COPPER EXPLORATION IN CHILE: A white-hot investment opportunity - - PowerPoint PPT Presentation

COPPER EXPLORATION IN CHILE:

A white-hot investment opportunity

Investor Presentation – May 2012

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Disclaimer

Disclaimer Notice

This Company Profile contains certain forward – looking information and forecasts. Such forecasts, projections and information are not a guarantee of the Company’s future performance and include unknown risks and uncertainties. Accordingly, the actual results and developments may differ from those expressed or implied. Southern Hemisphere Mining Limited (“SUH “ or “Company” ) makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness

• f, or any errors in or omission, from any information, statement or opinion contained in this presentation.

Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. You should conduct your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinion contained in this presentation.

Competent Person Statement

Information of a scientific or technical nature in this report was prepared under the supervision of Trevor Tennant, Managing Director of SUH who is a member of the Australasian Institute of Mining and Metallurgy. Mr. Tennant has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a “competent person” as defined in the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Tennant has reviewed and approved the information contained in this Company Profile. For further information regarding the projects, including a description of SUH’s quality assurance program, quality control measures, the geology, samples collected and testing procedures in respect of SUH’s projects, please refer to the Technical Reports and News Releases

• n the Company’s website at www.shmining.com.au.

Introduction

Dual-listed international resource company:

• ASX (SUH) and TSX-V (SH)

Operating in Chile since 2007:

• world’s largest copper producer: strong mining history
• politically stable: well-developed financial & banking

sector

Strong portfolio of well located mineral properties:

• Ten highly prospective copper-gold projects
• One advanced manganese project + iron sands

project

Recent focus over 9 months on rapidly emerging Llahuin Copper-Gold Project:

• Maiden resource of 318kt Cu, 307koz Au
• Desktop Scoping Study underway on initial project

producing 45-50ktpa copper

• Central Hub Strategy
• Outstanding potential to grow resources, boost

grade and discover new deposits….

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• ff the Press….

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Investment Highlights

Llahuin copper-gold project Maiden JORC resource – 106Mt grading 0.4% copper equivalent* Higher grades from recent drilling Strategy to aggregate regional satellite deposits to feed a centrally located plant Desktop Scoping Study underway for operation producing 45-50ktpa copper plus gold credits Chitigua copper project Very large system Discussions with major mining companies to arrange joint venture or farm-in Additional prospective copper prospects Another eight 100%-owned prospective areas Alternative development strategies being pursued involving third parties Los Pumas manganese project Preliminary assessment completed Awaiting environmental impact statement approval

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Chile-based Team

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Llahuin Project

Location Ideal location providing favourable logistics 250km north of Santiago and 17km south

• f the established mining town of

Combarbala Elevation of 1,300m and just 56km from the coast and Pan American Highway Strong similarities to the Carmen de Andacollo porphyry mine, located 120km to the north of Llahuin Project

Llahuin

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Llahuin Project

Concession Areas

Four concession areas covering 772 hectares secured under favourable option arrangements in July 2011 Total consideration of US$1.875M payable comprising:

• staged cash payments of US$615,000 over

12 months – US$230,000 outstanding

• issue of shares to the value of US$1.2

million

Central Porphyry Zone: footprint of ~400m by 450m Cerro Zone, ~1km south of the Central Porphyry, with a similar footprint Geophysics (magnetic and IP) surveys completed

Llahuin

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Llahuin Project

Llahuin

Page 9 Llahuin Valley

Llahuin Project

Drilling ~ 26,500m of drilling to date:

• ~17,500m of Reverse Circulation (“RC”) and
• ~9,000m of Diamond Core (“DC”)

Mineralisation commences at surface and remains open at depth Central Porphyry Zone drilled to a vertical depth of 150m with inclined RC drill holes at a 50m grid Vertical depth extended to 400m by DC holes drilled at a grid of 100m Cerro Zone sub-crops at surface with a vertical extent of 45m to 60m Water table encountered at 50m to 190m down-hole in most drill holes – positive for future mine development

