Investor Update May 2011 Forward Looking Statements This - - PDF document

Investor Update

May 2011

Forward Looking Statements

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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 NL (the “Company”), industry growth or other trend projections. Although such forecasts and forward-looking statements reflect current beliefs and are based on 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 sedar.com. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.

Background

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 Listed on ASX (TRY) in 1987 as a Gold Explorer  Became a producer in Western Australia in 2000  Opened our first mine in South America in 2002 (Sertão)  Dual listed on the TSX in 2008  Commissioned the Andorinhas gold mine in Brazil in 2008  Acquired the Casposo gold silver project in Argentina in 2009  Paid 10 consecutive cash dividends  First gold pour at Casposo in November 2010  Gold and silver exposure at a compelling valuation  No hedging  Significant exploration potential

What We Own

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Gold Assets

 Andorinhas Gold Mine – Brazil  Casposo Gold Silver Mine – Argentina  Sandstone Gold Mine – Australia (Closed)

BRAZIL

Rio de Janeiro Belo Horizonte Brasilia Belém

Andorinhas Gold Mine

Buenos Aires San Juan

Casposo Gold Silver Mine

Sao Paulo

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

Performance

 FY2011 H1 Profit of A$6.05m  FY2011 production guidance of 80,000 to

100,000 oz Au_eq

Corporate Snapshot

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Troy Share Price Board & Senior Management

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 Senior Management



Paul Benson, CEO & Managing Director



Peter Doyle, VP Exploration & Bus. Development



Ken Nilsson, Executive Director Operations



David Sadgrove, CFO & Company Secretary

Ordinary Shares: 87.97M Options: 4.8M Share Price as at May 5, 2011: $3.63 52 Week Range: $1.85 - $4.29 Market Cap as at May 5, 2011: ~$320M

Key Statistics (A$)

0.5 1 1.5 2 2.5 3 3.5 4 4.5

Troy Share Price A$

Sandstone – Care and Maintenance

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 Closed on September 16, 2010 and moved to care and maintenance  FY2010 - 29,885oz at A$1000/oz  September quarter production – up 2% to 4,945 oz  September quarter costs – down 21% to A$846/oz  Ongoing exposure to nickel exploration JV with Western Areas

• WSA have the right to earn 51% of

any nickel discovery by spending A$4m over 4 years.

Andorinhas Gold Mine – Brazil

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 Small narrow vein underground supplemented by low grade

• pen cut stockpiles

 FY2010 - 31,568oz at US$634/oz  March FY11 Qtr production – 11,369oz @ US$582/oz  9 months to March 31, 2011 34,364 oz @ US$584/oz – Already exceeded FY10 production at a lower cost

Andorinhas, Mamão Underground Mine

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Melechete Lode Drilling and Grade Distribution

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Andorinhas – Summary

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 Moving into higher grade areas  FY2010: 31koz  FY2011: > 40koz  Potential at depth and regionally to add Reserves  Monetising iron ore

Andorinhas – Monetising Iron Ore Resource

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 Colluvial Iron Ore

• Reserves 2.8 Mt
• Resources 6.5 Mt
• LOI with MFA to mine

the iron ore  Payments

• US$4m over FY11 and

FY12

• Over US$3m pa (1)

(1) based on production and iron ore market price assumptions

Casposo Project – San Juan Province

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San Juan Province Mineral Endowment Mines and Casposo Project Access

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Mine is 20km from Calingasta at 2,400m AMSL

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Delays in Ramp Up

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 Relatively complex circuit

• Merrill Crowe (due to silver)
• Dry Tailings (due to seismically active area)
• Closed circuit for water balance

 Initial difficulty with tailings filter performance

• Clay blinding filter cloth
• New Flocculent
• Introduction of antiscalant
• Introduction of diatomaceous earth and

cellulose  Various challenges with:

• Merrill Crowe filters
• Thickeners/clarifiers
• Commissioning of electronics/plant

monitoring and control systems  Training and supervision  Expect to reach budget throughput in June quarter

Tails Filtering January 2011 Tails Filtering March 2011

Casposo Ramp Up

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 March Quarter Produced:

• 4,318 oz Au @ US$974/oz (net of 72koz

silver credits)

• or 6,118 oz Au_eq @ US$1,153/oz Au_eq

(co-product costing)

• Averaged 250tpd compared to design of

1100tpd  Month of March:

• 2,465 oz Au @ US$477/oz net of silver credits
• Averaged 360tpd

 Increasing throughput will increase gold production and decrease unit costs

• In first week of April averaged 570 tpd
• Achieved over 700tpd in last week of April

 Mining comfortably ahead of the plant – stockpile at March 31:

• 145,877 t @ 7.1g/t Au and 97.7 g/t Ag
• Approx 5 months stockpile at budget rates!

