ABX GROUP LIMITED — Investor Presentation 2012

Nov 1, 2012

ASX ANNOUNCEMENT 2 November 2012

ASX : ABZ

CEO Presentation at Mining 2012 Resources Convention

In accordance with the requirements of Listing Rule 3.1 we submit the attached material being presented today at Brisbane.

Mr Ian Levy, CEO is making the presentation.

For further information please contact

Investor Relations, Henry Kinstlinger

Telephone: +61 2 9251 7177

About Australian Bauxite Limited: ASX Code ABZ

Australian Bauxite Limited (ABx) holds the core of the newly discovered Eastern Australian Bauxite Province. Its 38 bauxite tenements in Queensland, NSW and Tasmania covering 7,536 km[2] were rigorously selected on 3 principles:

1. good quality bauxite;

2. proximity to infrastructure connected to export ports; and,

3. free of socio-environmental or native title land constraints.

All tenements are 100% owned and free of obligations for processing and third-party royalties. ABx has already discovered many bauxite deposits and new discoveries are still being made as knowledge and expertise grows.

The company’s bauxite is high quality and can be processed into alumina at low temperature – the type that is in shortsupply globally. Global resources declared to date total 106.4 million tonnes. At the company’s first drilling prospect in Inverell, northern NSW, a resource of 38.0 million tonnes[1] has been reported from drilling 15% to 20% of the area prospective for bauxite and a resource of 37.9 million tonnes[2] of bauxite has been reported at the Taralga project in southern NSW. A 6.0 million tonnes maiden resource was declared at Guyra[3] . A 24.5 million tonnes[4] resource has been declared at the Binjour Plateau in central QLD, confirming that ABx has discovered a significant bauxite deposit including some bauxite of outstandingly high quality. Australian Bauxite Limited aspires to identify large bauxite resources in the Eastern Australian Bauxite Province, which is emerging as one of the world’s best bauxite provinces.

ABx has the potential to create significant bauxite developments in three states - Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.

ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it. We only operate where welcomed.

JORC Compliant Resource Statements

The following are Joint Ore Reserve Code (“JORC”) - compliant Public Reports released to the ASX declaring the JORC resources referred to. These can be viewed on the ASX website and the Company will provide these reports, free of charge on request.

• 1 08/05/2012 ASX Inverell JORC Resource Update, 38.0 Million Tonnes

• 2 30/05/2012 ASX Taralga Bauxite Resource Increased 50% to 37.9 Million Tonnes

• 3 15/08/2011 ASX Maiden Guyra Resource, 6.0 Million Tonnes

• 4 29/07/2012 ASX Binjour Maiden Resource, 24.5 Million Tonnes

AUSTRALIAN BAUXITE LIMITED

ACN 139 494 885

Level 2 Hudson House 131 Macquarie Street Sydney NSW 2000 p: +61 2 9251 7177 f: +61 2 9251 7500

w: australianbauxite.com.au e: corporate@australianbauxite.com.au

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AUSTRALIAN BAUXITE LIMITED

2 November 2012

Developing East Coast Bauxite Projects

Bauxite is the ore for aluminium and alumina

ASX Code “ABZ”

Level 2 Hudson House 131 Macquarie St Sydney NSW 2000 Australia

Phone: +61 2 9251 7177 Facsimile: +61 2 9251 7500 E: corporate@australianbauxite.com.au

Ian Levy, CEO Mob: 0407 189 122 E: ilevy@australianbauxite.com.au

AUSTRALIAN BAUXITE LIMITED

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Market Fundamentals: New Industry Structure

Australia, China, Indonesia India

China, India, Middle East New Generation Smelters

Figure: Alumina Limited

1 tonne

• Aluminium is fastest growing metal consumption

• Indonesian bans/taxes are reducing bauxite supply

• => Increased Chinese demand for Australian bauxite supply

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AUSTRALIAN BAUXITE LIMITED

West Pacific Dominance

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Russia
Europe
Asia
Africa
Australia
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North America

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Australia
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Australia replacing Indonesian bauxite

South America

Australia will supply China’s 38 large refineries Indonesia supplying less, especially from 2014

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ABx bauxite deposits Other bauxite deposits Alumina Refineries

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AUSTRALIAN BAUXITE LIMITED

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Alumina Refineries are huge investments China has largest, newest refineries – won’t slow down. China becoming increasingly reliant upon imported bauxite.

