Matrix Metals Limited Investor Presentation Disclaimer The - - PDF document

Matrix Metals Limited – Investor Presentation

Matrix Metals Limited – Investor Presentation

Disclaimer

2 The material used is this presentation is intended to be a summary of selected geological data, current and proposed activities, as well as resource estimates based on information available to Matrix at the time. It does not include all available information and should not be used in isolation as a basis to invest in Matrix. Any potential investors should refer to Matrix Metals Limited ASX releases and statutory reports before considering investing in the company. The presentation includes information relating to a feasibility study which is in progress and includes “forward looking statements’ which include, without limitation, estimates of potential copper production based on mineral resources that are currently being evaluated. While the Company has reasonable basis on which to express these estimates, any forward looking statement is subject to risk. Risks include, without limitation: copper metal prices, foreign exchange rate movements, project funding capacity, copper product offtake contracts and estimates of future capital and operating costs. The Company does not undertake to release publicly any revisions to forward looking statements included in this presentation to reflect events or results after the date of this presentation, except as may be required under applicable securities laws.

Matrix Metals Limited – Investor Presentation

Corporate Overview

3

Ordinary Shares Unlisted Options Market Capitalisation

Based on price of $0.13 / share

702.5m 19.7m $91.3 million Cash Debt (Glencore) $5 million $8 million Independence Group LinQ Resources Fund Glencore 17.7% 8.8% 5.9% Top 20 43.2%

Capital Structure Substantial Shareholders

$0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20 Jan 06 Mar 06 May 06 Jul 06 Sep 06 Nov 06 Jan 07 Mar 07 May 07 Jul 07 Sep 07 Nov 07

• 10,000,000

20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000

Volume Share price

Matrix Metals Limited – Investor Presentation

Board & Management

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Board of Directors Senior Management

Non-Executive Director David Humann Shane McBride Clive Donner Chairman Managing Director Non-Executive Director Ronald Hing Geoffrey Jones Non-Executive Director Richard Procter Non-Executive Director Shane McBride Ian Goldberg Bob Dennis Chief Executive Officer Chief Financial Officer GM - Operations Paul Monaghan Leichhardt Ops Mgr Barry Cloutt Project Manager

Matrix Metals Limited – Investor Presentation

Mt Isa Inlier – World Class Base Metals Province

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Matrix Metals Limited – Investor Presentation

Leichhardt Project Summary

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Leichhardt 5,500tpa SX/EW plant is in steady state production processing Mt Watson copper oxide resource at nameplate capacity Glencore International to buy 100% of production over life of mine Cashflow from copper sales commenced in August 2007 Total leachable copper resources in the Leichhardt Project total 8.8 million tonnes Stage 1 has 2.1 million tonnes of Mt Watson ore to be treated over 4 - 5 years at 5,500tpa (only 25% of Leichhardt total resource utilised in Stage 1) Plant upgrade for Stage 1 expansion estimated at approximately $5-6 million to increase production to approximately 9,000tpa. Most equipment for plant upgrade is already owned by Matrix. This option uses exactly the same orebody as Stage 1, no change is made to the technical aspects of the orebody mined, however the mining rate is increased Stage 2 will see an extension to mine life and/or increase in production rates Geotechnical and metallurgical drilling for Stage 2 has been completed and column test work will start soon Resource inventory increase to 8.8 million tonnes to come (Mt Watson, Hidden Treasure, Mighty Atom, Mt Earl, Mt Wonder, Tewinga, Boomerang)

Matrix Metals Limited – Investor Presentation

Mt Watson from the West to East

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Overall Stage 2 pit length 1.5km

Matrix Metals Limited – Investor Presentation

Leichhardt Production Activities

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Matrix Metals Limited – Investor Presentation

