ASTRON LIMITED — AGM Information 2011

Nov 15, 2011

ANNUAL GENERAL MEETING 17 November 2011

1

Agenda

• Chairman’s introduction

• Financial highlights

• Legal update

• Senegal update

• Donald update

• Market & funding update

• Questions

Gerry King Mark Nielsen Mark Nielsen Mark Nielsen Simon Peters Scott McDaniel Alex Brown

Forward looking statements

This presentation contains forward looking statements and information. These statements are based on our current expectations along with certain assumptions and therefore such statements carry certain risks and uncertainties.

2

Chairman’s introduction Gerry King

3

Chairman’s introduction

• During the 2011 financial year Astron’s share price increased by 66% from 185cps to 308cps

• Main focus of the Astron Group continues to be the development of the Donald Project:

– Purchased entitlement to 6,975ML of water per annum

– Phase 1 of the Cultural Heritage plan completed

– Draft Work Plan was submitted

– Basic designs for our plants completed

4

Chairman’s introduction

• In China, Astron continued its R&D projects and trading activities

• In Senegal we were re-awarded our exploration licence enabling Astron to continue the development of its mineral sands project

• Astron’s strong balance sheet and the positive outlook for zircon and titanium feedstock materials underpins the strong future growth of the Group

5

Financial highlights Mark Nielsen

6

2011 Financials: Balance Sheet

AS AT 30 JUNE	2011 $M	2010 $M
PPE includes CIP	12.4	11.4
Donald	27.0	21.8
Land use rights	8.3	10.0
Current assets (excluding cash)	13.7	4.6
Cash & term deposits	147.4	166.5
Total Assets	208.8	214.3
Liabilities	7.0	4.6
Net Assets	201.8	209.7
Contributed equity	33.2	38.2
Reserves	1.7	5.5
Retained earnings	166.9	166.0
Total Equity	201.8	209.7

7

2011 Financials: Commentary

Property, plant & equipment

• Expenditure relating to development of facilities and laboratory at Yingkou

• Purchase of land at Donald

Intangibles

• Donald – Expenditure capitalised in terms of AASB6

Land use rights

• Land in Yingkou – China

• 50 years lease

• Amortised over this period

Foreign currency reserve

• Improvement of the AUD to CHY

8

2011 Financials: Commentary

Cash

• Cash and deposits retained for investment and project development

• More than 95% of cash and deposits in AUD

INSTITUTION	AMOUNT (M)	AVERAGE RATE
CBA	118.2	5.7%
Goldman Sachs JB Were	11.2	5.6%
Bank of China	16.9	6.0%
Other banks	1.1	2.1%
Total	147.4

9

2011 Financials: Commentary

Cash – Treasury

• Continued to investigate and consider a number of products e.g. bonds and capital guaranteed products

• No significant enhancement to returns

• To obtain higher returns need to:

• Commit funds for usually plus 12 months

• Take market risk

• Keep with our current strategy

• Continually monitored investment horizons and extended terms where appropriate (up to 180 days)

• This, together with higher rates, resulted in higher yields

10

2011 Financials: Commentary

Cash Utilisation

• Cash has been utilised as follows:

CASH UTILISED	$M
Share buy-back	5.0
Purchase of land – Donald	2.5
Development of facilities at Yingkou & other CIP	2.6
Development expenditure - Donald	5.2
Operating activities	1.5
Net cash and term deposits utilised	16.8

• Disclosure of term deposits

• Increase in investment in term deposits greater than 90-days is shown on the cash invested on cash flow statement

11

2011 Financials: Net Asset Value

	YEAR ENDED 30 JUNE 2011 CPS
	Cash 237

==> picture [261 x 168] intentionally omitted <==

----- Start of picture text -----

Cash 73%
----- End of picture text -----

12

2011 Financials: Net Asset Value

	YEAR ENDED 30 JUNE 2011 CPS
	Cash 237
	Debtors, stock less payables (NCA) 11

==> picture [278 x 168] intentionally omitted <==

----- Start of picture text -----

NCA
3%
Cash 73%
----- End of picture text -----

13

2011 Financials: Net Asset Value

	YEAR ENDED 30 JUNE 2011 CPS
	Cash 237
	Debtors, stock less payables (NCA) 11
	Property, plant & land use rights 33

Tangible NAV per share of 281 cps (excluding Donald)

==> picture [281 x 168] intentionally omitted <==

----- Start of picture text -----

PPE & land
use rights
10%
NCA
3%
Cash 73%
----- End of picture text -----

14

2011 Financials: Net Asset Value

	YEAR ENDED 30 JUNE 2011 CPS
	Cash 237
	Debtors, stock less payables (NCA) 11
	Property, plant & land use rights 33
	Donald 43

NAV per share of 324 cps

==> picture [281 x 174] intentionally omitted <==

----- Start of picture text -----

Donald 14%
PPE & land
use rights
10%
NCA
3%
Cash 73%
----- End of picture text -----

15

Legal update Mark Nielsen

16

Legal update

• Gambia

• The claim concerns the wrongful cancellation of a mining licence issued to Astron's subsidiary Carnegie Minerals (Gambia) Limited

