AERIS RESOURCES LIMITED — Investor Presentation 2012

Sep 26, 2012

Investor Presentation September 2012

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS

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Disclaimer
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This presentation, including information contained in this disclaimer, is given to you in strict confidence. By attending the presentation, you agree that no part of this presentation or disclaimer may be disclosed, distributed or reproduced to any third party without the consent of Straits Resources Limited (“Straits”).

This presentation is being provided for the sole purpose of providing the recipients with background information about Straits’ business. This presentation, including the information contained in this disclaimer, does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither the presentation, disclaimer nor anything contained in them forms the basis of any contract or commitment. This presentation does not purport to summarise all information that an investor should consider when making an investment decision. It should be read in conjunction with Straits’ other continuous disclosure announcements lodged with the ASX which are available at www.asx.com.au, including, without limitation, the Offer Document released on 7 September 2012, which includes a summary of key risks of investing in Straits. Before making an investment decision you should consider whether it is suitable for you in light of your own investment profile and objectives and financial circumstances and the merits and risk involved and seek appropriate professional advice.

This presentation is not a prospectus and does not constitute or form part of any offer, invitation or recommendation in respect of securities, or an offer, invitation, recommendation to sell, or a solicitation of any offer to buy, securities in the United States or to, or for the account or benefit of, any person in the United States, or in any other jurisdiction in which, or to any person to whom, such an offer would be illegal. No action has been or will be taken to register, qualify or otherwise permit a public offering of the securities referred to in this release in any jurisdiction outside Australia. In particular, neither the entitlements nor the new shares to be offered and sold in the entitlement offer have been, and none of them will be, registered under the US Securities Act of 1933 (“Securities Act”) or the securities laws of any state or other jurisdiction of the United States. Accordingly, the entitlements may not be taken up or exercised by, and the new shares may not be offered or sold, directly or indirectly, to, any person in the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable U.S. state securities laws. The distribution of this presentation outside Australia may be restricted by law and any such restrictions should be observed.

You should be aware that as an Australian company with securities listed on the ASX, the Company is required to report reserves and resources in Australia in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code 2004 Edition ) ( JORC Code ). Mining companies in other countries may be required to report their mineral reserves and/or resources in accordance with other guidelines (for example, SEC Industry Guide 7 in the United States). You should note that while the Company's reserve and resource estimates comply with the JORC Code, they may not comply with the relevant guidelines in other countries, and do not comply with SEC Industry Guide 7, which governs disclosures of mineral reserves in registration statements and certain reports filed with the U.S. Securities and Exchange Commission. In particular, SEC Industry Guide 7 does not recognise classifications other than proven and probable reserves, and, as a result, the SEC generally does not permit mining companies to disclose their mineral resources in SEC registration statements. You should not assume that quantities reported as “resources” will be converted to reserves under the JORC Code or any other reporting regime or that the Company will be able to legally and economically extract them.

To the maximum extent permitted by law, neither Straits nor its related corporations, directors, employees or agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it. You represent and confirm by attending and/or retaining this presentation, that you accept the above conditions.

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Summary
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Straits announced the following financing and operational initiatives on 7 September 2012

• A $20 million short term finance facility provided by Glencore

• A $60 million fully underwritten pro rata renounceable entitlement offer which is being sub-underwritten by Glencore for up to $40 million and a number of existing shareholders for the balance

• A life of mine off-take agreement with Glencore for production at the Tritton Copper Mine

• A renegotiated repayment schedule for the Mt Muro silver loan with Credit Suisse

• Commencement of cost saving initiatives and operational restructuring, including Board and management changes

• Pursuit of a demerger or sale of Mt Muro

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Entitlement offer overview
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OFFER SIZE AND STRUCTURE	• Capital raising to raise $60m by way of a 1.55 for 1 renounceable entitlement offer • Eligible shareholders will be able to apply for additional shares above their entitlement through a “Top-Up Offer” in the entitlement offer • Total shares to be issued under the entitlement offer is 707.6m
OFFER PRICE	• $0.085 per new share, which at the time of announcement represented a: – 23.5% discount to the 10 day VWAP of $0.111 – 17.2% discount to the fully diluted theoretical ex-right price of $0.103
USE OF PROCEEDS	• Pay existing creditors (including repayment of the Glencore Facility) and return to normal payment terms (approximately $25 million) • Fund the development of Mt Muro through waste stripping activities (approximately $20 million) • Provide working capital for the Company and pay the costs of the entitlement offer (approximately$15 million)
CORNERSTONE INVESTOR	• International trading house, Glencore has committed to support Straits by providing: – A $20m bridging loan – $40m of sub-underwriting of the entitlement offer – Has entered into a life of mine offtake agreement with Straits in relation production from the Tritton Copper Mine
CLOSING DATE	• 4 October 2012

