AMG Critical Materials N.V.

Investor Presentation • Oct 12, 2009

AMG Advanced Metallurgical Group N.V.

Investor Presentation

October 2009

Disclaimer

THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION BY AMG ADVANCED METALLURGICAL GROUP N.V. (THE "COMPANY") AND MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS.

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Neither the Company, nor any of its respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation.

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Contents

• Highlights and Operational Review
• Market Overview
• Financial Review
• Outlook

AMG at a Glance

• Preeminent global specialty materials and materials technology company serving growing end-markets
• Advanced Materials Division: Niche and complex specialty materials
• Engineering Systems Division: Advanced vacuum furnace systems for high-purity metals
• Publicly listed investments:
• Timminco (47.9%-owned): Silicon metal and solar grade silicon
• Graphit Kropfmühl (79.5%-owned): Natural graphite and silicon metal
• 2009 Q2 Results: Revenue down 5% from Q1 to \$233.4 million and EBITDA up from \$3.3mn in Q1 to \$13.3mn in Q2

Global Operations

Global presence enables access to key growth markets

• Note: This chart is a simplified depiction of AMG's organisational structure.
• (1) Timminco Limited is listed on the Toronto stock exchange (TIM CN / TIM.TO).
• (2) Graphit Kropfmühl AG ("GK") is listed on the Frankfurt stock exchange (GKRG.DE / GKR GR).

AMG strategic principles

AMG's strategy is to increase shareholder value through focusing on clean energy technologies and industries – Solar, Fuel Efficiency, Recycling and Nuclear

Market Overview

Stabilization Wedges - AMG

Focus on Clean Energy Technologies and Markets

Fuel Efficiency

• Proprietary alloys and superalloys for aerospace applications
• Furnace technology for production of titanium and other weight-advantaged alloys
• Coating solutions for aerospace and combustion engines

Solar

• Crystallisation and purification vacuum furnace technology
• Low-cost producer of solar grade silicon (SoG Si) based on proprietary technology
• Producer of silicon metal feedstock used to manufacture polysilicon

Recycling

• Recycling of spent refinery catalysts and power plant residues used to produce ferrovanadium and ferronickelmolybdenum and vanadium alloys
• Long-term contract for spent catalysts supports long term capacity expansion plans

Nuclear

• Sintering furnaces for nuclear fuel cycle
• Annealing furnaces for production of nuclear fuels
• Vacuum furnace technology for pebble bed reactors
• Storage technology for nuclear waste

AMG Advanced Metallurgical Group N.V.		(1)

											Total
		Solar		Fuel Efficiency		Recycling		Nuclear		Other	Group YTD
	Q2 09	Q2 08	Q2 09	Q2 08	Q2 09	Q2 08	Q2 09	Q2 08	Q2 09	Q2 08	Q2 09	Q2 08
Revenue	84	100	62	124	18	55	3	0	66	134	233	413
Gross Margin	20	28	5	27	(2)	19	1	1	7	18	32	93
Margin %	24%	28%	8%	22%	-11%	35%	45%	N/A	11%	13%	14%	22%
	 Solar grade silicon  Silicon metal  DSS Vacuum furnaces and other solar furnaces  applications	Coatings for thin film	 Vacuum furnace systems for the production of high purity metals  VAl alloys  industry	Superalloys for the Ti	 Ferrovanadium  Ferro nickel - molybdenum		 Vacuum sintering furnace systems  Engineering for processing of weapons grade nuclear fuel	plutonium into MOX	 Chromium metal  Tantalum  Vacuum sintering furnace systems  Antimony trioxide  Natural graphite  Al master alloys
	 Producer of solar grade silicon		 Petrol prices drive metals to improve fuel economy	growth in specialty	 model enables unique low cost feedstock	Secondary business	 technologies portfolio and expertise	Expanding nuclear	 metals based businesses	Portfolio of diverse

