INVESTOR PRESENTATION PDAC TORONTO March 2012 Forward Looking - - PowerPoint PPT Presentation

INVESTOR PRESENTATION

March 2012 PDAC TORONTO

Forward Looking Statements

This presentation contains certain forward-looking statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, reserves and resources, the financial position of Troy Resources Limited (the “Company”), industry growth or other trend projections. Although such forecasts and forward-looking statements reflect current beliefs and are based

• n information currently available and assumptions believed to be reasonable there is no

assurance that actual results will be consistent with such forecasts and forward-looking

• statements. A number of factors could cause actual results, performance, or achievement to

differ materially from the results expressed or implied in such forecasts and forward-looking

• statements. For a description of such factors please see the section entitled “Risk Factors” in

the Company’s amended and restated preliminary prospectus dated 10 January 2008 available under the Company’s profile at www.sedar.com. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an

• ffer to buy or sell securities.

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Troy - A Profitable Mid Tier Gold Producer

• Listed on the ASX (1987) and TSX (2008) Code: TRY
• Dividend Paying – 12 fully franked cash dividends over the last 12 years.
• Two operating gold mines
• Andorinhas, Para State, Brazil
• Casposo, San Juan Province, Argentina
• Sandstone, WA, Australia – free carry Ni exploration JV with Western Areas (WSA)

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We ste rn Austra lia Q ue e nsla nd

• N. S. W.

A.C.T .

Vic to ria

So uth Austra lia

500 km

Daly R iver S ydney P erth

X

S ands tone Gold Mine

BRAZIL

Rio de Janeiro Belo Horizonte Brasilia Belém

Andorinhas Gold Mine

Buenos Aires San Juan

Casposo Gold Silver Mine

Sao Paulo

Troy – A Period of Strong Growth

• FY 2011 - 17% increase in gold production to 71,614 oz
• FY 2011 - 25% reduction in cash costs to US$554/oz net of silver credits
• FY 2011 - Net Profit of A$14.6m
• Paid 12th fully franked cash dividend of 6 cents per share in January 2012
• December Quarter – 39% increase in gold production to 33,329 oz
• December Quarter – 36% reduction in cash costs to US$373/oz net of silver credits
• 76% increase in H1 FY2012 profit after tax to A$10.7m
• Excludes additional A$5.5m unrealised PAT at the end of the half on unsold production
• Guidance FY2012 – 130 koz gold equivalent
• Doubled Casposo exploration budget to $15m
• Discovery of new high-grade zone at Casposo delivering 19% increase in M+I contained

gold equivalent

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Corporate Snapshot

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Ordinary Shares: 88.8M Options: 5.0M Share Price as at 22 Feb 2012: $4.90 52 Week Range: $3.01 - $5.01 Market Cap as at 22 Feb 2012: ~A$435M Net Cash as of 31 December 2011: ~A$4.6M [Cash A$30.6m + Debt A$26m]

Key Statistics (A$)

Senior Management



Paul Benson, CEO & Managing Director



Peter Doyle, VP Exploration & Bus. Development



Ken Nilsson, Executive Director Projects



David Sadgrove, CFO & Company Secretary



Andrew Storrie, COO Non-Executive Directors



David Dix, Non-Executive Chairman



Gordon Chambers, Non-Executive Director



Fred Grimwade, Non-Executive Director



John Jones, Non-Executive Director



Robin Parish, Non-Executive Director

Shareholders

Andorinhas Gold Mine - Brazil

6 3.2m @ 72.78 g/t Au

Andorinhas Gold Mine - Brazil

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• FY2010: 31,568oz at US$634/oz
• FY2011: 49,099oz at US$519/oz
• December Quarter 2011: 12,625oz at

US$542/oz

• Guidance FY2012 – 50koz
• Current Reserves support the operation

through to FY15 with potential at depth and regionally to extend the mine life

10,000 20,000 30,000 40,000 50,000 60,000 FY12 FY13 FY14 FY15 FY16 FY17 Au 0z

Andorinhas Production Profile

Scheduled Reserve Ounces

Potential for additional

• unces from

Melechete Extension, Arame, M1 Vein, Lagoa Seca West, Coruja, Luiza

Melechete Lode Drilling and Grade Distribution

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Casposo Project – San Juan Province

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San Juan Mineral Project Endowment Mines & Casposo Project Access

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Film

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Casposo – the Crown Jewels

• Reached budget throughput midway through month of September
• 6,606 oz Au @ unit cash cost of US$377/oz Au net of silver credits
• December Quarter production 87% increase to 20,701 oz Au with unit cash cost

falling 60% to US$270/oz Au net of 274,660 oz of silver credits (silver up 96%)

• Co product costing 25,873 oz Au_eq (up 86%) at US$551/oz Au_eq (down 38%)
• Guidance FY2012 - 80koz gold equivalent
• The site moved from diesel generated power to grid power in December further lowering

costs

• Significant exploration results at Casposo with potential dependent on mine planning, to:
• Extend mine life (additional ounces)
• Avoid drop in production in years three and four (access to higher grade)
• Lower unit costs (access to higher grade)
• New Reserve and production profile out early June quarter

