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TERRAMIN AUSTRALIA LIMITED Investor Presentation October 2011 Disclaimer No representation or warranty is or will be made by any person (including Terramin Australia Limited ACN 062 576238 ( Terramin ) and its officers, directors, employees,


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SLIDE 1

TERRAMIN AUSTRALIA LIMITED

October 2011

Investor Presentation

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SLIDE 2

TERRAMIN AUSTRALIA LIMITED

SLIDE No. 2

Disclaimer

No representation or warranty is or will be made by any person (including Terramin Australia Limited ACN 062 576238 (Terramin) and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this document (the Presentation), or the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in, or implied by, the Presentation or any part of it. The Presentation includes information derived from third party sources that has not been independently verified. The Presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Terramin and certain plans and objectives of the management of Terramin. Indications of, and guidance on, production targets, targeted export output, expansion and mine development timelines, infrastructure alternatives and financial position and performance are also forward-looking statements. Any forecast or other forward- looking statement contained in the Presentation involves known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Terramin, and may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. Factors that could cause actual results or performance to differ materially include without limitation the following: credit risk; levels of supply and demand and market prices; legislation or regulations throughout the world that affect Terramin's business; insurance expenses; the risk of an adverse decision or other outcome relating to governmental investigations; class actions or other claims; growth in costs and expenses; risk of adverse or unanticipated market, financial or political developments (including without limitation in relation to commodity markets). You are cautioned not to place undue reliance on forward-looking statements. These forward-looking statements are based on information available to us as of the date of this presentation. Except as required by law, regulation or ASX Listing Rules, no undertaking is made that these forward looking statements will be updated. The Presentation is provided for informational purposes only and is subject to change without notice. Subject to any obligations under applicable laws, regulations or ASX Listing Rules, Terramin disclaims any obligation or undertaking to release any updates or revisions to the Presentation to reflect any change in expectations or assumptions. Nothing in the Presentation should be interpreted to mean that future earnings per share of Terramin will necessarily match or exceed its historical published earnings per share, or that there has been no change in the affairs of Terramin since the date of the Presentation. Nothing contained in the Presentation constitutes investment, legal, tax or other advice. The information in the Presentation does not take into account the investment objectives, financial situation or particular needs of any recipient. Before making an investment decision, each recipient of the Presentation should make their own assessment and take independent professional advice in relation to the Presentation and any action taken on the basis of the Presentation.

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SLIDE 3

TERRAMIN AUSTRALIA LIMITED

SLIDE No. 3

Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Eric Whittaker. The information that relates to Mineral Resources for Menninnie Dam and Tala Hamza is based on information compiled by Mr Robert Singer. The information that relates to Mineral Resources for Angas is based on information compiled by Mr Eric Whittaker. The information that relates to Ore Reserves for Tala Hamza is based on information compiled by Dr David Allison and for Angas by Mr Ian Holman. Mr Whittaker and Mr Singer are Members of The Australasian Institute of Mining and Metallurgy and Dr Allison and Mr Holman are Members of the Institute on Materials, Minerals and Mining. Mr Holman is Chief Engineer and Mr Whittaker is Principal Resource Geologist and both full time employees of Terramin Australia Limited. Mr Singer was Chief Geologist of Terramin Australia Limited, Dr Allison was Senior Mining Engineer at Golder Associates (UK) Ltd at the time of their respective estimates. All have 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 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Whittaker, Mr Singer, Mr Holman and Dr Allison consent to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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SLIDE 4

TERRAMIN AUSTRALIA LIMITED

SLIDE No. 4

Terramin Australia Limited

3 billion pounds of zinc in low cost (32c/lb) ore reserve

All projects close to infrastructure with low capex benefits

4Mtpa Tala Hamza lead-zinc project ready to permit

400,000tpa Angas Zinc Mine in operation

7.7Mt Menninnie project set to grow

Management and Board with extensive practical and commercial experience in all stages of project development and mining

