Fi Finder nders s Res esou ources ces Li Limit ited ed ASX - - PowerPoint PPT Presentation

Fi Finder nders s Res esou

• urces

ces Li Limit ited ed

ASX Inves estor

• r Day Feb

ebrua uary y 24 2011

2

This presentation (Presentation) has been prepared by Finders Resources Limited (Finders) based on information available to it and from third party sources. By retaining this Presentation, you (the Recipient) acknowledge and represent to Finders that you have read, understood and accepted the terms of this Important

• Notice. If you do not accept these terms, you should immediately destroy or delete this Presentation.

This Presentation does not purport to contain all the information that a prospective investor may require in connection with any potential investment in Finders. You should not treat the contents of this Presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters. No representation or warranty is made by Finders or any of its advisers, agents or employees as to the accuracy, completeness or reasonableness of the information contained in this Presentation or provided in connection with it. No information contained in this Presentation or any other written or oral communication in connection with it is, or shall be relied upon as, a promise or representation and no representation or warranty is made as to the accuracy or attainability of any estimates, forecasts or projections set out in this Presentation. No liability will attach to Finders with respect to any such information, estimates, forecasts or projections. Finders does not accept responsibility or liability for any loss or damage suffered or incurred by you or any other person or entity however caused (including, without limitation, negligence) relating in any way to this Presentation including, without limitation, the information contained in or provided in connection with it, any errors or

• missions from it however caused (including without limitation, where caused by third parties), lack of accuracy, completeness, currency or reliability, or you or any
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• r plans will be achieved either totally or partially or that any particular rate of return will be achieved

Given the risks and uncertainties that may cause Finders' actual future results, performance or achievements to be materially different from those expected, planned

• r intended, Recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. Finders does not warrant or represent

that the actual results, performance or achievements will be as expected, planned or intended.

Disclaimer claimer

• 1.0

2.0 3.0 4.0 5.0 6.0 7.0 8.0

• 500

1,000 1,500 2,000 2,500 3,000 TLM SBR EXS TGS RXM FND ABY SWN DML CDU SFR EQN CGG PNA JML SRL OZL Cu Equiv Grade % EV / t Contained Cu Eq (AUD $) EV / Reserves (Blue) or Resources (Green) Cu Eq grade 3

Un Unde dervalue alued d Em Emer erging ing Copper pper Pr Producer ducer

Producers average $2000 EV/t Cu Eq “Darlings” average $1400 EV/t Cu Eq Finders is poised for value increase (currently ~$500/t Cu Reserves)

4

Investm estment ent Highl hlights ights

Robust t Economic ics At the Wetar ar Copper r Project

• 9 year mine life based on existing 8.2Mt @ 2.5% Cu Proven and Probable Ore Reserve.
• High grade, low strip ratio (<1:1) results in attractive cash costs of US$1.00/lb

De De-Ris isked ed Transition tion to to Product uction ion

• Technically de-risked through 5 tpd Cathode Cu Demonstration plant since late February 2009.
• All cathode sold at premium to LME, proximity to Asian markets
• Poised for brownfields expansion to 23,000 tpa Cu cathode at Wetar Copper Project.

Experience rienced d Managem gemen ent t With Strong g Community nity Relati tions

• ns
• Diverse mining and investment experience across the Board and Management.
• Extensive Indonesian operating experience.
• Strong local community relations and support for full-scale mining operations.

Further her Grow

• wth

h Pot Potenti tial al With Pipeline line Gold & Silver ver Project

• Exploration of near-mine targets to extend Wetar mine life.
• Ojolali exploration programme seeking 500 koz Au eq resource to support start-up mining operation.
• Regional „greenfield‟ growth opportunities under review.

Attrac tractiv ive e Valuat ation ion

• One of the few ASX listed junior copper companies in transition to commercial production.
• Attractively priced on an EV/t basis relative to peer group.
• Quality shareholder base with major support from expert institutional investors.