Llahuin

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Llahuin Project

Resource Estimate Maiden Measured and Indicated JORC resource of 106Mt grading 0.4% copper equivalent* for 318,000 tonnes of copper and 307,000 ounces of gold Additional Inferred Resource of 12.2Mt at 0.36% copper equivalent Immediate potential to extend resource with further drilling at both the Cerro and Central Porphyry Zones and inclusion of higher grade tonnage from satellites Sedgman appointed to conduct a desktop scoping study to assess the potential for an

• peration targeting production of 45-50,000tpa of copper metal plus gold credits at

competitive operating costs

Llahuin

TOTAL MEASURED AND INDICATED RESOURCES

Resource at 0.24% Cu cut-off Tonnes million Cu % Au g/t Mo % Cu Equ* Measured 64.9 0.32 0.09 0.007 0.42 Indicated 41.3 0.28 0.09

Not Available

0.37 Measured plus Indicated 106.2 0.30 0.09

Not Available

0.40 Inferred 12.2 0.27 0.06 0.008 0.36

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Llahuin Project

Diamond drill core at Llahuin

Llahuin

Llahuin Project

Llahuin

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Llahuin Project

Llahuin

Additional drilling provided result

Since completion of Maiden Resource Estimate, drilling continues at Llahuin with some exceptional diamond core results from DDH-LLA-021: 440m @ 0.75% Cu Equivalent* from 2m, includes 208m @ 1.20% Cu Equivalent from 108m

*Copper Equivalent (“Equiv”)

• The copper equivalent calculations represent the total metal value for each metal, multiplied by the

conversion factor, summed and expressed in equivalent copper percentage. These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result. It is the Company’s opinion that elements considered have a reasonable potential to be recovered as evidenced in similar multi-commodity mines. Copper equivalent conversion factors and long-term price assumptions used are stated below:

• Copper Equivalent Formula= Cu % + Au (g/t) x 0.72662 + Mo% x 4.412
• Price Assumptions-Cu (US$3.40/lb), Au (US$1,700/oz), Mo (US$15/lb)

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Llahuin Project

Llahuin

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Llahuin Project

Benchmarking

Andacollo

• Llahuin demonstrates similar geological characteristics to Andacollo deposit which

has a resource of 400Mt @ 0.38% Cu, 0.12g/t Au and produces ~65,000tpa of copper-gold concentrate

Hot Chili

• Llahuin maiden Measured and Indicated Resource compares favourably

(contained metal) with Hot Chili’s Productora maiden Indicated Resource of 31Mt grading 0.8% copper equivalent

Market Capitalisation

• Hot Chili (ASX:HCH) and

Metminco (ASX:MNC) represent the Company’s peers in South America

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Llahuin Satellite Projects

Two Llahuin satellite prospects have been secured under option arrangements within 10-15km of Llahuin – La Colina 2 and Mina San Francisco Llahuin strategy provides

• pportunities to increase both the

Llahuin resource tonnage and grade, providing additional higher grade feed to a proposed centrally located plant

Llahuin

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La Colina 2 Satellite

Reconnaissance Drilling at La Colina 2

Llahuin

La Colina 2 Satellite

Concessions Located 10km NW of Llahuin Project Exploitation licence covers an area of 259 hectares Held under 12-month Option to Purchase Agreement with Minera Fuego expiring January 2013 Total acquisition cost USD$300,000 plus 1.5% Net Smelter Royalty Reconnaissance Drilling Highlights from initial 4 RC drill program at La Colina 2 satellite prospect include: RC C2 002 20m @ 1.35% Cu Equivalent from 34m RC C2 003 70m @ 0.66% Cu Equivalent from 24m includes 16m @ 1.50% Cu Equivalent from 4m RC C2 004 28m @ 0.56% Cu Equivalent from 22m

Llahuin

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Mina San Francisco Satellite

Concessions Located approximately 10 km NNE of Llahuin Project Exploitation licences cover an area of 75 hectares Further applications made for licences surrounding Mina San Francisco Held under 24 month Option to Purchase Agreement Total acquisition cost USD$505,000 Reconnaissance Drilling Highlights from initial 4 RC drill program at San Francisco satellite prospect include: RC SF 002 22m @ 0.66% Cu Equivalent from 10m RC SF 003 26m @ 0.53% Cu Equivalent from 128m includes RC SF 003 20m @ 1.22% Cu Equivalent from 180m

