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1 Building an Australian Copper House Resources Rising Stars Investor Luncheon Series, 3-5 December 2012

2 Disclaimer Competent Persons Statement The information in this announcement that relates to Exploration Potential and Results is based on information compiled by Mr Michael Fotios, who is a consultant geologist, director of Pegasus Metals Ltd and a Member of the Australian Institute of Mining and Metallurgy. Mr Fotios has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Fotios consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Exploration Potential The information in this report relating to exploration targets should not be misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature since there has been insufficient work completed to define the prospects as anything beyond exploration target. It is uncertain if further exploration will result in the determination of a Mineral Resource. Forward Looking Statements Pegasus Metals Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Pegasus Metals Limited, its directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it. This announcement is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this announcement nor anything in it shall form the basis of any contract or commitment whatsoever. This announcement may contain forward looking statements that are subject to risk factors associated with gold exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. Slide: 2

3 Corporate Summary ASX Code PUN Issued Capital Shares million Options (unlisted) 11.4 million Current 18.0 cents Share Price 52 Week High 27.3 cents 52 Week Low 10.5 cents Market Capitalisation Undiluted $21.4 million Cash (at 30 September 2012) $3.3 million Stephen Mann (Chairman) Board Michael Fotios Graham Anderson Technical Delta Resource Management Substantial Shareholder InvestMet Limited 34.9% Slide: 3

4 Laying the Foundations McLarty Range Project (Kimberley Region) East Kimberley Project (Kimberley Region) Mt Mulcahy Project (Murchison Region) Advanced Targets: initial phases of exploration completed and successful Target Types: Volcanogenic Massive Sulphides ( VMS ) Sedimentary Exhalative ( SEDEX ) Hydrothermal Replacement Target Terrains: Archaean (2.5 to 3.8 billion years old) Proterozoic (0.5 to 2.5 billion years old) Slide: 4

5 Mt Mulcahy A Golden Grove Look-alike Located 50km north of Cue in WA s Murchison Mineral Field 100% owned by Pegasus Archaean VMS-style mineralisation Historic exploration conducted in the 1970s & 80s Similar geological setting to the world-class Golden Grove VMS deposits and Silver Lake s recent Hollandaire copper discovery Slide: 5

6 Mt Mulcahy Key Targets Airborne VTEM survey South Limb Pod conductor Numerous targets Stratigraphic DDH s test for parallel & footwall mineralisation Slide: 6

7 Mt Mulcahy South Limb Pod Flagship target Very shallow, open pit target Historical drilling tested only to 100m depth Shallow oxidation 45 o dip to NNE 150m to 200m strike 2m to 6m thickness Open down-plunge High Cu equiv. Grade 10 diamond holes completed to date Slide: 7

8 Mt Mulcahy South Limb Pod Initial Pegasus drilling returned high-grade copper and zinc with silver and gold Section A Hole MMSP004: 4.48% Cu, 2.88% Zn, 38.1ppm Ag Gold assays across this interval averaged 0.88% Au Slide: 8

9 Mt Mulcahy South Limb Pod Recent results include: 4.76% Cu, 3.3% Zn, 42.6g/t Ag, 0.36g/t Au (MTMDD007) 4.3% Cu, 2.68% Zn, 36.8ppm Ag, 0.28ppm Au (MTMDD006) 5.2% Cu, 3.49% Zn, 36.9gpt Ag, 0.8gpt Au (MTMDD005) Massive sulphide mineralisation outlined over 150m down-dip Section A Slide: 9

10 Mt Mulcahy Summary Mineralisation at South Limb pod remains open in all directions Ongoing diamond drilling to extend mineralisation down-dip and downplunge Further drilling required to in-fill zone and test massive sulphide lens downplunge Numerous drill targets identified by geophysics, including VTEM surveys Slide: 10

11 McLarty Range The Big Prize Located in WA s Kimberley region, 100km north of Derby Copper-gold, plus zinc and silver +60km of strike outlined by mapping and sampling Three diamond holes at Bowerbird prospect provided proof of concept Results included 7m at 1.02% copper; native copper and chalcopyrite also intersected Primary copper sulphides below Bower Bird gossan Slide: 11

12 McLarty Range Location Proterozoic: Cu-Au (+/- Zn-Ag) Association Iron (hematite) Mapping & sampling strike kilometres of horizon Multiple targets identified including Bower Bird, Copper Cliff Slide: 12

13 McLarty Bowerbird 3 helicopter-supported diamond drill holes completed Proof of Concept Primary copper sulphides below Bower Bird gossan Slide: 13

14 McLarty Bower Bird Primary sulphides Below 100m depth 1.02% Cu Native Copper DDH2 Chalcopyrite DDH3 Slide: 14

15 McLarty Copper Cliff Main Syncline Copper Cliff Numerous Gossans Copper oxides/carbonates at surface Up to 6% Cu + 1g/t Au Slide: 15

16 Current and Future Programs Mt Mulcahy Ongoing diamond drilling, 2 rigs Ground & down-hole EM 2013: Resource modelling & estimate 2013: Drill test EM targets McLarty Range Airborne VTEM Detailed airborne magnetic/radiometrics 2013: diamond drill testing at Copper Cliff Slide: 16

17 Redbank Copper: Another pillar in the copper house? InvestMet Group to emerge with 85% stake following reconstruction Michael Fotios and two fellow InvestMet representatives appointed to Board Flagship project is Redbank Copper Mine in NT Mineralised, highly prospective +5,000 sq km tenement package 6.2Mt at 1.5% copper for 96,400 tonnes of metal Resource target of +200,000t copper within 20km radius 200,000 tpa sulphide processing plant on care and maintenance Slide: 17

18 Horseshoe Metals: Completing the Circle? InvestMet holds 19.8% stake 100% of Horseshoe Lights and Kumarina projects Both projects have historical production Horseshoe Lights located 75km west of Sandfire s DeGrussa project Horseshoe Lights resource 8.6Mt at 1.06% Cu, 0.13gpt Au for 91,000t Cu, 37,400oz Au Recent drilling to extend resources generating strong results Kumarina located 90km north of DeGrussa; historical workings over 5km Recent drilling returned shallow, high-grade results; drilling ongoing Slide: 18

19 Summary Mt Mulcahy South Limb pod emerging as a shallow, high-grade prospect: South Limb open in all directions; drilling ongoing McLarty Range Potential for extensive copper-gold deposits over +5,000sqkm package: Initial drilling provides proof of concept Potential for M&A activity with other WA copper groups or projects with common major shareholders Slide: 19

20 Building an Australian Copper House Contact Details: Michael Fotios Director: info@pegasusmetals.com.au Website: