Laterite in Development

Annual General Meeting23 November 2007Mathew Longworth

Heron Resources Limited

ASX: HRR

Disclaimer Forward Looking StatementThe material used in this presentation is intended to be a summary of selected geological data, current and proposed activities, as well as resource estimates based on information available to Heron Resources at the time. It does not include all available information and should not be used in isolation as a basis to invest in Heron Resources. Any potential investor should refer to Heron Resources’ ASX releases and statutory reports before considering investing in the company.This presentation includes information relating to a completed independent scoping study, completed independent resource estimate and a feasibility study which is in progress and includes “forward looking statements” which include, without limitation, estimates of potential nickel in concentrate production based on mineral resources that are currently being evaluated. While the Company has a reasonable basis on which to express these estimates, any forward looking statement is subject to risk. Risks include, without limitation: nickel metal prices, foreign exchange rate movements, failure to meet joint venture milestones, project funding capacity, concentrate off-take contracts and estimates of future capital and operating costs.The Company does not undertake to release publicly any revisions to forward looking statements included in this presentation to reflect events or results after the date of this presentation, except as may be required under applicable securities laws.

HIGHLIGHTSCVRD commences KNP Step 3BHBP and CVRD commit to placement, continuing support and interest

Commitment to Jump-up Dam Trial Mining and DemonstrationCommencement of constructionPFS nearing completionBuilding an experienced, enthusiastic team

-30 °

-28 °

Southern Cross

Coolgardie

KALGOORLIE

Menzies

Leonora

Laverton

July 07

Leinster

0 50km

CONSOLIDATION

JUMP-UP DAMPROJECT

JUMP-UP DAMPROJECT

Kambalda

Nickelsmelter

Mt Keith

Murrin Murrin

Bulong

KALGOORLIEKALGOORLIENICKELNICKEL

PROJECTPROJECT

Kambalda

Nickelsmelter

Mt Keith

Cawse

Silver/BlackSwan

HoneymoonWell

0 50 100

Kilometres

PROJECT LOCATION

InfrastructureGasRailRoadPorts

Skilled labour pool

ESPERANCE

PERTHKWINANA

KALGOORLIE

-30 °

-34 °

-32 °

-30 °

-34 °

-32 °

Southern Cross

NorsemanBalladonia

Esperance

Kambalda

Coolgardie

KALGOORLIE

Menzies

Leonora

Laverton

JUMP-UP DAMPROJECT

Port

Kookynie

Main roads

Railway

Gas pipeline

Aubils

20kmScale0

Ghost Rocks Siliceous

Highway Siliceous

Menzies

Goongarrie Hill Siliceous

Goongarrie South GoethiteSiberia North Siliceous

Big Four Siliceous

Big Four Placer SiliceousScotia Siliceous

Siberia Siliceous

Black Range NontroniteKalpini Nontronite

KALGOORLIE

121.5 º121 º 121.25 º

Bulong Nontronite

KNP PROJECT OVERVIEWLarge scale nickel laterite project in partnership with CVRD-Inco.

Subject to milestones, CVRD-Inco sole funds Feasibility Study;

CVRD-Inco earn 60% on completion of Feasibility and securing project funding;

• Heron equity capped at 4.5% of total equity

• CVRD-Inco lends Heron its remaining equity funds

Major Roads

Granite

Major Road

Mineralised Drillholes

Ultramafic

JOINT VENTURE MILESTONESStep 2 PFS, Flow sheet selection Completed

Step 3 PFS, Completion of Full PFS Jan 2009• A$13.8 million budget approved for first six months• Significant drilling component to increase confidence in the resource • Metallurgical test-work

– Pressure acid leach– Heap leach– Atmospheric leach

• Engineering• The PFS will be conducted by a third party independent engineering

consultancy.

Feasibility Study July 2011

STEP 2 KNP PFS KEY RESULTS HPALHPAL test-work achieves Ni and Co >96% in 60-90 minutes leaching

• 10 Samples for HPAL batch scale test-work at CSIRO Bentley.• 500kg beneficiated pilot tests at Dynatec in Canada on composite

samples.• The HPAL batch tests were carried out at 247°C and 260°C to

target a final free acidity of approximately 25 and 50g/l.• The pilot plant tests used saline water both achieved over 95% Ni

extraction within 60 minutes at 260°C with minimal autoclave scaling.