High margin copper operations and potential gold-silver pipeline project

5

Corporat porate e Ov Over ervie view

Capit ital al Structure ture

(2 Dec 10) Ordinary shares (ASX + AIM) 272m Share Price A$0.48 Market Capitalisation ~A$130m Options (Unlisted) 5.6m Convertible Notes (conversion 2012, 12%, $0.36 par) US$1.5m Cash ~A$14m

Quality shareholder base with major support from expert institutional investors

Shareholder eholder Register er

Resource Capital Fund 10.5% (12.6% diluted) Straits Resources Ltd 11.1% Acorn Capital Ltd 10.4% Taurus Resources 10.0% Lujeta Pty Ltd 5.7% Directors/Staff 8.0%

6

World class mineral province with some of the world‟s largest operating mines

World ld Cla lass s Mi Miner eral al Pr Provi vince nce

Ojolali lali Gold-Silv ilver er Project ect Wetar Copper er Project ect

Wetar etar Cop

• ppe

per Proj

• ject

ect

 Heap leach/SX EW copper cathode

7

Staged Expansion to 23,000 tpa utilising Whim Creek plant

8

Wetar etar Or Ore e Res eser erves s (FND 95% )

The tonnes and grades are stated to a number of significant digits reflecting the confidence of the estimate. Since each number and total is rounded individually the columns and rows in the above table may not show exact sums or weighted averages of the reported tonnes and grades.

(0.5% Cu Cut-off) Category Tonnes (m) Grade % Cu Contained Copper (kt) Kali Kuning Pit Proved 4.91 2.5 123 Probable 0.85 2.2 19 Sub- Total 5.76 2.5 142 Lerokis Pit Proved 2.05 2.4 49 Probable 0.37 2.3 9 Sub- Total 2.42 2.4 58 Combined Proved 6.96 2.5 172 Probable 1.22 2.2 28 Total 8.18 2.5 205

• 8.7yrs LOM JORC reserves to produce 146,000t cathode.
• Exploration programme of near-mine targets to recommence Q1 2011 targeting additional minable resources.
• Meron prospect has potential size of 0.5mt – 1.5mt at 1-3% Cu based on historical drill results (2km from Kali Kuning).

9

Wetar etar Pr Project ect Tran ansi sition tion to Full ll-Sca Scale le Pr Producti uction

• n
• Project

ect locati tion

• n is a former

r Billit iton

• n gold mine:
• Key infrastructure in place – camp, wharf and roads.
• Simple open cut mining, deepening existing pits
• Long established relationship with local community.
• Project

ect deve velop lopmen ent now

• w signific

ican antly tly de-ris isked. ed.

• Demonstration SX-EW plant since late February 2009.
• Proven leaching of chalcopyrite, covellite and chalcocite at ~800C
• DFS completed for 2-stage development.
• Environmental permit granted for full scale 23ktpa project.
• Await

aiting ing mining ing permit t approvals als, , and clarif ificat ation ion of jurisdic dicti tion n

• ve

ver r land adminis istra trati tion:

• n: after former

r mining ng activit vities ies

• Documentation for Pinjam Pakai complete, no red flags –

conversion forest classified as bushland and open ground

• Provincial re-zoning plan : Kali Kuning / Meron in non-forest area
• Minimal Stage 2 delay – hence minimal value impact.

