ASTRON LIMITED — Investor Presentation 2012

Mar 20, 2012

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Agenda

• Overview

• Global Ti And Zr Market

• Donald Mineral Sands Project

• Niafarang Project (Senegal)

• Technical R&D Operation

• Funding & M&A Strategy

• Management Team and Shareholder Structure

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Overview

3

Key highlights

• ASX listed

• Dedicated focus on mineral sands mining and processing

• Strong balance sheet – $130m of cash

• Two significant near term mining projects

• Large, long-life, flagship Donald Project in Australia with anticipated Stage 1 production of 120ktpa zircon and 90ktpa rutile

• Niafarang Project in West Africa also proceeding towards development

• Significant investment in Donald already made, including $18m purchase of water rights in December 2011

• Strong presence in Chinese mineral sands market – operate an active trading business and retain close relationships with key customers

• Proven expertise – 25 year track record; previously built from scratch and sold the pre-eminent mineral sands marketing and distribution business in China

4

Our goals

To become a relevant long term competitive and dynamic player in the zircon and TiO feedstock market 2

1

Size:

Anticipated 120ktpa of zircon production from Donald stage 1 should immediately establish us as the number 5 player

2 Longevity:

Potential resources to satisfy the global zircon demand for 30 years and global titanium feedstock demand for 10 years

3 Low cost to revenue: High quality product mix To remain cost competitive throughout the cycle

4 Technology:

To maintain our competitive advantage, expand our market and open new opportunities utilising our high value added zircon and titanium chemical and metal technologies

5

History

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Location of operations

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Global Ti and Zr Market

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Uses of Zircon and TiO 2

Global zircon demand 1.2mt (2011) by end use sector

Global TiO2 demand 6.5mt (2011) demand of by end use sector

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©TZMI 2012, not to be reproduced without permission

©TZMI 2012, not to be reproduced without permission

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Zircon market structure

Demand

• Driven by unprecedented growth in industrialisation

• Demand anticipated to grow by 56% this decade as comparable 9% to over the last decade

• China forecast to consume more than 50% by 2020

• Even with Donald coming on stream still estimated shortfall of 500,000 by 2020

Supply

• Some operations coming to the end of mine life

• Many current and future projects have short mine life

• New projects delayed due to funding and extended approval time

Total titanium feedstock supply/demand balance: 2005–2015

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'000 tonnes
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
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Production New Projects Consumption
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• Many projects are green field sites with unproven record of project completion and unknown product quality

• Increasing supply deficits starting in 2012 – 100k tonnes

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Titanium feedstock market update

Demand

Supply/demand balances for all titanium feedstocks: 2005–2015

• Demand still being driven by TiO2 pigment (c85%)

• Global demand for pigment => increase to

• 5.76 million tones in 2012 (4% above 2011 levels)

• Demand over the next decade will come from Asia-Pacific / China

Supply

• Idle capacity from 2009 trough exhausted

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

• Global supply side => grow to 5.8 million tonnes in 2012

• Lack of inventory in the supply chain will limit demand growth at least into 2013

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Total titanium feedstocks supply/demand balance: 2005–2015

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©TZMI 2012, not to be reproduced without permission

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Forecast supply and demand balance

Total volume of titanium feedstocks and zircon under investigation as new projects

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'000 TiO2 units & '000 tonnes Number of companies
4,500 45
4,000 40
3,500 35
3,000 30
2,500 25
2,000 20
1,500 15
1,000 10
500 5
0 0
1996 1998 2000 2002 2004 2006 2008 2010
TiO2 units (LHS) Zircon (LHS) Companies (RHS)
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©TZMI 2012, not to be reproduced without permission

Donald Mineral Sands Project

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Overview

• 4,039 Mt Mineral Resource (JORC*) in Project Area (1,100 drill hole database)

• 450Mt Mineral Resource (JORC*) in Mining Licence Area

*Reported in accordance with The 2004 JORC Code (The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves).

