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Lucky Strike Resources Ltd. LKY – TSXV NEAR TERM CASH FLOW MONGOLIA-CHINA COAL TRANSPORTATION and EXPLORATION. Office: 8 6 0-605 Robson Street Vancouver B.C. V6B 5J3 Contact: info@ luckystrikeresources.com Tel: (604) 360 - 8199. Disclaimer.
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Lucky StrikeResources Ltd.LKY – TSXV NEAR TERM CASH FLOWMONGOLIA-CHINA COAL TRANSPORTATION and EXPLORATION • Office: 860-605 Robson Street Vancouver B.C.V6B 5J3 • Contact: info@luckystrikeresources.comTel: (604) 360 - 8199 www.luckystrikeresources.com
Disclaimer • Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this presentation. This presentation may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission. • The statements reflect management's current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) the risk that the Company does not execute its business plan, (2) inability to finance operations and growth, (3) inability to obtain all necessary environmental and regulatory approvals, and (4) other factors beyond the Company's control. These forward-looking statements are made as of the date of this Presentation and the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. www.luckystrikeresources.com
Company Information • Lucky Strike Resources is a publicly traded company listed on these exchanges: TSX: LKY OTC: LKYSF Frankfurt: LR2 • Corporate Office: Suite 860, 605 Robson Street Vancouver, BC Canada V6B 5J3 Telephone: 604-630-8199 • Common Shares:18,207,967 Issued & Outstanding as of May 2nd, 2011 • Warrants:10,147,500 • Fully Diluted: 29,750,467 www.luckystrikeresources.com
Why Coal In China? • China is the largest energy consumer in the world • Coal accounts for 70 per cent of China’s total energy consumption • Coal use in China has more than doubled since 2000 • Coal is China’s most important source of energy • China imports coal from Mongolia, Australia, Canada, United States, Indonesia and many other parts of the world to meet its consumption demand www.luckystrikeresources.com
Why Coal In Mongolia? • Mongolia hosts vast coal deposits north of China • According to the Mineral Resources and Petroleum Authority of Mongolia, the world’s largest deposit is in Tavan Tolgoi with 6.42 billion tonnes of coal deposit in Mongolia • Primary trading partner is China which consumes 2/3 of Mongolian exports • Mongolia’s growth is correlated with China’s growth • Mongolia exported 9 million tonnes of coal in 2010 and forecasts to export 45 million tonnes of coal by 2016 www.luckystrikeresources.com
NariinKahrgait ArKhadniiOvoo NKAK Coal Properties • The NKAK coal properties, NariinKhargaitand ArKhadniiOvoo, are located in southwest Mongolia, about 20 km north of the Baitag Chinese border • An area of 8,736 hectares is situated 3 km west of the Olonbulag coal deposits with coal seams ranging up to 45m thick • There are three coal mines including Wotouquan, Balikun East and Sandaoling just south of the Chinese border in the Xinjiang province of China. • The history of the property dates back to 1955 with geological mapping at 1:200,000 scale by a Russian geologic team and include occurrences of Lower Carboniferous Olonbulagterrigenous sediments that host coal seams. • A reconnaissance survey in July 2010 resulted in the delineation of coal occurrences. Due diligence on the samples taken is ongoing. www.luckystrikeresources.com
Near Term Cash Flow with Coal Transportation • Local mineral transportation business, launched in October 2009, seeks investments to fund fleet expansion by September 2011 • Holds special license from Mongolian Auto Transport Authority to conduct international freight forwarding and trucking. • Existing, stable delivery contract with one of five Chinese companies licensed to import coal • Current Fleet: • 20 North Benz Trucks with a load capacity of 80-100 tons • Team of heavy machinery operators and mechanics is in place • Expansion Plans: • Expansion of fleet with 30 trucks • Building of Camp with Truck Station , Repair Shop, Power Generation, Driver accommodations • Stocking of spare parts and vehicle consumables www.luckystrikeresources.com
Gants Mod Re-load Short lap Unloading Long lap Customs Tavan Tolgoi GashuunSuhait Port Tsagaan Had Current Coal Transportation Situation • Transportation Route:TavanTolgoi– GashuunSuhait– Gants Mod • Transportation Distance:240 km(TavanTolgoi– Tsagaan Had) 22 km(Tsagaan Had – Gants Mod)Total 262 км • Road Condition: Unpaved, multiple dirt roads • Route laps: Long and short route laps Long wait times at the border • Time per loop: Long route lap – 3 days(240 km) Short route lap – 2 days (22 km) • Load capacity: 70–80 tons • Number of laps per month: 10 laps per truck Over 500 heavy duty, high capacity trucks are transporting coal currently. www.luckystrikeresources.com
Transportation Income & Expense www.luckystrikeresources.com
Transportation Profitability & ROI Based on a module of 30 trucks and associated logistical support www.luckystrikeresources.com
Scalability of Transportation Business • In 2010, 9 million tonnes of coal were exported from Mongolia to China • By 2016, 45 million tonnes of coal are forecast to be exported Source: Golomt Bank Mining Department 2009 • Investment can be scaled up from 30 trucks to 90 or 300 trucks www.luckystrikeresources.com