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Corporate and operational
initiatives
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Straits has established a Restructuring Committee with key initiatives to include:

• Reduction in corporate overhead with expected head office savings of approximately $9 million on an annualised basis

• Elimination of all non-essential regional exploration, except for around Tritton and that required to keep tenements in good standing

• Senior management changes with CEO search commenced and continue to search for a CFO

• Strengthening the Board with two new non-executive directors. Straits may appoint a Glencore representative to its Board depending on Glencore’s shareholding

• A cost reduction program at Tritton including a reduction in personnel, removal of contractors and a halt on all non-critical works. These measures are expected to save approximately $20 million in annualised costs against preceding quarter annualised costs.

• Mt Muro demerger or divestment to be pursued

• Hillgrove trade sale process to continue

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Tritton Copper

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Tritton
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• FY12 production of 23,962 t of copper in concentrate and cement

• FY13 production target of 25,000 t of copper in concentrate

• First Quarter production on target

• New life of mine off-take agreement with Glencore from late 2013

• Plant has spare capacity to achieve 1.8 Mtpa (currently at 1.4 Mtpa)

• Immediate focus on high grade discoveries at Avoca Tank and Kurrajong (currently exploring with one drill rig)

• Additional ore discovered at North East providing potential to fill spare mill capacity and reduce costs

• Near mine focus on extensions to reserves below the current mining areas at North East Mine, conversion of resources to reserves

• Future prospectivity associated with identified significant Mafic complexes contained within the existing tenement package

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Exploration - Avoca Tank
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Avoca Tank

• Located 2km north of Girilambone North mining area

• Infill resource programme (23 holes) commenced

• Scope of program to convert Inferred to Indicated resource to enable progress of the economic evaluation of the project

• Preliminary inferred resource as per 2012 annual report: 1.49Mt @ 2.7% Cu, 0.62g/t Au and 12g/t Ag

• TATD017 returned 84 m @ 2.86% Cu, 0.88 g/t Au, 12 g/t Ag and 0.95% Zn from 395m downhole including 57m at 4% Cu & 0.99g/t Au

• Deep sulphide potential confirmed through drilling and down hole EM (DHEM)

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Schematic Long-section of the Avoca Tank drilling

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Close up pictures of massive and banded sulphide TKJD008 572 to 578m downhole

• Kurrajong located 20km east of Tritton

• 9 holes to date have confirmed existence of a significant mineralised system over 650m in strike length - open in all directions and down dip

• Hole TJKD008 returned 6m @ 3.92% Cu, 0.39 g/t Au, 10.9 g/t Ag and 0.56% Zn

• Massive Sulphide Target open at depth and up dip from Holes TKJD007, TKJD008 and TKJD009

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1VD Greyscale airborne magnetics overlain by RAB geochemistry drillholes and prospect locations

Plan showing drill hole locations (Blue) DHEM target plates from TKJD008 and TKJD009 (Red) interpreted plunge of massive and banded sulphide

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Exploration - North East
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• Drilling from UG has produced significant mineralised intercepts at the North East (NE) mine (including the North East Fault Block deposit)

• Further Upside exists at the Larsens Mine also located at the Girilambone North Mining center

• The results to date suggest a likely increase to the NE resources and reserves which will be reported once modelling and evaluation work is complete

• Underground Drilling is currently focused on Tritton Grade-control at the NE mine exploration and definition to recommence in the next quarter

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Mt Muro Gold Mine

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Mt Muro
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• Total production in FY12 of 23,160 oz Au and 529,130 oz Ag

• Targeting production of 90,000 to 110,000 oz AuEq in FY13

• Production for September 2012 Quarter expected to be 14,000 to 16,000 oz AuEq

• Credit Suisse silver loan restructured to defer all silver deliveries until March 2013 when production rates are expected to significantly increase

• Plant throughput capable of 1.7 Mtpa

• Fewer working areas = stable production & lower costs

• Minimum 6 year mine plan established at plus 100 k oz per annum AuEq from FY2013

• Process commenced to investigate future options including a demerger or sale of the mine to a 3[rd] party

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Outlook
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Straits is Positioned for Growth

