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GLOBAL MININGINVESTMENT CONFERENCE 2010
STATIONERS’ HALL ● CITY OF LONDON ● TUESDAY-WEDNESDAY, 28-29 SEP 2010
www.ObjectiveCapitalConferences.com
Investment Conferences
Outlook for TungstenBrian Wesson – CEO, Woulfe Mining
Outlook for Rare EarthsGary Billingsley – Exec Chairman, Great Western Minerals
Outlook for LithiumJay Chmelauskas – President, Western Lithium Corp
Recycling fly-ash waste – turning grey into greenSiegfried Konig – Managing Director, Vecor
DAY 1 – SESSION 1: STRATEGIC METALS AND THE CLEAN-TECH REVOLUTION ?
Other sponsors & participating organisations:
GLOBAL MININGINVESTMENT CONFERENCE 2010
Lead sponsors:
Media partners:
WOULFE TSX-V“WOF”REBIRTH OF THE KOREAN
MINING INDUSTRY
Brian Wesson, CEO and PresidentSeptember 2010
WOULFE TSX-V“WOF”
Statements in this presentation other than purely historical information, including statements relating to Woulfe Mining’s future plans, objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to the risks and uncertainties inherent in Woulfe Mining’s business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements. Note that Woulfe Mining refers to historical resource estimates in this presentation. Source, date, relevance, reliability and explanations on categories are presented with the historical estimates.
A qualified person has not done sufficient work to classify the historical resources as current mineral resources. The issuer is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon.
This PowerPoint presentation was prepared to assist interested parties in making their own assessment of Woulfe Mining and its mineral properties, and does not purport to contain all of the information that a prospective investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company, its assets and the information provided in this presentation. Any and all statements, forecasts, projections and estimates contained in this presentation are based on management’s current knowledge and no representation or warranty is made as to their accuracy and/or reliability.
Unless otherwise stated, all resource and reserve estimates in the document are historical in nature and do not comply with the current NI 43-101 reporting standards.
Disclaimer
WOULFE TSX-V“WOF”
Korea ..... Open for investment
• Developed economy
• Safe destination with daily flights from most capital cities around the word.
• Advanced financial and legal system.
• Security of title
• 100% foreign ownership and directors
• 10 year write down of capital
• No government royalties
• Corporate tax rate 20%
• Strong banking sector with moderate rates.
• Located in heart of economic Asia
World’s 11th largest economy, low credit risk rated by Moody as A1, IMF forecast economic growth 6.1%
WOULFE TSX-V“WOF”
Woulfe Mining.... Near term diversified miner
Core Projects• Sangdong tungsten-molybdenum mine,
historically, one of the largest tungsten mines in the world. Focus of Scoping study March 2009
• Sangdong molybdenum stock-work, virgin lodes identified to have high grade veins at 5 to 10 times the molybdenum grade in main lode.
• Muguk gold-silver mine, historically South Korea's largest gold mine mines at 11 grams.
Growth Projects • Uranium, vanadium exploration• Lead, zinc founding mine Korea Zinc
developed• Tungsten project, historical u/g mine
WOULFE TSX-V“WOF”
77
Tungsten.... Driven by world expansion
60% demand for tool tips used in manufacture
Wear resistant materials
High tech applications in nuclear and fusion applications
WOULFE TSX-V“WOF”
88
Why invest in Tungsten?
30% price increase
Moly has been over $40/lb APT has been to US$600 mtu in 2010 terms
Supply Tightening with changes in China•Traditionally produced 80% of the world’s tungsten products.
•Strategic metal under quota.•Buying on the open market forcing prices up.
•Taxing export and wages rising•Buying projects and refineries
Source Roskill/ Wolfram
WOULFE TSX-V“WOF”
9
Why ..Woulfe (TSX-V WOF)?