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Bauxite
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Photo from Hydro presentation

AUSTRALIAN BAUXITE LIMITED

Price Hikes After Stage 1 Indonesian Bans

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10
Prices TOP PRICES
$70
US$/t CIF China 9
$60 8
7
$50
6
$40
5
$30 4
3
$20
2
$10
1
Monthly Tonnes 000s
$0 0
Jan‐05 Jan‐06 Jan‐07 Jan‐08 Jan‐09 Jan‐10 Jan‐11 Jan‐12
Australian bauxite prices
Indonesian bauxite prices
)
(bars)
lines
(
CIF Prices US$/t
Million tonnes per month
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Indonesian supply will reduce further after 2014 AUSTRALIA’S OPPORTUNITY IS NOW

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Sources: C&M, MBC & China Customs

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AUSTRALIAN BAUXITE LIMITED

Forward Looking Statement

Whilst based on information from sources considered reliable, Australian Bauxite Limited ( ABx ), its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information in this document and presentation is complete or accurate. Tothe maximum extent permitted by law, ABx disclaims any responsibility to inform any recipient of this document and presentation of any matter that subsequent ly comes to its notice, which may affect any of the information contained in this document and presentation.

JORC and Competent Person Statement

Information herein relating to Exploration Results, Resources and Resource Targets is based on information compiled by Ian Levy BSc MSc who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Levy is employed by ABx as Chief Executive Officer. Mr Levy has more than five years experience relevant to the style of mineralisation and type of deposit being reported and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘ Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code). This report is issued with the prior written consent of the Competent Person as to the form and context in which it appears.

Exploration Target Statement

ABx has an exploration target of 200 to 300 million tonnes of bauxite, based on Mineral Resources announced in mid 2010 of 35 million tonnes of bauxite at Inverell[4,5] from 15% to 20% of the known bauxite deposits on Exploration Lease EL 6997 in northern NSW and 25 million tonnes of bauxite at Taralga[1,2,3 ] from approximately 50% of the bauxite targets on Exploration Lease EL7357 in southern NSW . In accordance with the JORC Code, readers are advised that “the potential quality and grade is conceptual in nature, that there has been insufficient exploration to define full Mineral Resources and that it is uncertain if further exploration will result in the determination of a Mineral Resource”. As first‐ pass drilling has proceeded across most of its tenements, ABx has seen no reason to vary its exploration target.

JORC Code Compliant Public Reports

The Company advises that this presentation contains summaries of Exploration Results and Mineral Resources as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”).

The following table references the location of the Code -compliant Public Reports or Public Reporting on which the summaries are based. These references can be viewed on the ASX website and the Company will provide these reports, free of charge, to any person who requests it.

Reference	Issue Date	Title of Notice as lodged with ASX
1	12/10/2011 28 07 2	BinjourMaiden JORC Resource JORC Resource Upgrade to 24.5 Million Tonnes
2	15/08/2011	Guyra Maiden JORC Resource 6.0 Million Tonnes
3	12/05/2011 30 2	Taralga Bauxite ResourceDoubled to 25 Million Tonnes Increased 50% to 37.8 Million Tonnes
4	06/12/2010 8 05 2	Taralga JORC Resource Update Inverell 38.0 Million Tonnes
5	02/09/2010	Inverell JORC Resource Update

Direct Shipping Ore

In this presentation all references to direct shipping ore ( DSO ) refers to the company ’s exploration objective of defining DSO grade mineralisation. The potential quantity and grade of exploration targets is conceptual in nature, there has been insufficient exploration to defi ne a Mineral Resource and it is uncertain if further exploration will result in the de termination of a Mineral Resource.

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AUSTRALIAN BAUXITE LIMITED

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Australia Increasing Bauxite Exports

Forecast

30Mtpa Rio Investing $1.5 Billion: Hi‐Temp Bauxite

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Gove
Weipa 5 to 10 Mtpa by ABx
Mitchell
Plateau Lo‐Temp Bauxite sold to
(Dormant)
Lo‐Temp Refineries
World’s largest
alumina refineries
Binjour Project
Eastern
Big Province
Australian
Bauxite
Province Goulburn Projects
South & North
Marubeni 35% option
Tasmanian Project
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World’s largest bauxite & alumina production Mainly too Darling low grade Ranges to export.

