INVESTOR UPDATE Noosa Mining and Exploration Conference 17-18 July - - PowerPoint PPT Presentation

INVESTOR UPDATE

Noosa Mining and Exploration Conference 17-18 July 2014 James Brown – Managing Director

alturamining.com ASX : AJM

2 This presentation has been prepared by Altura Mining Limited (“Altura” or the “Company”). It should not be considered as an invitation or offer to subscribe for or purchase any securities in the Company or as an inducement to make an invitation or offer with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation is provided on the basis that none of Altura nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express

• r implied) as to the accuracy, reliability, relevance or completeness of the material contained in the presentation and

nothing contained in the presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The presentation contains forward looking information and prospective financial material which is predictive in nature and may be affected by inaccurate assumptions or by known or unknown risks and uncertainties, and may differ materially from results ultimately achieved. All references to future production, production targets and resource targets and infrastructure access are subject to the completion of all necessary feasibility studies, permitting, construction, financing arrangements and infrastructure-related agreements. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources and Exploration Results, as well as the Competent Persons' Statements. All persons should consider seeking appropriate professional advice in reviewing the presentation and all other information with respect to the Company and evaluating the business, financial performance and operations of the

• Company. Neither the provision of the presentation nor any information contained in the presentation or subsequently

communicated to any person in connection with the presentation is, or should be taken as, constituting the giving of investment advice to any person.

DISCLAIMER

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An emerging mining company providing diversified production entering a new and exciting phase of carefully executed strategy A mining company run by experienced and credentialed mining people Pilbara producer status attained July 2014 - transformational company milestone Altura transitioning to a growth company offering material production volume from a robust financial footing and undemanding investment metrics The management and financial capacities to pursue opportunities presented by compelling broader portfolio

A TRANSFORMATIVE 2014: ACHIEVING KEY MILESTONES

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PRESENTATION SUMMARY

1

Altura Overview

2

The Vision

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Portfolio: Production assets

Iron ore - Mt Webber JV Coal - Delta

Development assets

Lithium - Pilgangoora Coal - Tabalong

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Outlook for 2014 and beyond

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1. ALTURA OVERVIEW

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As at 15 July 2014 Shares on Issue (AJM) 454,272,181 Share price $0.17 Market capitalisation A$77.2 million Cash balance A$3.0 million Share price – 52 week range $0.10 – $0.245

ALTURA MINING: CAPITAL STRUCTURE

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ALTURA: A MINING COMPANY RUN BY MINING PEOPLE

An extensively credentialed board with an impressive track record across all areas of resource development and management.

James Brown (Managing Director) James is a mining engineer with more than 25 years experience in the mining industry, including 22 years at New Hope Corporation. James was involved in the development, commissioning and operation of several tier one assets. Paul Mantell (Director) Paul has over 30 years experience as an accountant in the mining industry, the majority of those spent at New Hope Corporation Limited including 13 years as Chief Financial

• Officer. Paul has extensive

experience in all aspects of resource finance. Allan Buckler (Director) Allan has over 35 years experience in the mining industry and has taken the lead role in establishing several substantial mining and port

• perations both in Australia and
• Indonesia. New Hope Coal, PT

Adaro Indonesia and the PT Indonesia Bulk Terminal were developed under Allan's leadership. Dan O’Neill (Director) Dan is a geologist and has over 30 years experience in executive management positions in the resource industry including being a founding director of emerging lithium producer Orocobre Ltd. BT Kuan (Director) BT is a mechanical engineer with considerable experience in bulk handling and terminal processing

• perations. BT has extensive

knowledge and experience in dealing in key Asian markets.

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2. THE VISION

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An emerging mining company offering growth from a sound financial platform Focused on developing straightforward operations with strong cash flows Growing production profile with cash flows from Iron Ore and Coal Focused on sustainable mining operations with low capital intensity – strong return on equity Production operations 30% interest in Mt Webber DSO project (North Pilbara, Western Australia)1 ⅓ interest in Delta operating coal mine (East Kalimantan, Indonesia) Development assets Lithium – Pilgangoora (North Pilbara, Western Australia) Tabalong high value coal targets (South Kalimantan, Indonesia)

(1): Mt Webber subject to joint venture interests 30% Altura / 70% Atlas Iron

ALTURA: THE VISION

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3. PORTFOLIO PRODUCTION ASSETS

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MT WEBBER: A PATHWAY TO MARKET

Courtesy Atlas Iron

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• Mine opened 15 July 2014 - Joint Venture 30% Altura, 70% Atlas Iron (AGO)
• Mt Webber delivered by AGO on time and budget with sector leading capital

efficiency

• Commencing at 3Mtpa (Altura 900Ktpa) - first ore sales Q3 2014
• Stage 2 expansion to 6Mtpa (Altura 1.8Mtpa) approved for development -

first haulage expected from Q4 2014

MT WEBBER: AUSTRALIA’S NEWEST MINE

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• Landmark cooperative agreements provide Altura access to Atlas’

infrastructure and pathway to market via road haul to Utah Point - Port Hedland

• Agreements cover mining, processing, transport and ore sales
• Low risk entry into iron ore market for Altura – strong partnership with AGO
• Modest CAPEX servicing requirement from Altura – consistent with strategy
• Funding package in place from AGO – option to replace without penalty

MT WEBBER: AUSTRALIA’S NEWEST MINE

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• Low strip ratio mine – Life of Mine strip ratio ~0.3 to 1
• 7 years + mine life – long term positive returns
• Project expected to generate strong cash flows

– Target LOM cash cost: A$49-51/tonne1 – Target all-in cash cost: A$72-74/tonne2 – Material EBITDA margin and earnings to Altura contrasted with market cap – Altura now able to be valued on conventional investment metrics

• Potential resource extension: considerable surrounding tenement footprint

MT WEBBER: ROBUST ECONOMICS FROM SEPTEMBER QUARTER 2014

(1): 2014 Stage 2 Final investment decision. (2): Includes Atlas management fee, infrastructure charge, government royalty (3): Assuming QTD 62% Fe price adjusted to 57% Fe , freight US$11/tonne and AUD/USD exchange rate of 0.90

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DELTA COAL

Samarinda Balikpapan

Delta Coal

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• Fully infrastructure integrated coal mine located in East Kalimantan,

Indonesia – commenced production in 2004

• Altura ⅓ interest and plays lead role in technical management of the
• peration
• Currently producing at 1.5Mtpa rate of highly marketable thermal coal –

5,600 kcal – air dried basis – potential to increase to 2.0Mtpa

DELTA COAL: IN FULL PRODUCTION

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• JORC Coal Resources estimate of 61.4

million tonnes#

• JORC Coal Reserves estimate of 12.5

million tonnes# with upside potential via further drilling

• Competitive Average Life of Mine (LOM)
• perating cash cost of US$36.92/tonne

FOB barge

• Challenging thermal coal market
• Cost reduction measures implemented

# Refer to Appendix for Reserve and Resource Tables # See Altura’s ASX release of 5 June 2013

DELTA COAL: IN FULL PRODUCTION

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DELTA COAL: MINE TO MARKET

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3. PORTFOLIO DEVELOPMENT ASSETS

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PILGANGOORA LITHIUM

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• Pilgangoora, Western Australia (100% Altura)
• Globally significant hard rock Lithium (Spodumene) deposit
• Shallow, thick and high grade Lithium intercepts with consistent Li20 grade
• JORC Mineral Resource estimate of 25.2 million tonnes @ 1.23% Li20*
• Resource extendable
• Sufficient resource for 20yr plus mine life
• Contained Lithium 310,000 tonnes
• 17.3 Mt Indicated / 7.9 Mt Inferred with potential to add to resource
• 12 Spodumene-rich pegmatite dykes identified

ALTURA LITHIUM

* See Altura’s ASX release of 3 October 2012 * Refer to Appendix for Resource Table and Competent Persons Statement

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• Progressing to Pre-feasibility in H2 2014
• Potential high grading optimality's being reviewed with potential to mine at