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Blue Sky

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Total Gold Equivalent Production

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Aim to avoid the drop in production in Years 3 and 4 through proving up additional higher grade ore – eg Kamila SE Extension Aim to extend mine life through proving up additional surface and underground Reserves

Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up

Casposo 2010 Mining Reserves

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Highest value intercept on the property to date HOLE: CA08250 7.2m @ 108.7g/t Au 4,423g/t Ag

New Resource Area Focused on First 500m of 1.5km Structure

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New Resource Area Focused on First 500m of 1.5km Structure

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Note: Discrepancies may occur due to rounding Note: Discrepancies may occur due to rounding

Table 1a: Kamila Southeast Resource Estimate (Using 2g/t Au_Eq Cut-off)

Resource Classification Tonnes Gold (g/t Au) Silver (g/t Ag) Gold Equivalent Au_Eq (g/t) Contained Metal (Au_Eq oz) Measured 96,000 6.68 770 17.68 54,600 Indicated 161,000 4.43 572 12.61 65,300 Total Measured & Indicated 257,000 5.27 646 14.50 119,900 Inferred 226,000 3.00 281 7.01 51.000

Table 1b: Kamila Southeast Resource Estimate - High Grade Zone (Above 5g/t Au_Eq Cut-off)

Resource Classification Tonnes Gold (g/t Au) Silver (g/t Ag) Gold Equivalent Au_Eq (g/t) Contained Metal (Au_Eq oz) Measured 87,500 7.24 832 19.13 53,500 Indicated 109,000 6.05 767 17.00 59,600 Total Measured & Indicated 196,000 6.58 796 17.95 113,100 Inferred 108,000 4.72 417 10.68 37,100

Total Gold Equivalent Production

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Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up

Exploration Model – Pajingo Mine

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New Ore Grade Intercepts

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Looking Forward

• Casposo reaching its full potential – it will be one of the lowest cost gold mines reporting
• n the ASX
• Release updated mine plan for Casposo in June quarter incorporating the high grade

Kamila SE Extension discovery

• Ongoing exploration at Casposo and Andorinhas
• Opening of Troy office in Toronto raising the profile on the TSX
• Continue to look for the next M+A opportunity

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THANK YOU

Qualifying Statements

• 1. Au_Eq grade calculated using a gold to silver ratio of 1:70. As per May 2010 Current Casposo NI-43101 Technical Report

The gold equivalent cut-off was determined according to the parameters below:

• Au/Ag ratio 1:70.00
• Au Price US$933.33/oz
• Ag Price US$15.50/oz
• Au processing recovery 93.7%
• Ag processing recovery 80.6%

Gold equivalency is determined by metal price and recovery factors. Metal prices were the average prices assumed in the Casposo life of mine plan. Processing recoveries were determined by metallurgical test work carried out by independent consultants on diamond drill core from Casposo. The equivalency is calculated by the formula - Gold: Silver ratio: = (gold price ÷ silver price) x (gold recovery ÷ silver recovery) = (933.33 ÷ 15.5) x (.937 ÷ .806) = 70.00 Gold equivalency is calculated by the formula: Au_Eq g/t = Au g/t + (Ag g/t ÷ 70.00)

• 2. NSR – No Significant Results All samples were prepared and assayed by Alex Stewart (Assayers) Argentina Laboratory in Mendoza Argentina.
• 3. Gold by FA and either a gravimetric or AAS finish, using method gold 4-50 or gold 4A 50 for samples with gold>10g/t
• 4. Silver by three techniques: four-acid digestion followed by AAS reading for check samples up to February 2006, aqua regia digestion followed by inductively coupled plasma with optical

emission spectroscopy (ICP-OES) reading for all samples in mineralised intersections after February 2006. Method numbers were GMA, ICP-AR-39 and silver 4A-50. Geological information in this Report has been compiled by Troy’s Vice President Exploration & Business Development, Peter Doyle, who: Is a full time employee of Troy Resources NL Has sufficient experience which is relevant to the 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’ Is a member of the Australasian Institute of Mining and Metallurgy Has consented in writing to the inclusion of this data Information of a scientific or technical nature in this report was prepared under the supervision of Peter J. Doyle, Vice President Exploration and Business Development of Troy, a “qualified person” under National Instrument 43-101 – “Standards of Disclosure for Mineral Projects”, a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Doyle 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 “qualified person” as defined in “National Instrument 43-101 – Standards of Disclosure for Mineral Projects”. Mr Doyle has reviewed and approved the information contained in this report. For further information regarding the Company’s projects in Brazil, Australia and Argentina, including a description of Troy’s quality assurance program, quality control measures, the geology, samples collection and testing procedures please refer to the technical reports filed which are available under the Company’s profile at www.sedar.com or on the Company’s website. This report contains forward-looking statements. These forward-looking statements reflect management’s current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, performance, or achievements to differ materially from the results expressed or implied in the forward-looking statements. Such factors include, among others, future prices of gold, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in ore grade or recovery rates, plant and/or equipment failure, delays in obtaining governmental approvals or in the commencement of operations.

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