Business of Transportation • The border ports at GashuunSuhait and NariinSuhait are switching to 24-hour non-stop operation in April of 2011. • The Ministry of Nature, Environment and Tourism and other related authorities has issued a decree to pave the road by January 1, 2011, in order to increase the transportation and also to combat soil erosion. • Upon completion of the above tasks, the reloading process at the border will decrease and transportation will increase. • It will take 4-5 years to build a railway from TavanTolgoi to the south border. The opportunity is now www.luckystrikeresources.com
Lucky Strike Team • Cathy Fong, Chairman & Chief Executive Officer: Ms. Fong is an accomplished senior civil/structural professional engineer with over 20 years of experience in the mining, heavy industrial and commercial construction industries. She has completed detailed engineering assignments for Eskay Creek, Bell Creek, Lone Tree, Sigma, Gilbraltar, Enako, Loki, Campbell, Quinsam and Zaldivar Mines. Her professional experience includes completing projects for SNC-Lavalin, Hatch, BC Hydro, Proctor & Redfern and Quinn Dressel. Ms. Fong has broad project development experience. Ms. Fong was the former president of Silvercorp Metals Inc. • Danny Hon, Director & Chief Financial Officer: Mr. Hon is a Certified General Accountant with over 20 years’ experience in accounting and finance. He became an associate member of the Certified General Accountants Association of Canada in 1994 and a Certified Financial Planner in 1998. Mr. Hon became a fellow of the Association of Chartered Certified Accountants of the United Kingdom in 1992 and the Hong Kong Institute of Certified Public Accountants in 1999. Mr. Hon is a partner of Hon & Wong, Certified General Accountants, based in Vancouver, B.C. He has extensive experience working with Canadian and U.S. listed public companies which have businesses in China. Mr. Hon is currently the CFO of China Education Resources Inc., and a director and CFO of Brand Marvel Worldwide Consumer Products. Mr. Hon was also formerly the CFO of China Gold International Resources Corp. Ltd., Max Gold Corp., and Silvercorp Metals Inc. Mr. Hon is fluent in Chinese Mandarin. www.luckystrikeresources.com
Lucky Strike Team (2) • Michele Ashby, Director: Ms. Ashby is currently the CEO of MiNE LLC. She started her career as a retail stockbroker for 12 years, and served as Gold analyst for a regional brokerage firm for 8 years. She was the assistant dean for the on-line Mining Investment College in 1997. From 1988 to 2005 Michele was CEO and founder of the Denver Gold Group, a trade association for the gold mining industry. In 2005, Ms. Ashby left Denver Gold Group and started her own company, MiNE LLC, which organizes private investor meetings for the finance, natural resources, mining, and modern energy industry sectors. Ms. Ashby is also a member of the board of directors of US Gold Corp., a American Stock Exchange listed (UXG) mining company with projects in North America and Mexico. Michele also sits on the Advisory Board for Green Energy Corp., a private company in the smart grid space. Ms. Ashby is also the author of “The Modern Energy Matchmaker”, which was released in the Fall of 2010 and “How to Invest in Mining Stocks” published in 1987. • Kevin Ernst, Director: Mr. Ernst is the former Managing Director of Global Sales for the American Stock Exchange. He has over 22 years of high net worth services and investment management consulting experience with the financial industry’s leading organizations including Merrill Lynch, UBS, NYSE Amex and NYSE Euronext China. Mr. Ernst earned both his Bachelor’s Degree and MBA in Finance from Rutgers University. He also earned a Certified Investment Management Analyst (CIMA) designation through the Wharton School of the University of Pennsylvania and holds both his Series 7 and 66 registrations with FINRA. Mr. Ernst currently serves as managing partner at Ernst Capital Partners, Inc., a boutique financial advisory firm with broad experience in mining and oil and gas companies in the U.S, and Canada and the People’s Republic of China. www.luckystrikeresources.com
Lucky Strike Team (3) • Andre Klumb, Director: Mr Klumb is a M.Sc. geologist from Minas Gerais University, Brazil with 13 years of experience. Mr Klumb has been consulting since 1996 and worked 7 years as a field geologist for Geological Survey of Brazil, Economic Geology Dept. In Canada he worked as a senior geologist for former Chapleau Resources now Magellan Minerals and a Consultant for Mineral Hills Industries, Nass Valley Gateway and Golden Dawn Minerals. Mr Klum has field work experience in Canada, Brazil, Peru and Mexico and speaks English, Portuguese and Spanish. • Patricia Wilson, Director & Corporate Secretary: Ms. Wilson has thirty-three years experience in the public market sector in compliance and accounting. Ms Wilson has been with Lucky Strike for nineteen years. • Dodge Li, Director: Mr. Li graduated from Shandong University with a Masters Degree in Physics, and was appointed as a Teaching Associate in the Physics Department of Shandong University before coming to Canada. Mr. Li brings to Lucky Strike more than 15 years of investment experience on China related projects including structuring, planning and implementing Sino Joint Ventures. www.luckystrikeresources.com
Contact Lucky Strike • To discuss how the ideas and insights of this presentation could benefit you, please contact: • Cathy Fong, Chairman and CEO • Tel: (604) 360-8199 • cathyfong@luckystrikeresources.com www.luckystrikeresources.com