Cobalt – 2011 Supply Source

‘World class’

cobalt/pyrite deposits

near Broken Hill

Pyrite could fuel the future Broken Hill

Sulphuric acid

Cobalt

Energy

Hematite Cinder

Ceramics

Dr Ian Pringle Managing Director

20 May, 2013

Broken Hill Prospecting Limited (ASX:BPL)

Disclaimer This presentation contains forward-looking statements that involve subjective judgement and analysis and accordingly,

are subject to significant uncertainties and risks, many of which are outside the control of, and are unknown to, Broken Hill

Prospecting Pty Ltd ( “BPL”). In such circumstances, the forward-looking statements can be identified by the use of forward-looking

words such as “may”, “will”, “expect”, “intend”, “seek”, “estimate”, “believe”, “continue” or other similar words.

No representation, warranty or assurance is given or made in relation to any forward-looking statement by BPL or it’s representatives,

In addition, no representation, warranty or assurance is given in relation to any underlying assumption or that any forward-looking

statements will be achieved. Actual future events may vary materially from the forward-looking statements and the assumptions on

which the forward-looking statements are based. Accordingly, presentation readers are cautioned not to place undue reliance on

such forward-looking statements as a result of the uncertainties.

In particular, BPL wishes to caution readers that these forward-looking statements are based on economic predictions and

assumptions on reserves, mining method, production rates, metal prices and costs (both capital and operating) developed by BPL

management in conjunction with consultants.

This presentation and the forward-looking statements made in this presentation, speak only as of the date of the presentation.

Accordingly, subject to any continuing obligations under the Corporations Act and the New Zealand and Australian Stock Exchange

Listing Rules, BPL disclaims any obligation or undertaking to publicly update or revise any of the forward-looking statements in this

presentation, whether as a result of new information, or any change in events, conditions or circumstances on which any such

statements is based.

The exploration target and potential being reported under Section 18 of the JORC Code is based on assessments of prospects within

BPL’s tenure which are supported by drilling, geophysics, geological studies, imagery analysis, metallurgical test-work and

preliminary modelling. However, the potential quantity and grade is conceptual in nature, there has been insufficient exploration to

define a Mineral Resource and it is uncertain if further exploration will result in discovery of a Mineral Resource.

Competent Person Statement The review of exploration activities and results contained in this report is based on information

compiled by Dr Ian Pringle, a Member of the Australasian Institute of Mining and Metallurgy. Dr Pringle is the Managing Director of

Broken Hill Prospecting Pty Ltd and also a Director of Ian J Pringle & Associates Pty Ltd, a consultancy company in minerals

exploration. He has sufficient experience which is relevant to the style of mineralization and types of deposits under consideration and

to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian

Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Dr Pringle has consented to the

inclusion in this report of the matters based on his information in the form and context in which it appears.

。

IMPORTANT NOTICES

Location - important for future development

Located 25km SW of Broken Hill in

western NSW

Main highway to Adelaide cuts the

northern part of the project

Main railway beside the deposits

Exploration license (EL6622) and

two mining leases (ML86, ML87)

Geophysics (IP survey) and Pyrite

Hill resource confirmation drilling

completed in late 2011

Drilling in 2012 & 2013 intersected

spectacular zones of cobalt

mineralisation NE of Big Hill

The Railway Prospect is a new and

very large deposit which will likely

become a significant world cobalt

and sulphuric acid producer

Pinnacles mine

Project Geology – Co in surface deposits

PYRITE HILL Inf Res; 16.4Mt at 1.83lb/t Co

(plus 14-24Mt potential)

BIG HILL Inf Res; 4.4Mt

at 2.00lb/t Co

(open to NE &

at depth)

RAILWAY Inf Res; 14.9Mt at 1.83lb/t Co

(plus 23-35Mt potential)

View on next slide

No residence within >10km, limited land use Environmental impacts are manageable

Already has MLs (and EL) Excellent future mine site location

Very well located to rail and road …………. View towards EAST

Railway Cobalt

Deposit

Offset Cobalt

Deposit

Big Hill Cobalt

Deposit

Broken Hill

Pyrite Hill Cobalt Deposit

View towards EAST

View towards WEST

Pt Pirie

Project Geology – Co in surface deposits

PYRITE HILL Inf Res; 16.4Mt at 1.83lb/t Co

(plus 14-24Mt potential)

BIG HILL Inf Res; 4.4Mt

at 2.00lb/t Co

(open to NE &

at depth)

RAILWAY Inf Res; 14.9Mt at 1.83lb/t Co

(plus 23-35Mt potential)

Railway Prospect

BED001

IP plan with conductivity (colour)

and chargeability (contours)

Cobalt –pyrite continues at depth

High-grade cobalt-pyrite extends at depth along the western margin of the Railway Cobalt Deposit

2013 drilling at BED001

Comparable size to the Broken Hill Ore body?