Open Cut, Underground and Processed Tonnes

17 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

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

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

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

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

Unit Costs and Production

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Unit Costs and Production

Life of Mine Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 FY 2017 30‐Jun‐17 Unit Cost: By‐Product Costing (after Silver credits) Gold Produced Oz 320,841 81,846 90,394 43,741 35,012 49,901 19,946 ‐ Unit Cash Cost net of Silver USD/ Oz (Au) (net Ag credits) 120.49 127.00 151.39 349.36 387.83 (88.18) (495.32) ‐ Total unit Cost net of silver (inc deprn & amort) USD/oz 448.85 455.38 505.01 779.50 681.63 157.85 (238.07) ‐ Unit Cost: Co Product Costing Equivalent Gold Produced Oz 463,494 96,056 110,705 60,681 64,576 92,520 38,956 ‐ Equivalent Gold unit cash cost USD/ Oz (Au+Au Ag) 382.05 270.94 307.08 517.03 645.20 390.05 209.97 ‐ Total Equivalent Gold unit total cost (deprn & amort) USD/oz 609.03 550.74 595.83 827.10 804.49 522.75 341.68 ‐ Based on forecasts given in May 2010 43-101 Report . The table will be updated in 2011 once actual operating costs are established

Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up NI 43-101 Assumed silver at $17/oz falling to $15/oz

Blue Sky

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1 2 3 4 5 6 7 8 million ounces

South American Low Sulphidation Epithermal Deposits Total Endowment

Casposo – Low Sulphidation Epithermal Deposit

Lessons Learned from Goldcorp’s Cerro Negro Project

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14 years of exploration with the biggest orebody Eureka found after 12 years in 2007:

 1995: Newcrest Eureka Vein outcrop discovery  1997-2001: Newcrest-Pegasus-MIM: 21 RC holes - Eureka Vein (7,000m drilled)  2003: Andean buys MIM’s 51% of Cerro Negro  2005: Andean explores Vein Zone (0.5Moz Au Res - 115 holes/23,171m drilled)  2008: Andean announces Resource at Eureka (273 holes/72,416m drilled)  2010: Goldcorp takes Andean 3.5Moz Resource

Cerro Negro Project: 215km2 area

Kamila – Mercado Deposit Geology

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The NW- SE Structural Corridor is a Key Driver in Placement of Mineralisation

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Casposo 2010 Mining Reserves

Highest value intercept on the property to date HOLE: CA08250 7.2m @ 108.7g/t Au 4,423g/t Ag Contained metal value over US$10,000 per tonne at US$1500/oz Au and US$35/oz Ag.

Initial 2011 Drilling

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High Grade Intercepts Drilled in April

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Note the quoted gold equivalent grade assumes a conversion of 70:1 for converting silver to gold equivalent. This is a conservative approach to enable comparisons to the reserve published in 2010. The ratio of 70:1 assumes the differential metallurgical recoveries assumed in the NI43101 Report produced in 2010 and the metal prices assumed at that time. Because silver prices have risen proportionally more than gold prices, this ratio is increasingly conservative for high silver grade intercepts. Using the same assumptions for metallurgical recoveries but current prices of: Au – US$1500/oz and Ag – US$35/oz Gives a conversion ratio of 50:1 to convert silver to gold. The impact can be seen for hole CA-11-300 5.4m @ 8.18 g/t Au and 2,607 g/t Ag Was reported as 45.43 g/t Au_eq assuming a conversion ratio for silver to gold of 70:1 The grade would be 60.3g/t Au_eq if the conversion ratio of 50:1 was assumed.

We are Currently Undertaking Additional Drilling to Determine if we have a New Underground Mining Block

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Preliminary Cross Section

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Preliminary Cross Section

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Preliminary Cross Section

Julieta SE Drilling

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Julieta is a target on the main North West – South East structural corridor – some 5kms from the Kamila deposit and at approximately 1000m higher altitude. Troy established a small low-grade Resource in 2010 based on relatively shallow drilling. 268,700t grading 3.21g/t gold and 15.44g/t silver (3.43g/t Au_eq) for 29,700 Au_eq ounces at a cut-off grade of 1g/t Au_eq. In 2011 we have commenced a program of deeper drilling attempting to find zones of higher grade.

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Julieta SE Drilling

2011 Drilling Results

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These higher grade results are strategically important because:  Although at depth, the topography is such that underground access could be gained by a short adit from the side of the hill thus lowering the hurdle in terms of size to justify development.  Only 7km haul distance to the Casposo plant.  We now have ore grade intercepts 5kms apart on the NW-SE structural corridor and ~4kms of this is covered by a thin layer of volcaniclastics.  Commenced planning airborne and ground geophysics with the aim of defining drill targets below the cover.

2011 Drilling Results

Exploration Potential Brownfields Targets

35 Cerro Norte Zone Looking East Maya Vein Mercado NW Vein

Casposo Norte – Anomalous Gold In and Near Surface A Target for Follow Up Deeper Diamond Drilling

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Castaño Nuevo Target, Argentina

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Extended Our Ground Position with the Signing of the Don David JV

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Castaño Multiple Outcropping Veins Systems

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An Inflection Point?