• Stage 1

• Stage 1a & 1b combined anticipated to produce 950ktpa of HMC (approximately 120ktpa zircon, 90ktpa rutile)

• 30 year mine life

• Majority of approvals (including EES) in place for Stage 1a

• Stage 2

• Additional anticipated 475ktpa of HMC

• Plan to mine the Jackson Deposit to the south of Donald

• Low strip ratio averaging 2.6 : 1 with large consistent planar orebody

• Test pit dug to confirm:

• Ore processing and recoveries

• Product acceptance by customers

• Completion of Definitive Feasibility Study in progress

• Strong marketing expertise and long standing, ongoing relationships with key Chinese customers

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Key advantages

✓	300km to Port of Melbourne
✓	Close to existing infrastructure
✓	Road and rail networks in place
✓	Low sovereign risk
✓	Skilled workforce available
✓	Zircon and titanium are widely forecast to remain supply constrained for many years
✓	Excellent project development fundamentals
✓	Large consistent planar ore body allows for low strip ratios
✓	Pre-feasibility shows impressive returns
✓	Major environmental approvals completed
✓	Huge long-life resource
✓	Opportunity for expansion of current 30+ year plan and value adding to create even
	greater returns
✓	Expansion capacity enables the project to become one of the world's largest zircon and titanium mining operations
✓	Significant investment in the project has already been made
✓	Purchase of 7.0GL pa of water entitlements is sufficient for Stages 1a and 1b
✓	Purchase of 1,700 acres of land in the mining licence area

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Location

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Location in Murray Basin

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Tenements and proposed project phasing

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Neighbouring tenements and proximity of other mines

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Approvals

Approvals completed Environmental effects statement ✓ Mining licence ✓

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Approvals in progress Work plan Co-location of MSP Power line planning permit

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Geological formation

• Fine grained deposits: formed off-shore; large, planar and well-sorted; typically low-moderate grade; particle size D50 = 50 micron

• Coarse grain deposits: formed on-shore; narrow, varying and stranded; typically high grade; particle size D50 = 120 micron

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Geology Mining licence – MIN 5532

• Database with 1,100 drill holes

• Resource of 450 Mt within MIN 5532

• to sustain operations +20 years (at 15Mtpa)

• MIN 5532 is ~15% of the Exploration Area

• *Reported according to the 2004 JORC Code

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Geology DMS resources split by area

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
7Jackson	6.1	486	4.3
8 Jackson	5.5	501	4.0
Total		4,039

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Area 1 is not
classified in
the resource
Northern extent of
resource estimate
MIN 5532
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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

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Processing steps

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Mine sequence

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Plant layout

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Source: RJ Robbins – Definitive Engineering Study 2011

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Mining method and fleet

• Flexible mining fleet in truck and excavator

• Portable mining hopper allows for short haul minimising cost

• Strip ratio year 1 to 5 of 2.1, life of mine 2.6

• Direct backfill and in-pit tailings disposal allowing for low cost waste disposal and rehabilitation

• Large planar orebody allows for efficient ore removal

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Utilities, infrastructure and logistics

Infrastructure, utilities and logistics

• 300kms to Port of Melbourne

• Skilled workforce available

• 70kms to rail hub

• Earthen water channels in place

• Possible access to Federal and State Government funding

Recent milestones

• 7.0 GL of high security water rights already secured

• 1,700 acres of land already purchased

To come

• Purchase or access agreements over further acres of land required

• 18km of road to be widened

• 73km power line to be built

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Marketing and customers

• Have existing close relationships with key target customers

• Retained our Chinese trading business after the sale of the processing/marketing operations to Imerys in 2008

• Understand key requirements of customers

• Maintain very close interface with market

• Retain significant presence in China

• 90 employees across our Chinese trading and R&D operations

• Extensive history in Chinese market place

• 25 year track record

• Previously built marketing and distribution business from scratch

• Products sold under periodic contracts

• Aim to secure off take arrangements in due course

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Forecast product mix split by revenue and volumes

Product mix split by revenue

Product mix split by volume

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©TZMI 2012, not to be reproduced without permission

Niafarang Project (Senegal)

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Overview

• Large coastal – based mineral sands deposit

• High grade – no overburden – low slimes

• EIS underway to convert exploration licence to mining concession

• Exploration area c450km[2 ]

• Area drilled out to north

Senegal: Niafarang Deposit Pre Mining Development 2007–11

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2012 plan

• Exploration licence renewed until 26 November 2013

Phase 1

• Definitive feasibility study - initiated start of 2012

• Environmental approval - anticipated during 2012

• Mining Licence - anticipated during 2012

Phase 2

• Exploration program - initiated start of 2012

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Technical R&D Operation

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Overview

Aim is to maintain our competitive advantage, expand our market and open new opportunities by developing new, high value added, technologies

