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Corporate Presentation
July 2013
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The information presented contains “ forward-looking statements” , within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of Argex Mining Inc. (“Argex or the Company”. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production, the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; and limitations on insurance coverage. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.
The technical information contained in the presentation has been reviewed by André Laferrière, Qualified Person for Argex and conforms to National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Investors are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The Qualified Person has not done sufficient work to classify the historical resources estimates and the issuer is not treating the historical estimate as current mineral resources
The Qualified Person has been unable to verify the information related to the Ni 43-101 mineral resources reported from other companies and included in the presentation
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources
The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
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Game-changing, patented
extraction process for high-
purity titanium dioxide (TiO2)
production.
Process can uniquely
convert low grade ilmenite into
high purity TiO2.
TiO2 prices expected to rise with global economic growth.
Currently averaging $3,650 US/tonne*.
NDA ’ s in place with major end-users and distributors.
Developing collaborative partnerships in major sectors (accelerate and de-risk the learning curve.)
Currently negotiating purchase and sales agreements with end-users and distributors.
*Source: ICIS April 2013
Patented Extraction
Process
Economic Growth
Potential
Developing Industry
Relationships
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TiO2 is the most used white pigment
giving life to a colorful world.
Safe and environmentally friendly.
The most important properties are
optical:
Brightness
Opacity
Gloss
Tone (white) and under-tone
(color)
Weather resistant and durable
Abrasion (inks, fibers)
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Paint 58%
Plastics 22%
Paper 9%
Specialties 3%
Inks 3%
Fibres 2%
Rubber 2%
Food & Pharmaceutical
s 1%
Source: TZMI 2012
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22%
20%
Others, 15%
13%
10%
9%
7% 4%
*Source: Ti Insight 2012
6
6.4 million tonnes per year (2011)*
China
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Current TiO2 price - $3,650 US tonne*
Prices are expected to double from 2010 to 2015** **Source: Ti Insight LLC, Dec. 2011 *Source: ICIS Apr. 2013
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(Ref. Ti Insight, LLC - December 2010)
*BRICS = Brazil, Russia, India, China & South Africa
Average German uses 9lbs of TiO2 per year.
Average North American uses 7lbs of TiO2 per year.
BRICS* currently uses on average 2lbs of TiO2 per year.
As emerging countries standard of living increases, so will their use of TiO2.
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HISTORY OF TiO2 PRODUCTION
In 1916, the Titanium Pigment
Corporation of Niagara Falls, New
York and the Titan A/S, of Norway
simultaneously began commercial
TiO2 production with Sulfate
Process.
In 1948 DuPont introduced the
Chloride Process.
60 + years later Argex enters the
market with the CTL process.
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ARGEX’S CTL PROCESS
Patented.
Proprietary.
Environmentally friendly.
The only TiO2 process that can effectively extract
TiO2 from ores containing different contaminates
such as MgO, V, Cr, etc.
Uniquely converts low quality ilmenite or mine
tailings that others cannot use into high purity
TiO2.
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Ongoing refinement has driven TiO2 purity beyond
99.8%.
Color, brightness and opacity of TiO2 products
meet or exceed those of the industry leaders.
Environmentally friendly process:
− Closed-loop process.
− Every byproduct is saleable.
− Low temperatures required for process.
− Minimal inert residual (less than 10% of the feed).
− Able to utilize ilmenite from mine tailings that
others cannot use.
ARGEX’S CTL PROCESS
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ARGEX PLANT AND R&D CENTRE
VALLEYFIELD, QC
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Ilmenite Ore Crushing
And milling
Leaching Atmospheric
pressure
Filtration
Inert solid tails
Solvant extraction ( iron circuit)
Solvant extraction (titanium circuit)
TiO2 precipitation
TiO2 recovery (filtration)
Surface treatment
Finish product TiO2 pigment
Regenerated HCl
Co-product Iron oxide
Co-product Magnesium oxide
Regenerated HCl
Acid regeneration
Acid regeneration
Lixiviant Mixed acids
HCl recycling system
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ARGEX’S CTL PROCESS
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CTL PROCESS :
MULTIPLE ADVANTAGES Sulphate Chloride CTL
Raw material cost ($/ton of TiO2 feed)
Low
Ilmenite
($300)
High
Rutile
($1800)
Low
Ilmenite
($250)
TiO2 final product ($/ton of TiO2)
Low purity
($3500+)
High purity
(~$4500)
High purity
(~$4500)
Capital expenditure Medium High Low
Operational costs Medium High Low
Environmental High Medium Low
Flexibility in processing
raw material
Limited
(Cr, V)
Limited
(Mn, Mg, size) Complete flexibility
Process Condition
High temp.