Project ect Ove vervie view

10 10

Low w Risk k Sta taged ed Developme elopment nt Pl Plan an

Demonstration Plant Stage 2: 23,000 tpa Stage 1: 7,000 tpa

• 1,800 tpa nameplate capacity.
• Purpos
• se:

e:

• Measure real life Cu recovery from full

scale heaps

• Assess operating parameters not

testable in column tests

• De-risk the project for obtaining bank

finance

• Enabled

led DFS optimis isat atio ion: n:

• EDP – was 5,000 tpa, now 7,000 tpa
• Major improvements to mining

schedule being made

• Revising earthworks strategy with

proven Indonesian contractors

• Significant reduction in indirect cost

items identified

• Low risk brownfield expansion of

existing demonstration plant

• perations
• Within existing footprint of Billiton

mine operations

• Up to 9 month construction period
• Profitable copper production
• Takes FND to cash positive
• Increase to 23,000 tpa
• Relocate Whim Creek plant to

adjoining valley

• Commission approx. 12mths from

Stage 1 completion

• Build to commence as part of

Stage 1

• Environmental permit granted March 2010 for full scale 23,000 tpa
• Stage 1 & 2 subject to final permitting
• Negotiations underway for staged financing , 3 term sheets shortlisted

Staged development path de-risks the transition to full-scale production

11 11

Wetar etar Layout

• ut – Kali

Kali Kuning ng

Operational demonstration plant has enabled resolution of all technical issues prior to full scale production

Stage 2 expansion Stage 1 expansion

12 12

Wetar etar Develop elopment ment Pr Program amme me

Prefeasibility Studies Complete Demonstration Plant (17mths operation) Complete Environmental Permit Approval (AMDAL) Complete Definitive Feasibility Study Complete Detailed Engineering – Stage 1 Complete Mine Development Permit Target – Q1 2011 Detailed Engineering – Stage 2 Target – early Q2 2011 Project Financing Target – Mandate Q1 2011 Project Financing Target – Close Q2 2011 Stage 1 Production Target – Q1 2012 Construction Completion Stage 2 Target – Q4 2012 Stage 2 Production Target – Q1 2013

Timing*

* Subject to all required permitting, bank finance & no forestry moratorium

13 13

Wetar etar DFS Summ mmar ary y

Notes: 1. Ore Reserves includes 0.2mt of Inferred Resources within the pit shell. 2. Stage 1 funding reflects increase in capacity from 5,000 to 7,000 tpa cathode 3. Stage 1 & 2 funding estimate includes Working Capital

Ore Reserves 8.4mt (1) Output 23,000 tpa Strip Ratio (LOM) 1:1 Initial Mine Life 8.7 years Average Copper Grade (LOM) 2.5% Average Recovery (LOM) 71% Average Operating Cost (LOM) U$1.00/lb Total Cathode Production 146,000t Stage 1 Stage 2 to 7,000tpa to 23,000tpa Total Funding Requirement U$118 million(3) Stage 1 (before contingency) Stage 2 ~U$25 million(2) ~U$93 million  Stage 2 capex key opportunities :  optimising earthworks schedule  reducing indirect costs. Copper er Price Sensiti tivit vity – Based on DFS DFS Summary

Wetar Copper Project Pre-tax NPV (US$m)

$0 $100 $200 $300 $400 $5,000 $6,000 $7,000 $8,000 Copper price (US$/tonne)

14 14

Exploration loration Tar argets ets to Extend end Projec ject t Beyond nd St Stag age e 2

Meron Potential size 0.5- 1.5mt @ 1-3% Cu Ilwaki 8 drill holes in gold cap only Pantai Merah Identified Au-barite sand One hole in copper Batu Duri 9 drill holes, incl 10m @ 4.5% Cu

15 15

Str trong

• ng Loca

cal l Comm mmunity unity Suppor port

• Community relationships with FND management extend back to previous mining of the original gold pit by Billiton .
• Sign-off from all local villages has enabled full environmental approval.
• Completed compensation and access agreements for full scale projects.
• Local employment priority.
• ~125 people (almost 100% of workable age engaged).
• Yayasan (social charity) for each village.
• Initial focus: new supply businesses, sustainable projects, health and skills training.

Oj Ojola lali li Gold ld-Silv Silver Pr Project ect

Project ect Ove vervie view (FND 72% with option

• n for 100%)

%)

16 16

• Structurally controlled, high level epithermal gold-

silver mineralized system in the highly prospective Sumatran gold belt.