Issued Shares : 214,292,250
Warrants : 60,638,000
Options : 7,525,000
Fully Diluted : 282,455,250
Liquidity – Ave Vol (3M) 540K
Strong Institutional Shareholders:
• Colonial First State 16%
• Resinco Capital Partners 12%
• US Global 9.9%
• Se Woo Mining Korea 9.9% (Vendor)
Current share price : C$ 0.11 cents
Current Cash position: C$3.5 million
Debt: none
Management – holds warrants and options
Company valued : C$23 million market cap. vs Sangdong scoping NPV C$480 million, IRR
26.6% DCF 8%. Objective Capital values Woulfe C$0.90 to C$1.90/share
Strategically placed in market with no affiliation giving large optionality
WOULFE TSX-V“WOF”
10
Key Results March Scoping Study Wardrop Eng
Base case assumptions
• Tungsten - Ammonium Paratungstate (APT) Price US$250 /mtu – Current price US$243/mtu
(US$24,300/tonne)
• Molybdenum – US$15.00 per pound
• 2.5 million tonnes milled per annum
• Production APT 6000 tonnes per annum: (Gross US$146 million/annum)
• Mine life 15 years mining with resources base sufficient for 40 years.
• Resource based on foot wall vein, dilution 15% and 95% extraction factor
• Assumes all new infrastructure
Scoping results
• C$480 million Net Present Value (NPV) at 8% discount rate.
• 26.4% Internal Rate of Return (IRR)
• 3.4 years payback on US$ 289 M capital
• Scoping study break even at an APT price US$167/mtu
• Direct operating costs of $ 32.50 /t processed
WOULFE TSX-V“WOF”
11
Woulfe’s Advantage in Market
• China, becoming net importer and Woulfe has a strategic position, price rising.
• Woulfe is the most feasible project our only large competitor of similar size is North American Tungsten in the ice
with high build cost
• Large skarn deposits are more economic than vein deposits.
• Short development cycle due to extensive existing infrastructure ( mine development ,roads, water, power and
established mine town.
• Known mineralization, mine-ability and metallurgy
• Woulfe has a Mine Development License and has reopened the mine.
11
WOULFE TSX-V“WOF”
12
Sangdong is the world’s No. 1 tungsten deposit outside of China
Close on 900 drill holes in the project with 40 years of underground mining of main vein
Sangdong Molybdenum StockInferred Resource-March 2010Cut off 0.16% MoS2
Zone M.Tonnes MoS2 %
Below Skarn 7.1 0.18
1,000 m strike each vein about 7 metres thick Focus of scoping study
900 drill holes
40 drill holes
WOULFE TSX-V“WOF”
13
Sangdong Mine Crossection• Site offices established• Site accommodation secured• Re-establish Sangdong level
progressing well• Drilling machine to be on site
next month for definitive mine planning
WOULFE TSX-V“WOF”
14
Sangdong Project Development Time Table
June - appointment of Wardrop engineers for full phase 2 bankable feasibility
June - Mine Development Licence approved by state government
June – Underground mine reopened and first access for 18 years
July – setup site facilities offices accommodation and secured mine equipment
First half - delivery of full bankable feasibility study or go to build
2010
TO PRODUCTION
August – re-opening Sangdong mine main level and prepare for drilling
September – Reserve drilling areas above valley floor approx 3600m
September – Development plan focusing of mining 600,000 tonnes at a target grade of 0.6% W03 and 0.04% MoS2 and expanding to 1.25 million in year 3
December took control, secured assets and cleaned companyJanuary-April deliver positive independent scoping study C$480 million NPV
Evaluation of full development 2013 or Phase 1 in 2011
WOULFE TSX-V“WOF”
15
Sangdong = Long Term Value
The scoping study by Wardrop proved that this is a long life economic project that has robust economics and is approaching development.
• Strong project economics and long life asset
• Low technical risk
• Low capital requirements
• Short time to production
• Ease of build
• Supportive modern government
• Market on our doorstep
WOULFE TSX-V“WOF”
16
Muguk Gold Project
What makes this an exciting project?
• Life-of-mine head grade 11 g/t producing 250 t of gold at a cut off of 10g/t leaving sub 10 g/t in situ
• Historical target below 400 m in developed mine and open down dip.
