SA Mining & Energy Infrastructure Conference, Adelaide 12-13 April 2011

Andrew Woskett, Managing Director

Minotaur Exploration Limited ACN: 108 483 601

ASX: MEP

1.  Disclaimer 2.  Introduction to the Braemar Iron Formation: where, what and why it is significant 3.  A mining development scenario: how big could it be 4.  Infrastructure profile:

  Beneficiation   Power & Water   Concentrate Slurry/Rail   Pellitisation   Port

The Braemar Infrastructure Challenge

Cautionary Statements

The following presentation is a visualisation of possible infrastructure solutions to support potential future iron ore mine developments. Locations nominated for the

provision of infrastructure facilities are for illustration purposes only and should not be considered viable technical, economic, environmental, social or State solutions for any

future requirements

This presentation has been prepared by the management of Minotaur Exploration Limited (ASX: MEP) for the general benefit of analysts, brokers and investors and does not constitute specific advice to any particular party or persons. Information herein is based on publicly available information, internally developed data and other sources. Where an opinion, projection or forward looking statement is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations are made or implied as to origin, validity, accuracy, completeness, currency or reliability of the information. MEP specifically disclaims and excludes all liability (to the extent permitted by law) for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where MEP expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future project evaluations, such expectation or belief is expressed in good faith and is believed to have a reasonable basis. However, such projected outcomes are subject to risks, uncertainties and other factors which could cause actual results to differ materially from projected future results. Such risks include, but are not limited to, exploration success, metal price volatility, changes to current mineral resource estimates or targets, changes to assumptions for capital and operating costs as well as political and operational risks and government regulatory outcomes. MEP disclaims any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forecast or to update such forecast.

This presentation has been prepared by the management of Minotaur Exploration Limited (ASX: MEP) for the general benefit of analysts, brokers and investors and does not constitute specific advice to any particular party or persons. Information herein is based on publicly available information, internally developed data and other sources. Where an opinion, projection or forward looking statement is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations are made or implied as to origin, validity, accuracy, completeness, currency or reliability of the information. MEP specifically disclaims and excludes all liability (to the extent permitted by law) for losses, claims, damages,

demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where MEP expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future project evaluations, such expectation or belief is expressed in good faith and is believed to have a reasonable basis. However, such projected outcomes are subject to risks, uncertainties and other factors which could cause actual results to differ materially from projected future results. Such risks include, but are not limited to, exploration success, metal price volatility, changes to current mineral resource estimates or targets, changes to assumptions for capital and

operating costs as well as political and operational risks and government regulatory outcomes. MEP disclaims any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forecast or to update such forecast.

Braemar Ironstones: The next big (Fe) thing

This presentation conceptualises a development scenario for magnetite deposits on the Braemar Iron Formation. Being a concept, there is currently no supporting technical or economic justification. The integrated, multi-user infrastructure facilities envisaged are hypothetical in nature and scope and do not, in Minotaur’s understanding, reflect third party intentions as presently contemplated. There can be no level of certainty that this or any

concept may eventuate

This presentation is based on a range of views and assumptions held by Minotaur alone and Minotaur does not purport to speak on behalf of other mineral exploration companies with interests on the Braemar Iron Formation. Minotaur has not sought nor has it received

any authorisation to make forward looking statements on behalf of other entities.

Braemar Ironstones: what is it?

 a significant regional sequence of highly magnetised sediments containing the magnetite form of iron  The Braemar Iron Formation is emerging to potentially become Australia’s next big iron ore province  100km SW of Broken Hill  Heavy duty rail link 300km to Port Pirie or 325km to Port Germaine

Braemar Ironstones: Explorers

  several ASX listed explorers are active along the Braemar and all are reporting exploration success   multiple zones, each potentially hosting hundreds of millions of tonnes of magnetite rich siltstones   Regional potential for total ‘Exploration Target’ of up to 20,000 million tonnes (Minotaur guesstimate) of in-

situ Fe mineralised siltstone, circa 15-25% Fe content   Could anticipate ~10 billion tonnes of mineable magnetite ore to be defined through exploration

The  term  "Explora/on  Target"  should  not  be  misconstrued  as  an  es/mate  of  Mineral  Resources  and  Reserves  as  defined  by  the  JORC  Code  (2004),  and  the  term  has  not  been  used  in  that  context.  It  is  uncertain  if  further  explora/on  will  result  in  the  determina/on  of  a  Mineral  Resource.  Refer  Cl  18  of  the  JORC  Code  (2004).  

