated from Frunze Polytechnical Institute with a Mining Engineer-Geologist Diploma and Ph. D in Geology

& Mineralogy in 1971, then worked till 1981 in exploration & mining enterprises for Uranium in Kazakhstan, East Germany and China. From 2000 to 2002, Dr. Savchenko was Deputy Chief in the Department of Geology & Investment for the Kyrgyz State Geology & Mineral Resources Agency.

Director; DR. DOUGLAS H UNDERHILL, CPG, PhD, MSc, BA (Geology), MBA, Qualified Person (QP)

From 1993 to 2002, Doug was a Uranium Resource & Production Specialist for International Atomic Energy Agency in

• Vienna. He has over 40 years of minerals industry experience with nearly 30 of those years dedicated to uranium

(including experience in Kazakhstan & Uzbekistan). As Senior Consultant with Nuclear Assurance Corporation (USA), he is responsible for consulting on Uranium supply strategy and maintaining a worldwide uranium production projects database. Doug represented IAEA in Joint IAEA-NEA Uranium Group. Has an MBA in Strategic Planning & Finance.

Chief Financial Officer; LENA MASTERS, CGA, B. Law, BA (finance)

Masters has over 12 years of financial and operational experience in the investment industry, overseeing financial functions of public companies in Canada and companies with capitalization of over EUR 100 million internationally (US, Jersey, Cyprus, Eastern Europe). Masters served as CFO of Sino Vanadium Inc. TSX: SVX and JJR Capital Corp. (including its predecessor JJR Capital Partners), a private equity merchant bank based in Toronto.

27 Vice - Chairman of the Board; Gordon R Baker, Q.C.

In 1972, Gordon was called to the Bar of Ontario, then in 1983, he was appointed to the Queens Counsel. A highly regarded corporate law specialist, Gordon holds extensive experience in business law (mergers, acquisitions, joint ventures, financing & structuring) and has acted as counsel (including as a registered lobbyist) advising on government relations (strategic planning, negotiation, compliance issues).

Advisor; DR. GENNADY SARYCHEV

Director of the Leading Research Institute of Chemical Technology (VNIIHT) is a former professor of the Moscow Engineering Physics Institute. He has held the position of Director/Department Head of the following institutions: Department of Scientific Research and Development, Department of Scientific Research Work, Department of State Policy on Science, Innovations and Intellectual Property, Department Head of Planning and Construction of Infrastructure Objects for Special Economic Zones. Dr. Sarychev adds invaluable experience in areas of international cooperation.

Advisor; MR. JAMES ALLAN BASc (Geological Engineering) MSc (Geology, Engineering)

• Mr. Allan is a Registered Professional Engineer with the Association of Professional Engineers, Geologists and Geophysicists
• f Alberta (APEGGA). James has over 45 years of experience working with several major mining and petroleum companies

and as an independent consultant in mining exploration and exploration management, mineral property evaluation and mining geology. James has been involved in the exploration for, and evaluation of, rare earth deposits both as manager of exploration in Canada for a large rare earth company from 1982 to 1990 and as an independent consultant.

Advisor; DR. VALERY KOSYNKIN; Ph.D., Professor

• Dr. Kosynkin graduated with degree in Chemistry at Moscow State University in 1958. From 1959 until the present, Dr.

Kosynkin has been employed by Russia's State Institute of Chemical Technologies (VNIIHT). Since 1973, he has been in charge of VNIIHT's research and development of REEs chemistry and technology. Dr. Kosynkin was twice a recipient of USSR and Russian government awards for his work in the REEs industry. Through his time with VNIIHT, Dr. Kosynkin held the following positions - Chief of Laboratory, Head of the REEs Department, and at present, he presides as an Advisor.

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Advisor; DR. MARAT I FAZLULLIN

Leading Russian expert on uranium, gold, and rare earths. Dr. Fazlullin is a renowned Professor, Doctor of (engineering) Science, member of the Mineral Resources International Academy and an Honorable Geologist of the Russian Federation. He has written over 300 publications on Uranium and gold-ore deposits including treatment by the heap and underground leaching methods. He also lead prospecting teams and expeditions for poly-metallic, mercury deposits, oil and gas fields located in Kyrgyzstan, Tajikistan & Algeria as a Chief Engineer.