• Large goldfield over 2 km strike with 9 veins.
• Over 1,000 historic face grades were sampled in 1994 at better than an ounce.
• Current mine plans have been located and are being modeled.
• Recent drilling located the No 7 Vein, substantiating the old data at grades consistent with what was expected. Historical grades vary from zero to 384 g/t.
o Sample 1327 414.3m to 415.3m-3.3 g/t gold, 14 g/t silvero Sample 1328 415.3m to 416.3m-7.8g/t gold , 38g/t silver
Korea’s largest historical gold deposit. In 1994 KORES calculated a historical non NI 43-101 compliant *620,000 oz at a gold grade of 13.5 g/t and 3.3 Moz at a silver grade 78.6 g/t. (historical resource non compliant JORC and NI43-101)
*non NI43-101 compliant and cannot be relied on
WOULFE TSX-V“WOF”
17
Muguk Gold ...Korea’s largest gold mine
Yuil operating small mine
Current drill site collar drilling Vein 7 & Vein 8
Projected vein being drilled
Historical resource area
being modelled
A A1
Mined Areas at closure (1994)
Resource Defined by KORES (1994)(non NI43-101 compliant)
Muguk Longitudinal SectionA A1
Mined Areas at closure (1994)
Resource Defined by KORES (1994)(non NI43-101 compliant)
A A1
Mined Areas at closure (1994)
Resource Defined by KORES (1994)(non NI43-101 compliant)
A A1
Mined Areas at closure (1994)
Resource Defined by KORES (1994)(non NI43-101 compliant)
Muguk Longitudinal Section
Lodes open at depth
600 metre depth
WOULFE TSX-V“WOF”
18
Woulfe’s Experienced Team
Brian Wesson CEO/ President FAusIMM, FAICD, MBA
Mark Gelmon CFO
Amelia Wesson Director/ VP Admin. Corporate
Bill Kable VP Technical
Dr Kevin Kartun VP Business Development IR
Mr Wan Shin Chief Operating Officer Korea ex Marketing Manager
who was based in Zurich
Advisor Dr Kun-Joo Moon, PhD from Tasmania on the Sangdong deposit
Advisor Mr Bog-Gon Kim 30 years service Korean Tungsten at Sangdong, becoming GM
Advisor Kwan-Yi Jeong 5 years as GM Muguk Gold to closure 1997.
Colin Lutherborrow MAusIMM Resource geologist
Alind Nand Geologist MSc Tasmania 15 years Emperor Mines Tech. Service Manager
WOULFE TSX-V“WOF”
19
Value Creating Board Members
•Brian Wesson CEO/ President, Representative Director Korea –Engineer with 30 years’ experience South Africa and Asia Pacific managing and building mines. Westech International took over the Emperor mine assets in Fiji restarting the mine and listing London. Brian has an MBA, Fellow of the Australian Institute of Mining and Metallurgy and Fellow of Australian Institute of Company Directors.
•Amelia Wesson Vice President Administration and Director Korea- Principal of Westech who was instrumental in working with governments and staff to restructure the Vatukoula Mine from 2,200 staff to 700 and induct and retrain the staff. Amelia previously worked in companies servicing the large mines in South Africa giving her an excellent understanding of personnel and administration.
•John Icke Director over 12% shareholder , John has over 25 years’ global management experience in both the private and public sector. Currently CEO of Resinco Capital Partners Woulfe’s second largest shareholder.
•Hubert Marleau, Director is Chairman, Co-Founder and Director of Palos Capital Corporation. With over 30 years of experience in the business and financial community, Hubert has been Governor of the Toronto, Montreal and Vancouver Stock Exchanges, and a director of the Investment Dealer Association of Canada.
•Dr Kevin Kartun, Director and now to VP Business Development IR. Kevin holds a PhD in geology and has 30 years experience in the mining industry and extensive experience as a broker and in investor relations.
WOULFE TSX-V“WOF”
20
What makes Sangdong so attractive?
