ASTRON LIMITED — Investor Presentation 2012

May 31, 2012

Astron Corporation Limited Investor Presentation June 2012

Hayden Stockdale, CEO Mark Nielsen, CFO

ASX Code: ATR

1

Disclaimer, Forward Looking Statements and Competent Person’s Statement

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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 fulltime 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.

2

Presentation Agenda

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Introducing Astron

Global Zircon and TiO Markets 2 Donald Mineral Sands Project, Murray Basin, Australia Niafarang Project, Senegal, West Africa Marketing and Customers Conclusion

3

Introducing Astron

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4
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A Corporate Snapshot

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ASX listed since 1983 – holding company ‘Astron Corporation Limited’ domiciled in HK

Approx. ~$125m of cash; no debt

Dedicated focus Tier 1 Donald on mineral Project in sands mining Murray Basin, and processing Australia

Near-term production project in Niafarang, Senegal

Operate a Technology Chinese mineral leader – sands trading significant business with research and close technology relationships development to all key customers

25 years in China – strong presence and reputation in mineral sands processing and marketing

5

Location of Operations

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Astron
Shenyang
Astron
Yingkou
Niafarang Astron
Senegal Corporation Limited
Hong Kong
Astron
Corporate Offi ce
Donald Sydney
Mineral Sands
Minyip
Astron
Head Offi ce
Melbourne
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6

Astron Corporation Limited - Overview

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Share Price Performance
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A$ '000
1.60 70
1.50 60
1.40
50
1.30
40
1.20
30
1.10
20
1.00
0.90 10
0.80 0
Volume Share Price (adj) S&P ASX 200 (rebased)
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Shareholder Structure

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9%
20% 45%
26%
Firback Finance Ltd Arafua Mining Ltd
Other Top 20 Shareholders Remaining Shareholders
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Financials
ASX
Code
ATR
Market
Cap
A$170m
Ordinary
Shares
123m
Enterprise
Value
A$42m
Net
Asset
Value
A$201m
Trading at a ~15% discount to net asset value
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Asset Value Per Share*

		$/share	A$m
	Cash and term deposits	1.05	128.1
	Donald (including water rights)	0.37	45.6
	Niafarang	0.01	0.8
	PPE & land use rights	0.19	23.4
	Investments	0.02	2.0
	Net current assets	0.01	1.2

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*As at 31 December 2011

7

Experienced Team – Proven Track Record

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Alex Brown Gerry King Ron McCullough Bob Flew
President Non-Executive Non-Executive Non-Executive
Chairman Director Director
Kang Rong Hayden Stockdale Mark Nielsen Allen Cauvin
Executive CEO CFO & Company Executive General
Director Secretary Manager Donald
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Project Team :

Simon Peters Project Executive Donald Mark Coetzee Project Executive Niafarang

Boris Matveev Chief Geologist and Project Executive Guo Zhibin Technical Director R&D

• Board with strong industry and corporate governance expertise

• Experienced senior management team with expertise in mineral sands, corporate finance and marketing

• Excellent network in Chinese zircon and titanium feedstock markets

• Operational team has strong project development experience in the mineral sands sector

• Highly experienced consultants to complement team

8

Global Zircon and TiO Markets 2

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Demand Overview

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Comments

• Demand for zircon and titanium, is driven primarily by end uses and is leveraged to global GDP growth

• The World Bank is expecting global growth of 2.5% and 3.1% in 2012 and 2013, respectively; with 8.4% and 8.5% for China

Zircon

• Demand underpinned by the ceramic industry (55% of current demand) and manufacturing output applications

• In 2011, global consumption of zircon was 1.3 million tonnes

• Zircon use in ceramics is forecast to grow 5% per annum to 2020 (8-9% growth per annum in China)

Titanium

• TiO2 feedstock includes ilmenite, rutile, leucoxene, and upgraded products, such as synthetic rutile and titanium slag. TiO2 is primarily used to create white pigment for coatings, due to its highly refractive index

• In 2011, the globe consumed 1.1 million tonnes of rutile and 12 million tonnes of ilmenite

• Growth in demand for titanium feedstock will be approximately 60% between 2012 and 2020

• Pricing, which is driven by the pigment producers, is expected to significantly increase as major producers are at capacity

End Uses

TiO2

Zircon

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Source: TZMI

China Zircon Consumption Trends

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2500
2000
CAGR
9%
1500
CAGR
9%
1000
CAGR
13%
500
0
2000
2010
2016
2020
China
Zircon
ConsumpUon
(kt)
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Source: Iluka