PYRITE HILL Inf Res; 16.4Mt at 1.83lb/t Co

(plus 14-24Mt potential)

BIG HILL Inf Res; 4.4Mt

at 2.00lb/t Co

(open to NE &

at depth)

RAILWAY Inf Res; 14.9Mt at 1.83lb/t Co

(plus 23-35Mt potential)

The Railway Cobalt Deposit ‘footprint’ ....

shaping up to be of similar size to the

Broken Hill ore body

Long section through the BH orebody

?

What is cobalt? ...... A metal of the future

Cobalt (Co) has special qualities... hard, heavy, high melting temperature

Co is a ‘Strategic Metal’ in the USA, China, Japan and European Union

Co’s price range over last 5 years: $12-$50/lb ($22,000-$110,000/t)

Co is widely used in the following applications:

superalloys & metals for turbines, jets, military, aircraft, space.

rechargeable batteries (electric cars, mobile

phones, laptops....). Many lithium-ion

batteries contain up to 60% Co

a strong magnetic

(better than Ni and Fe)

pigments used for bright blue

colouring

in vitamin B12 (blood and brain)

a catalyst, in jewellery,

medical isotopes,

cosmetics, etc.

Why are BPL’s cobalt deposits special?

Cobalt is mostly produced as a bi-product from some copper or nickel mines

From the estimated 98,000t (216mlb) Co produced in 2011; o >60% came from the Democratic Republic of Congo (DRC), >40% was refined in China

o Over 80% consumed by the USA, Japan, China and the EU. None mined in the USA, Japan, EU

The DR Congo: 50% of the world’s known total cobalt resources, 60% Production o In early April 2013 DRC announced a ban on exporting cobalt concentrate

o Current uncertainty of future Co supply for growing world demand. Co prices risen to US$27,500/t

DR Congo Canada

Others China

Russia Zambia

Australia Cuba

Morocco New Caledonia

Brazil

2011 Cobalt Mine Production

Source: USGS Mineral Commodity Summary 2012

Cobalt price trend on LME

Source; London Metals Exchange

DRC announced ban on cobalt exports

Concentrate Scoping Studies have boosted development options

Completed by GHD in Nov 2012

Scoping studies have identified

robust economics for production

of pyrite concentrate for pyrite

roasting to produce sulphuric

acid, cobalt & hematite cinder

for steel/cement

Five fast-track, low cost

development options identified

at nominal processing rates of

1.5 – 7.5 million tonnes per

annum

First step in ongoing cobalt

development, infrastructure and

marketing evaluation

A staged development? with combination of the following ore processing options:

Start-up production of 1.5Mtpa of 35% pyrite product from mining, crushing and

transportation of high-grade cobalt-pyrite ore.

Estimated capital cost of A$6.5 million

Estimated operating cost of A$14.3 million per year

Benefits include; low capital investment, negligible water use, low power

requirement, early cash flow

Flotation processing of 1.5Mtpa of cobalt-pyrite ore feed for production of 300,000tpa of

85-90% pyrite concentrate.

Estimated capital cost of A$74 million

Estimated operating cost of A$17.8 million per year

Flotation processing of 7.5Mtpa of cobalt-pyrite ore feed to produce 1.5mtpa of 85-90%

pyrite concentrate.

Estimated capital cost of A$190 million

Estimated operating cost of A$50.9 million per year

Potential estimated revenue return for concentrate processing using an

established sulphide roast facility is $44 per tonne of ore feed and a 1.6 year pay-

back period

Pyrite to produce sulphuric acid – Key Points

The dynamics of the sulphuric acid market is complex, involving the interplay of

by-product supply and variable demand. There are major variations in pricing

between regions because of transport and raw material availability.