– Undervalued M cap C$23 million @ C$0.11 per share, against Scoping NPV C$480 million or C$2 per share
– Robust long life project > 15 years life.
– Low risk as mineralisation known, mined and metal recovered.
– Scoping study is considered conservative .
– Mining Licence approved, underground was accessed in reasonable condition
– Opportunity to accelerate development
– Feasibility underway
– Tungsten market resilient and tightening
– APT prices , 30% in last 12 months.
– Sangdong is well positioned to return as the world’s largest low cost tungsten mine
– Sangdong has potential to be commissioned in 2012
– Upside in Molybdenum and by products bismuth, gold and potential for fluorite.
20
Value
Growth
WOULFE TSX-V“WOF”
21
Investment Case..
• Undervalued – C$23 million market cap vs NPV C$480 million on skarn project, with near term development opportunities in tungsten, molybdenum, bismuth and gold.
• Low Ownership Risk-Security of title, 100% owned projects/ foreign ownership/ foreign directors, sophisticated country which outgrew China last year
• Experienced Management Team in mine development and operation complimented by experienced professionals from former Korean Tungsten team
• Aggressive Development schedule to optimise return
• Low Project Risk mine was mined and metals recovered
• Strong pipeline of diversified advanced projects with known mineralisation
• Close to markets and in heart of world’s economic power house
• Strategic play with institutional shareholders and no off take or affiliation
• Strong market fundamentals across all of target metals, tungsten, gold and molybdenum
WOULFE TSX-V“WOF”
22
Contact details
Brian Wesson President /[email protected] +61414406611
For more information Kevin Kartun VP Business Development [email protected] Mob +61413806353
www.woulfemining.com Corporate office CanadaMarion McGrath Corporate Secretary408-837, West Hastings Street,Vancouver, BC, V6C 3N6, Canada.Tel +1 604 684 6264Fax +1 604 684 6242
BOOTH 7
Other sponsors & participating organisations:
GLOBAL MININGINVESTMENT CONFERENCE 2010
Lead sponsors:
Media partners:
OUTLOOK FOR RARE EARTHSObjective Capital Global Mining Investment Conference
September 28, 29 2010 London, UK
TSX.V: GWG / OTCQX: GWMGF [email protected]
2
Safe Harbour
• Cautionary Note On Forward-Looking Statements
• "Forward-looking statements include, but are not limited to, statements regarding projected processing capacity, output and revenue, GWMG’s continued advancement of its mineral exploration, projects, processing operations and business plans. When using this presentation, the words “potential”, “anticipate”, “estimate”, “forecast”, “believe”, “expect”, “may”, “project”, “plan” and similar expressions are intended to be among the statements to identify forward-looking statements."
•Although GWMG believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Readers are advised to refer to GWMG’s current Annual Information Form available at www.sedar.com for a full description of risk factors.
• GWMG shall not be liable or responsible for any claim or damage, directly or indirectly, special or consequential, incurred by the user arising out of the interpretation, reliance upon or other use of the information contained in this presentation.