ABx bauxite deposits (36) Others’ Bauxite Projects (6) Aluminium Smelters (6) Alumina Refineries (8)

Tasmanian Project Offtake partner approached

Rio will export high temperature bauxite to China. ABx will supply sweetener, low temperature bauxite

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AUSTRALIAN BAUXITE LIMITED

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8
8
Penrose NSW – old quarry. 14 December 2011
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BAUXITES OF SOUTHEAST AUSTRALIA

• At surface, thin soil cover

• Free‐dig extraction

• Not prime land

• Quick rehabilitation

• Thickest bauxite in Australia

• Low‐temperature, gibbsite bauxite

• Low in silica, boehmite‐free + 42% Al2O3

• 2% to 3.5% reactive SiO2

• 23% Loss‐on‐Ignition

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AUSTRALIAN BAUXITE LIMITED

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Corporate Details

ASX Code : ABZ Listed 24 Dec'09 at $0.20 Major Shareholders Shares % Shares 107.2 million Hudson Resources 47.7 million 44.5% Options 3.7 million State One Capital 7.2 million 6.7% Market Cap ($0.30) $32.2 million Soul Pattinson 3.7 million 3.5% Cash (31 Oct'12) $2.65 million = 1yr budget Top 20 Holders 74.9 million 69.9% Share range $0.26 to $0.84 Avg Daily Volume 75,000 Shareholders 970

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12 mths ABZ shares A$
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Board of Directors John Dawkins Non-executive Chairman Peter Meers Exec & Vice Chairman Ian Levy CEO & Managing Director Jacob Rebek ** Executive Director Wei Huang Non-executive Director Henry Kinstlinger Company Secretary ** Chief Geologist Jacob Rebek is ex CRA (Rio) Chief Geologist, Led discovery team Century Zinc '93 & Eastern Australian Bauxite '06-09 AUSTRALIAN BAUXITE LIMITED

ABZ’s JORC Resources Growing Strongly[1]

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120
110
Binjour update
100 Taralga update
90
Binjour maiden Inverell update
80
70
Guyra maiden
60 Taralga update
Taralga update
50
Taralga maiden
40
Inverell update
30
Inverell maiden
20
Jan‐10 Jul‐10 Jan‐11 Jul‐11 Jan‐12 Jul‐12 Dec‐12
Cumulative Resources (Million Tonnes)
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MORE COMING: Target is 200 to 300 Million Tonnes[1]

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10 1. See JORC Statement Slides

AUSTRALIAN BAUXITE LIMITED

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Milestones & Outlook

Done 106Mt[1]

• Reach 100 million tonnes JORC Resources

• GOULBURN BAUXITE PROJECTS (NORTH & SOUTH) • Pre Feasibility Study Done • Mining Lease Application Commenced • Bankable Feasibility Study? 2013

BINJOUR – LONGTERM MAJOR PROJECT

• Binjour Resource Upgrade to 24.5Mt Done TASMANIAN DISCOVERIES – LOW COST SETTING

• Resource drilling & estimation

Aug‐Dec 2012 Dec 2012onwards

• Scoping Study & ML Application

• See JORC Statement & Exploration Target Statement Slides

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AUSTRALIAN BAUXITE LIMITED

Project Economics

Project Starts

▪ Tasmania

2014

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Binjour
Project
Inverell‐Guyra
Discoveries
Goulburn
Goulburn South &
Goulburn North
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Capex A$10 million Opex A$27 / t FOB

▪ Goulburn Sth 2015

Capex A$20 million Opex A$30 / t FOB

▪ Goulburn Nth 2017

Capex A$90 million Opex A$37 / t FOB

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Tasmania
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▪ Binjour QLD 2018

Shipping 5 to 10 Mtpa

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AUSTRALIAN BAUXITE LIMITED

Tasmanian Discoveries – the New Frontier

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Port Latta
Burnie Bell Bay
Devonport
DL-130
Launceston
Legend
Exploration
Licences
Rail lines
Hobart
Major export port
Aluminium smelter
Coal mines
0 50
km
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Carefully Selected

• Cleared land – mainly plantations

• Landholder & local community support

Good logistics

• Heavy road & rail transport nearby

• Deepwater export port at Bell Bay

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AUSTRALIAN BAUXITE LIMITED

Goulburn Bauxite Project Logistics

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Goulburn
North
Golspie Rd
Mt Rae Rail to Port Kembla
Goulburn
Goulburn
South
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Goulburn South is near rail, low cost

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AUSTRALIAN BAUXITE LIMITED

Australia’s Thickest Bauxite Ever Found 38 metres thick & still in bauxite

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36metres
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ABx discovered exceptionally thick bauxite at Mt Rae near Taralga in southern NSW in February 2012. The bottom of the bauxite has not yet been reached.