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 Casposo ramping up to budget production.  Casposo will be a very low cost mine.  Andorinhas performing well.  Significant exploration results at Casposo with potential, dependent on further exploration success, to:

• Extend mine life (additional ounces)
• Avoid drop in production in years 3 and 4 (access to higher grade)
• Lower unit costs (access to higher grade)

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Troy is a dividend paying junior gold producer focused on growth with a track record of low cost mine development Becoming a profitable Mid Tier Producer

Thank You

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Resource and Reserves Statement

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TROY RESOURCES NL ‐ MINERAL RESOURCES AND RESERVES

GOLD MINERAL RESERVES

Country Project Deposit Category Tonnes Gold grade g/t Gold ounces Argentina Casposo Kamila pit Probable 1,251,000 6.1 246,600 Kamila underground Probable 687,000 4.0 87,300 Mercado pit Probable 95,000 2.5 7,500 Total Casposo 2,033,000 5.2 341,400 Brazil Andorinhas Mamao underground Probable 715,000 8.7 199,800 Lagoa Seca stockpiles Proven 215,000 2.2 15,300 Coruja NE Probable 64,200 4.8 9,800 Total Andorinhas 994,200 7.0 224,900 Australia Sandstone Lord Nelson pit Probable 293,000 2.7 25,600 Lord Nelson stockpiles Proven 33,000 1.5 1,600 Lord Henry stockpiles Proven 334,000 0.9 9,500 Total Sandstone 660,000 1.7 36,700 Total Proven 582,000 1.4 26,400 Total Probable 3,105,200 3.9 576,600 TOTAL MINERAL RESERVES GOLD 3,687,200 3.5 603,000

SILVER MINERAL RESERVES

Country Project Deposit Category Tonnes Silver grade g/t Silver ounces Argentina Casposo Kamila pit Probable 1,251,000 128 5,139,700 Kamila underground Probable 687,000 256 5,663,600 Mercado pit Probable 95,000 128 391,000 TOTAL MINERAL RESERVES SILVER 2,033,000 171 11,194,300

Resource and Reserves Statement

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GOLD MINERAL RESOURCES (inclusive of Mineral Reserves)

Country Project Deposit Category Tonnes Gold grade g/t Gold ounces

Argentina Casposo Aztec Indicated 761,000 7.2 176,100 Inca Indicated 744,000 6.3 149,800 B vein Indicated 568,000 4.1 74,200 Mercado Indicated 296,000 1.5 14,500 Aztec Inferred 3,000 1.4 100 Inca Inferred 87,000 7.8 21,900 B vein Inferred 6,000 1.2 300 Mercado Inferred 14,000 1.8 800 SEXT Inferred 151,000 1.4 6,900 Total Indicated 2,369,000 5.4 414,600 Inferred 261,000 3.6 30,000 Brazil Andorinhas Mamao Indicated 783,000 9.9 249,700 Inferred 82,000 6.4 16,700 Lagoa Seca Measured 215,000 2.2 15,300 Lagoa Seca West Indicated 577,000 2.2 40,400 Inferred 171,000 1.3 7,000 Luiza Inferred 258,000 2.5 20,300 Coruja NE Indicated 166,700 3.7 19,600 Total Measured 215,000 2.2 15,300 Indicated 1,526,700 6.3 309,700 Inferred 511,000 2.7 44,000 Australia Sandstone Lord Nelson Measured 33,000 1.5 1,600 Indicated 1,019,000 2.2 72,700 Inferred 84,000 1.8 4,900 Lord Henry Measured 334,000 0.9 9,500 Indicated 987,000 1.9 58,700 Inferred 39,000 1.7 2,100 Two Mile Hill Inferred 10,541,000 1.3 452,100 Sandstone other Indicated 515,000 1.9 30,900 Sandstone other Inferred 1,922,000 1.9 115,300 Total Measured 367,000 0.9 11,100 Indicated 2,521,000 2.0 162,300 Inferred 12,586,000 1.4 574,400 TOTAL MINERAL RESOURCES GOLD Measured 582,000 1.4 26,400 Indicated 6,416,700 4.3 886,600 Inferred 13,358,000 1.5 648,400

Resource and Reserves Statement

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SILVER MINERAL RESOURCES (inclusive of Mineral Reserves)

Country Project Deposit Category Tonnes Silver grade g/t Silver ounces Argentina Casposo Aztec Indicated 761,000 166.3 4,070,000 Inca Indicated 744,000 366.7 8,770,500 B vein Indicated 568,000 81.8 1,493,300 Mercado Indicated 296,000 108.5 1,032,200 Total Indicated 2,369,000 201.7 15,366,000 Aztec Inferred 3,000 438.2 42,300 Inca Inferred 87,000 517.7 1,448,100 B vein Inferred 6,000 150.2 29,000 Mercado Inferred 14,000 108.1 48,600 SEXT Inferred 151,000 118.0 572,900 Total Inferred 261,000 255.1 2,141,000 TOTAL MINERAL RESOURCES SILVER Indicated 2,369,000 201.7 17,507,000 Inferred 261,000 255.1 2,141,000

Qualifying Statements

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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 testwork 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.