…a low zinc cost producer with a world class project

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SLIDE 5

TERRAMIN AUSTRALIA LIMITED

SLIDE No. 5

Projects

Oued Amizour & Tala Hamza Menninnie Zinc Project Angas Zinc Mine & Fleurieu ELs

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SLIDE 6

TERRAMIN AUSTRALIA LIMITED

SLIDE No. 6

Operations Zinc Market Outlook Zinc Market Overview Company Overview

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SLIDE 7

TERRAMIN AUSTRALIA LIMITED

SLIDE No. 7

 ASX Listed - Market Capitalisation: ~$30m  Shares on Issue: 190.3m and 6.6m Options  Employees ~200  Cash ~$10m and debt $53m (incl. bank $23m and con notes)  Convertible Notes:

  • 5 yr $5.0m at $2.21/share – Sept. 2013
  • 5 yr US$10.0m at VWAP – minimum

$1.70/share (off-take partner) – Sept. 2014

  • 5 yr US$15.0m at VWAP (JPMorgan off-take

partner) – March 2013  2010 positive operating cash flow: $13m  Hedging/Forward sales:

  • A$15m gold and silver 50% fix to Q2 2013

 Over 4000 shareholders

Fast facts

 1993 - Terramin was incorporated as Playford

Resources NL

 1997 – Terramin acquired the Fleurieu project in

Adelaide including the Angas lead, zinc and sliver resource

 2003 – Terramin acquired Menninnie Dam, South

Australia’s largest lead, zinc and silver deposit

 2003 – Terramin was listed on the ASX  2006 – Terramin acquired a 65% interest in the

world class Oued Amizour Project in Algeria

 2008 – Angas zinc mine commissioned -

produces circa 50,000 tonnes of zinc and circa 20,000 lead-copper-silver-gold concentrates  2010 – Tala Hamza Definitive Feasibility completed for 4Mtpa block cave mine producing 400Ktpa Pb + Zn concentrates

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 8

Management

Strong management team with commercial and technical expertise

Nic Clift Managing Director Mark Terry Chief Financial Officer John Burgess GM – Tala Hamza Project TBC General Manager, Exploration Robert Howie GM – Angas Zinc Mine Sam Hewitt Principal Engineer Charlotte Hy Principal Geologist Ken Cross Principal Geologist Stephane Gauducheau Legal Counsel and Co. Sec. Norman Dinevski Commercial & Marketing Manager Shaun Reincke Financial Controller Eric Whittaker Principal Resource Geologist Ian Holman Chief Engineer Patricia Williams HR Manager

Finance & Commercial Tala Hamza Angas Geology Block Cave Experience

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SLIDE 9

TERRAMIN AUSTRALIA LIMITED

SLIDE No. 9

Financials

5 10 15 20 25 10 20 30 40 50 60 70 2008 2009 2010 Revenue [LHS] EBITDA [RHS]

2010 Financial Year Highlights

Angas revenue from operations - $59.5m

Angas EBITDA - $17.0m

Cash flow from operations - $12.9m

Cash balance at 30 June 2011 - $9.6m

Angas Revenue and EBITDA ($’m)

Strong Revenue and EBITDA growth

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 10

Zinc Market Outlook Zinc Market Overview Operations Company Overview

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SLIDE 11

TERRAMIN AUSTRALIA LIMITED

SLIDE No. 11

 Location  Infrastructure

deep water port

international airport

plentiful water on lease

 Workforce

proximity to city

local universities

high unemployment

iron and zinc mining history

 Cheap power and fuel (US$)

power approximately 4c/kWh

low cost fuel – diesel – 20c/l

 Excellent regional potential

125 km2 prospective tenement

Oued Amizour Zinc Project - Algeria

65% Terramin : 35% Government Companies

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SLIDE 12

TERRAMIN AUSTRALIA LIMITED

SLIDE No. 12

  • 100

200 300 400 500 600 700

Rampura Agucha Red Dog Century Antamina Mt Isa San Cristobal Brunswick Tala Hamza Skorpion Lisheen Tara McArthur River Perseverance

Project ranking

Tala Hamza in the top ten zinc mines....