Advisor; MR. JAMES B. HEDRICK

• Mr. Hedrick is a rare-earth elements, scandium, yttrium, thorium, zirconium, hafnium, and the mica group of minerals
• expert. James possesses a wealth of knowledge with over 31 year of experience in Mineral commodities. Mr. Hedrick

served as Chairman and Executive secretary of the U.S. Government’s Minerals, Metals, and Materials Advisory Board from 1981 to 1995, and chaired two sessions on the rare-earth elements and one on strategic and critical minerals for The Society for Mining, Metallurgy, and Exploration (SME).

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Kyrgyzstan Foreign Investment

• New Kyrgyz Government has made mining and property rights its number 1 and 2 priorities in terms of

foreign investment

• The Basic Foreign Investment Law, adopted in June 1991, allows foreign investors full use of their profits,

including unlimited export of profits in the form of foreign currency or merchandise.

• Foreign firms also enjoy considerable tax advantages, which extend to Kyrgyz partners in joint ventures.
• Investors are granted relief from import duties on materials needed to establish a business, and they

continue receiving tax relief for up to five years, depending on their type of business.

• After that time, several other types of tax relief are available, including various forms of reinvestment in

Kyrgyzstan's economy.

Mining in Kyrgyzstan

• In contrast to the previous regimes, the current government is enhancing the procedure for obtaining

exploration licenses in favor of the mining companies.

• As for the general licensing procedures, the laws stick to a more transparent procedure providing for

issuance of a license on a “first come first served” basis.

• As opposed to licensing, concession and production sharing agreement regimes should allow companies to

negotiate with the state individual terms that meet the companies’ needs.

• Additionally, in order to avoid the state courts, the concession or production sharing agreement can provide

for the jurisdiction of international arbitration courts if any legal disputes occur.

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Current Basket Price/kg: $317 USD

• Prices as of October 2011

Prices are FOB China

500mt 1500mt

Output/mt %-REO mt REO $/kg $/mt Annual CF Output/mt %-REO mt REO $/kg $/mt Annual CF

Nd 8.2 40.9 265.00 265,000.00 10,838,500.00 Nd 8.2 122.7 265.00 265,000.00 32,515,500.00 Dy 6.1 30.7 2,300.00 2,300,000.00 70,610,000.00 Dy 6.1 92.1 2,300.00 2,300,000.00 211,830,000.00 Tb 1.6 7.8 3,095.00 3,095,000.00 24,141,000.00 Tb 1.6 23.4 3,095.00 3,095,000.00 72,423,000.00 Eu 0.2 1.2 4,110.00 4,110,000.00 4,932,000.00 Eu 0.2 3.6 4,110.00 4,110,000.00 14,796,000.00 Y 26.7 133.7 133.00 133,000.00 17,782,100.00 Y 26.7 401.1 133.00 133,000.00 53,346,300.00 Ce 19.7 98.5 56.00 56,000.00 5,516,000.00 Ce 19.7 295.5 56.00 56,000.00 16,548,000.00 La 16.6 82.8 59.00 59,000.00 4,885,200.00 La 16.6 248.4 59.00 59,000.00 14,655,600.00 Sm 4.1 20.5 96.00 96,000.00 1,968,000.00 Sm 4.1 61.5 96.00 96,000.00 5,904,000.00 Pr 3.8 18.9 231.00 231,000.00 4,365,900.00 Pr 3.8 56.7 231.00 231,000.00 13,097,700.00 Gd 3.6 18 171.00 171,000.00 3,078,000.00 Gd 3.6 54 171.00 171,000.00 9,234,000.00 Yb 3.3 16.5 155.00 155,000.00 2,557,500.00 Yb 3.3 49.5 155.00 155,000.00 7,672,500.00 Er 3.3 16.3 245.00 245,000.00 3,993,500.00 Er 3.3 48.9 245.00 245,000.00 11,980,500.00 Ho 0.6 2.9 398.00 398,000.00 1,154,200.00 Ho 0.6 8.7 398.00 398,000.00 3,462,600.00 Lu 0.1 0.3 1,325.00 1,325,000.00 397,500.00 Lu 0.1 0.9 1,325.00 1,325,000.00 1,192,500.00 97.9 409.2 97.9 1467

156,219,400.00 468,658,200.00

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Kutessay III

TSX-V: HRE OTCQX: HREEF

STANS ENERGY CORP. 8 King St. East, Suite 205 Toronto, ON, M5C 1B5 Tel: 647 426 1865 Fax 647 426 1869 www.stansenergy.com info@stansenergy.com

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