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1 13 July 2012 Company Announcement Office, ASX Limited, Level 8, Exchange Plaza, 2 The Esplanade, PERTH WA Dear Sir, Matilda Zircon Limited (ASX: MZI) is pleased to provide to the market a copy of the presentation to be provided to institutional and strategic investors in Melbourne and Sydney during the week commencing 13 August Yours faithfully, Keith Vuleta Director

2 Melville Island, Tiwi Islands Bathurst Island, Tiwi Islands Kilimiraka Project, Tiwi Islands One of Two ASX-Listed Mineral Sands Producers Investor Presentation August 2012

3 Closing Price (AUD cents) Million Shares Corporate Summary ASX code MZI Daily Volume Traded On-Market Daily Close Price Share price 2.2 cents Shares out 1,692,509,507 Options 437,388, Market Capitalisation $37.2m 1.5 Cash 1 $5.9m 10.0 Debt $5.5m 1.0 Enterprise Value $33.8m As at 30 June Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul Shareholder 1 Undiluted Shares Undiluted % Stirling Zircon Pty Ltd Stirling Zircon 501,964, % Xiang Lin 188,142, % 29.66% Xiang Lin Tricoastal Minerals Tricoastal Minerals 95,666, % Directors Directors 14,723, % 52.70% Other MZI Share Holders Others 892,012, % Total 1,692,509, % 1. Further to the above, Matilda has entered into an option agreement with Doral Pty Ltd whereby it may elect to subscribe for 250m new shares (~15%) in Matilda at 2.3cps to raise $5.75m. The option has a 90 day exercise period commencing on the date of repayment of the Doral Pty Ltd debt facility 11.12% 5.65% 0.87% 2

4 Board and Senior Management Board of Directors Mal Randall Non-Executive Chairman Keith Vuleta Finance Director Peter Gazzard Technical Director Nathan Wong Non-Executive Director Senior Management Trevor Matthews Chief Executive Officer Stephen Quinn General Manager - Operations Roley Carroll Project Manager An experienced company director and chairman with extensive experience in corporate management and marketing in the resources sector, including more than 20 years with the Rio Tinto group of companies. Mal s experience extends over a broad range of commodities including iron ore, diamonds, base metals, coal, uranium and industrial minerals both in Australia and internationally. A Chartered Accountant with over 20 years experience, Keith has held positions as Finance Director, Chief Financial Officer and Company Secretary for public listed companies in the mining, engineering and financial services industries. Peter has 30 years specialist mineral sands experience in both technical and managerial roles within leading industry organisations including Cable Sands, as well as Iluka and its predecessor companies. He has been involved in the design of mineral sands mines and processing plant and project commissioning and operations management. Nathan has extensive experience in the mineral sands value chain in China, at both a technical and commercial level. He is a Director of Tricoastal Minerals (Holdings) Limited which is the largest mineral sands processor in China with a comprehensive sales and marketing network throughout China. He brings additional depth of processing and marketing expertise on the Board. Trevor has worked in the resources industry for over 25 years and held executive positions with North Limited, WMC Resources Limited and other listed entities in both operational and corporate roles. Most recently, Trevor was Managing Director of Murchison Metals Limited. Trevor has significant experience in project development, operational management, finance and corporate governance. Steve has over 30 years experience in the resources industry, including 20 years within the mineral sands sector. Steve has previously held senior operational positions with Iluka and Kenmare Resources. He has significant experience in project commissioning and operations management. Roley has more than 40 years experience in the mineral sands industry in Western Australia. He has worked with both large and small organisations including Western Titanium & Westralian Sands (now Iluka), ISK Minerals, Tiwest JV, Doral Mineral Sands and Altura Mining Ltd. Roley is experienced in planning, construction, commissioning and operating mineral sands projects as well as successful rehabilitation of mine sites. Roley began with Olympia Resources (now Matilda Zircon ) in