Llahuin

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Chitigua Copper Project

Chitigua

Chitigua Concessions

Church and Breccia exploration areas located within total 172km² Exploitation Licence area

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Chitigua Copper Project

Location The Chitigua Project area is on the highly prospective Western Fault, north of the El Abra mine and south of the Quebrada Blanca Mine This metallogenic zone includes the Chuquicamata and Escondida mines The Chitigua Project is located 90 km north of Calama, an established mining town servicing local mines including Chuquicamata and El Abra mine Drilling 20 RC holes (4,983m) and 7 DC holes (2,331m) of drilling completed to date Significant copper mineralisation intersected in diamond drill hole DDH-CH-002, including:

• 46m @ 0.40% Cu from 3m
• 23m @ 0.41% Cu from 63m

Chitigua is a large porphyry target requiring additional time and drilling to prove up Discussions with major mining companies to arrange joint venture or farm-in

Chitigua

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Chitigua Copper Project

Chitigua alteration zones – adjacent to the Western Fault system

Chitigua

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Other Chilean Projects

SUH has eight additional targets in Chile, which are prospective for copper and gold mineralisation:

• Las Santas
• El Arrayan
• San Jose
• Tres Cruces
• Santa Gracia
• Mantos Grandes
• Carboneras
• Meteoritica

Company continues to progress the Los Pumas Manganese Project including the environmental impact statement approval

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Company Snapshot

Capitalisation Summary Ordinary Shares ¹ 153,092,487 Market Capitalisation @ $0. 19 ² Au $29.0M Cash ² Au $6.5M Debt ² $0.0 Enterprise Value (Fully Diluted) AU $22.5M

¹ Excludes 12m options at exercise prices and dates between AU $0.25 and AU $0.54 & Dec ‘12 & June ‘13 ² As of 30 April 2012

David Craig Non-executive Chairman Perth, Australia Trevor Tennant Managing Director Santiago, Chile James Pearson Executive Director Perth, Australia Dr John Tarrant Non-executive Director Perth, Australia Richard Billingsley Non-executive Director Vancouver, Canada Andrés Hevia Non-executive Director Santiago, Chile

Focused Explorer – Use of Funds Since 2011

Funds Raised January 2011 – USD$19.3M (net of costs)

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Exploration Drilling – Use of Funds Raised

Project Diamond Core metres Reverse Circulation metres Total metres Llahuin 8,988 17,479 26,467 Llahuin Satellites 1,650 1,650 Chitigua 2,331 4,983 7,314 Other 7,765 7,765 Total 11,319 31,877 43,196

Summary

Copper Exploration & Development

Focused on Llahuin project and satellites: drilling to continue through 2012 Other satellite opportunities identified in the Llahuin vicinity: reconnaissance drilling planned following finalisation of option terms Potential porphyry clone to Llahuin identified in the Llahuin valley: further exploration planned Llahuin Desktop Scoping Study underway and targeted for completion by last quarter of 2012 Negotiations continuing with major companies to secure a farm-in agreement

• n Chitigua

Continuing to explore development options for Los Pumas manganese project,

• nce the manganese market and prices recover

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Operating at the epicentre of Chile’s dynamic and fast-evolving copper-gold sector Major ground-holding located on the Western Fault – the world’s richest metallogenic zone Focused on Llahuin Project:

• Maiden 106Mt Measured & Indicated copper/gold resources
• Desktop Scoping Study underway on 45-50ktpa operation
• Central hub and regional satellite strategy

Pipeline of exploration targets with proven rapid and effective delivery

• f field programmes

Strong news flow in 2H of 2012:

• Exploration, discovery, acquisitions, development, growth

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White-Hot Investment Opportunity

Contact Details:

Australian Office: Suite 7, 1200 Hay Street West Perth Western Australia T: +61 8 9481 2122 www.shmining.com.au Chilean Office: Minera Hemisferio Sur SCM Office 41, Zúrich 255 Las Condes, Santiago T: +56 2 474 5071