• A copper and gold focused metals mining & exploration company

• Strong production performance expected in FY2013 from :

• Tritton (25,000 t of copper in concentrate) and

• Mt Muro (90,000 to 110,000 oz AuEq)

• Significant copper growth through Avoca Tank and Kurrajong

• World class copper exploration portfolio with geologically visible drill ready exploration targets

• Substantial cost saving program at corporate and operational levels

• Positioned to deliver strong repeatable earnings from two fully capitalised mines in FY2013

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Appendix

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Tritton Key Figures
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• Tritton Production Statistics

Production Statistics from Tritton		FY 2012	FY 2011	FY2010
Ore Mined	Tonnes	1,260,656	1,160,476	911,539
(Tritton)	Grade (%)	1.96	2.11	2.35
	Cu Tonnes	24,709	24,486	21,451
Ore Milled	Tonnes	1,254,355	1,163,732	906,347
	Grade (%)	1.96	2. 11	2.37
	Cu Tonnes	24,585	24,555	21,464
Recovery	%	94.8	95.1	94.2
Concentrate	Tonnes	93,580	94,483	81,183
	Cu %	25	25	25
	Cu Tonnes	23,734	23,354	20,226
Copper cement		587	582	621
Total copper produced		23,962	23,936	20,847

• Tritton Resources & Reserves

Resources		Measured	Indicated	Inferred	Total
	Tonnes (kt)	3,110	19,194	7,156	29,460
	Cu (%)	2.4	1.5	1.7	1.6
Reserves		Proved	Probable	Total
	Tonnes (kt)	1,184	6,603	7,787
	Cu (%)	2.0	1.7	1.8
	Cu recoverable (t)	22,100	108,000	130,100

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Mt Muro Key Figures
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• Mt Muro Production Statistics

Production Statistics Mt Muro	FY	FY	FY
	2012	2011	2010
Ore milled	653,409	325,035	615,544
Gold grade (g/t)	1.18	2.5	2.6
Silver grade (g/t)	34	29	12
Gold recovery (%)	93.4	92.6	89.7
Silver recovery (%)	72.5	72.9	58.9
Gold production (oz)	23,160	25,022	45,521
Silver production (oz)	529,130	228,502	143,496

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Mt Muro Resources & Reserves (Probable)

Resources	Measured	Indicated	Inferred	Total
Tonnes (kt)	36	11,670	8,050	19,756
Au (g/t)	1.2	2.0	1.6	1.8
Ag (g/t)	36	44	28	38
Reserves (probable)	June 2012	Dec 2011	June 2011	June 2010
Tonnes (kt)	7,586	6,820	5,930	1,900
Au (g/t)	2.0	2.5	2.5	3.4
Ag (g/t)	42	59	59	64
Au (oz)	458,400	515,000	438,000	190,500
Ag (oz)	7,711,100	9,680,000	8,060,000	2,700,000

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Competent Person Statements

Competent Person Statement for Mineral Resources and Drilling Results:

The information in this presentation to Mineral Resources and Drilling Results is based on information compiled by Byron Dumpleton, who is a member of the Australian Institute of Geoscientists. Mr Dumpleton is a full-time employee of Straits Resources Limited and has sufficient experience relevant to the style of mineralisation, type of deposit under consideration 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 Mineral Resources and Ore Reserves”. Mr Dumpleton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Mineral Resources reported are inclusive of Ore Reserves.

Discrepancies in Resource Table summations may occur due to rounding.

Competent Person Statement for Ore Reserves:

The information in this presentation that relates to Ore Reserves is based on information compiled by Peter Storey, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Storey is a full-time employee of Straits Resources Limited and has sufficient experience relevant to the style of mineralisation, type of deposit under consideration and to the activity which he is undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Storey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Discrepancies in Reserve Table summations may occur due to rounding.

Forward-Looking Information

Certain statements contained in this press release constitute forward-looking statements or forward-looking information. The words “intend”, “may”, “would”, “could”, “will”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “target” and similar expressions are intended to identify forward-looking statements. These statements are based on certain factors and assumptions and while Straits considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking statements are given only as at the date of this release and Straits disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Straits Resources

Straits Resources Ltd (ASX Code: SRQ) is a mining and exploration company focused on copper and gold in Australia and Asia. Straits owns and operates the Tritton copper mine in NSW and the Mt Muro gold mine in Indonesia and has an exciting exploration portfolio focusing on projects in NSW and South Australia.

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