Zinc Mine Output (Zn Metal ‘000tpa) – Total forecast zinc production ‘2011 – 13.61mt

Mine closures by 2015 Continuing mines

Source: BNP Paribas and RBC for forecast closures; Company sources for 2010 production amounts

Based on 2010 production

2015 2013 2014 2015

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SLIDE 13

TERRAMIN AUSTRALIA LIMITED

SLIDE No. 13

The Block Caving Method

Financial

  • Low mining costs – US$2.97/t –

very low in a world context

  • C1 costs of US32c/lb of payable

zinc – low cost production

Technical

  • Less development required in poor

to very poor orebody rock mass conditions

  • No filling required
  • Does not require large open stopes

Operational

  • Potential for higher production rate
  • Longer life operations
  • Block caving is considered a non-

entry mining method. This method is generally considered safer than entry mining methods.

Whilst Block Cave mining methods generally involve higher mine development and a longer lead-time to production there are numerous benefits… The Definitive Feasibility Study completed on Tala Hamza concluded that…

Block caving is the most viable method of mining for Tala Hamza; and The primary factor in determining the mining method was geotechnical conditions...

Extremely weak orebody doesn’t support development within the mineralisation but minimises risks associated with a caving method;

Competent footwall rock conditions beneath the orebody supports long term development and infrastructure

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SLIDE 14

TERRAMIN AUSTRALIA LIMITED

SLIDE No. 14 MEASURED & INDICATED RESOURCE Extraction level Undercut level Ore conveyor incline Access and waste trucking decline Ore Passes and vent rises Ventilation shaft Crusher station

Tala Hamza Block Cave

 4Mtpa with peak zinc and lead concentrate production of 425,000t (230,000t Zn & Pb metal)  The block cave design incorporates stepped undercut and extraction levels so that the development of the infrastructure follows the footwall of the orebody  WMZ have suitable block cave experience for the Tala Hamza project

Mineral Resource

Measured, Indicated and Inferred

68.6 Mt at 4.6% Zn, 1.1% Pb

Ore Reserve

Probable

38.1Mt @ 4.8% Zn, 1.4% Pb (5 billion lb’s Zn+Pb)

250 metres

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 15

Production profile

 First concentrate production is scheduled for the fourth quarter of 2016 – however advanced roadheader studies and design variations could save at least a year of development time  Output from the mine and plant will quickly ramp up to 4Mtpa with peak zinc and lead concentrate production of 425,000t (230,000t zinc and lead metal) in 2018  The current mine life is based on the DFS mine design however if the orebody is extended to the south or any other direction the mine life will be extended beyond 2027

50 100 150 200 250 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Contained Zinc Contained Lead

Tala Hamza Concentrate Production Profile (Zn Metal ‘000tpa)

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SLIDE 16

TERRAMIN AUSTRALIA LIMITED

SLIDE No. 16

Low Operating costs

 One of the most compelling features of the project is the low operating cost which is due to the block cave mining method, the scale of the processing plant and location close to infrastructure  The estimated C1 cash cost of US32.1cents /lb are due to low diesel, power and labour costs

Production Costs US cents/lb Payable Zinc Operating Cost by Facility US$/t Ore Mining 3.8 Mining 3.0 Processing 12.2 Processing 9.6 Administration 3.1 Other Production Costs 1.5 Realisation Costs Other Non Production Costs 4.6 Transport & Handling 3.9 Sub-Total 18.7 Zinc Treatment Charge 23.9 Royalties 0.7 Total Costs 46.9 Other Government Charges 0.0 Net By-Product Credit

  • 14.8

Rehabilitation Charge 0.2 Total C1 Costs 32.1 Total Cash Costs 19.6

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 17

Capital Funding Requirement

Note: All capital estimates exclude VAT and custom duties; no allowance for escalation in above amounts

2011 2012 2013 2014 2015 2016 Terramin Commitment 8 11 14 31 28 21 Other Funding 32 46 58 129 116 86 40 80 120 160 200

Terramin Funding Profile for Tala Hamza Project (US$’m)

 Competitive capital cost - US$580 million for 4Mtpa mine and back ended  Terramin capital funding requirement estimated at US$113m based on 70% local

debt funding on pro-rata basis

Total 113 467

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 18

Tala ala Ha Hamza mza – St Statu tus s an and Milest d Mileston

  • nes

es

1.

JV partner has received its consultants report – currently being reviewed

2.

Once reviewed, report to be forwarded to Terramin for response

3.

Workshops held to resolve issues raised in the review

4.

JV company WMZ moves decision to mine

5.