3
Fully Integrated Production Model
EXPLORATION
MINING
PROCESSING
SEPARATION
METAL MAKING
BY-PRODUCT SALES
REO SALES
LCM/GWTI ALLOY PROD’N
Enterprise profitability increases with each stage of processing
RE METAL SALES
ALLOY SALES
4
What Are Rare Earth Elements? Unique optical and magnetic properties
LREE HREE
Where Are Rare Earth Elements Used?Vital to our standard of living
5
World Mine Production and Reserves(tonnes REO)Country Mine Production
2009Reserves
United States - 13,000,000
Australia - 5,400,000
Brazil 650 48,000
China 120,000 (97%) 36,000,000 (36%)
CIS N/A 19,000,000
India 2,700 3,100,000
Malaysia 380 30,000
Other N/A 22,000,000
World Total 124,000 99,000,000
Source: USGS Mineral Commodity Summaries, January 2010
6
Global REE Demand Rising Rapidly
7
6
Rising Demand For REE’s and Applications
Increased REE Demand Comes From China REE
Application REO
2010 Demand
2014f Demand
Permanent Magnets
Nd, Pr, Dy,
Tb, Sm 32,000 50,000
NiMH Batteries,
metallurgical La, Ce, Pr, Nd 28,000 41,000
Catalysts Ce, La, Pr,
Nd30,000 37,000
Phosphors Eu, Y, Tb, La, Dy, Ce, Pr, Gd
8,000 12,000
Polishing Powders
Ce, La, Nd,
mixed20,000 26,000
Glass Additives
Ce, La, Nd, Er, Gd, Yb
11,000 10,000
Ceramics, other
Mixed 5,000 6,000
Total 134,000 182,000
Chinese Demand
72,000 (54%)
117,500 (65%)
ROW Demand 62,000 64,500
Source: Lynas Corp. using data from industry participants, Roskill & IMCOA8
China: Export Quota ReductionsChinese Rare Earth Export Quotas 2004 to 2009 (tonnes REO)
Source: 2005-2009, IMCOA; 2010, Metal Pages
Year RE Export Quota
% Change Demand Outside China
Surplus (Shortfall)
2005 65,609t 0% 48,000t 17,609t
2006 61,821t -6% 53,000t 8,821t
2007 59,643t -4% 55,000t 4,643t
2008 56,939t -4.5% 54,000t 2,939t
2009 50,145t -12% 25,000t 25,145t
2010 30,258t -40% 62,000t (31,742t)
9
REO Prices Over The Last 12 Months
CeO2 US$/t Dy2O3 US$/kg La2O3 US$/t
Nd2O3 US$/t Sm2O3 US$/t Eu2O3 US$/kg
Source: Asian Metal
10
If Not China Then Where?Sample of Known RE Deposits
Source: Mariano
11
Global Rare Earth Projects Under Development
Thor Lake TSX:AVLKvanefjeld ASX:GGG
Nolan’s Bore ASX:ARU
Dubbo ASX:ALKMount Weld ASX:LYC
Dong Pao-Sojitsu/Toyota Vietnam
Steenkampskraal TSXV:GWG
Mountain Pass, CA Molycorp
Hoidas Lake TSXV:GWGBayan Obo China
Potential Production by 2012/2013 Potential Production by 2014/2015
A limited number of Rare Earth deposits with 2014/2015 production potential
Mianning
Ionic Clays
Kutessay-TSXV:SRU
12
Global Rare Earth Projects Under DevelopmentHonourable Mention: Production 2015+ ?
13
Bokan TSXV:UCU
Bear Lodge TSXV:RES
Strange Lake TSXV:QRM
Sarfartoq TSXV:HUD
Wigu Hill Montero (private)
Zandkopsdrift Frontier (private)
Kangankunde ASX:LYC
Nora Karr TSXV:TSM
Where Will Rare Earths Come From?Supply Sources (t REO)
Source: 2005-2009, IMCOA; 2010, Metal Pages and Lynas Corp.
Location 2010 2014
Baotou 55,000 60,000
Sichuan 10,000 15,000
Ionic Clays 45,000 40,000
Mountain Pass 3,000 19,000
Mount Weld - 22,000
Recycling 5,000 6,000
Russia 4,000 4,000
India 3,000 4,000
Vietnam - 5,000
Steenkampskraal - 2,700
TOTAL 125,000 177,700
DEMAND 134,000 182,000
IMBALANCE (9,000) (4,300)
14
Projected Shortages 2014
Source: IMCOA; Lynas Corp.