Leichhardt Project Milestones

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Leichhardt Project mining study completed October 2006 Leichhardt Project funding completed November 2006 Mining operations commenced at Mt Watson in April 2007 Process plant started commissioning and crushing operations commenced June 2007 Copper cathode production commenced June 2007 Processing plant refurbishment and commissioning complete June 2007 First copper cathode sales in July 2007 Cashflow commenced in August 2007 Nameplate production of 5,500 tpa achieved from late September Steady state production achieved October

Matrix Metals Limited – Investor Presentation

Leichhardt Stage 1 Project to Date

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Ramp up progressed

• n schedule

Mined grades and widths reconcile with the resource model Copper cathode production at nameplate capacity Stage 1 ore of 2.1mt @ 1.2%

Nameplate Production Rate Grade (% Cu) 5,500 tpa 1.17

Operating Cost

• US$/lb
• A$/lb

$1.59 $2.18 5,500 tpa 1.16 Feasibility Study July – Sep 07 Total Revenue (A$) $163 million $6.8 million Feasibility Study Prices Average 2.66 $16 million

Cu Price US$/lb Annual Net Operating Cashflow

Spot Prices 3.42 $20 million 15 months

Capital $ Payback Time

14 months $1.71 $1.99

Matrix Metals Limited – Investor Presentation

Leichhardt Stage 1 Expansion

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Stage 1 development utilising only 2.1 million tonnes @ 1.2% Cu of the existing Mt Watson leachable resource of 8.8 million tonnes @ 1% Cu The current mining inventory of 2.1 million tonnes is not a JORC compliant reserve, however it is expected to be a reserve during January 07 Plant capacity to increase from 5,500tpa to approximately 9,000tpa of copper cathode Plant upgrade capital estimated at approximately $5-6 million Utilise EW equipment already owned by Matrix No additional ore feed is required to justify this production upgrade

Matrix Metals Limited – Investor Presentation

Leichhardt Stage 1 Expansion

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Nameplate Production Rate Grade (% Cu) 9,000 tpa 1.17 Operating Cost

• US$/lb

$1.54 Scoping Study 3 years Total Revenue (A$)

$179 million

Scoping Study Prices Average 3.00 $26 million

Cu Price US$/lb Annual Net Operating Cashflow

Spot Prices 3.42 $34 million 5 months

Stage 1 Expansion Capital Payback Time

4 months

Significantly increased cashflow Same orebody as Stage 1 Minimal capital investment for substantial return Stage 1 ore of 2.1mt @ 1.2%

Matrix Metals Limited – Investor Presentation

Leichhardt Project – Stage 2

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Stage 1 utilises only 2.1 million tonnes @ 1.2% Cu of the existing Mt Watson leachable resource of 6.5 million tonnes @ 1% Cu Resource to reserve conversion work is currently underway Additional ore feed to come from the remainder of the current Mt Watson resource (approximately an extra 4 million tonnes), anticipated growth at Mt Watson and other existing deposits nearby Depending on the outcome of a feasibility study the plant capacity could increase beyond 9,000tpa Stage 2 is likely to see a significant reduction in operating costs Anticipated average grade of Stage 2 ore is 1.00% Mine life expected to increase to 6 years

Matrix Metals Limited – Investor Presentation

Projection of Leichhardt Stage 2 Expansion

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Nameplate Production Rate Grade (% Cu) 9,000 tpa 1.0 Operating Cost

• US$/lb

$1.50

Assumes current study but with 6 years life

Total Revenue (A$)

$360 million

Scoping Study Prices Average 3.00 $26 million

Cu Price US$/lb Annual Net Operating Cashflow

Spot Prices 3.42 $34 million 6 Years

Project Life

6 Years

Purely a projection of potential Mined grades and tonnages assume 70% conversion from resource to reserve Overall costs are assumed to be similar to the current 9,000 tpa scenario Mine Life increased from 3 years to 6 years

Matrix Metals Limited – Investor Presentation

Leichhardt Project - Margin

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Operating cost US$1.70/lb Average operating margin of US$1.50/lb Operating cost estimated to drop to US$1.50/lb Average operating margin increasing to US$1.70/lb

