Syrah Resources- Symposium Resources Roadshow

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<ul><li>1.SYRAH RESOURCES LIMITEDSymposium Series26-27 November 2012Syrah Resources</li></ul><p>2. Important notice and disclaimerThis document has been prepared by Syrah Resources Ltd (the Company) to provide summary information about the Company and its associated entities and their activities current as at the date ofthis document. The information contained in this document is of general background and does not purport to be complete.This document is not and should not be considered as an offer or an invitation to acquire any securities issued by the Company and will not form part of any contract for the acquisition of securities. Inparticular, this document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. Securities may not be offered or sold in the United States unless theSecurities have been registered under the US Securities Act of 1933 or an exemption from registration is available.This document is for information purposes only and is not financial product or investment advice, nor a recommendation to acquire securities in the Company. It has been prepared without takinginto account the objectives, financial situation or needs of individuals. Past performance information given in this document is given for illustrative purposes only and should not be relied upon as(and is not) an indication of future performance.This document includes certain statements, opinions, projections, forecasts and other forward-looking information which, while considered reasonable by the Company, are inherently subject tosignificant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results included in thisdocument. Recipients of this document are cautioned that forward-looking statements are not guarantees of future performance they must make their own independent investigations,consideration and evaluation of the opportunity to invest in the Company. By accepting this document, recipients agree that if they wish to investigate, consider or evaluate any opportunity to investin the Company, they will make and rely solely upon their own investigations and enquiries and will not in any way rely upon this document.Any statements, opinions, projections, forecasts and other forward-looking information contained in this document do not constitute any commitments, representations or warranties by theCompany and its associated entities, directors, agents and employees, including any undertaking to update any such information. Except as required by law, and only to the extent so required,directors, agents and employees of the Company shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatsoever nature arising in any way outof, or in connection with, the information contained in this document. The Company has prepared this document based on information available to it at the time of preparation and subject to thequalifications in this document. To the maximum extent permitted by law, none of the Company, its affiliates or any of their respective related bodies corporate or other affiliates or its or theirdirectors, officers, employees, representatives, agents or advisors (each a Limited Party and together the Limited Parties) take any responsibility for the contents of this document or any action takenby any recipient on the basis of any information in the document. The Limited Parties do not accept any liability or responsibility for any expenses, losses, damages or costs incurred by any recipient asa result of their receipt or use of this document and the information in this document being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise. No Limited Partymakes any representation or warranty, express or implied, as to the currency, accuracy, completeness, reliability, fairness or correctness of the information contained in this document or about theCompany generally or any opportunity to invest in the Company in the future.The Limited Parties make no recommendations as to whether recipients should participate in any offer or issue of securities by the Company or make any other investment in the Company andrecipients represent, warrant and agree that they have not relied on any statements made by any Limited Party in relation to the Company, or any potential investment in the Company generally.FiguresAll figures in this document are in Australian dollars (AUD) unless stated otherwise. This document is confidential and not for further distribution This document contains certain confidentialinformation. It is provided by the Company on the basis that, by accepting this document, persons to whom this document is given agree to keep the information strictly confidential and not todisclose it to anyone within their organisation except on a need-to-know basis and subject to these restrictions, or to anyone outside their organisation.The release, publication or distribution of thisdocument in jurisdictions outside Australia may be restricted by law. