ASX ANNOUNCEMENT 19 January 2009 The Manager Company Announcements - PDF document

ASX ANNOUNCEMENT 19 January 2009 The Manager Company Announcements Office Australian Securities Exchhange Investor Presentation – Share Placement We refer to the Company’s trading halt application of earlier today which referred to a proposed share placement and share purchase plan. We attached a copy of the presentation that will be used during meetings with investors in regard to the proposed share placement. For further information contact: Allan Ryan Pam Keenan Investor Relations Manager Communications Manager PanAust Limited Tel: +61 7 3117 2000 Email: info@panaust.com.au Website: www.panaust.com.au PanAust Limited ABN 17 011 065 160 Level 2, 99 Melbourne Street • PO Box 3468 • South Brisbane Qld 4101 Phone +61 (0) 7 3117 2000 • Facsimile +61 (0) 7 3846 4899 info@panaust.com.au • www.panaust.com.au

P AN A UST Company update, January 2009 Phu Kham Quarterly Result Phu Kham Operations 3 months to 12 months to Units Production summary 31 Dec 2008 31 Dec 2008 Total material mined t 6,230,533 18,673,473 Copper ‐ gold ore mined pp g t 2,723,029 , , 6,662,144 , , Copper head grade % 0.67 0.60 Gold head grade Gold head grade g/t g/t 0.31 0.31 0.36 0.36 Silver head grade g/t 2.83 2.87 Ore milled Ore milled t t 2,899,869 2 899 869 6,859,716 6 859 716 Concentrate produced dmt 51,621 100,899 Copper in concentrate Copper in concentrate t t 13,077 13 077 24 929 24,929 Gold in concentrate oz 10,413 25,261 Sil Silver in concentrate i oz 81,211 81 211 159 676 159,676 Gold in doré (Heap oz 5,598 20,961 Leach)

Phu Kham Quarterly Financial Result � Phu Kham provides US$9.4M operating surplus before sustaining capital � Revenue US$37.4M with 6,921dmt of copper in concentrate in stock at quarter end worth US$22M 1 � C1 Cash costs fell to US$1.07/lb in Dec. and are falling rapidly towards the sub- US$0 90/lb 2 target level for 2009 US$0.90/lb 2 target level for 2009 � Input costs falling: � Diesel 3 : Q3 US$0.99/t, now US$0.34/t � Steel 4 : Q3 US$1.84/t, now ~US$1.00/t 1 At US$1.45/lb copper 2 By product credit prices: US$700/oz gold and US$10/oz silver 3 Per tonne of material mined 4 Per tonne of ore milled Cash & Debt � US$6.2M cash at 31 December 2008 Loan facilities: � Project seven-year facility of US$185M fully drawn with mandatory repayment of ~US$22M in 2009 ~US$22M in 2009 � Subordinated US$80M debt facility with GSJBW 1 ; rolled over to maturity date of GSJBW 1 ; rolled over to maturity date of 31 March 2010; drawn to US$78M � US$47M equipment lease facility; fully � US$47M i t l f ilit f ll drawn � US$8M working capital facility; fully drawn � US$8M working capital facility; fully drawn 1 Goldman Sachs JBWere

Sub-Debt Refinance � Rothschild appointed advisor for refinance of US$80M GSJBW subordinated debt of US$80M GSJBW subordinated debt facility � Unsolicited third party interest has been p y received � Well advanced in securing firm proposals g � The refinance is expected to be completed during 1H 2009 Phu Kham Quarterly Reconciliation � Positive reconciliation of ore milled to ore reserve continued during the ore reserve continued during the December quarter: � Ore Tonnes: � Ore Tonnes: +2% +2% � Copper Grade: +9% � G ld G � Gold Grade: d +20% 20% � Silver Grade: +68%

Growth Projects � Phu Kham expansion to 16Mtpa study complete, long lead items secured; further capital commitment pending copper price recovery copper price recovery � Ban Houayxai Gold Project Pre- Feasibility Study completed; Feasibility Feasibility Study completed; Feasibility Study due December quarter 2009 � Puthep Copper Project resource drilling � Puthep Copper Project resource drilling complete, Feasibility Study resource estimate due June quarter 2009 � Capital projects will be advanced with caution until stability returns to global y g markets 2009 Project Cashflow � 2009 cash generation from Phu Kham Operations ~US$90M at a Cu price of O ti US$90M t C i f US$1.45/lb and US$800/oz gold � Aft � After debt service and mandatory senior d bt i d d t i debt repayments cash generation ~US$50M at US$1.45/lb Cu US$50M at US$1.45/lb Cu � 31 Dec 08 mark to market Quotation Period (QP) exposure ~US$35M 1 at Period (QP) exposure US$35M at US$1.45/lb copper to be managed through 2009 Cu sales � Policy of hedging 50% of QP exposure: over 8,700t Cu sold between January and April 2009 at ~US$1.45/lb copper 1 To be recognised in the 2008 Profit & Loss Account

2009 Cashflow & Funding � Private Placement – US$15M additional working capital: � Supplement US$8.1M working capital facility � Revenue payments 2 to 3 weeks apart � Revenue payments 2 to 3 weeks apart � Assist cashflow management � Share Purchase Plan – US$20M to US$25M working capital buffer and feasibility/exploration funding: � Working capital buffer to copper price volatility � Ban Houayxai Feasibility Study – US$5.0M � Puthep Feasibility Study – US$2.5M y y � Exploration – TBD Organic Growth Potential Heap leach gold Phu Kham gold + silver Phu Kham copper 1 1 1 Project 100 Project 100 Ban Houayxai Ban Houayxai Puthep (PNA share) Puthep (PNA share) 160 140 120 000's) 100 100 2 (t 0 er Eq. 80 Coppe 60 60 40 20 0 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 1 – Subject to feasibility study and other project approvals 2 – Copper equivalent assumptions: copper US$2.00/lb, gold US$800/oz, silver US$10/oz