Leichhardt Project - Stage 1 Leichhardt Project - Stage 2

Comex Copper US$/lb

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07

Average 2007 Copper Price Operating Cost $1.70/lb

Margin US$1.50/lb Margin US$1.70/lb

assumes US$/A$ exchange rate of 80 cents

Matrix Metals Limited – Investor Presentation

Project Locations

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Matrix Metals Limited – Investor Presentation

Leichhardt Regional Exploration - Prospector

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Prospector is a Iron Oxide Copper Gold Deposit “IOCG” Prospector is associated with intense magnetic anomalies Olympic Dam, Ernest Henry and Selwyn are associated with intense magnetic anomalies and are IOCG mines Prospector area - Cu ± Au (previous intersection at Leichhardt Prospect by Sons of Gwalia 71.5m @ 1.72% Cu, 0.18g/t Au Matrix is mapping and sampling the area and have discovered several new zones of mineralisation Matrix will fly high resolution magnetics to improve the magnetics and allow depth to body modelling Drill holes have been located Grid lines = 2 sq kilometre

Matrix Metals Limited – Investor Presentation

Cloncurry Regional Exploration – Sierra Line

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The Sierra Line is a significant fault structure trending NNW from Mt McCabe, which has a string of old prospects along its 12+ km length Several companies including Matrix have intermittently drilled underneath old prospects with spotty results Prior to Matrix commencing work in the area only limited systematic mapping or surface sampling had been completed Matrix’s soil sampling has defined significant anomalies at Sierra and Mt Cyril adjacent to mapped silicified fault structures The next phase will be geophysics which is currently underway

Matrix Metals Limited – Investor Presentation

Xstrata McCabe JV

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Xstrata to earn 55% interest in the McCabe Project by spending A$5 million prior to September 2009 Xstrata can increase to 75% by spending a further A$10 million within a further 5 year period, or completing a Bankable Feasibility Study during the sole funding period Historical exploration by Matrix confirms growth potential of the oxide zone of the deposit and sulphide mineralisation at depth of the McCabe deposit Matrix retains rights to mine oxide and transitional copper to a depth of 100m until a decision to mine is made by the JV McCabe deposit has a resource of 1.7 million tonnes grading 1.24% Cu

Matrix Metals Limited – Investor Presentation

Deep Yellow JV

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Deep Yellow exploring Matrix’s tenements in the Mt Isa – Cloncurry region for uranium Deep Yellow has the right to earn 51% in the uranium rights by spending $3 million by February 2009 Deep yellow can acquire a further 29% at any time up until the commencement of a Bankable Feasibility Study for an additional payment of $3 million After completion of BFS Deep Yellow can buy Matrix’s residual 20% in any single uranium deposit interest for a value equal to 15% of the in-ground value of Matrix’s 20% interest in the resource Many occurrences in the Ewen EPMA14916 are geologically similar to the Skal and Valhalla uranium deposits Deep Yellow Limited have commenced drilling - results expected December quarter Deep Yellow is concentrating its Australian uranium expenditure on the Mt Isa Area

Matrix Metals Limited – Investor Presentation

Matrix Strategy for Growth

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Fast track exploration and accelerate development of Leichhardt Stage 1 Expansion

5,500tpa copper cathode going to 9,000tpa Extension of project life and possible production expansion beyond 9,000tpa

Leichhardt Expansion Leichhardt Project – Stage 2 Exploration

Stage 1 Production at 5,500tpa Achieved

Matrix Oxide Production

• Leichhardt Prodn 5,500 tpa
• Leichhardt Expansion
• Leichhardt Stage 2
• Kuridala Oxide Copper

Oxide Exploration

• Matrix Oxide Exploration

Sulphide Exploration

• Matrix Sulphide Exploration
• McCabe JV – sulphide

exploration with Xstrata Uranium Exploration NW Queensland JV with Deep Yellow Limited