15
2014 Supply/Demand Imbalance
Demand Supply
Oxide t REO t REO Imbalance
La2O3 51,050 47,801 -3,249
CeO2 65,750 71,435 5,685
Pr6O11 8,900 8,707 -193
Nd2O3 35,900 28,965 -6,935
Sm2O3 1,390 3,554 2,164
Eu2O3 840 711 -129
Gd2O3 2,300 2,666 366
Tb4O7 590 355 -235
Dy2O3 2,040 1,599 -441
Er2O3 940 889 -52
Y2O3 12,100 10,129 -1,971
Ho-Tm-Yb-Lu 200 889 689
182,000 177,700 -4,300
Attributes: Current RE ProjectsProject Resource/
Reserve (Mt REO)
Annual Prod’n (t REO)
Capex( US$million)
CeO2 (t) Nd2O3 (t) Dy2O3 (t)
Bayan Obo 56 60,000 N/A 30,000 10,000 600
Mtn Pass 1 19,000 $550 9,700 313 (metal) nil
Mt. Weld 1.2 20,000 $650 9,300 3,700 25
Nolans 1.0 20,000 $420 9,600 4,300 70
Thor Lake 0.3 10,000 $900 3,400 1,700 320
Dubbo 0.7 2,600 $150 960 370 50
Kvanefjeld 2.6 44,000 $2,300 18,000 5,600 480
Dong Pao 0.8 7,000 $50 2,500 800 5
Hoidas Lake 0.1 5,000 $150 2,300 1,000 18
Steenkampskraal
0.03 2,700 $45 1,200 450 18
Source: IMCOA, Company filings, websites and industry journals
16
Optimistic Supply/Demand Imbalance 2014Total REO t CeO2 t Nd2O3 t Dy2O3 t
Projected (Shortage) Surplus
(4,300) 5,685 (6,935) (441)
Additional Projects 40,300 16,260 7,370 458
Adjusted (Shortage) Surplus
36,000 21,946 435 17
FOR NdFeB MATERIALS IT WILL BE CLOSE!
17
OBSERVATIONS• There is definitely a need to develop RE sources outside China for
PM materials. It’s prudent for both China and ROW.
• In the long term there are likely enough RE resources to supply the global RE market.
• Sources of PM materials are likely to remain tight in the near term given that it takes 7 to 10 years, on average, to bring mining projects on stream, (in mining-friendly jurisdictions!).
• The world likely does not need any more large “LREE” projects. The focus should be on projects that can supply significant “HREE” per tonne mined. Balance is important.
• It is not enough just to bring RE sources on stream. We must also develop separating and metal making capability.
18
Other sponsors & participating organisations:
GLOBAL MININGINVESTMENT CONFERENCE 2010
Lead sponsors:
Media partners:
Western Lithium
www.westernlithium.com
September 2010
“Outlook for Lithium”
45
Kings Valley Lithium ProjectCautionary Statement
This presentation contains projections and forward looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking statements are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
China Overtakes USA in 2009Automobile Production and Sales
46
Source: Wikipedia; Associated Press; US Bureau of Economic Analysis
Oil Consumption for Emerging EconomiesChina/India can expect a 10 to 20 fold increase
47
Source: Marc Faber
48
$280 Billion(Auto’s, Electronics)
$70 Billion(Batteries)
$1 to 3Billion
(Lithium)
This Decade… Major Multi-National Companies will Depend on Lithium Producers
49
Worldwide Lithium Production 2008
Chile & Argent. - 2 deposits71,000T
USA1 deposit 3,700 T
Australia1 deposit28,700T
China - Multiple deposits9,900T
Source: Roskill 2008
50
Quotes
“Demand will be so big there will have to be new sources of supply….” Rockwood (Chemetall) Holdings Chairman &CEO, Seifi Ghasemi – Feb. 2010
“We have begun to look for our next source of lithium to be ready [by the middle of the decade]” FMC Corp President, Pierre Brondeau - July 2010
"We are one of the largest and most responsible companies in the world, so we are always looking at options….. If we don't move fast enough, we will miss our chance,“ SQM president , Patricio de Solminihac – Aug. 2010
51
01020304050
51
World Lithium Resources
WesternLithium
No Development Plans
Producing
Development Projects
Source: R. Keith Evans, 2010; Roskill Information ServicesLtd., 2009 for China; and company disclosures.Estimates are not NI 43-101 compliant.