Braemar Ironstones: the potential scope

 gives a foreseeable 100 year regional life of mining @ nominal 100Mtpa mining rate

 with annualised output of 25Mtpa of blast furnace quality magnetite concentrates grading 65% - 70% Fe

 Assume ~10 billion tonnes of mineable magnetite ore can be defined

 scope for say 5 pits each mining 10-20Mtpa ore and beneficiating 5Mtpa of concentrate each

Braemar Ironstones: Processing for 25Mtpa Con

6 fully autogenous grinding mills @ 28MW each

450MW Power station, combined cycle, gas fired

photos sourced from www.citicpacificmining.com/resources/news

 Assume ~10 billion tonnes of mineable magnetite ore can be defined

 scope for say 5 pits each mining 20Mtpa ore and beneficiating 5Mtpa of concentrate each

 @ nominal 100Mtpa mining rate gives a foreseeable 100 year regional life of ore mining

 with annualised output of 25Mtpa of blast furnace quality magnetite concentrates grading 65% - 70% Fe

 Beneficiation scenarios:  5 processing operations for 5Mtpa

concentrate each, at +$2b Capex each, or

 one 25Mtpa Super Plant and assoc infrastructure at ~$6b, saving ~$5b overall, with scale to include a Pellet Plant (producing a value added product)

  equivalent to CITIC’s $5.5b for 28Mtpa huge magnetite project at Cape Preston, WA

Braemar Ironstones: Off Plot Infrastructure

 Water

 Power

 Rail

 Concentrate Slurry Pipeline

 Port

 Pellet Plant

Braemar Ironstones: Water for 25Mtpa Con

CITIC Desalination Plant Feb 2011 photo sourced from www.citicpacificmining.com/en/news/progress-images

Water Supply scenarios: ๏ magnetite comminution and magnetic recovery circuits use vast amounts of clean (demineralised) water ๏ process circuit will consume ~50Gl per year (50,000 Mega litres pa or 135 Mega litres per day) ๏ a desal (RO) plant will be required on Spencer Gulf (BHPB’s proposed facility for ODX is to supply additional 200 Ml/day from Port Bonython area)

Proposed Olympic Dam Expansion Desalination Plant, Point Lowly, 200Ml per day capacity Source: ODX EIS p136-154, Fig 5.32

๏ 350km transfer pipeline, 1m diameter, plus 4 pump stations to deliver water to process facility

๏ annual operating power demand of 150,000 MWh

Braemar Ironstones: Power for 25Mtpa Con

graphics sourced from www.petratherm.com.au/expmodel.html

Power Supply scenarios: ๏ power demand of ~450MW (ODX requires additional 650MW generation)

๏ consuming 3,000 GWh pa (ODX to consume additional 4,400 GWh pa)

Disclosure: MEP holds an economic interest in Petratherm (ASX: PTR)

๏ potential for geothermal energy from shallow hot rocks nearby at Petratherm’s Paralana project

๏ potential for ‘meshed’ 275kV transmission ‘NEM’ network between Paralana-Port Augusta-Broken Hill, supplying 500MW into grid

๏ all in all, 1000km of new HV transmission network

Braemar Ironstones: Transfer 25Mtpa Con to Port

Concentrate Transfer scenarios: ๏ Rail:

• 325km to Port Germaine (25km north of Port Pirie)

• ARTC to upgrade E-W corridor in 2012 • 35km ‘spur’ required into train loading bins • ‘ballon loop’ required at each end for train turn around and 24 hour loading/unloading

• 2000m long trains, 25 tonne/axle, 100 tonne wagons, 20,000 tonne capacity

๏ Slurry Pipeline: • 360km buried pipeline to Port Germaine • requires 600mm diameter Con delivery pipe + Return Water Line

• Examples: ✴  Century Zinc’s 300mm diameter concentrate pipeline

is 304km long, concentrate in slurry ✴  Minas Rio iron project, Brazil, 600mm diameter

pipeline is 522km long, to transport 24.5Mtpa • 2-3 intermediate Pump Stations • Port Dewatering station & Concentrate storage

Braemar Ironstones: Port for 25Mtpa Con

Berthing for 200,000DWT ‘Cape Size’ vessels   125 ships loaded per year   4,000tph loading rate   320m long   20m draft   jetty length ~3km ?

Braemar Ironstones: Downstream option for Con

CITIC Stacker Reclaimer Feb 2011 photo sourced from www.citicpacificmining.com/en/news/progress-images

Pelletisation ๏  Concentrate is agglomerated to form pellets for direct injection into a steel making Blast Furnace ๏  Pellet plants are common in China. OneSteel has a 1.2Mtpa pellet plant at Whyalla steel making plant ๏  in 2010 Iran commissioned a 5Mt pa plant (see photo) costing US$600 million ๏  Pelletisation adds value to the concentrate product and is required before feeding into Blast Furnace ๏  Pellets are easier to ship (no moisture content), less likely to release fugitive dust emissions ๏  Australia is underweight in downstream value-add components of the steel making supply chain

The Braemar – evolving to be Australia’s next big Fe Infrastructure province?

Minotaur Exploration Limited ACN: 108 483 601

ASX: MEP www.minotaurexploration.com.au