The production of phosphate fertiliser materials is the major end use for

sulphuric acid, accounting for nearly 52% of total world consumption in 2011.

The remainder is consumed by a wide range of industries including; plastics,

fibres, oil refining, metals and mineral processing.

Future growth in sulphuric acid use is anticipated with an increasing

population as developing countries switch to higher nutrition food crops that

require soil improvement.

Overall, there has been a general increase in demand for sulphuric acid and

world consumption increased by about 58% between 1990 and 2011. Declining

acid consumption has occurred in Russia and Europe since the late 1980s but

there has been a considerable increase in demand by socialist Asia

(China, Cambodia, N Korea, Laos, Mongolia and Vietnam) since 1990.

China dominates sulphuric acid production to feed domestic demand

Australia is a net importer (>400,000t imported in 2012) and has a growing

local market

Sulphuric acid is industry’s most used chemical

Future processing by ‘roasting’ of BPL’s cobalt-pyrite could

produce electric power with a carbon-neutral footprint.

A ‘clean’ energy bonus is possible for future cobalt and H2SO4

processing.

Steam from exothermic heat generated by pyrite concentrate

‘roasting’ and sulphuric acid production could be used for electric

power generation for future on-site processing and infrastructure.

Sale of surplus, sustainable, zero-carbon energy generated by

this process could also add considerable revenue.

For a typical 2,000 MTPD sulphuric acid plant it is possible 18-

24MW of surplus electricity could be produced.

Future processing could also generate electric power

Corporate snapshot

Main office: Sydney, L14, 52 Phillip Street Public capital raising of $A4.5m Commenced Trading 17 Feb 2011

ASX Code: BPL and BPLOA

Current cash: AUD0.6m

Share price, 16 May 2013: 6.1-7.0 cents

Shareholders Shares (m) %

So Co Limited 34.37 42%

New Talisman Gold Mines Ltd (previously Heritage Gold NZ Ltd)

17.93 22%

Top 20 63.65 77%

Total shareholders: 620

Directors/Management

Creagh O’Connor (Chairman) Dr Ian Pringle (MD) Geoff Hill (Alternate: Matt Hill) Peter Atkinson Rob Barnes

Corp Advise Consultant Geologist Finance Geologist Geologist

Francesco Girotto John Elliot Wolf Leyh Ralph Stagg

Company secretary Consultant Geologist Consultant Geologist Resources Consultant

Capital

Shares total Listed Unlisted

82,581,900 29,257,511 53,324,389

Options total Listed (20c, 17/2/14) Unlisted (20c, 17/2/16) Unlisted (24c, 17/2/13)

46,340,950 11,190,950 33,650,000 1,500,000

Price 12.70 USD/lb (28,000 USD/t | 21,731 EUR/t) 15 May 2013 - 52 Week Low 10.21 USD/lb 52 Week High 14.17 USD/lb

Co

Why is Broken Hill Prospecting an excellent investment?

BPL’s pyrite could provide an industry ‘backbone’ for the future Broken Hill

BPL has 100% of world-class cobalt-pyrite resources

Location – BPL’s deposits are within sight (500m) of the Sydney-Adelaide rail and

close to mining city and infrastructure

Cobalt - increasing use in batteries, superalloys and many other evolving

technologies but...security of Co supply as DRC restrictions start to bite.

Sulphuric acid – strong market demand for fertiliser and mineral processing

Electric power – potential to produce all process energy requirements as well as

supply electric power to the national grid.

Other potential value adding bi-products; – Feldspar for ceramics/tiles

– High-grade iron ore (hematite) residue

for use in steel or cement industries

Deposits are unique and of world class size ……….

Dr Ian Pringle Managing Director 0408 548767

Broken Hill Prospecting Ltd

is listed on the ASX and NZX

(ASX: BPL)

Please visit our website www.bhpl.biz

to find out more about BPL, our

deposits, our plans and the

cobalt industry.

“Broken Hill Prospecting Ltd is well positioned to take advantage of increasing world cobalt demand, uncertainty of cobalt and acid supplies and rising cobalt price as it develops into a low cost cobalt and sulphuric acid producer.”

Big Hill 3km

Railway (central)

Pyrite Hill 5km