5 Project Locations Keysbrook (100%) Company making asset FS by end Q3 2012, production late year LOM Lethbridge South (100%) Currently in production Short mine life Strong cash flow Tiwi Islands Kilimiraka (100%) Large Resource Approvals commenced FS commencing in km from Perth 4

6 Project Summary Tiwi Islands Lethbridge South Proven Reserve 1.16Mt at 2.47% HM for contained heavy minerals of 28,660t In production 8 month life running to October 2012 Production of HMC from onsite wet plant HMC product to be exported in three shiploads, with the first already complete, second in August and final in late October All product sold to Tricoastal Minerals Forecast net cashflow of approximately $20m Cash flow to assist funding Keysbrook Kilimiraka Inferred Resource of 56.2Mt at 1.6% HM for 893,700t Approvals process commenced Drilling programme being developed and scoping study commencement late 2012 Large tenement position exploration potential across Tiwi landholding Strong support from traditional landowners Western Australia Keysbrook One of the largest Leucoxene mines in the world company making asset Resource of 66.0Mt at 2.46% HM for 1.62Mt FS completion Q Approvals for mining received Land owner negotiations near completion Construction early 2013, production late year mine life (6 years approved) Annual production target 75-80,000t HM Products - 88% Leucoxene, 12% Zircon concentrate 5

7 Keysbrook: A Company Making Asset Keysbrook is situated 70km south of Perth Major leucoxene/zircon deposit the largest known leucoxene deposit in the world Simple mining sand deposit with no overburden, low rock and low clay content All environmental approvals in place All development approvals and extractive industry licenses received for 6.5 years of production, extension will be required for a +8 year LOM Agreement with Doral for toll treatment of HMC at Picton MSP (130km from Keysbrook) and potential placement in MZI De-risked secondary processing Leucoxene off-take negotiation with DuPont Zircon off-take being negotiated with Tricoastal Keysbrook Location 6

8 Keysbrook Feasibility Study Feasibility Study (FS) is in the FEED phase MSP Engineering is lead contractor Some infill drilling and testwork for confirmatory mineralogy and metallurgy Land owner negotiations nearing completion Mining strategy owner operator Doral agreement includes: Picton dry plant upgrade design and engineering Toll treatment at Picton dry plant Export capacity allocation through Bunbury Port and product storage at port or nearby FS to be completed end of Q Financing and early procurement Q Site construction Q Commissioning and production Q Sales Q Doral Dry Plant Port of Bunbury 7

9 Keysbrook Flowsheet First stage processing at Keysbrook through an on-site HMC wet plant Constituent minerals (mostly leucoxene and zircon) are separated using screens and cyclones Further treatment of finer minerals through spiral units A high grade heavy mineral concentrate (HMC) is produced HMC transported ~130km by truck to Doral s dry plant in Picton (near Bunbury) Leucoxene products (88% TiO 2 & 70% TiO 2 ) and zircon concentrate trucked to Bunbury Port Wet Plant Processing Flow Sheet 8

10 Tiwi Islands Project Locations 9

11 Lethbridge South Overview Mine and plant development cost only $5m Simple mining - no overburden and low in rock and clay Gravity separation to produce a heavy mineral concentrate (HMC) High value concentrate contains approximately 40% zircon and 50% rutile First HMC shipments completed in May Two remaining shipments scheduled for August and October 2012 Mining and processing will be completed by October 2012 Off-take agreement with Tricoastal (China s largest mineral sands processor and key shareholder) for the rutile/zircon concentrate Lethbridge West Lethbridge South 10

12 Lethbridge South Process Mining by truck and excavator Loading mineral rich sand into the hopper Wet plant producing HMC Conveyor loading HMC onto a barge Tug taking the barge to ship Ongoing rehabilitation 11

13 Lethbridge South Performance Lethbridge South performance has been very strong Higher than forecast HM grades have been reporting to concentrate Concentrate contains approx. 50% zircon, 40% rutile valuable product mix Off-take pricing has remained relatively stable The project is generating strong cash flow (approx. $20m over next 2 months) Lethbridge South June Quarter Year to date Ore mined 467,630 tonnes 606,566 tonnes Concentrate production 7,926 tonnes 9,850 tonnes Concentrator Feed Grade 1.91% hm 1.85% hm Concentrate Grade 92.2% hm 92.4% hm Recovery of heavy mineral 82.0% 81.1% Recovery of Zircon 96.4% 96.4% Recovery of Rutile 90% 90.6% Concentrate Shipped 6,496 tonnes 6,496 tonnes 12

14 Kilimiraka Overview Resource is hosted in a large series of sand dunes on the south west corner of Bathurst Island A hand auger drill program stopped at the water table in mineralisation potential for more heavy minerals below water table No overburden, low rock and clay Likely mined using the low cost dozer trap method Benefits of current mining operation, local experience and relationships, existing plant and infrastructure Environmental approval process commenced NT/heritage clearance process commenced Timing: further drilling programme and scoping study mid 2013, Feasibility Study Q Shell Auger Drilling at Kilimiraka Kilimiraka Dune Systems 13

15 Investment Summary 1. Current production of HMC at Lethbridge South provides strong cashflow 2. Keysbrook has sufficient resources for an +8 year LOM 3. Approvals in place to mine Keysbrook 4. FS to be completed Q compelling project economics 5. Keysbrook has a high proportion of high value minerals 6. Low risk mining and processing operations 7. Low operating cost profile well positioned on the cost curve 8. Kilimiraka provides a step change in production levels in the medium term 9. Kilimiraka approvals process underway a well-known process to MZI 10. MZI has a low sovereign risk profile (all Australian assets) 100% ownership 14

16 Appendix 15

17 JORC Mineral Resources & Ore Reserves Mineral Resources Deposit Resource Category Material (Mt) Heavy Mineral (%) Slimes (%) Heavy Mineral (kt) Keysbrook Measured % 8.04% 1,250 Indicated % 7.82% 250 Inferred % 8.24% 120 Total % 8.02% 1,620 Kilimiraka Inferred % 894 Total % 894 Ore Reserves Deposit Reserve Category Material (Mt) Heavy Mineral (%) Slimes (%) Heavy Mineral (kt) Lethbridge South Proven % 23.5 Probable % 28.7 Total % 52.2 Note: Keysbrook Reserve to be completed in line with Keysbrook FS in Q

18 Mineral Sands Overview Introduction to Titanium Titanium is created through a number of different processes that take certain mineral sands (rutile, leucoxene and ilmenite) to create a titanium dioxide (TiO 2 ) pigment, titanium sponge or titanium metal Mining Processing Hard Rock Deposits Sand Deposits Wet Concentration Dry Concentration Titanium dioxide is pure white, highly refractive, and can absorb ultraviolet light and for these reasons is highly sought after in pigment form for use in paints, paper, plastics, rubber and various other materials As titanium dioxide is also non-toxic, non-fibrogenic and biologically inert it can be used in cosmetics, foodstuffs and in pharmaceuticals Key products ex mine Hard rock concentrate 45 50% TiO 2 Ilmenite (generic) 45 50% TiO 2 Sulphate Ilmenite 45 57% TiO 2 Chloride Ilmenite 58 63% TiO 2 Leucoxene 65 91% TiO 2 Rutile 92 96% TiO 2 Zircon Titanium metal has a particularly high strength to weight ratio, is inert and highly resistant to corrosion, and for these reasons can be used in a range of common aeronautical applications, surgical applications, sporting equipment, jewellery and in desalination plants and corrosive chemical industries Beneficiated Products Titanium Slag 70 86% TiO 2 Synthetic Rutile 90 95% TiO 2 Introduction to Zircon Zircon is a principal mineral sand used primarily in glazing in ceramics and as refractory glass. Consumption is dominated by the use of milled zircon powder as an opacifier in ceramics applications for use in tiles, sanitary ware and tableware High Purity Pig Iron Titanium Tetrachloride TiCl 4 Zircon also has a range of industrial uses, including refractories Zirconium based chemicals are used in a multitude of high technology applications including auto catalysts, fuel cells, abrasives and electronics. Zirconium metal has a very high melting point, and has use in nuclear fuel rods and other alloys Over half of the demand for zircon comes from the ceramics industry, with demand for housing tiles in the construction industry a key driver of overall commodity demand Pigment Production Processes Final Products Sulphate Pigment Pure TiO 2 White Pigment Chloride Pigment Pure TiO 2 Titanium Sponge Titanium Metal For this reason zircon demand has increased along with the progressive industrialisation of emerging economies such as China and India. There is a strong correlation between global economic growth rates and zircon demand End Uses Foundries Paints, Plastics, Paper, Inks, Ceramics, Fibres Aerospace Chemicals Golf Clubs Surgical Application Welding electrode flux Opacifiers / Glazes Refractories Zirconium Chemicals Abrasives Source: TZMI 17

19 Zircon Demand (kt) Mineral Sands Market Dynamics TiO 2 Demand by End Application Source: Iluka, TZMI TiO 2 Pigment Demand Breakdown Source: Iluka, TZMI Titanium Feedstock Product Proportions Source: Mineral Deposits, Iluka, TZMI 100% 100% Metal, 5% Other, 4% 90% 80% Paper, 8.2% Fibre, 0.9% Ink, 2.7% Other, 5.5% 90% 80% Rutile (95% TiO 2 ) Synthetic Rutile (90-95% TiO 2 ) Upgraded Chloride Slag (95% TiO 2 ) 70% 60% Plastics, 21.8% 70% 60% Chloride Slag (80-90% TiO 2 ) TiO2 Pigment, 91% 50% 50% Chloride Ilmenite and Leucoxene (60-70% TiO 2 ) 40% 40% 30% 20% Paint & Coatings, 51.9% 30% 20% Sulphate and Ilmenite (50-80% TiO 2 ) 10% 10% 0% 0% Zircon Consumption by End Use Source: Iluka, TZMI Ceramics Use Breakdown Source: Iluka, TZMI Zircon Demand Forecasts Source: Iluka, TZMI Foundry, 13% 100% 90% 1,800 1,600 Rest of world China Other Asia Japan Europe North America Ceramics, 53% 80% 70% 60% 50% 40% Tableware, Sanitary & Other, 5.8% 1,400 1,200 1, Rest of World China Other, 2% Glass, 3% Chemicals, 7% Fused Zirconia, 9% Refactory, 13% 30% 20% 10% 0% Tiles, 47.2% Other Asia Japan Europe North America f 2013f 2014f 2015f 18

20 US$/t FOB Australia US$/tonne FOB Australia US$/t FOB Australia US$/t FOB Australia Mineral Sands Pricing Historical TiO 2 Feedstock Pricing Source: Bloomberg, TZMI Historical Zircon Pricing Source: Bloomberg, TZMI 3,000 3,000 2,500 Rutile (95% TiO2, FOB Australia) Leucoxene (US$/t est., FOB Australia) * 2,500 Zircon (US$/t, bagged, FOB Australia) Zircon (US$/t, bulk, FOB Australia) 2,000 2,000 1,500 1,500 1,000 1, * Leucoxene pricing estimate calculated as a 20% discount to prevailing Rutile pricing Forecast Rutile Pricing (bulk) Source: TZMI Forecast Zircon Pricing (bulk) Source: TZMI 4,000 4,000 3,500 3,500 3,000 3,000 2,500 2,500 2,000 2,000 1,500 1,500 1,000 1, f 2013f 2014f 2015f 2016f f 2013f 2014f 2015f 2016f 19