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. By accepting this document,you represent and warrant that you are a person to whom an offer of securities may be made without a disclosure document (as defined in the Corporations Act 2001 (Cth) (Corporations Act)) on thebasis that you are exempt from the disclosure requirements of Part 6D.2 in accordance with Section 708(8) or 708(11) of the Corporations Act. 1 3. Unsaved Document / 21/09/2012 / 20:011.Company Overview 22 4. Investment highlightsHighly strategic flake graphite discovery at Balama, Mozambique A globally significant, large flake, high grade natural graphite deposit Over 7km strike distance and up to 2km of surface width of outcropping graphite and vanadiummineralisation High grade zone recently extended with additional drilling, grades reported are among thehighest recorded globally Metallurgy in preliminary test work indicates concentrate grades in excess of 97% C achievable Close to infrastructure and good main road accessAttractive graphite market fundamentals High purity natural graphite price has increased from ~US$750/tonne in 2004 to current prices of~US$1,800+/tonne(1) Strong demand drivers including emerging green and energy technologies China supplies ~67% of global flake graphite but supply is likely to become constrained as itimposes export restrictions, environmental standards, and deposits become increasingly difficultto mine US and European Commission have both declared graphite a critical material 3 5. Board of DirectorsTom EadieNon-Executive Chairman (since 2007) 30+ years experience in the Australian and international resource sector Also Executive Chairman of Copper Strike LtdPaul Kehoe Managing Director (since 2011) 15+ years experience in corporate finance and restructuring Accountant and geologistMike Chester Non-Executive Director (since 2011) 27+ years experience in investment banking, mining company research and funds management Also Non-Executive Director of NuCoal Resources, Guildford Coal Ltd and Black Fire Minerals LtdAlistair Non-Executive Director (since 2011)Campbell 30 years mining industry experience Principal Consultant of OptiRes Pty Ltd4 6. Current capital structureOverview Syrah share price and volume last 1 year ASX listed Market capitalisation (undiluted) of~A$400 million at A$3.00/share as at 20November 2012 133,869,590 shares on issue 17,500,000 options on issue ~$15m cash on hand at 31 October2012 Directors direct and indirect intereststotal ~29% of current shares on issue5 7. Unsaved Document / 21/09/2012 / 20:012.Industry Overview 6 8. Introduction to graphiteOverview World graphite market based on graphite type Principal characteristics of graphite include: Resistant to corrosion and heat 2010 natural graphite world production~925,000 ~1,100,000 tonnes Excellent conductor of heat and electricity High lubricity, natural strength andAmorphousVein59%malleability 1%Natural flake graphite (e.g. Balama deposit)SyntheticNatural Typically found as discrete flat flakes, &gt;50% 50% Flake 40%0.1mm in size Used for higher value including batteryapplications Source: Mackie Research Capital 2011 Priced by purity and/or flake size, up toUS$1,800/tonne+Synthetic graphiteNatural amorphous graphite Produced mainly from hydrocarbon sources Low grade (70%-85% C) and extremely fine High purity, prices from US$10,000 grain size $20,000/tonne Pricing at US$600-$800/tonne, it requires Market size ~1Mtpa, of which ~50% couldextensive and costly processing for higher potentially be substituted by high qualityvalue applications natural graphite if supply is available 7 9. Characteristics of a good flake graphite depositCharacteristicBalama Large flake size usually a higher purity ofconcentrate Latest metallurgy test work shows around half of concentrate in medium jumbo flake size ranges High grade determines project cash costsand profitability/NPV at any given graphiteprice High grade zones over 20% identified; among highest recorded globally High purity higher purity requires lesstreatment to bring the graphite to above 97%directly to pricingTranslates 97% Cmetallurgical purity achieved in latestconcentratetestingC required for high value applications, such asLi-ion batteriesUS$/tonne Flake size (mesh size) 80-85% C94-97% C Extra Large (+50) +$1,800 Large (-50 +80) $1,300-1,800 Medium (-80 +100) $1,100-1,700 Fine (-100) $1,150-1,450 Amorphous powder $600-800 Source: Industrial Minerals Magazine, price date 18 Sep 2012.8 10. Current supply and uses for natural graphite USGS estimated world resources: 77Mt Current natural graphite industry uses India14%Other10%Other Batteries Steel &amp;14%China 10%Refractory72%41%CarbonBrushes11% Natural graphite production According to USGS, LubricantsChinas supply decreased 14%~30% from 2008 to 2009 AutomotiveParts 1.214% 1.0 Natural graphite (Mt) 0.8 0.6 Approximately 40% used in the steel &amp; 0.4 refractory industries across a range of 0.2 graphite qualities 0.01998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Higher quality, coarse flake demand to be India ChinaOther driven primarily by batteries and emergingSource: United States Geological Survey (2012) technologies9 Source: Mackie Research Capital, Company estimates. 