Red Mud Remediation Deriving High Value Products From Waste Red Mud

1. Business Proposal Red Mud Remediation Deriving High Value Products From Waste Red Mud 27/06/13 Presented by Terry O’Connor, Matthew Todd and David Lenyszyn of Peloton Resources Pty Ltd

2. Disclaimer This presentation contains certain “forward looking” statements. The words “believe”, “anticipate”, "expect”, “project”, “forecast”, “estimate”, “potential”, “could”, “may”, “target”, “consider” and “will” and other similar expressions are intended to identify forward looking statements. Forward looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward‐looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these statements. To the full extent permitted by law, Peloton Resources Pty Ltd and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions. There are a number of risks, both specific to Peloton Resources Pty Ltd and of a general nature which may affect the future operating and financial performance of Peloton Resources Pty Ltd and the value of an investment in Peloton Resources Pty Ltd including and not limited to economic conditions, stock market fluctuations, resource demand and price movements, timing of access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve and resource estimations, native title and title risks, foreign currency fluctuations, and mining development, construction and commissioning risk.

3. Executive Summary PROPOSAL • Peloton Resources Pty Ltd – experienced team • Patent Pending – No. 2013904057 • Working with 2 parties • Access to Red Mud • Discussing Seed Capital • Early Discussions relating to Global Agreement • Identified target companies in the HPA and HPS markets – ongoing discussions • Detailed financial modelling undertaken. • Preliminary design and costing of processing facility completed (Outo Tec $50M)

4. Peloton Resources Pty Ltd Experienced Team A diverse team of professionals with extensive International Executive Management, Mining, Operations, Environmental, Processing, Engineering, Sales & Marketing experience gained in International Markets, who have a Common Goal, to commercialise their process and bring the proposal “to life”. WHO WE ARE Develop opportunities to “Value Add”, in areas where our expertise is relevant. WHAT WE DO By applying our knowledge and experience we derive outcomes that reward our partners, our clients, ourselves and our employees. Quite simply, we seek to “value add” to everything we do. HOW WE DO IT

5. Peloton Resources Directors & Key Employees • Mr Terry O'Connor – An executive with over 30 years international experience in Sales, Marketing, Operations, Engineering and Project Management, demonstrating an outstanding track record of success in increasing shareholder value in business units in Europe, Australia and Asia. Strong domestic/international P&L management experience driving market share, revenue and profit growth. Talent for making rapid assessment of diverse situational challenges and then developing and leading the resulting action plans. A proven performer who moves easily from vision and strategy to implementation and follow-through. Former roles include Marketing Manager Asia ExxonMobil, General Manager of Ngarda Civil and Mining Pty Ltd, Chief Marketing Officer of Strategic Marine Pty Ltd, General Manager of Bauxite Resources Ltd, Regional Director of Cape PLC, Sales Director of Terex and General Manager Sales, Marketing and Engineering of MTU Detroit Diesel Australia. • Mr David Lenyszyn – Over 15 years international management and experience in developing large-scale mining projects and mineral processing operations. Held key roles including Engineering & Asset Manager at Karara Mining Ltd and Area Manager with Calibre Global for Rio Tinto and BHP Billiton expansion projects. Current Director of international engineering consultancy GMAPS EPCM Pte, headquartered in Singapore. Specialising in management of resource projects from concept to completion along with mineral processing operations and infrastructure management. Extensive experience in all phases of project development including conceptual, feasibility master planning, bankable feasibility studies, FEED and detailed design, procurement execution and construction management. Proven ability to deliver key multi-disciplined resources projects including heavy haul railways, ports, ship-loaders, rail wagon unloaders, material handling equipment, camps, mining infrastructure and utilities such as HV power and water supply.

6. Peloton Resources Directors & Key Employees • Dr Matthew Todd- Over 20 years experience in developing approvals, compliance and quality systems for the mining and private sector industries. Completed PhD thesis in conjunction with Alcoa World Alumina and Worsley Alumina on mine site rehabilitation. Focussed on business development and business improvement within mining companies over the last 10 years since completing an MBA and has held a number of key roles including Western Australian Business Development Manager and Group Leader for MWH and more recently, Environment Manager for Bauxite Resources Pty Ltd and Executive Manager - Environment at Karara Mining Ltd. Strengths include developing innovative, business systems and strategy, operational management and renewable energy systems. • Mr Richard Morris – Richard is a knowledgeable, versatile chemist with a Science Degree and a Masters Degree in Chemistry with Forensics and Toxicology, University of Hull. He has vast experience in a variety of UK scientific sectors including pharmaceutical, environmental and industrial. Successfully managed multiple projects including working as an Analytical Analyst for Reckitt Benckiser (specialised instrumentation for trace analysis. Included HPLC testing, data interpretation, physical testing), Quality Control Analyst at Norgine Pharmaceuticals, South Wales, and recently made the move to the industrial sector with Gower Chemicals, Swansea. In this role, Richard is responsible for day-to-day running of the laboratory, and testing of specialist acid blends. Regular liaison with production and operations for product improvements, batch scale-up, final testing, product release etc. Also heavily involved in the quality system (fully trained as an Internal Auditor to ISO 9001). Other skills include working knowledge of GC-MS, HPLC, IR, AAS and numerous physical testing techniques and also has a very good understanding of environmental management of waste gases to ISO 14001, product troubleshooting, COMAH and COSHH auditing, and completion of risk assessments within processing facilities according to ISO 18001.