Zircon Washing Project

• Aim to develop an economic process to reduce the uranium and thorium content of specific zircon sands

• Initial results in laboratory and on small pilot plant scale are positive

• Further testing planned at demonstration plant scale

• Processing methodology and engineering currently being reviewed by an independent expert

Other

• Current initiatives focused on mineral separation processes, and zirconium/titanium metals/chemicals

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Value add through technology

• Pricing differentials between materials and advanced chemicals and metals are substantial

Zr Ti

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Refinement to advanced chemicals and metals will add considerable value

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Funding and M&A Strategy

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Balance sheet 31 December 2011

ASSETS	ASSETS
Current assets	$m
Cash and cash equivalents	128.1
Other current assets	13.9
Total current assets 142.0
Non-current assets
Property,plant and equipment	14.7
Intangible assets(includes water rights)	46.4
Land use rights	8.7
Total non-current assets	69.8
TOTAL ASSETS	211.8
LIABILITIES
Current liabilities
Total current liabilities	5.8
Total non-current liabilities	4.9
TOTAL LIABILITIES	10.7
NET ASSETS	201.1
CAPITAL AND RESERVES ATTRIBUTABLE TO THE OWNERS OF ASTRON LIMITED	201.1

• Overheads covered by interest received and trading income

• Balance sheet takes no account of any possible uplift in Donald and Niafarang projects or land use rights shown at book cost

• Spent c$50m on the purchase and development of the Donald Project

• Includes water rights of $18m

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Future funding and M&A plan

Funding

• Anticipate Donald Stage 1a and Stage 1b to be funded separately

• Prefer early funding to be via equity until cashflows are established

• Open to strategic / cornerstone investors

• Funding at either corporate level or project level

• Would consider non-vanilla financing solutions

M&A

• Will consider M&A if market conditions deteriorate

• May prevent Donald from being funded

• May be cheaper to buy than develop assets

• Would seek to use our strong balance sheet to buy assets

• Prefer

• In our areas of expertise

• Cash flow

• Operational leverage

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Management Team and Shareholder Structure

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Management expertise

• Board with strong industry and corporate governance expertise

• Experienced Exco with expertise in mineral sands, financing and marketing

• Excellent network in Chinese zircon and titanium feedstock markets

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

• Utilise highly experienced consultants to complement team

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Board and Exco

NAME	POSITION	EXPERIENCE
Gerry King*	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 JP Morgan.

• Board member

Exco member

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Project Team

EXECUTIVE	POSITION	EXPERIENCE
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.
Zhou Kui	Director MSP	Over 20 years of experience in mineral separation processing.
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.

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Consultants – Donald

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

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Consultants – Donald

AREA	CONSULTANT
Mapping & Geological Database	Resource & Exploration Mapping
Radiation	Australian Radiation Services / ANSTO
Flora & Fauna	Ecology Partners
Cultural Heritage	Landskape Consulting
Power	Parsons Brinckerhoff
Water	W3+
Roads	Driscoll Engineering
Drilling Provider	Wallis Drilling
Agricultural Advisor	Mr John Griffith
Land Valuations	Wimmera Valuation Services
Legal	DLA Piper
Independent Technical Expert	SRK Consulting

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Shareholding and projects

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Other Top 20 Remaining Shareholders
Firback/PT Arafua
Shareholders (610)
70%
21% 9%
ASTRON LIMITED
Donald Mineral Sands Niafarang Mineral
Technical R&D Trading Business
Project Sands Project
(Yingkou, China) (Shenyang, China)
(Victoria, Australia) (Senegal)
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*Subject to approvals to be top hatted by Astron Corporation Limited

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Disclaimer, forward looking statements and Competent Person’s Statement

This presentation has been prepared by Astron Limited (the ‘‘Company”). 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 relating to Mineral Resources is based on information compiled by Rod ] Webster. Rod Webster is a full time employee of AMC Consultants Pty Ltd and a Member of the Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity he undertook to qualify as a Competent Person as defined in the JORC Code, 2004 Edition.

March 2012

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