9 11. Natural flake graphite pricing and demand Benchmark graphite prices have more than doubled since 2007 Some softening in Chinese refractory and steel demand has recently weakened pricesPrices have increased over the past 5 yearswith battery technology the sleeper 2.5Mtpa+US$/tonneUp to 1.5Mtpa 2007 2008 200920102011 2012Source: Industrial Minerals Magazine.Source: Industrial Minerals Magazine.Note: Large flake graphite, 94-97% C, +80 mesh, average pricing.10 10 12. Unsaved Document / 21/09/2012 / 20:013.Balama Project 11 13. Balama overview Over 7km strike distance and up to 2km of Locationsurface width of outcropping graphite andvanadium Balama is a high quality graphite deposit Located 240 km west of Pemba port Excellent metallurgy results achieved intesting Drilling well advanced First ever drilling with 50 holes completed Initial JORC Resource Estimates for bothBalama West and East anticipated in late2012 / early 201312 12 14. Exploration targets for Balama West and Balama East * Balama West 400 to 500 million tonnes at 10% TGC and 0.20% V2O5 Balama East 300 to 400 million tonnes at 11% TGC and 0.30% V2O5Exploration target based on depth of 200 metres over the areas drilled, and based on theweighted average grade for every drill hole with assay results to date* This targeted tonnage and grade is conceptual in nature and there has been insufficient work to define a Mineral Resourceunder the JORC Code and it is uncertain if further exploration will result in the determination of a Mineral Resource.13 15. Balama West Drilling results at Balama West havewide intercepts of very high gradegraphite and vanadium: BMDD0006: 196m @16.9% TGC and0.41 V2O5 from 100m to 296m BMDD0007: 186m @ 16.7% TGCand 0.46 V2O5 from 131 m to 318m BMDD0009: 58.0m @ 20.0% TGCand 0.36% V2O5 from 4.5m to 62.5m BMDD0012: 79.0m @ 20.4% TGCand 0.42% V2O5 from 15.4m to94.4m Highest grades reported of 30.3% TGCand 0.88% V2O5 over 2m Balama West now has two zones ofvery high grade graphite and vanadiummineralisation at or near surface 14 16. Balama West (cont.)Stacked Cross sections Two very high grade zones intersected todate at Balama West The first has widths up to 196m andaveraging between 10 17% TGC. This zoneis open to the west and east The secondhas widths up to at least 100mand averages between 15 22% TGC. Thiszone is open to the north, west and east Both zones outcrop at surface or withminimal cover 15 17. Balama East Syrah has completed 25 diamonddrill holes at Balama East. Drillholes announced include: BMDD0021: 218.4m @ 12.3%TGC and 0.39% V2O5 BMDD0022: 290.4m @ 13.8%TGC and 0.41% V2O5 BMDD0023: 302.6m @ 13.7%TGC and 0.38% V2O5 Very high grade zones of greaterthan 15% TGC outcrop at surface Very coarse flake graphite visually appears to be coarsergrained than Balama West Sushi Zone has flake sizes up to6mm in length16 18. 17Balama East (cont.) Cross section17 19. MetallurgyOverview Flake size results Metallurgical test work has been conducted47% of the concentrate has a flake size in theon a 58 kg sample of Balama graphiticmedium to jumbo range, with the mix ofmaterial by Mintek(1)flake sizes considered ideal for meeting the Final results show a graphitic carbonrequirements of different marketsconcentrate of 97.02%-200 +50 (Jumbo) Recoveries at ~94%, with low levels of ash, (Amorphous)8%5%volatile, moisture and sulphurGraphitic carbon Ash VolatilesMoisture Sulphur97.02% 2.24%0.16% 0.57%0.01%50-100 (Medium --100 - +200Large) (Fine) 42%45% Above attributes mean that the product could potentially be sold into premium end market segments attracting higher prices (1)Owned by the South African Government, Mintek is South Africas national mineral research organisation. 18 20. Balama infrastructure Balama is located 240km west of deep waterport facilities at Pemba, the third largest portin Mozambique Less than 1km from major road connectingthe project directly to airport and sea port Nearby Balama township provides access toAbove: Pemba Port.schools, medical facilities, shops and labour electricity to Balama in process of beingupgraded Large regional dam, Chipembe, located only14km from the project. MozambiqueGovernment has made an offer for waterrights. Positive response took one day! Above: Road from Pemba to Balama. 19 21. Unsaved Document / 21/09/2012 / 20:014.Upside Opportunities 2020 22. Vanadium prospectivity at Balama Vanadium represents significant potentialupside although economics are very favourableon the graphite alone Roscoelite, the main vanadium o...</p>