TROY RESOURCES NL All Correspondence to: ABN 33 006 243 750 - - PDF document

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NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

25 November 2010

INTRODUCTION AND CHAIRMAN’S ADDRESS – 2010 ANNUAL GENERAL MEETING OF SHAREHOLDERS

Ladies and Gentlemen Welcome to the Twenty Sixth Annual General Meeting of Troy Resources. We have a quorum present, and I declare the meeting open. My name is David Dix, I am a non-executive Director of Troy Resources and will be Chairing today’s meeting. It was intended that John Dow, whom I am to replace if elected by shareholders, would chair this his final AGM as Chairman and introduce me as his

• replacement. As many may know, John is Chairman of Pike River Coal the company that

has been involved in the terrible tragedy in New Zealand where 29 Underground miners have lost their lives. John has remained in New Zealand comforting grieving families and dealing with the media coverage. These recent events bring home the real dangers that our employees face in the mining industry. John has asked me to convey this appreciation of the privilege of serving Troy shareholders for two years as Chairman where he has made an

• utstanding contribution to the implementation of the expansion of operations into Latin

America, and the continued improvements in board functioning and corporate governance. As John‘s replacement I am very pleased with the state in which he has left the Company. John also asked me to express his appreciation for the assistance Paul Benson has provided during his Chairmanship. I would like to introduce to you my fellow Board members and Company Secretary. Starting

• n my far right is …………………. We also have apologies from Mr Ken Nilsson, our

Executive Director Operations, is in the middle of commissioning our new Casposo mine in Argentina and sends his apologies. I am sure you will agree shareholders’ interests are best served having him on site driving the commissioning rather than here in Perth. The sooner the mine is producing on a consistent basis, the sooner the Board can proceed in its dividend declaration. The Minutes of last year’s Annual General Meeting have previously been approved by the Directors of the Company. If you would like a copy, they are available from the Company Secretary, Mr Sadgrove. CHAIRMAN’S ADDRESS At the end of the formal business, Troy’s Managing Director, Paul Benson, will give a short presentation updating shareholders on your company’s activities. I would now like to present to you Mr Dow’s Chairman’s address.

TROY RESOURCES NL

ABN 33 006 243 750

All Correspondence to: REGISTERED OFFICE Ground Floor 44 Ord Street West Perth 6005 Western Australia Telephone: (61 8) 9481 1277 Facsimile: (61 8) 9321 8237 Email: troy@troyres.com.au Web Site: www.try.com.au

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t Exploration & Bu er consideration a Australasian Code he supervision of 43-101 – “Standar perience, which is y as a “competent nd Ore Reserves mpany’s projects geology, samples e under the Comp ments reflect mana ves to be reason e results expresse

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2010 AGM

Perth, 25 November 2010

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Forward Looking Statements

2

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.

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2010 – Building the Foundations

3

 Building Casposo Gold and Silver Mine  Improving Performance at Andorinhas  Extended the life of Sandstone  Completed financing without hedging  Increasing Reserves and Resources  Monetised the iron ore at Andorinhas  Increasing institutional/broking interest in Troy  Significant share price appreciation

SLIDE 6

What We Own

4

Gold Assets

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

Other Assets

• Sandstone, Australia – Nickel JV
• Andorinhas, Brazil – Iron Ore

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

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Corporate Snapshot

5

Troy Share Price Board & Senior Management

Non-Executive Directors



John Dow, Non-Executive Chairman



Gordon Chambers, Non-Executive Director



David Dix, 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: 87.5M Partly Paid Shares: 0.35M Options: 4.0M Share Price as at Nov 22, 2010: $3.43 52 Week Range: $1.91 - $3.60 Market Cap as at Nov 22 2010: ~$300M

Key Statistics (A$)

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Sandstone

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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 4,945oz  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.

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000

TROY ‐ Sandstone Gold Poured

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Andorinhas Gold Mine – Brazil

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 Small narrow vein underground supplemented by low grade

• pen cut stockpiles

 Calendar 2010 H1 operating in lower grade and narrow part of the ore body leading to excessive dilution  FY2010 - 31,568oz at US$634/oz  September quarter production – up 25% to 9,799 oz  September quarter costs – down 28% to US$470/oz

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Andorinhas, Mamão Underground Mine

8

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Melechete Lode Drilling and Grade Distribution

9

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Andorinhas

10

2000 4000 6000 8000 10000 12000 14000 16000 18000 Axis Title

RML Underground Ore Mined

RML Ored Tonnes Mined

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Narrow Vein Shrinkage Stope – M2

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Andorinhas – Summary

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 Moving into higher grade areas  FY2010: 31koz  FY2011: > 40koz  3 years remaining Reserves  Potential at depth and regionally to add Reserves  Monetising iron ore

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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

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Casposo Project – San Juan Province

14

SLIDE 17

15

1 2 3 4 5 6 7 8 million ounces

South American Low Sulphidation Epithermal Deposits Total Endowment

Casposo – Low Sulphidation Epithermal Deposit

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San Juan Province Mineral Endowment Mines and Casposo Project Access

16

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

17

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Casposo

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 Acquired from Intrepid Mines for US$20M in May 2009 plus US$2M

• n 6th month anniversary of first production

 July 2009 announced 32% in gold equivalent in Mineral Resource update  August 2009 announced 47% reduction in pre-production construction capital to US$45M  Started construction in August 2009  February 2010 announced a further reduction in pre-production construction capital to US$41.5M  May 2010 announced a 31% increase in gold equivalent in Mining Reserve  June 2010 announced discovery of new outcropping vein 4kms from the plant  On budget and scheduled to pour first gold in November 2010

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Open Cut, Underground and Processed Tonnes

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Total Gold Equivalent Production

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Aim to avoid the drop in production in 2013 and 2014 through proving up additional open cuttable Reserves – eg Castaño Nuevo and Casposo Note Aim to extend mine life through proving up additional surface and underground Reserves

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Unit Costs and Production

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Unit Costs and Production

Life of Mine FY 2010 30‐Jun‐ 10 FY 2011 30‐Jun‐ 11 FY 2012 30‐Jun‐ 12 FY 2013 30‐Jun‐ 13 FY 2014 30‐Jun‐ 14 FY 2015 30‐Jun‐ 15 FY 2016 30‐Jun‐ 16 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

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Casposo – Summary

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 Value adding acquisition  Fast track and low cost mine development  Supporting a greater than 100% increase in gold

production in FY2011

 Excellent Brownfields potential

SLIDE 25

Blue Sky

24

SLIDE 26

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Casposo Extensional Drill Targets Around Existing Reserves

HOLE: CA08250 7.2m @ 108.7g/t Au 4,423g/t Ag 177g/t Au_eq

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Exploration Potential Brownfields Targets

26 Cerro Norte Zone Looking East Maya Vein Mercado NW Vein

Limited “First Pass” Drilling No Drilling

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New Casposo Norte Discovery

27

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Castaño Nuevo Target, Argentina

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Castaño Multiple Outcropping Veins Systems

29

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Looking Froward

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 Strong growth profile through 2012 – will re-enter the +100,000oz pa club in FY2011  Low Cost production  Significant Brownfields exploration potential - $7m budget to test Casposo and Castaño Nuevo  Opening serviced office in Canada to increase our exposure to the North American market  Continuous review of Merger and Acquisition

• pportunities in search of the next growth project

SLIDE 32

Thank You