A focus on global clean energy technologies and industries

Business Update

• Advanced Materials volume and price declines slowed during Q2; some product volumes showed signs of a bottom
• Engineering Systems produced solid Q2 results; the backlog declined amid global reductions in capital investment
• Publicly listed companies:
• Timminco's solar grade silicon and silicon metal customers postponed deliveries; temporarily idled its silicon metal furnaces
• GK maintained profitability despite lower silicon and graphite pricing and increased energy costs

Solar – Update

• Market continues to struggle
• Oversupply still evident in the value chain
• Production continues to move to Asia
• Weakness expected to continue into 2010
• Long term prospects for solar remain positive
• Thin film market challenging, 2010 should improve

■ Operations

• Formed AMG Conversion Limited
• Retooling Berlin facility to produce non-solar furnaces

Fuel Efficiency – Update

• Market demand moderating
• Market adversely impacted by Boeing 787 and 747-8 delays
• Significant inventory overhang in value chain
• Prices have rebounded slightly from Q2 lows; demand still lagging
• Operations
• Reducing headcount to match demand
• Working capital reductions ongoing to improve cash flow

Fuel Efficiency – Market Trends

0 20 40 60 80 100 2008 2016 2024 2030 '000 tons Emerging Industrial Aviation

Titanium Sponge Production by Country

• China production has surpassed other countries and will continue to lead in sponge
• Russia, Ukraine, Kazakhstan have become major producers of titanium sponge

Titanium Metal Demand by Segment

• Despite recent market turmoil, titanium metal will continue to grow substantially for the next 20 years
• Aviation will be the key market going forward

Recycling – Update

■ Market demand moderating

• AMG shut down operations during Q3 2009 – 6 weeks
• North American steel capacity utilization approaching 60% in Sep 09 ■ FeV pricing reached \$13/lb; currently at \$12/lb
• Producers reducing capacity to match demand
• Long term trends still positive
• Infrastructure growth from emerging markets will drive demand

Recycling - Pricing

Nuclear – Update

Stackable Graphite Blocks

• Market development ongoing
• U.S. DOE engineering project on schedule
• Impermeable graphite glass matrix (IGM) development achieved milestone
• Business development projects are long term
• New business opportunities in Russia and U.S.

■ Operations

• Engineering team has expanded to 20 engineers
• AMG working with partners to expand product offering

Nuclear – New IGM technology

• Impermeable graphite-glass matrix (IGM) developed by ESD
• Extends safe disposal from 10,000 years with today's vitrification technology to 1,000,000 years.
• Extremely low corrosion rate due to closed pore system
• IGM can transform various types and forms of radioactive waste streams

Financial Review

Financial Update

• Q2 Revenue: \$233.4 million
• Q2 revenue excluding TIM: \$214.9 million
• H1 2009 revenue excluding TIM: \$430.7 million
• Q2 EBITDA: \$13.0 million
• EBITDA excluding TIM: \$22.2 million
• H1 2009 EBITDA excluding TIM: \$38.0 million
• Cash of \$110.1 million and debt at \$249.3 million at June 30, 2009
• Net debt of \$139.2 million at June 30, 2009
• Total liquidity \$190.1 million
• Net debt was \$85.1 million excluding TIM, 0.9x TTM June 2009 EBITDA

Advanced Materials - Market, Products, and Customers

	Fuel Efficiency	Recycling - FeV	Other
Products	Specialty alloys for titanium 	Ferro-vanadium 	Chromium Metals 
	Coatings for wear 	Ferro-nickel molybdenum 	Tantalum 
	resistance		Antimony 
			Aluminium master alloys 
Competitors	Reading Alloys Inc. 	Highveld Steel & Vanadium 	KBM Affilips B.V. 
	Strategic Minerals 	Gulf Chemical & 	KB Alloys, Inc. 
	Corporation	Metallurgical Corporation	Delachaux S.A. 
		Strategic Minerals  Corporation	Campine S.A. 
		Xstrata plc 	Chemtura Corporation 
Sample Customers		Chengde Vanadium &  Titanium Stock Co. Ltd.