• In general, nickel and cobalt extractions of >96% were achieved in 60-90 minutes and acid consumption ranged from about 250 to 350kg/t largely dependent on the magnesium content of the ore.

STEP 2 KNP PFS KEY RESULTS AALAAL recoveries of up to 80%

• AAL involves leaching nickel laterite slurry in tanks at atmospheric temperatures and pressures.

• 9 coarse and 3 fine fraction KNP samples tested by this flow sheet at 95°C with 700 kg/t addition of acid.

• Nickel, magnesium and iron extraction ranged from about 50-80% dependent on the mineralogy.

• The nickel, magnesium and iron leached rapidly in the first two hours but then reached a plateau with the ores reacting slowly once the free acid decreased to below 50 g/L.

STEP 2 KNP PFS KEY RESULTS HALHAL recoveries of up to 90% with leach times of between 100 and 120 days.

• HAL involves nickel bearing laterite ore, preparation, stacking into heaps and irrigation by dilute sulphuric acid.

• Heron is studying HAL at Jump-up Dam and is one of the options CVRD-Inco is considering.

• 8 samples from 5 KNP deposits were tested for their suitability for heap leach nickel extraction in one metre columns at CSIRO’s laboratories.

• To the end of September 2007, leaching recoveries varied between 20 and 90% with leach times between 100 and 120 days under acid concentrations of 50 and 200 g/L.

STEP 2 KNP PFS KEY RESULTS BENEFICIATIONBeneficiation test-work returned mass passing results of around 33%

• Beneficiation test work included 15 x 80kg samples of various material types.

• 10 tonnes of bulk samples from Goongarrie Hill and Highway of siliceous limonite.

• The mass passing -75µm was generally in the order of 33%.

• Beneficiated grades ranged from 1.12% to 1.80% Ni, 2 pilot test composites grading 1.25% Ni and 1.40% Ni.

• Upgrade test-work did not include an attrition or active scrubbing step in their test-work

JUMP-UP DAM HEAP LEACH PROJECT 100% Heron owned and managedPre-feasibility study 90% complete

Targeting 2009-10 production

Minimum 10,000 tonneper annum nickel production Supported by 22 Mt @ 1.0% NiResource definition drilling in progress

-29.2 °

-29.5 °

Heron tenements

Ultramafic lithologies

Jump-up Dam

Boyce Creek

Aubils

Murphys Well

Mt Remarkable

50km

0 10 20

Kilometres

Kalgoorlie 130km

Murrin Murrin

Kookynie

Leonora 15km

Main Roads

Rail

KEY ISSUES FOR JUMP-UP DAMLeaching

• Completed 18 sighter column leach tests; encouraging leach results • Large scale column tests –4 completed 14 in progress and 13 in preparation

Heaps remaining permeable• Agglomeration – continuing improved understanding• Demonstration full scale heap trials

Acid, limestone water supply labour• Acid Plant on site burning sulphur, acid negotiations • Calcrete for neutralisation• Ongoing water exploration and test work

Precipitation of intermediate product• Product precipitation test work current• Demonstration precipitation from demonstration heaps• Marketing Studies – 14 refineries complete• Mixed sulphide intermediate product

JUMP-UP DAM TEST-WORK

TEST-WORK VS PFS MODEL

Leach Time (days)

Ni Extraction (%) vs Leach Time

0

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80 100 120

PFS Model

140

H4L003 Test 12

H4L002 Test11

Resource Comp4m Test 22

JUMP-UP DAM PROJECT1km

HEAP LEACH FACILITY

100m

Expansion areaROM StockpileCrushing area

DemonstrationPads

Heap Ponds

Agglomeration and stacking hard

stand area

JUMP-UP DAM SITE LAYOUT

INTERMEDIATEEXTRACTION

ORE PREPARATION

ACCESS ROAD

DEMONSTRATION SITE SOIL PRESTRIP

DUST CONTROL POND

STACKER CONVEYOR

DIAMOND DRILLING

CALCRETE FOR NEUTRALISATION

JUMP-UP DAM CAMP

GLOBAL MINED PRODUCTION

0

50,000

100,000

150,000

200,000

Ni Tonnes Source Intierra

Jump-up Target10,000t Ni

Jump-up & KNPequity production

Mathew LongworthManaging Director

Phone: +61 8 9215 4444Mobile : +61 418 935636

ASX: HRR