High pressure
(140-180 0C)
Very High temp.
High pressure
(800-1,400 0C)
Low temp.
Atm. pressure
(70 0C)
TiO2 Pigment production Rutile/Anatase Rutile Rutile/Anatase
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White Pigment RI Plastic RI
Rutile TiO2 2.73 Polystyrene 1.60
Anatase TiO2 2.55 Polycarbonate 1.59
Antimony Oxide 2.09 – 2.29 SAN 1.56
Zinc Oxide 2.02 Polyethylene 1.50-1.54
Basic Carbonate, White Lead 1.94 – 2.09 Acrylic 1.49
Lithopone 1.84 Polyvinyl Chloride 1.48
Clay 1.65
Magnesium Silicate 1.65
Barytes (BaSO4) 1.64
Calcium Carbonate (CaCO3) 1.64
OPTICAL PROPERTIES :
REFRACTIVE INDEX
Refractive Index (RI) = scattering and reflection of light.
Argex’s CTL = Rutile TiO2 - the highest refractory index.
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HIGH QUALITY TiO2 =
BETTER OPTICAL PROPERTIES
Higher quality TiO2 produces better paints.
Higher Refractory Index means less or thinner coats of paints for the same result.
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ARGEX’S TiO2 LIGHT
REFLECTING QUALITIES
Argex’s TiO2 (0.2 - 0.3
microns) reflects light
at optimal level for
paint.
Argex’s CTL Product
Competitive Product 1
Competitive Product 2
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Argex’s CTL Product
Competitive Product 1 Competitive Product 2
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RGX™ 100 Series RGX™ 200 Series
Pigments for
Cosmetics, Food and
Pharmaceuticals
RGX™ 171: very high
purity grade designed for
food, cosmetics and
pharmaceuticals
applications.
RGX™ 300 Series
Pigments for
Plastics
RGX™ 220: high durable
grade designed for plastics
applications like PVC,
plastisols, polyolefins,
masterbatches and
advanced plastics.
Pigments for
Coatings
RGX™ 330: high durable
grade designed for
coatings applications like
architectural (indoor and
outdoor), industrial paints
(water-bone and solvent)
and consumer, coil coating,
powder coatings.
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State of the art, off-the-shelf, proven equipment:
Solvent extraction equipment has been used for
many years for uranium, copper, nickel, rare earths,
etc. on much larger scales than we are planning.
Filtering, rotary kilns, coating and finishing are proven
TiO2 technologies.
Existing building and infrastructure at Valleyfield, QC.
Solvent extraction typically scales up 15,000 to
100,000 times, Argex will only be scaling up 15,000
times.
All other equipment selection is based on off the shelf
designs already being used in the industry to minimize
redesign and scale up risks.
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1. Technical
Collaboration 2. Purchase & Supply
Agreement
Began collaborating in late 2011 and
will continue. Argex will be a significant TiO2
supplier to PPG.
2012
Two Parts To The
Agreement:
Announced their joint efforts to develop a TiO2 product
meeting conventional standards for architectural paint.
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END-USER COLLABORATION
NDA’s are currently in place with major end-users and distributors.
ARGEX is developing collaborative partnerships in the following sectors
to accelerate and de-risk the learning curve:
• Architectural Paint and Coatings
• Cosmetics, Food and Pharmaceuticals
• Plastics
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End-user agreements.
Feasibility-stage study.
Secure industrial plant location.
Sign agreement for supply of ilmenite.
Project financing of first industrial-sized module.
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SHARE STRUCTURE
Recent Price $1.18
52 Week High $1.45
52 Week Low $0.78
Market Cap ~$143 million
Outstanding 121,393,171
Options 11,174,500
Warrants 11,254,000
Fully Diluted 143,821,671
As of July 5, 2013
Capitalization
Market Performance
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Full Coverage: Byron Capital
Mackie Research
Cormark Securities
ANALYST COVERAGE
Mention: Wells Fargo
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EXPERIENCED ADDITIONS
September 2012 – Ian Cox, Head of Engineering and Construction
October 2012 - Philippe Guillemaille, Marketing and Sales Manager
May 2013 - Peter Waugh, Team Leader, TiO2 Pigment Development
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Roy Bonnell - President & CEO, Director, Founder
CFO, Vice President, Corporate Development and Corporate Secretary of Argex 2007 to 2011.
