ASTRON LIMITED — Investor Presentation 2012

Dec 4, 2012

Briefing to Shareholders

6 December 2012

Disclaimer, Forward Looking Statements and Competent Person’s Statement

This presentation has been prepared by Astron Corporation Limited (the “Company or Astron”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. The Company has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws Astron makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. You should not act or refrain from acting in reliance on this presentation material. This overview does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company's prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decisions.

Competent Person’s Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Dr Boris Matveev, who is a Member of The Australian Institute of Geoscientists. Dr Matveev is a full-time employee of Astron Ltd and has sufficient experience which is relevant to the style of mineralisation and 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 Exploration Results, Mineral Resource and Ore Reserves’. Dr Matveev consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Agenda
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• Milestones Achieved 2012

HJS

• Financial Highlights 2012

MN

• Donald Project

SP

• Senegal

• Market Dynamics

• Way Forward 2013

MN HJS HJS

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Milestones Achieved 2012

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Milestones Achieved 2012
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Financial Highlights 2012

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2012 Financials: Balance Sheet

AS AT 30 JUNE	2012 $M	2011 $M
PPE includes CIP	16.7	12.4
Donald / Senegal	48.6	27.0
Land use rights	8.7	8.4
Current assets (excluding cash)	11.2	13.6
Cash & term deposits	121.2	147.4
Total Assets	206.4	208.8
Liabilities	7.5	7.0
Net Assets	198.9	201.8

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2012 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	98.6	5.1%
Goldman Sachs JB Were	5.1	4.8%
Bank of China	14.9	5.0%
Other Banks	2.6	1.8%
Total	121.2

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2012 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

• Extended investment horizons cash (up to 210 days if necessary)

• Diversify into other top 4 Australian banks

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2012 Financials: Commentary

Cash Utilisation

• Cash has been utilised as follows:

CASH UTILISED	$M
Acquisition of water rights	18.0
Development expenditure Donald and Senegal	3.5
Share buy-back	3.1
Other PPE and CIP	4.3
Expenditure on redomiciliation	1.1
Acquisition of Greenpower shares	0.5
Refund of cancellation of acquisition	(0.5)
Cash from operating activities	(3.2)
Net cash and term deposits utilised	26.8

• Disclosure of term deposits

• Investment in term deposits greater than 90-days is shown in the cash invested

on cash flow statement

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2012 Financials: Net Asset Value

	YEAR ENDED 30 JUNE 2012 CPS
	Cash 99

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Cash – 99
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2012 Financials: Net Asset Value

	YEAR ENDED 30 JUNE 2012 CPS
	Cash 99
	Net current assets less liabilities 3

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Cash – 99
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Net current assets less
liabilities – 3
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2012 Financials: Net Asset Value

	YEAR ENDED 30 JUNE 2012 CPS
	Cash 99
	Net current assets less liabilities 3
	PPE & land use rights 21

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Cash – 99
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PPE & land use rights – 21
Net current assets less
liabilities – 3
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2012 Financials: Net Asset Value

	YEAR ENDED 30 JUNE 2012 CPS
	Cash 99
	Net current assets less liabilities 3
	PPE & land use rights 21
	Donald 38

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2012 Financials: Net Asset Value

	YEAR ENDED 30 JUNE 2012 CPS
	Cash 99
	Net current assets less liabilities 3
	PPE & land use rights 21
	Donald 38
	Senegal 1

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YEAR ENDED 30 JUNE 2012 CPS
Cash 99
Net current assets less liabilities 3
PPE & land use rights 21
Donald 38
Senegal 1
Senegal – 1
Donald – 38
Cash – 99
PPE & land use rights – 21
NAV per share of 162cps Net current assets less
liabilities – 3
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2012 Financials – Fund Raising

• Donald • In the process of engaging a merchant bank to act as adviser to assist with fund raising for Donald

• • Initial interest from debt providers positive

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Astron Corporation
•
Global roadshow
undertaken in May 2012
–
Well received
–
Two significant
shareholders came
on board
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2012 Financials – Share Price Relativity

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110
Astron S&P/ASX 300 Metals & Mining (rebased)
100
90
80
70
60
50
40
Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12
Share Price (rebased to 100)
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During the FY 2012 ATR continually outperformed the ASX 300 Metals and Mining Index

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Donald Project

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Donald Mineral Sands Project

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Tier 1 resource
Proven ore
– sufficient to
Close to mine for over reserve of
existing 100 years 150mt World class
infrastructure:
location –
port, rail
and road Murray Basin
Stage 1 to
produce Standard
950ktpa of
open-cut
HMC; 30 year
mining
mine life
operation
4 billion
tonnes of
resource at
4.8% THM
One of the
largest
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One of the
largest
undeveloped
deposits in the
world
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Donald’s Positioning
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Comments

Major Suppliers

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TiO2 units (6.5Mt) Zircon (1.5Mt)
Others
Iluka India
2%
13% QIT (Rio 80%) 2% 9%
Kenmare Iluka
3%
QIT BeMax 4%
43% 16% (Rio 80%) Indonesia 5% 39%
7%
China
8%
12% RBM (Rio 74%) 13%
Others 4% 8% Exxaro 16% Astron
4%
BeMax Exxaro RBM (Rio 74%)
Kenmare
Astron [4% ]
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• 8% world supply of Zircon and 4% of Ti02

• 80% of revenue from high value materials (Zircon and Rutile)