M T
onn
es L
CE
5252
Estimated Lithium Supply and Cost CurveIncludes Announced Producer Expansions
(1) Roskill 2009. (2) WLC PAEE, Jan. 2010. (3) Company Estimates for selected proposed projects. (4) Analyst Estimates. (5) Canaccord Adams.
000
s $/
Tonn
e E
stim
ated
Pro
duc
tion
Cos
t
Sp
od
um
en
e (
ha
rd r
ock
) M
ine
s1,3
Ch
ine
se S
ala
rs4
We
ste
rn L
ithiu
m N
eva
da2
FM
C1,
3, A
rge
ntin
a
Arg
en
tine
an
(s
ilty
cla
stic
) S
ala
rs3
Uyu
ni,
Bo
livia
4
2008 World Production1
Incremental demand from 5% EV and 10% Hybrid adoption5
Incremental demand from 10% EV and 20% Hybrid adoption5
Est. Cost Range
Ata
cam
a (
ha
lite
) S
ala
r1,3,
Ch
ile
000s Tonne/pa LCE
7
6
5
4
3
2
1
400000s Tonne/pa LCE 500300200100
53
Market Opportunity – Explosive Growth
De
ma
nd
- T
on
ne
s L
CE
(0
00
’s)
World Lithium Market Potential WorldLithium Market
Source for Market Size: Roskill 2009 for historical demand; Canaccord Adams for projections (No EV scenario includes 12% annual growth in electronic use and 4% growth in industrial use). Source for Pricing: Industrial Minerals. Lithium carbonate, del continental, USA large contracts, US$ per lb, high.
Est. World Market with EV's
Est. World Marketwith 5.9% CAGR
(no EV’s)FinancialCrisis
Pric
e -
US
$/T
on
ne
s L
CE
Price
Demand
54
Western Lithium in Nevada
55
Highlights of Stage I Scoping StudyProposed Project Expected Low-cost LCE Producer
Planned production: 27,700 tpa LCE 115,000 tpa potassium sulphate
(SOP)
Cash operating costs: $1,967 per tonne ($0.89/pound) LCE
(after SOP by-product credit)
Average annual revenue: $263 million
NPV (discounted at 8%): $714 million
IRR (pre-tax): 28%
Capital costs: $427 million
Operating Life: 18 years (with expansion potential)
NI 43-101 compliant Preliminary Assessment and Economic Evaluation (PAEE). All above figures in U.S. dollars.
Stage I Development Timeline
56
Detailed Engineering& Construction
ResourceDelineation
Pilot Testing
Permitting
Commissioning
2008 2009 2010 2011 2012 2013 2014
Engineering Scoping &Feasibility Studies
56
57
Western Lithium CorporationUSA-Based Lithium to Power Today’s Electric Cars
WLC Share Price• $16.5 Million Cash (Cdn)/No Debt
• $6.5 Million In-The-Money Warrants
• 82.8 Million Shares Outstanding
• 111.4 Million Fully Diluted
• 23.7% owned by Western Uranium
• Market Cap. $93 million (Cdn) Jul 16-08
Sep 08-08
Nov 01-08
Dec 25-08
Feb 17-09
Apr 12-09
Jun 05-09
Jul 29-09
Sep 21-09
Nov 14-09
Jan 07-10
Mar 02-10
Apr 25-10
Jun 18-10
Aug 11-10
Oct 04-10
Nov 27-10
Jan 20-110.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
www.westernlithium.comEmail: [email protected]
Western Lithium Investor Relations: 1-604-681-3071Exchange Symbols: TSX-V: WLC; PK: WLCDF
Other sponsors & participating organisations:
GLOBAL MININGINVESTMENT CONFERENCE 2010
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Forward Looking Statements
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Vecor’s Vision
To be recognised as theWorld Leader
in fly ash recycling technologies by 2013
Fly ash dump at power plant
Energy from Coal
0
500
1000
1500
2000
2500
1990 2000 2005 2010 2015 2020 2025 2030
Mill
ions
of M
etric
Tons
Waste
Utilization
Global Estimates: 1990 - 2030
• Fly ash is captured from flue gas. • Trend towards higher enforcement of particulate emissions.• Reduces air pollution but increase fly ash volume.