Application to Mine to Algerian Department of Mines – maximum five months process – parallel activities include:

  • Tendering process formulation
  • Key land access process
  • Development of organisational capability
  • Financial concession negotiations and local debt financing
  • Community consultation

6.

Government issues mining concession through decree

7.

Construction phase begins

8.

Commissioning phase

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 19

An Anga gas s Zinc Zinc Mine Mine – So Sout uth h Aus ustr tralia alia

Angas Zinc Mine

Production from 2008

Current mine life 2014

Fleurieu Licences

1,000km2

Cu-Au and Pb-Zn prospects could provide ore for Angas mill

Nearby Cu-Au mine

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 20

Angas Zinc Mine Operation

400,000tpa operation producing zinc and lead-copper-silver-gold concentrates

De-risked – fully developed by 2012 - major cash flow generator in 2012-14

Strong C1 cash cost performance to date with expectation of strong improvement

  • 50

100 150 200 250 300 350 400 450

  • 10

20 30 40 50 2008 2009 2010 2011FC Zinc concentrate Lead-copper-silver-gold concentrate Ore Treated

Concentrate Produced and Ore Treated (‘000t)

10 20 30 40 50 60 70 80 90

Peer Group Terramin

C1 Cash Cost Comparison (USc/lb) Forecast Note: C1 cash cost based on prevailing market forward prices at June 2011. Improvement from Q3 2011 due to increased access to higher grade stopes, prevailing by-product precious metal prices and reduction in operating development from 2012.

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 21

Angas Zinc Mine Operation

Exciting near mine potential – zones of high grade mineralisation within close proximity to existing mining

  • perations

Life of mine off-take agreements for zinc and lead concentrates

Potential for mine life extension

Rankine Garwood Sunter Prospective zone for Rankine type

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 22

Menninnie – Strong Foundation

Menninnie Central Zone - Inferred Resource of 7.7Mt @ 3.1% Zn and 2.6% Pb, and 27g/t Ag (March 2011)

160km from Pt Pirie lead smelter

High lead/zinc ratio

Further prospective targets identified with drilling planned

1,609km2 tenement holding

Project well positioned to attract a substantial JV partner

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 23

Menninnie – Ready to Move

Extensions to Menninnie Central and three larger undrilled targets

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 24

Operations Company Overview Zinc Market Overview

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 25

Zinc Market Outlook

(1,000) (800) (600) (400) (200) 200 400 600 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Deficit

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Price Lift

Forecast Zinc market supply imbalance to increase prices…

Zinc implied surplus/(deficit) ‘000 mt LME Zinc cash price US$/lb

 Zinc supply about to fall of a cliff from 2012  Zinc Price forecast to respond strongly to supply shortfall  Tala Hamza project start up will capture a period

  • f high zinc prices

Source: RBC Capital Markets, Zinc Metal Prospects June 2011

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 26

Zinc Price and Terramin EV Correlation

 There is a strong correlation between the zinc price and the enterprise value of Terramin  With the medium term zinc price

  • utlook positive it

should translate into a higher enterprise value

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

  • 50

100 150 200 250 300 350 400

HY2005 FY2005 HY2006 FY2006 HY2007 FY2007 HY2008 FY2008 HY2009 FY2009 HY2010 FY2010 HY2011

Enterprise Value $'m (Closing [LHS] Zinc Price (AUD) [RHS]

Enterprise Value ($’m) and Zinc Price (AUD) Correlation

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TERRAMIN AUSTRALIA LIMITED

SLIDE No. 27

Capability for Further Growth

Angas Zinc Mine - South Australia (100%)

  • 400Ktpa operation developed on time and budget
  • Major cash flow generator to 2015 at prevailing prices
  • Development and operating capability

Tala Hamza Zinc Project – Algeria (65%)

  • DFS completed, development decision pending for 4Mtpa operation - $40m spent to date
  • Terramin capital contribution only US$29m up to 2014
  • Proven project management capability

Menninnie Dam Project - South Australia (100%)

  • 7.7Mt Inferred Resource with high lead-silver content near Port Pirie smelter
  • 3+ targets with similar characteristics provide significant upside
  • Proven exploration capability

Existing mine operation providing cash flow for growth

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SLIDE 28

TERRAMIN AUSTRALIA LIMITED

October 2011

Investor Presentation