• The arbitration hearing is scheduled to complete in March 2012

==> picture [226 x 129] intentionally omitted <==

• AZ

• Entered into a transaction to acquire WIM 150 Project from Austpac

• Judgement in favour of AZ that Austpac couldn’t assign the EL

• Acquisition of the WIM 150 Project was therefore cancelled

• Astron recovered its $500,000 deposit

• No impact on the Donald Mineral Sands Project

17

Senegal update Mark Nielsen

18

Senegal

• Exploration licence renewed until 26 November 2013

• Appointed a Project Manager with 25 years mining

• experience to manage development of the project

• Large coastal based mineral sands deposit

• No overburden and low slimes

• First phase is the Niafarang deposit

==> picture [301 x 227] intentionally omitted <==

Stage 1 Niafarang Deposit (6kms)

==> picture [80 x 42] intentionally omitted <==

Pre Mining Development 2007-11

==> picture [80 x 43] intentionally omitted <==

Stage 2 Exploration area (69kms)

19

Senegal - Timing

• Exploration program commenced by end of 2011

• EIS underway to convert to mining licence

• EIS approval expected early 2012

• Feasibility study initiated

• Mining licence – mid 2012

==> picture [225 x 150] intentionally omitted <==

==> picture [226 x 150] intentionally omitted <==

20

==> picture [694 x 126] intentionally omitted <==

----- Start of picture text -----

Donald Project
Simon Peters
----- End of picture text -----

21

Donald Project – tenements

Tenements 5,576 sq km Drilling Program Exploration Targets Resource Potential Mineralogy Coarse Grain Mineral Sand

22

Donald Project – water and land

2011 DELIVERY Purchase of 6,975 ML pa water entitlement should provide sufficient water for the ✓ project Purchase of 699 hectares of land in the ✓ mining licence area

==> picture [226 x 174] intentionally omitted <==

Cultural Heritage Survey • January 2011

==> picture [225 x 169] intentionally omitted <==

Taylor’s Lake Source of Water

23

Donald Project – geology

2011 DELIVERY

Mineralogical analysis from 2010 drilling campaign ✓

Further work done Resource and Reserve Statement ✓

24

Donald Project – approvals

2011 DELIVERY

Draft Work Plan submitted ✓ Mine schedule ✓ Mine plan and layout ✓ Environmental plan ✓ Rehabilitation plan ✓ Cultural heritage plan – Stage 1 ✓

==> picture [226 x 150] intentionally omitted <==

==> picture [225 x 169] intentionally omitted <==

25

Donald Project – mine sequence

• Piping and haul roads to move with mine face

• Stockpiles off mine path

26

Donald Project – basic design (plant layout)

==> picture [640 x 267] intentionally omitted <==

Source: RJ Robbins – Definitive Engineering Study 2011

27

Donald Project – project execution plan

2012 EXECUTION PLAN

Key Contracts Procurement Strategy

Detailed Engineering

Construction Management

Commissioning & Close Out Plan

==> picture [232 x 181] intentionally omitted <==

==> picture [229 x 181] intentionally omitted <==

28

Market & Funding update Scott McDaniel

29

Titanium feedstock market update

Supply gap driven by:

Significant shortfall (from 2012)

'000 TiO2 units

• Decrease in existing suppliers

• Limited new suppliers

• Urbanisation in China

• Higher mining costs

• High overburden ratios

==> picture [353 x 152] intentionally omitted <==

----- Start of picture text -----

400
300
200
100
0
-100
-200
-300
-400
-500
-600
-700
2000 2002 2004 2006 2008 2010 2012 2014
Sulfate Chloride
----- End of picture text -----

• Location to market

• Financial instability

'000 TiO2 units

==> picture [346 x 171] intentionally omitted <==

----- Start of picture text -----

10,000
9,000
Likely unapproved
8,000 new projects
7,000 Approved new
projects
6,000
5,000 Existing
Production
4,000
Consumption
3,000
2,000
1,000
0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
----- End of picture text -----

30

Titanium feedstock market update

• Driven by TiO2 pigment

• Closed high-cost plants

• Marginal performance by low-cost plants

• Future demand driven by Asia-Pacific / China

• Global supply side => grow to 5.8 million

• tonnes in 2012

• Supply constrained by lack of inventory (2013)

==> picture [225 x 157] intentionally omitted <==

Roll-out of the Boeing 787 • October 2011

31

Zircon market structure

Demand

• Driven by unprecedented growth in industrialisation

• Primary application – ceramics

• 70% China consumption and growing

Supply

• Some operations coming to the end of mine life

• New projects delayed due to funding and extended approval time

'000 tonnes

==> picture [341 x 209] intentionally omitted <==

----- Start of picture text -----

2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020
----- End of picture text -----

==> picture [227 x 12] intentionally omitted <==

----- Start of picture text -----

Production New Projects Consumption
----- End of picture text -----

• Many projects are green field sites with un-proven record of project completion and unknown product quality

32

Zircon market update 2011

• In balance during the 2011 year

• Increasing supply deficits starting 2012 – (100k tonnes)

• Additional supply from new projects expected

• Delays based on financing and approvals

• Shortfall will significantly affect pricing

==> picture [223 x 163] intentionally omitted <==

33

Donald funding

• Arrangement with POSCO terminated in May 2011

• Enables Astron to consider other funders

• Discussions with POSCO and KORES are continuing

• Institutional and industry players expressed interest in Donald Project

• On completion of BFS Astron will undertake a roadshow to interested parties

34

Questions Alex Brown

==> picture [592 x 350] intentionally omitted <==

35