Circa 1.8% Li2O first 7 years of production

• Altura pursuing low capital option for convention dig, crush, grind, flotation

circuit producing Chemical grade >6.5% Li Lithium concentrate for export to third party processing

• Consolidation in sector with Talison transacting at circa 16x EBITDA earnings
• Strengthening concentrate prices highlight strategic value of Pilgangoora and

compelling fundamentals of underlying Lithium market

• Altura conducting process to attract offtake / strategic investment partner for

project

ALTURA LITHIUM

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1 Ownership 70% Altura and 30% PT UJI to form the Tabalong JV 2 Ownership 80% Tabalong JV and 20% Local partner

TABALONG COAL

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• Five (5) IUPs covering 17,000 hectares located in South Kalimantan,

Indonesia

– Tabalong JV - 70% Altura and 30% local partner – Targeting high energy coals with exploration highlighting significant potential for PCI and metallurgical coal products. – Intention to commence production at 500ktpa and move to 1.5mtpa blend of thermal and metallurgical coals – Consistent with company strategy low capital intensity, low operating cost and straightforward pathway to market via third party infrastructure

• Operation Production approval received for all (5) IUPs

– Forestry Land Use Permit applications in progress for SPK and SCC – Three (3) IUPs (SPK, SCC and SP) all on “Clean and Clear” Register – Operation Production approval for KM and MBM in March 2014

TABALONG COAL

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4. OUTLOOK FOR 2014 AND BEYOND

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OUTLOOK FOR 2014 AND BEYOND

Iron Ore Mine opening for Mt Webber Stage 1 completed 15 July 2014 – commissioning largely complete Provides Altura with recurring cash flows and sound financial footing Altura becomes the 7th Pilbara producer behind BHP,RIO,FMG, BCI,AGO,MGX…….. AJM Successful doubling of production via commissioning of Stage 2 by December 2014 Coal business Delta Coal production to maintain 1.5Mtpa rate – can be increased if market improves Tabalong Coal – forestry permitting conclusion – ongoing discussions showing measurable progress Tabalong Coal – production decision and move toward1.5 Mtpa production Tabalong Coal highlighted in “picking project winners” Wood Mackenzie February 2014 Lithium PFS for Pilgangoora, pursuing further efficiencies reducing capex , high grade options Conduct process in conjunction with PFS to secure strategic investment partner to assist in progression of project

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THANK YOU. QUESTIONS?

APPENDICES

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DELTA COAL TOTAL OPEN PIT COAL RESERVES

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DELTA COAL COAL RESOURCES SUMMARY

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Pilgangoora Li2O Resource – October 2012 # Zone Resource Tonnes Li2O % Li2O tonnes C1, E1, N1 Indicated 14,992,600 1.27 190,783 Inferred 7,239,155 1.22 88,173 S1 Indicated 2,295,335 1.11 25,374 Inferred 630,175 0.95 6,012 Subtotal Indicated 17,287,935 1.25 216,157 Inferred 7,869,330 1.20 94,185 Total All Resources 25,157,265 1.23 310,342

The information in this table was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. # Based on 0.7% Li2O cut-off grade

PILGANGOORA MINERAL RESOURCES ESTIMATES

32 Delta Coal Reserves and Coal Resources The information in this presentation relating to Coal Reserves and Coal Resources at the Delta coal operations is extracted from the ASX announcement of 5 June 2013 “Maiden JORC Compliant Coal Reserve Estimate at Delta Coal” which is available to view on www.alturamining.com. The Company confirms that it is not aware of any new information

• r data that materially affects the information included in the original market announcement, and in the case of

estimates of Coal Resources and Coal Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

COMPLIANCE STATEMENT

33 Pilgangoora – Western Australia The information in this presentation that relates to Exploration Results or Mineral Resources is based on information compiled by Bryan Bourke, who is a member of the Australian Institute of Geoscientists and a full-time employee of Altura Mining Limited. Bryan Bourke has sufficient experience, which is relevant to the style of mineralisation and type

• f deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person in terms of the

‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code 2004 Edition). Bryan Bourke consents to the inclusion of such information in this Report in the form and context in which it

• appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated

since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

COMPETENT PERSON STATEMENT