• Largest new Zircon project to come on stream

Summary of Development Projects

	F/Production	TiO2 ('000t/pa)	Zi ('000t/pa)	Zi Ratio Rank	Zi:TiO2	Funding $Am (D/E)
Financed
Grand Còte Senegal (Mineral Deposits JV with Eramet)	Late 2013	591	85	4	0.14	198/305
Kwale, Kenya (Base)	Late 2013	330	25	5	0.08	173/140
Being Financed
Coburn (Gunson)	2014	106	40	1	0.38
Donald (Astron)	2015	340	121	2	0.36
Niafarang (Astron)	2014	82	15	3	0.18	Nil debt
Toliara Sands (WTR)	2014	407	32	5	0.08

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2012 Achievements
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Purchase of high security water rights	
Proven processing of fine grade material	
Appointment of EGM (ex Jacinth Ambrosia PM)	
Proven washing process to reduce U/Th impurities	
Publication of Proved Ore Reserve	
Completed Work Plan Draft	
Complete Cultural Heritage Management Plan Draft	
Purchase strategic land parcel bordering ML area	
Ongoing negotiations with landowners within ML area	
Draft feasibility study	
Independent technical reviews	

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Geology
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• 4,039Mt combined Measured + Indicated + Inferred Mineral Resource*

• 461Mt combined Proved + Probable Ore Reserve**

• Includes 150Mt Proved Ore Reserve - implies first 12 years of production

• ASX announcement dated 1 December 2011

• ** ASX announcement dated 15 June 2012

AREA	AVERAGE GRADE HM%	RESOURCE* (MT)	AVERAGE STRIP RATIO**
2	4.5	407	1.6
3	3.7	951	0.9
ML	4.5	452	1.3
4	4.2	267	1.7
5	5.1	545	1.5
6	6.1	427	1.7
7	6.1	486	4.3
8	5.5	501	4.0

• combined Measured + Indicated + Inferred Mineral Resource at 1% HM cut-off

• ** calculation: tonnes below 1% HM / tonnes above 1% HM

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ML
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Tenements
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• Recent changes to the Mineral Resources Act (1990) include the formation of a new type of minerals licence, a Retention Licence

• This new licence type will eliminate relinquishment requirements and secure the tenement in the longer term

• DMS has applied to convert Exploration Licences EL4433 (Donald), EL4432 (Jackson), and EL5353 (Jackson) to Retention Licences

• Confirmation of approval expected early Q2 2013

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Parallel Project Development
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• Development Team in Place

• Proactive Tenement acquisition

• Secured prime areas of the Basin

• Drilling Approved

• Birchip Strand Investigations Q1 2013

• Jackson Resource Definition Q1 2013

• Preliminary Feasibility Q2-4 2013

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Next Steps
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Finalisation of DFS Submission and approval of Work Plan Progress purchase of additional land holdings and compensation agreements Develop project approvals plan for stage 1B Undertake infill drilling on Jackson bringing resource to indicated resource status Undertake drilling on coarse grain strandline targets identified on northern tenements Capital raising to fund Donald

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Senegal

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Senegal, West Africa
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• Political and social stability

• Firm commitment from Government for development of project

• Elections have been consistently smooth and democratic, including recent election of new President

• Good infrastructure

• Dakar Port – second largest in West Africa

• World standard mining laws

• Mineral Deposits Ltd currently developing 4[th] largest zircon deposit in the world in Senegal

• Large deposits of mineral sands, gold, phosphate, iron ore and uranium

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Grand Cote
Project
Sabodala (Gold)
Project
Niafarang
Project
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Niafarang Project
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Large coastal High grade, no
area – known overburden
mineral sands and low slimes
deposits
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75km along To produce the coast – only 15ktpa of Zr, 6 km explored (1[st] stage – 80ktpa of 5 year mine life) ilmenite Probable Ore Dredge Reserve * mining – low of 4.7Mt @ capex cost 10.9% HM

Indicated Mineral Resource at 1% HM cut-off**

Strand	Sand tonnes	Grade	Mineral Assemblage % of THM	Mineral Assemblage % of THM	Mineral Assemblage % of THM	Mineral Assemblage % of THM
	Mt	% THM	Ilmenite	Zircon	Rutile	Leucoxene
East	4.0	14.6	75.4	13.7	2.3	0.4
West	0.8	1.7	69.6	15.5	2.0	0.6
Total	4.8	12.4	75.2	13.7	2.3	0.4

• ASX announcement dated 5 September 2012

• ** ASX announcement dated 7 May 2007

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Milestones
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Key Achievements	Exploration licence	
	GM appointed	
	Prefeasibility study complete	
	Resource announced	
	Probable reserve announced	

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Market Dynamics

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Market Dynamics
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Short Term

Long Term

• Outlook for pricing has deteriorated

• Producer inventories have increased

• Producers managing production to limited further inventory build

• Outlook for Ti02 is better than zircon

• Downstream inventories remain very low

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Market Dynamics
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Short Term

Long Term

• Fundamentals underlying strong zircon demand growth expectations, in particular in China, remain intact

• Recent high prices have spurred greater efforts to find a zircon substitute, but no solution found

• Global zircon production will decline unless new resources are brought on stream

• The Donald project will need to be developed for the zircon market to remain in balance

• Growth to come from China

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Way Forward 2013

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Way Forward 2013
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Complete
Focus will
Detailed transactions with
Completion Let EPCM
be preparation and sign off DFS engineering equity partners contracts
of Donald and funding
providers
Senegal Completion Announce Obtain mining
of EIA DFS licence
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Way Forward 2013
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Continue with
Development at
China R&D developing
Yingkou facilities
downstream
processes
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Corporate & Complete
implementation of
Administration
new IT system
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Questions

29F, Wing-On-Centre, 111 Connaught Road Central, Hong Kong www.astronlimited.com T: +61 2 9375 2361 F: +61 2 9375 2121