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Supply Overview

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Comments

• No significant discoveries since 2004

• No substitutes for industry mainstays

Zircon

• Some operations coming to the end of mine life; decline in production from existing projects

• Many current and future projects have short mine life

• Many projects are greenfield sites with unproven record of project completion and unknown product quality

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

Titanium

• Future mining supply limited by costs and lack of new projects coming on stream

Major Suppliers

Zircon (1.5Mt)

TiO2 units (6.5Mt)

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India Others
Iluka
13% QIT (Rio 80%) Kenmare 2% 2% 9% Iluka
3%
QIT BeMax
4%
(Rio 80%) 39%
43% 16% Indonesia 5%
7%
China
12% 8%
RBM (Rio 74%) 13%
Others
4% 4% 8% Exxaro 16% Astron
BeMax Exxaro RBM (Rio 37%, BHP 37%)
Kenmare
Astron [4% ]
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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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Market Outlook

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Comments

• Opaque demand coupled with majority of supply controlled by a few major suppliers

• Pricing is usually done through long-term contracts

• Significant shortages expected; favourable long-term dynamics

Zircon Supply/Demand Balance*

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TiO2 Feedstock Supply/Demand Balance

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Source: TZMI and Iluka

• Includes induced projects

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Taylors Lake (water source)

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Donald Mineral Sands Project

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Donald Mineral Sands Project

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One of the Tier 1
largest resource –
undeveloped sufficient to
deposits in mine for over
the world 100 years
Legend
DMS Project
Murray Basin
4 billion Low
tonnes of sovereign Capital City
resource at risk
4.8% THM
Stage 1 to World class
produce location –
950ktpa of Murray Basin
HMC; 30 year
mine life Murray Basin
DMS Project
Close to Standard
existing open-cut
infrastructure: mining
port, rail operation
and road
Darwin
Brisbane
Perth
Sydney
Adelaide
Melbourne
NORTHERN
TERRITORY
QUEENSLAND
WESTERN
AUSTRALIA
SOUTH
AUSTRALIA
NEW
SOUTH
WALES
Canberra
VICTORIA
TASMANIA
Hobart
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World Class Location

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Murray Basin – ‘The Pilbara of Mineral Sands’

70kms to rail hub

300kms to Port of Melbourne

Skilled workforce available Earthen water channels in place Where Iluka operates

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500,000 mE 550,000 mE 600,000 mE 650,000 mE 700,000 mE
EL3346 EL3346
EL4598
EL3875 MIN5497
MIN5458
EL5397 EL5399 MIN5525
EL4293
EL5398
EL3903
EL5396
EL4058
Hopetoun
EL5369
EL4191 EL4191
Birchip
Legend
Astron
EL5291 Warrancknabeel MIN5532
Donald Donald
Resource Other Mineral
MIN5532 Sands Tenements
Austpac
Jackson Resources NL
Resource Iluka
Horsham
Douglas &
EL4282 EL5408 KWR MIN
EL5342EL5341EL4531MIN5506 EL4521 Murray Basin Titanium Pty Ltd
EL4426 Stawell
EL4282 MIN5367 Donald &
Jackson Resource
Donald Resource
Pit Outline
EL5357
Railway
Town
550,000 mE 600,000 mE 650,000 mE 700,000 mE
Wemen
Kulwin
Woornack
Tyrrell Ridge South
Curyo
Roselyn WestRoselyn East
Hopetoun
Bondi Main
Tyrrell Ridge
Bondi East
Echo
6,150,000 mN
6,150,000 mN
6,100,000 mN
6,100,000 mN
6,050,000 mN
6,050,000 mN
6,000,000 mN
6,000,000 mN
5,950,000 mN
5,950,000 mN
5,900,000 mN
5,900,000 mN
50,000 mN
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Geology

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AREA	HM%	RESOURCE TONNES (MT)	STRIP RATIO** (AVERAGE)
1	5.2	4*	5.5
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 Jackson	6.1	486	4.3
7 Jackson	5.5	501	4.0
Total		4,039

4,039Mt Mineral Resource (JORC) in Project Area 452Mt Mineral Resource (JORC) in Mining Licence Area

All values are based on a 1% HM cut-off without allowance for dilution and mining recovery.