Advanced Materials

• FeV reference prices declined 74% and FeV volumes declined 5% year over year impacting both revenue and EBITDA
• Demand remained soft due to lower structural steel production levels
• FTE headcount reduction of 20% from September 30, 2008
• Capital expansion limited to completion of projects in process and essential maintenance capital

Engineering Systems - Market, Products, and Customers

	Solar	Fuel Efficiency	Nuclear
Products	Solar silicon melting and  crystallisation systems	Vacuum Melting and Re  melting Systems	Vacuum Sintering  Systems
	(DSS furnaces)	Precision Casting and  Coating Systems
		Heat Treatment with high  pressure gas quenching
Notable Successes	2001 – Secured furnace  exclusivity with REC	2008 – Market Share leader  in Ti remelting in China, the	July 2008 – Secured first  nuclear engineering contract
	2005 – Introduced single  crucible furnaces	fastest growing Ti market 2008 – 80% market share in 	with DOE, through Shaw Areva
	2008 – >\$200mm in  revenue, 2nd largest market participant	turbine blade coating	Portfolio of problem solving  technologies under development
Sample Customers

AMG ADVANCED METALLURGICAL GROUP N.V. 23

Engineering Systems

Financial Summary Highlights

• Revenue decreased 8% to \$91 million
• Solar silicon DSS furnace revenues increased 64% in Q2 09 as compared to Q2 08
• EBITDA was strong at \$23 million
• Backlog declined from \$332 million at December 31 2008 to \$223 million at June 30, 2009
• Order backlog is now primarily comprised of furnaces sold to fuel efficiency end market
• H2 2009 EBITDA is expected to be lower than H1 due to the decline in backlog

Timminco

( in millions) - - \$6.5 \$7.4 \$4.7 -\$12.6 -\$9.2 \$62.7 \$66.6 \$61.2 \$30.4 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 EBITDA Revenue

• Revenue decline due to lower silicon metal prices and stagnant solar grade silicon orders
• Si metal spot prices: \$1.14/lb at 9.30.09
• Solar grade silicon pricing declined substantially due to excess capacity for polysilicon in the solar market
• EBITDA negatively impacted by lower volumes as well as production inefficiencies
• Future capital expenditures for the solar grade silicon line have been deferred
• Magnesium spin off completed during July of 2009

Financial Summary Highlights

Graphit Kropfmühl

• AMG acquired GK in April of 2008 Q2 2008 data is two months while Q2 2009 data is three months
• Revenues were negatively impacted by a decline in silicon metal volumes and declining graphite volumes and pricing
• EBITDA of \$1.7 million, increased from Q1 2009 due to cost containment measures
• CAPEX was primarily for the expansion of silicon metal production capacity, continued from 2008 initiatives
• Experiencing significant growth in energy saving building materials

Capital Base

Highlights

• Cash of \$110.1 million at 30 June 2009
• Total debt \$249.3 million at 30 June 2009
• Net debt of \$139.2 million at 30 June 2009
• Excluding Timminco, net debt was \$85.1 million, 0.9x TTM June 2009 EBITDA
• Total liquidity \$190.1 million at 30 June 2009

Note: Cash includes short term investments

Outlook

• Advanced Materials
• First signs of pricing stabilization occurring in Q3 2009
• Return to historical levels will take some time
• Engineering Systems
• Q2 2009 order intake better than Q1 2009
• Lower order backlog entering Q3 2009 will affect H2 revenues and EBITDA compared to H1 2009
• Q3 is seasonally slow due to holiday period
• Timminco
• Weak demand for solar grade silicon continues; Si metal demand marginally improving
• Focus on capital preservation
• Graphit Kropfmühl
• H2 2009 silicon metal and graphite demand consistent with H1 2009 demand

AMG Advanced Metallurgical Group N.V.