21 Leucoxene Leucoxene Overview and Pricing Rutile Price Comparison Source: Bloomberg, TZMI, Company Analysis Leucoxene is a fine, granular alteration product of titanium dioxide (TiO 2 ) minerals consisting mainly of rutile or anatase. Leucoxene is formed through extensive weathering of ilmenite Although it is not a recognised mineral species, the name Leucoxene has been applied to products with a TiO 2 titanium content ranging from 70% to 93%, but increasingly is limited to material having a typical TiO 2 content of 90-91% 3,500 3,000 2,500 2,000 Leucoxene is the major constituent of Matilda s Keysbrook deposit. The material from Keysbrook will be split into two discrete products; a 88% TiO 2 Leucoxene and a 70% TiO 2 Leucoxene Once in operation, the Keysbrook project will be the single biggest producer of leucoxene in the world There are no consistent prices for leucoxene due to its variable TiO 2 content, however a high grade Leucoxene product is generally valued at about 75% of the prevailing rutile price (shown adjacent) 1,500 1, TZMI Forecast Rutile Price (mid) TZMI Forecast Rutile Price (mid) Less 25% 2011e 2012f 2013f 2014f 2015f 2016f Assuming an average TiO 2 content in Rutile of 94%, and an average TiO 2 content in Leucoxene, the implied price per tonne of TiO 2 is shown adjacent this analysis demonstrates that Leucoxene can represent a cheap source of TiO 2 The majority of the leucoxene produced at Matilda s Keysbrook project is expected to be sold as a feed for pigment production. Leucoxene is very attractive to titanium dioxide producers as it represents an effective substitute for rutile in chloride pigment production at a very competitive price relative to its content of TiO 2 Implied Price per tonne of TiO 2 in product 3,500 3,000 2,500 2,000 Source: Company Analysis 1,500 1, Price per tonne of TiO2 in Rutile (94%) Price per tonne of TiO2 in Leucoxene (88%) e 2012f 2013f 2014f 2015f 2016f 20

22 Important Notice Disclaimer This presentation has been prepared by the management of Matilda Zircon Limited (the Company ) for the benefit of investors and not as specific advice of any particular party or person. The information is based on publicly available information, internally developed data and is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. The Company disclaims and excludes all liability (to the extent permitted by the 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 the Company expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future projects, such as expectation or belief is based on management s current predictions, assumptions and projections. However, such forecasts are subject to risks, uncertainties or other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forecasts. Such risks include, but are not limited to, exploration success, gold and copper price volatility, changes to the current mineral resource estimates, changes to assumptions for capital and operating costs as well as political and operational risks and government regulation outcomes. For more detail of risks and other factors, refer to the Companies other Australian Securities Exchange announcements and filings. The Company does not have any obligation opt advise any person if it becomes aware of any inaccuracy in, or omission from, any forecast or to update such forecast. Forward-Looking Statements This presentation contains forward looking statements concerning the projects owned by Matilda Zircon Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-Looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward Looking statements are based on Management s beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Data and amounts shown in this presentation relating to capital costs, operating costs and project timelines are internally generated best estimates only. All such information and data is currently under review as part of Matilda Zircon Limited s ongoing development and feasibility studies. Accordingly, Matilda Zircon Limited cannot guarantee the accuracy and/or completeness of the figures or data included in the presentation until the feasibility studies are completed. Competent Persons Statement The information that relates to resources or reserves of Matilda Zircon has been prepared by Mr John Baxter, Consultant Geologist and Mr Peter Gazzard, Matilda Technical Director. Mr Baxter is a member of Australian Institute of Geoscientists and Mr Gazzard is a member of the Australasian Institute of Mining and Metallurgy. Messrs Baxter, and Gazzard have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Messrs Baxter and Gazzard consent to the inclusion of the matters based on their information in the form and context in which it appears. 21

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