*Based on small number of holes

**Calculation: tonnes below 1% HM/tonnes above 1% HM

Source: ASX announcement dated 1 December 2011

DUNE – Med-sand - Mod. sorted, Low-mod. HM. STRAND – Med-coarse, well sorted sand, mod-high HM. BEACH – Med-coarse, well sorted sand, Low clay, Low HM. Dune OFFSHORE – Fine-med, well sorted sand, Med-high clays, Low-mod. HM.

B BASEMENT

STRAND MEAN SEA LEVEL Wave-cut bench Offshore B

16

Flow Diagram

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Forecast product numbers are based on 15 mtpa

17

Peer Comparison – Highly Competitive

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4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
IMA SFX GUN DRX ATR ATR MDL WTR BSE ILU
(D) (N)
1,600
1,400
1,200
1,000
800
600
400
200
0
MZI DRX GUN IMA SFX BSE WTR MDL ATR PFP
Average
ATR (stage 2)
Revenue / Cost (times)
Saleable production (Ktpa)
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Mineral Commodities 13.4 EV / Zircon Eq ($A/t)
Diatreme Resources 12.6
Gunson Resources 8.1
Miatilda Zircon 32.2
Image Resources 70.2
Pathfinder Minerals 1.6
Sheffield Resources 4.7
World Titanium Resources 18.7
Astron 0.8
Base Resources 69.1
Mineral Deposits 90.0
Sierra Rutile 90.3
Kenmare Resources 74.9
Iluka Resources 264.6
0 50 100 150 200 250 300
8.8%
5.9%
2.9%
0.0%
SFX GUN MDL MZI DRX BSE KMR SRX PFP ATR IMA ILU WTR
Average
Total Heavy Minerals (%)
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SFX – Sheffield Resources GUN – Gunson Resources MDL – Mineral Deposits MZI – Matilda Zircon DRX – Diatreme Resources

BSE – Base Resources IMA – Image Resources KMR – Kenmare Resources ILU – Iluka Resources SRX – Sierra Rutile WTR – World Titanium Resources PFP – Pathfinder Minerals ATR – Astron Corporation

Source: Bell Potter, Astron

18

Milestones

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Key Achievements	Environmental approval of mine/MUP/WCP/CUP	ü
	Mining licence	ü
	Purchase of high security water rights	ü
	Proven processing of fine grade material	ü
	Appointment of Project Manager (ex Jacinth Ambrosia PM)	ü
To Do	Proven washing process to reduce U/Th impurities
	Publication of Proved Ore Reserve
	Finalisation of DFS
	Environmental approval of MSP
	Submission of Work Plan
	DFS optimisation studies
	Results from zircon wash miniproductionplant to finalise full-scale engineering
	Finalisation of Enhanced DFS
	Capital raising to fund Donald

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Niafarang Project, 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 biggest 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 area – known mineral sands deposits

75km along the coast – only 6 km explored (1[st] stage – 5 year mine life)

Low mining and processing cost

High grade, no overburden and low slimes

Produce 15ktpa of Zr, 80ktpa of ilmenite

Dredge mining – low capex cost

Strand	Sand tonnes	Grade	Mineral Assemblage % of THM	Mineral Assemblage % of THM	Mineral Assemblage % of THM	Mineral Assemblage % of THM
	Mt	% THM	Ilmenite	Zircon	RuUle	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

Source: ASX Announcement 7 May 2007

In-country presence

Revenue to cost ratio 2.75x (2014f per prefeasibility)

22

Milestones

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Key Achievements	Exploration licence	ü
	GM appointed	ü
	Prefeasibility study complete	ü
	Resource announced	ü
To Do	Finalise reserve
	Obtain EIA
	Complete DFS
	Obtain mining licence
	Construction of plant
	Production

23

Marketing and Customers

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Future Marketing and Customers

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Extensive history in Chinese marketplace – 25 year record

Retain close relationships with all key target customers

Built from scratch Retain an active the dominant mineral sands marketing and import and distribution trading business business in China in China (sold 2008) Products sold Understand key under mix of requirements of periodic and spot customers and contracts Chinese market dynamics

25

Conclusion

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The Astron Value Proposition

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Attractive ‘late Massive Well advanced cycle’ industry resource base with clear path to production Potential to Robust balance Experienced dominate sheet management the industry team

27

For further information please contact

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Hayden Stockdale CEO Email: hayden.stockdale@astronlimited.com Tel: +61 4 3546 1630

Mark Nielsen CFO

Email: mark.nielsen@astronlimited.com Tel: +61 2 9375 2361

Website: www.astronlimited.com

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Appendix

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History

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30

Why hasn’t the Donald resource been developed?

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• Originally owned by CRA

• Became available after the Rio Tinto-CRA merger as greenfields zircon-skewed Donald had low priority

• Zircon prices were low (in 1994 ~US$200/t; in 2004 ~US$500/t)

• Lack of available water

• Underdeveloped processing technology for fine grain material

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• Customer acceptance of U+TH lower than today

• No proven technology to remove U+TH from zircon

31

Board and Senior Management

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NAME	POSITION	EXPERIENCE
Gerry King*	Non-executive Chairman	Chairman since 1985. Formerly a partner of law firm Philips Fox. Over 30 years experience in corporate and business advising including acting as a director of a number of Australian public companies.
Ron McCullough*	Non-executive Director	Has 35 years mining experience including mineral sands mining in WA and bauxite and coal mining. Also been involved in civil engineering design and construction of various engineering works.
Rob Flew*	Non-executive Director	37 years’ experience in the resources sector. Held senior positions at BHP Billiton including Company Secretary and VP Investor relations.
Alex Brown*#	President	Managing Director since 4 February 1988. Has over 30 years experience in the construction, mining and exploration. Built the Astron business to what it is today.
Kang Rong*#	Executive Director	Oversees Astron’s China operations and marketing. Was largely responsible for the growth and development of Astron in China and remains responsible for the group’s customer network.
Hayden Stockdale#	CEO	Previously executive director/partner at Goldman Sachs. Extensive experience in assisting and financing mining companies through high growth phases.
Mark Nielsen#	CFO & Company Secretary	Experience includes CFO of three listed companies and private equity and corporate finance experience with Anglo American and Flemings/JP Morgan.

• Board member

Senior management

32

Project Team

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EXECUTIVE	POSITION	EXPERIENCE
Allen Cauvin	Executive General Manager Donald	Allen has over 23 years project management experience in Australia and Africa. Prior to joining Astron, he was responsible for the successful construction of Iluka’s Jacinth Ambrosia mineral sands project. This project was delivered under budget and ahead of schedule.
Simon Peters	Project Executive Donald	Over 10 years experience in mine operations, project development and construction. Has previously held senior positions within both Rio Tinto and Henry Walker Eltin (now Leighton Construction), with significant experience in Iron Ore, Gold and Mineral Sands.
Mark Coetzee	Project Executive Niafarang	Responsible for Astron’s Senegal operations. 25 years experience in constructing and managing the mining projects in Africa.
Boris Matveev	Chief Geologist and Project Executive	30 years experience in mining industry and geoscientific studies. 17 years in executive & senior positions with public mining & exploration companies in Australia & UK – including Board executive roles.
Guo Zhibin	Technical Director R&D	Over 25 years experience in chemical production plants, process design and technological research and development.
Emma Vogel	Development Manager Donald	Has over 10 years experience in both mining operations and project development. Prior to joining Astron she previously held senior operational roles within Rio Tinto and HWE, and has significant experience in Mineral Sands and Iron Ore.
Noel Hawken	Principal Metallurgist Donald	20 years of experience in the mining industry, including project development, design, commissioning and operation of processing plants in both the diamond and mineral sands industry. Prior to joining DMS he held metallurgical roles with Iluka Resources located in the Murray Basin region, he was involved in the commissioning and operation of several mineral sands processing plants.
Matt Grundy	Project Engineer Donald	9 years experience in mining operations, project development and operational improvement. Prior to joining DMS he held specialist operational roles within Rio Tinto and has significant experience in Iron Ore, Gold and Mineral Sands.

33

Consultants – Donald

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AREA	CONSULTANT
Mine Design & Resource Geology	Australian Mining Consultants (AMC)
Exploration Geology	Exploration Management Services (EMS)
Geology & Hydro Geology	Mr John Smart (ex Rio Tinto)
Environmental	Coffey Natural Systems
Tenement Management	Elletson Mining
Metallurgical	Robbins Metallurgical
Engineering	RJ Robbins & Associates
Mineral Separation plant approvals	Worley Parsons
Process Flow Verification	Roche Mining (Now CPG)
Mineralogy	Geochempet Services
Heavy Mineral Analysis	Western Geolabs

34

Group Structure

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ASTRON
CORPORATION
LIMITED
ASTRON
LIMITED
Donald
Niafarang Technical Trading
Mineral Sands
Mineral Sands R&D Business
Project
Project (Yingkou, (Shenyang,
(Victoria,
(Senegal) China) China)
Australia)
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