7. Peloton Resources Directors & Key Employees • Ms Klaudia Rejnhard- Klaudia is a Masters Degree scientist who is very experienced in the scientific industry, including working for international companies both in the UK and Poland such as an Industrial Chemist for Polifarb paints and then Labor Pharmaceuticals in Wroclaw Poland, followed by Team Leader and Laboratory Manager for 3M Poland undertaking chemical and product research. Klaudia then moved to the UK and commenced with Severn Trent Laboratories in Bridgend as a QC Analyst using Ion Chromatography and LC QQQ techniques to test for trace analysis of metals and organic compounds in drinking water. Since 2010, Klaudia has worked at Natural Resources Wales, as part of the R&D team tasked with setting up and implementing new process and chemical methods, performance testing of novel procedures etc. Klaudia currently specialises in LC QQQ (quantification) and LC TOF (qualification) techniques and is also trained in analytical instrumentation for a variety of chemical analysis; LC-MS, LC-QQQ, LC-TOF, GC-MS, ICP-MS, HPLC. Sound knowledge of GMP/GLP working environment and well versed in the use of MSDS and COSHH.

8. Remediation of Red Mud The Opportunity • 3 billion m3of Red Mud “waste” currently stored globally from the production of alumina from ‘Bayer’ refining of bauxite • >100million tonnes of red mud globally per year being produced • Access to significant quantities of Red Mud (c. 8,000 t/day) • Opportunity to provide long-term benefits to Traditional Owners • Phase 1 – Small Process Plant/s processing 80 Tonnes/Day • High Purity Alumina (HPA) = 20% • High Purity Silica (HPS) = 9% • Titanium Oxide = 10% • Iron Oxide = 43%

9. The Process Basic Overview of the Red Mud Remediation Process Products Produced Iron oxide Titanium dioxide High Purity Alumina High Purity Silica

10. High Purity Alumina (HPA) • Current estimated Global HPA (99.99%) market production is 15,000 tonnes per year. • Global demand to increase to in excess of 25,000 tonnes in 2015 • HPA is used by various industries, particularly the high-technology, energy and automobile sectors. • The main advantages of HPA include the following: 1 2 3 High Hardness – Abrasive applications: magnetic tapes 4 High Hardness – Sapphire single-crystal apps: watches covers 5 High Corrosion Resistance – Important semiconductor for LED 6 High Corrosion Resistance – Tablet & PC screen manufacture 7 High Brightness – Environmentally friendly lighting - LED High Brightness – Enviro. friendly advertising display & paint Medical devices, e.g. prostheses, implants

11. High Purity Alumina (HPA) • The HPA Products • High Purity Alumina (HPA) is normally classified by its purity level being at least 99.99%, commonly referred to as 4N • In addition to the purity, the grain size and conformity significantly influence the price commanded for the product • We will produce HPA in the form of at least three products, being: • HPA 4N 99.99% • Market Price US$30,000 – US$60,000/tonne(*note, prices are conservative) • HPA 5N 99.999% • Market Price US$90,000 – US$120,000/tonne • HPA 6N 99.9999% • Market Price US$210,000 – US$290,000/tonne

12. High Purity Silica (HPS) • Current estimated Global HPS market production is 100,000 tonnes per year. • Global demand is expected to increase significantly • HPS is used in various industries, particularly the high-technology, energy, semi-conductor, fibre-optic, LCD, glass and paint manufacture • The main advantages of HPS include the following: 1 2 3 4 High whiteness – paint, wood finish, primers, undercoat, floor coating High purity – photovoltaic and electro-magnetic products High hardness - abrasives High technology – semiconductors, fibre-optic, LCD

13. High Purity Silica (HPS) • The Products • Washed Silica – HPS 99.9+% SiO2 • Market Price: US$350-1,500 per tonne • Crucible/Solar Grade Silica – HPS 99.997% SiO2 • Market Price: US$8,000-12,000 per tonne • Semiconductor Grade Silica – HPS 99.999+% SiO2 • Market Price: US$10,000-30,000 per tonne We plan on producing HPS 5N

14. Titanium Oxide • The Products • The main use for Titanium Oxide is has a pigment for white paint • Market Price $1360/tonne

15. Iron Oxide • The Products • The main uses of Iron Oxide are: • Paint Pigment • Concrete • Shoe Polish • Tiles • Electronic Parts • Market Price $700/tonne

16. Potential Clients Global Reach • Peloton has investigated an extensive suite of potential clients requiring High Purity Alumina (HPA) and High Purity Silica (HPS) from around the world. 28 potential clients already identified globally for HPA and 21 for HPS

17. Competitor Analysis 1 • Most HPA suppliers are located in Asia. China is dominant in the HPA market and eight of the top ten suppliers worldwide are China. Quality varies dramatically along with price. 2 • The Japanese company Sumitomo had nearly 40% of the market share in 2009, but this is expected to decrease to at least 25% by 2015. 3 • The North American production facility run by Orbite is anticipated to produce 3,500 tonne in 2015 giving them an estimated market share of 13%. 4 • Locally, Australian Minerals and Mining Group (AMMG) control tenure in Western Australia containing 297 Mt of resource (JORC) of Kaolin and are trying to develop their own processing patent for HPA. Lack expertise and drive. Have done nothing for 5 years.

18. Financial Model • The financial model has been developed over the last 6 months and presents a conservative, discounted estimate of returns from the processing of Red Mud.

19. Proving the Technology • Laboratory Testing at Curtin University • Cost $110,000 plus contingency of $15,000 • Duration of 3-4 months • Laboratory Testing at University of WA • Cost $150,000 plus contingency of $25,000 • Duration of 3-4 months • Pilot Plant Testing – most likely in Europe costs to be confirmed

20. Processing Facility • Design • $1.5 Million • Procurement • $40.0 Million • Construction • $5.0 Million • Location • Potential for several locations in Australia • Northern Territory • West Australia • Design, Construct, Commission – 18 months