This thick zone has been carefully interpreted by ABx’s senior geologists. Potential extensions of this material have been identified and will be drilled, after intensive mapping.

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Heavy railway to deepwater Port Kembla

Port Kembla major port capacity

Several Berths are competing for bauxite Steel Works business

MoU signed with Port Kembla Port Corporation

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AUSTRALIAN BAUXITE LIMITED

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Heavy Rail to Deepwater Port Berths at Port Kembla
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Port Kembla
AUSTRALIAN BAUXITE LIMITED
Gateway
Coal
Steel Products
SmelterOld Copper
Outer Harbour
Coal Port Grain Terminal
Cars
Old Coal
Loader
Iron ore
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Excellent bauxite results at Binjour

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24.5 Million Tonnes[1] JORC Resource

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Binjour project DSO Bauxite Resources	Binjour project DSO Bauxite Resources	Binjour project DSO Bauxite Resources	Tellebang Binjour Resource Upgrade Binjour South JORC Resou High Grade 44% Al Gibbsite 3% Rx Easy production Government‐indust of rail & port upgrad 1. See JORC Statement Sieved at 0.26mm	Tellebang Binjour Resource Upgrade Binjour South JORC Resou High Grade 44% Al Gibbsite 3% Rx Easy production Government‐indust of rail & port upgrad 1. See JORC Statement Sieved at 0.26mm	Tellebang Binjour Resource Upgrade Binjour South JORC Resou High Grade 44% Al Gibbsite 3% Rx Easy production Government‐indust of rail & port upgrad 1. See JORC Statement Sieved at 0.26mm	Tellebang Binjour Resource Upgrade Binjour South JORC Resou High Grade 44% Al Gibbsite 3% Rx Easy production Government‐indust of rail & port upgrad 1. See JORC Statement Sieved at 0.26mm	Tellebang Binjour Resource Upgrade Binjour South JORC Resou High Grade 44% Al Gibbsite 3% Rx Easy production Government‐indust of rail & port upgrad 1. See JORC Statement Sieved at 0.26mm
			Sieved at 0.26mm
Resource category	Tonnes millions	Bauxite Thick- ness	Al2O3 Avl % 143o Rx SiO2 % Avl/Rx Ratio	Al2O3 % SiO2 % A/S Ratio Fe2O3 % TiO2 % LOI %	Yield %	Over- burden m	Internal Waste m
Inferred Indicated	9.0 15.5	3.9 m 5.3 m	38.0 3.8 10.0 39.5 2.6 15.1	43.7 4.5 9.7 22.4 3.6 24.2 44.2 3.1 14.5 23.4 3.7 24.9	59% 62%	8.2 m 9.4 m	0.3 m 0.3 m
TOTAL	24.5	4.8 m	39.0 3.0 12.8	44.1 3.6 12.3 23.1 3.7 24.6	61%	8.9 m	0.3 m

High Grade 44% Al2O3 Gibbsite 3% Rx SiO 2

Government‐industry study of rail & port upgrade

1. See JORC Statement Slides

Leach conditions to measure available Al2O3 avl & reactive Rx SiO2 were 1g leached in 10ml of 90gpl NaOH at 143 degrees C for 30 mins. "Avl/Rx" ratio is (Available Al203)/(Reactive SiO2). "A/S" ratio is (Total Al203)/(Total SiO2). Values above 10 are excellent

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AUSTRALIAN BAUXITE LIMITED

Large bauxite plateau at Binjour QLD

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South Binjour
Bauxite Plateau
Layer
Bauxite
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AUSTRALIAN BAUXITE LIMITED

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Landholder Relations – the key task

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AUSTRALIAN BAUXITE LIMITED
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Why Mine Australian Bauxite? We do it better

Alumina‐Alcoa’s Rehabilitation in WA

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A mined area at Huntly prior to rehabilitation
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The same mine pit after rehabilitation

ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it.

We only operate where welcomed.

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AUSTRALIAN BAUXITE LIMITED