Aspire Mining Limited ASX Emerging Growth London Presentation March 2011
Forward Looking Statements & Disclaimer Forward Looking Statements Certain statements in the presentation are or may be forward looking statements and represent the Company s intentions, projections, expectations or beliefs concerning among other things, future exploration activities. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks and uncertainties which may cause the Company s actual performance in future periods to differ materially from any express or implied estimates or projections. Disclaimer No representation or warranty, express or implied, is made by the Company that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of the Company, its officers, employees and advisers expressly disclaims any responsibility for the accuracy, fairness, sufficiency or completeness of the material contained in this presentation, or any opinions or beliefs contained in this document, and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentationor any error or omission there from. Any opinions expressed in the presentation are subject to change without notice. All persons should seek appropriate professional advice in reviewing or considering the presentation and all other information with respect to the Company and evaluating the Ovoot Coking Coal Project and the other Mongolian coal assets. The presentation does not purport to contain all of the information that may be required to evaluate all of the factors that would be relevant in determining whether to deal in the Company s securities, including but not limited to any person s objectives, financial situation or needs. Each person should make, and will be taken to have made, its own investigation, assessment and analysis of the information in this presentation and other matters that may be relevant to it considering whether to deal in the Company s securities. This presentation is notfor distribution in, nor does itconstitute anoffer of securities for sale in, Canada, Japan, or in any jurisdiction where such distribution or offer is unlawful. Neither this presentation nor a copy of the presentation can be taken or transmitted into the United States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions or to any US person as defined in Regulation S under the US Securities Act 1933, as amended (the Securities Act ). Any failure to comply with this restriction may constitute a violation of United States securities laws. The presentation and any oral statements made in connection with it are not an offer of securities for sale in the United States. 2
I am a Country Which has an indigenous population with a long and proud history Which is one of the least populated countries in the world, with vast deserts That is resource rich particularly in gold, coal and iron ore but hampered by lack of infrastructure For which China has become the most important trading partner in recent years That has a 99% literary rate Which has one of the most successful economies and stock markets since the GFC AUSTRALIA MONGOLIA 3
Ovoot Exploration Camp 4
Mongolian Projects Ovoot Project: 330.7mt JORC Resource 5
Ovoot Coking Coal Project Hurimt JORC Resource area Zuun Del Prospect 6
What is the Value of Aspire Mining Limited? Enterprise Value Resource 330.7 Mt 2 ~ US$500mil $2.25/t of saleable coal $2.50/t of saleable coking coal 1 Competent Person Statement The technical information contained in this announcement in relation to the JORC Compliant Coal Resource for the Ovoot Coking Coal Project in Mongolia has been reviewed by Mr Chris Arndt and Dr Bielin Shi of CSA Global Pty Ltd. Mr Chris Arndtt is a Fellow of the Australasian Institute of Mining and Metallurgy and 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. Dr Bielin Shi has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves. Mr Arndt and Dr Shi of CSA Global Pty Ltd consent to the inclusion in the announcement of the matters based on this information in the form and context in which it appears. 1. Assumes 65% washing yield from non oxide coal to product 2. 93.3Mt Measured, 182.4Mt Indicated, and 55.0Mt Inferred 7
World Coking Coal Provinces Mature Region Ramp-up region Emerging region Poland, Germany Kuzbass (Russia) Elga & E.Siberia N.E & S.E BC (USA) Mongolia/SouthGobi Appalachia (USA) Shanxii, China Moatize (Mozambique) Kalimantan (Indonesia) Bowen Basin (Australia) 8
Why the Interest in Mongolian Coal? Chinese Coking Coal Imports Mongolia is expected to be a major supplier to China, the fastest growing market for Coking Coals! 9
Fastest Growing Provinces in China Ovoot project Ovoot Tolgoi Tavan Tolgoi Eastern China GDP per capita = US$4,789 FA investment growth = 12% Central China GDP per capita = US$2,817 FA investment growth = 16% Western China GDP per capita = US$2,499 FA investment growth = 37% Proportion of fiscal stimulus allocated = 62% Source: SouthGobi 10
Comparing Value of Coal Deposits Coking Coal deposits are substantially more valuable than export thermal coal 11
Comparing Value of Coal Deposits What is sold in the first 25 years drives Net Present Value 12
Value of Riversdale: Benga Deposit Enterprise Value Reserve 502 Mt (100%) 1 = US$3.9bn US$0.5bn (less cash & value of ZAC Anthracite mines) US$2bn (less value of Zambeze project ) US$1.4bn Value for 65% of Benga deposit $8.60/t of saleable coal (export) $14.00/t of saleable coking coal 1. 25 year mine life at 20mtpa ROM 100% of Benga Project 13
Value of Mongolian Mining Corp. Enterprise Value ~ US$4.6bn US700m (less cash) =US3.9bn Resource 423 Mt 2 $14.50/t of saleable coal $25/t of saleable coking coal 1 1 1 1. Based on disclosed washing yields to final product 2. Applied to resources above 300m. Note that recoverable reserves are 182mt of both coking and thermal coals.total resource would support 15mtpa ROM for 25 years. 14
What is the Value of Aspire Mining Limited? Enterprise Value Resource 330.7 Mt 2 ~ US$500mil $2.25/t of saleable coal $2.50/t of saleable coking coal 1 Competent Person Statement The technical information contained in this announcement in relation to the JORC Compliant Coal Resource for the Ovoot Coking Coal Project in Mongolia has been reviewed by Mr Chris Arndt and Dr Bielin Shi of CSA Global Pty Ltd. Mr Chris Arndtt is a Fellow of the Australasian Institute of Mining and Metallurgy and 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. Dr Bielin Shi has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves. Mr Arndt and Dr Shi of CSA Global Pty Ltd consent to the inclusion in the announcement of the matters based on this information in the form and context in which it appears. 1. Assumes 65% washing yield from non oxide coal to product 2. 93.3Mt Measured, 182.4Mt Indicated, and 55.0Mt Inferred 15
Relative Values.Aspire looks undervalued 16
Why this Undervaluation? Not suggesting we deserve an immediate 10x rating Need full washing yield analysis Need to articulate development time frame Articulate logistics solutions including rail Capex and Operating estimates Time 17
The Goal is Clear! 18
Contact details Aspire Mining Limited ABN: 46 122 417 243 ASX Code: AKM Unit 2, 454 Roberts Road, Subiaco, Western Australia, 6008 Web: www.aspiremininglimited.com David Paull : Tel : +61 8 9381 1995 Managing Director Mob : +61 (0) 407 22 5291 Email: david@aspiremininglimited.com 19