• Low strip ratio 175,000 oz Au Indicated and

Inferred resource at Jambi prospect, excellent metallurgy, and high grade feeder structures open at depth.

• Major 2km long vein swarm at Tambang with

high grade gold and silver shoots, and variable leach response requires additional drilling to bring to resource status.

• Numerous additional drill ready exploration

targets with strong surface showings of Au and Ag from surface trenching and soil geochemistry.

• Over 1 million oz Au equivalent discovery

potential

Cut off Indicated Inferred Total Contained Au g/t Mt Au g/t Mt Au g/t Mt Au g/t Au koz Ag koz 0.3 5.9 0.85 0.67 0.8 6.5 0.8 175 1,000 0.5 3.72 1.1 0.36 1.1 4.09 1.1 145 670

Jambi Resource Estimate

17 17

Oj Ojola lali li – Ex Explor loration ation Tar arge get

• Finders current target is to define 500,000oz Au Eq

resources to support a viable start-up mining operation.

• 59 km2 land position- whole field controlled by

Finders

• Main structure traced over ~9km with numerous

splays, jogs, kinks forming high potential target structures.

• Potential for high grade vein and bulk low grade

discoveries

• High grade drill intercepts at Tambang – both gold

and silver rich shoots- on-going metallurgical test work focused on floatation.

• Numerous additional drill ready exploration targets

with strong surface showings of Au and Ag from surface trenching and soil geochemistry. Recent Tambang Drill intercepts [

• 7m @ 5.6 g/t Au and 70 g/t Ag at 55m depth
• 13m @ 184 g/t Ag and 0.41 g/t Au at 23m depth
• 20m @ 128 g/t Ag and 0.39 g/t Au at 52m depth

Sum ummar mary

 Wetar Copper –Driving to development

 News flow :

Mining Permit, Shipping Whim Creek Debt financing; Forestry Clearance; BOD to proceed Resource upgrade at Meron

 Ojolali –Potential Growth Driver

 News flow :

Metallurgical results, surface trench sampling Planning for major drill program

18 18

19 19

Ap Appendice pendices

20 20

Ex Experienc erienced d Bo Boar ard & Ma & Manag agement ement

Dr Russell l Fountain ain (Chairman)

Over 40 years of international experience in all aspects of mineral exploration, project feasibility and development of mining projects involving copper, gold, nickel and mineral sands. Previous senior positions include President, Phelps Dodge Exploration Corporation; Exploration Manager, Nord Pacific Ltd and Chief Geologist, CSR Minerals.

Dr Chris Farmer er (Managing Director)

19 years of international experience in all aspects of exploration, with an emphasis on international joint ventures and business development. Previous positions include VP Australasia and Chief Geologist, Phelps Dodge Exploration Corporation; and Senior Geologist with both Highlands Gold (Indonesia) Pty Ltd and Billiton Indonesia BV working at the Lebong Tandai and Wetar gold mines.

Rob Thomson

• n

(Director – Development)

Over 30 years of Australian and international mining experience. He has worked on 5 Asian development projects in the last 13 years including GM Development, Chatree Gold Mine in Thailand and Project Director, Sepon Gold Mine in

• Laos. Mr Thomson was CEO of Climax Mining Limited from 2003 to 2006 and Asian Mineral Resources Limited from

2006 to 2008.

James Wentwor

• rth

(Finance Director)

More than 17 years of finance and investment experience with a focus on mining and mining services in Australia and internationally. Areas covered included principal investment, debt and equity raising, mergers and acquisitions and project and structured finance at CHAMP Ventures, Macquarie Bank, Goldman Sachs and Lehman Brothers.

Stephen hen de Belle e (Non-exec. Director)

Closely involved with the start-up and operation of iron ore, coal, base metals, gold and petroleum projects and companies, and has particular expertise in the development and financing of projects in the resources and infrastructure sectors both in Australia and overseas. He is currently managing director of a geothermal and power technology company.

Steve e Lonergan gan (Non-exec. Director)

commercial lawyer based in Sydney with more than 25 years experience in the Australian and international mining industry, having been General Counsel of Pancontinental Mining Group, a partner at Baker & McKenzie Sydney, and General Counsel and Company Secretary of Savage Resources Limited. Mr Lonergan is currently General Counsel and Company Secretary of CBH Resources Limited.

Quinn n Roussel (Non-exec. Director)

Principal of Resource Capital Funds (RCF), a mining-focussed private equity firm. Prior to joining RCF in 2006, he was Director of Business Development at one of RCF‟s portfolio companies in China. He has also worked as an engineer in both mining and the oil & gas industries.

Management team with significant Indonesian experience in mine operations and government relations

21 21

Wetar etar - Wh Whim m Creek eek SX-EW EW Pl Plan ant

• 18,000 tpa facility.
• Purchased from Straits Resources for A$5m in FND shares providing considerable cost and time savings.
• Dismantled by Finders contractor, containerised and awaiting shipment approvals to Wetar. Contractor retained for

installation.

• Components of the plant to be used in both Stages 1 & 2.

22 22

SX SX-EW W Process cess

SX-EW technology is used to produce ~22% of the world‟s copper production

23 23

Project ject Developm elopment ent Si Signi nifican icantly tly De-risk risked ed

• Proof of concept achieved.
• Producing “five 9‟s” cathode at nameplate 5 tpd (> LME

grade).

• Demonstration plant enabled testing of every aspect of
• peration.
• Very stable heaps, unaffected by wet season; zero clay

content.

• Initial teething issues rectified.
• Leaching as expected when operating at normal

parameters.

• Producing more acid than originally anticipated –

neutralisation plant now retrofitted.

• Chalcopyrite leaching confirmed
• Copper sales generating useful cashflow to fund ongoing

detailed design.

Demonstration plant delivering LME grade A cathode

Succes essful ful Demons nstrat ration ion Plant Cumulati lative e Copper Recover ery

70 50 30 10 Copper Recovery % 6 12 18 Months Heap 3 Model Heap 3 Actual Heap 2 Model Heap 2 Actual

24 24

Pr Projec ject t Layout

• ut for Full

ll Sca cale le Pr Producti uction

• n

Existing Demonstration Plant & Stage 1 Operations Stage 2 Expansion Plant & Operations

25 25

Dem emo

• Pl

Plan ant t & Op & Oper erat ation ions

26 26

Wetar etar Infrastructure astructure & L & Logistics stics

• Infrastructure solutions in place with the advantage of existing wharf, camp and roads.
• Demonstration plant operations produced ~2,400t of cathode (Q3 2010).
• Air services contract secured for travel between Kupang and Kisar Island removes 24hrs travel time (each way) to the project.
• Available labour from the local community are nearly all employed.

Identified logistical issues resolved through demonstration plant experience

27 27

Sta tatem emen ents ts

The information in this report that relates to exploration potential, mineral resource and ore reserve estimation is the responsibility of Dr Russell Fountain. Dr Fountain is a Director of Finders and a Fellow of the Australian Institute of Geoscientists. Dr Fountain has sufficient experience that is relevant to the styles of mineralisation and types of deposits under consideration and to the activity that he is undertaking to qualify as Competent Person in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves‟ (JORC Code) and as a Qualified Person as defined in the AIM

• Rules. He consents to the inclusion in this report of the matters based on his information in the form and context in which they appear. All assaying of drill core

samples was undertaken by the ITS laboratory in Jakarta. ITS is one of the world‟s largest product and commodity testing, inspection and certification

• rganizations. The Jakarta laboratory is ISO 17025 accredited and employs a Laboratory Information Management System (LIMS) for sample tracking, quality

control and reporting.