Managing Director, Atwater Financial, 2003-2010.
M.Sc. Accounting & Finance (London School of Economics), MBA (McGill), L.L.B. (Western), B.A. (Queen’s).
Enrico Di Cesare - COO, VP Technology
Metallurgy, operations, know-how transfer, and management; Severstal, Danieli, Sammi Atlas Steel, Hoogovens/Corus/Hatch.
Metallurgical Engineer from McGill University.
Mark Billings - CFO, Director, Founder
Chief Financial Officer and Founder of Argex; President from 2007-2009.
BA (Honours) from Carleton University and an MBA from the Harvard Business School; Chartered Financial Analyst.
André Laferrière - VP Mining and Geology
Argex’s NI 43-101 Qualified Person.
Professional registered geologist with over 15 years experience in exploration and mineral development projects for various commodities, including mineral resource estimation and NI 43-101 reporting.
M.Sc. in geology (Université de Montréal).
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Geneviève Marchand - General Counsel and Corporate Secretary
Counsel and Partner, Davies Ward Phillips and Vineberg, from 2000-2005.
LLM from London School of Economics; LLB from Laval University.
Member of the Quebec Bar.
Ian Cox - Head of Engineering and Construction
Over 30 years’ experience, held executive positions in technology companies, construction and technology equipment providers to the metallurgy industry.
BS (Honours) from Leeds University.
Academic studies also include the University of Tennessee, Massachusetts Institute of Technology (MIT), and Harvard Business School.
Has published over 20 technical papers on the design, construction and operation of metallurgical furnaces.
Philippe Guillemaille - Manager, Sales and Marketing
Regional Business Manager, Europe & Africa for Kronos, a leading TiO2 producer company, from 1998-2011.
Graduate from the University of Chemistry of Lyon.
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Robert Guilbault - Chairman of the Board of Directors
Former President and CEO of Aluminerie Allouette Inc., Sept-Îles, Quebec.
General Manager of BHP Billiton’s Hillside Aluminum at Richard’s Bay, South Africa.
Has worked in the mining production field for twenty years.
Normand Bergeron - Director
Executive Counsellor at Samson Bélair/Deloitte & Touche since October 2011.
Chief Executive Officer of Infrastructure Québec from its creation in March 2010.
Deputy Minister, Québec Department of Natural Resources and Wildlife, from May 2005 to July 2009.
Member of Hydro-Québec’s Board of Directors (2005-2009).
Mazen Haddad - Director Former President of Township Capital Inc.
Received a B.A. degree in Economics from Emory University of Atlanta, Georgia.
Florian Rais – Director Founder of Far Investments Inc. a private equity and corporate finance firm
Partner at Tangent Venture, a private equity investment firm in London, England
Director of Blue Wall Shipping Limited and China Motors Ltd.Received a BA and MBA from University of Lausanne Business School
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Game-changing,
patented extraction
process for high-purity
titanium dioxide (TiO2)
production.
Process can uniquely
convert low grade
ilmenite into high purity
TiO2.
TiO2 prices expected to rise with global economic growth.
Currently averaging $3,650 US/tonne*.
NDA ’ s in place with major end-users and distributors.
Developing collaborative partnerships in major sectors (accelerate and de-risk the learning curve.)
Currently negotiating purchase and sales agreements with end-users and distributors. *Source: ICIS April 2013
Patented Extraction
Process
Economic Growth
Potential
Developing Industry
Relationships
31
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Completion of Bankable Feasibility Study
End-user agreements
TSX Listing
Development of Valleyfield R&D and Production Centre
Project financing of the first industrial-sized module
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MANAGEMENT TEAM
Roy Bonnell, President & CEO
Tel. : +1 514-788-8932
Mark Billings, CFO
Tel. : +1 514-296-1641
Enrico Di Cesare, COO
Tél. : +1-514-843-5959 x141
CORPORATE HEADQUARTERS
630 Sherbrooke Street West, Suite 410
Montreal, Quebec H3A 1E4, Canada
Fax : +1.514.843.9208
www.argex.ca
Auditors: BDO Dunwoody
Legal Counsel: Heenan, Blaikie LLP
Transfer Agent: Canadian Stock Transfer
Company Inc.
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All of Argex’s public filings can be found on SEDAR (www.sedar.com)
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