Fly Ash Production vs Utilisation
Global Estimates: 1990 - 2030
Current Fly Ash Useage
Fly Ash dam spill, Tennessee USA 2008 1 billion tonnes new fly ash every year 10 billion tonnes legacy in landfill
Capability Development
2007Licensed core technology
2007 – 2009 Developed Additional IP
2009 – 2010Ceramics, Minerals
2011Comprehensive Utilisation
Pilot plant since February 2008, processing techniques, proprietary manufacturing equipment
Process & engineer fly ash to produce versatile raw materials. Manufacture “green” products using fly ash as clay replacement
Enabling 100% utilisation of waste fly ash
Vecor Product CapabilitiesHigh-margin “Green” raw materials & building products
Ceramic Tiles Ceramic Proppants Recycled Minerals Refractories
Bricks Pavers Aggregates Sand
Prototype products produced at Vecor’s pilot plants in China and Italy since February 2008
Vecor’s Business
Coal Power Plant
Fly Ash Landfill
Aluminum SilicatesVecoFillTM
Activated CarbonVecoFiltersTM
MagnetiteVecoMagTM
CenospheresVecoCenTM
Ceramic TilesBricks, pavers
Sand & Aggregates
Ceramic Proppants Oil and Gas Industry
Processing Facilities
Proprietary recycling
technologiesWaste Fly Ash
Low-cost, high valueIndustrial Minerals
Energy Efficient Clay Replacement
RecycleChallenge Minerals Products
Why replace clay with fly ash?
• Clay and sand have become increasingly precious• Same Chemistry• 30% Less energy & GHG emissions• 30% Saving in manufacturing costs• 14% Less water required• Superior quality products
World First
Development Plan
Phase 1
• License IP
• R&D
• Develop additional IP & know-how
• USD 2 million Government grants
• USD 3 million investment
• Completed
Phase 2
• Raised USD 5 million
• Experts report on ceramic tiles
• Demonstrate mineral, sand and proppant production technologies
• Current Phase
Phase 3
• Raise USD 50 Million
• Build/modify and operate 4 plants with JV partners
• Commencing Nov. 2010
Phase 4
• IPO - Raise USD 100 million
• Fund global expansion
• Fund IP acquisition
• 2013/2014
Phase 5
• Expand business Globally
• Using IPO funding
Financial Model
USD'000 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
Capital Raising 5,000 50,000 100,000
Production Lines
2
4
4 4 8 16
Revenues - 1,993 37,911 53,355 59,185 148,926 275,528
EBITDA (562) (2,833) 12,682 19,575 18,927 52,016 102,996
EPS (USD / sh ) (0.09) (0.19) 0.96 1.54 1.70 4.36 8.27
Why invest in Vecor?Vecor gets paid to take the Fly AshVecor gets paid by processing the Fly Ash & selling Raw MaterialsVecor gets paid by selling the products made from Raw Materials
Ceramic Tiles
Proppants
Sand &Aggregates
Revenue:Vecor gets paid to take Fly Ash from Coal Power Plants, because it removes liability.
Revenue:Vecor Processes Fly Ash to make Raw materials for Industry and other mineral by-products that it sells to customers, partners and subsidiaries.
Revenue:Vecor produces and sells commercial and industrial products using the Raw Materials with its proprietary technology and Engineering
Profitability
Sustainability
Growth
Processing By-Products Aluminum Silicates (Vecor Clay) Cenospheres (VecoCen) Magnetite (VecoMag) Activated Carbon (VecoFilters)
Vecor Products Tiles, Cladding, Bricks, Blocks, Pavers, Proppants
Other sponsors & participating organisations:
GLOBAL MININGINVESTMENT CONFERENCE 2010
Lead sponsors:
Media partners: