CENTAURUS METALS LIMITED — Investor Presentation 2012

Oct 16, 2012

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Centaurus : Powering towards production

• :

• Jambreiro Feasibility Study

• October 2012

• Approvals:

Q4 2012

• Financing:

Q1 2013

• Construction:

Q2 2013

Darren Gordon Managing Director

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Disclaimer

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• This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

• To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.

• This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Centaurus Metals. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Centaurus Metals does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.

• The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Roger Fitzhardinge who is a Member of the Australasia Institute of Mining and Metallurgy and Volodymyr Myadzel who is a Member of Australian Institute of Geoscientists. Roger Fitzhardinge is a permanent employee of Centaurus Metals Limited and Volodymyr Myadzel is the Senior Resource Geologist of BNA Consultoria e Sistemas Limited, independent resource consultants engaged by Centaurus Metals. Roger Fitzhardinge and Volodymyr Myadzel have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve’. Roger Fitzhardinge and Volodymyr Myadzel consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

• The information in this report that relates to Ore Reserves is based on information compiled by Beck Nader who is a professional Mining Engineer and a Member of Australian Institute of Geoscientists. Beck Nader is the Managing Director of BNA Consultoria e Sistemas Ltda and is a consultant to Centaurus. Beck Nader has sufficient experience, which is relevant to the style of mineralization 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 Resources and Ore Reserve’. Beck Nader consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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Overview

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• Building a long-term iron ore business in SE Brazil

• Developing low capital and operating cost mines near existing infrastructure and customers

• 2Mtpa domestic production on track to commence at Jambreiro by Q4 of 2013:

• Bankable Feasibility Study nearing completion, approvals well advanced

• Export strategy targeting initial 1-2Mtpa of production using established infrastructure

• High-grade, low impurity consistent quality product: growing domestic market

• Experienced in-country management and technical team, backed by a strong Board

• Supportive strategic shareholders: Atlas Iron (19.6%), Liberty Metals & Mining (12.8%)

Centaurus Metals is well advanced towards its goal of becoming a profitable iron ore producer in Brazil by late 2013.

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Brazil – Latin America’s Economic Powerhouse

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•	World economic ranking:	6th
•	Ranking in Latin America:	1st
•	GDP growth (2011)	2.7%
•	Revised GDP growth forecast (2012):	2.0%
•	Population:	~205M
•	Foreign Direct Investment (2011):	US$67B
•	Iron ore production:	>300Mtpa
•	Steel production:	~35Mtpa

By 2050, the Brazilian population is expected to increase to 260M and the economy is forecast to be one of the world’s Top Five, making it a highly attractive destination for foreign investment. (Source: Goldman Sachs)

Sources: Brazilian Central Bank, CIA – The World Factbook, Bloomberg

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Aerial view of Belo Horizonte, Minas Gerais, Brazil

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Brazilian Iron Ore Market

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Large domestic market for iron ore consumption
Brazilian economy expected to rebound in the medium term with
infrastructure investment for 2014 Soccer World Cup and 2016 Olympics
Significant market opportunity with major steel mills located within
150km radius of key Centaurus Projects
Brazil Crude Steel Production (Mt) Brazil Iron Ore Consumption (Mt)
26% 25%
50 Forecast 70 Forecast
45
60
40
35 50
30
40
25
30
20
15 20
33 33 26 32 34 34 37 39 41 43 53 48 34 45 48 48 53 56 58 60
10
10
5
0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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• Large domestic market for iron ore consumption

• Brazilian economy expected to rebound in the medium term with infrastructure investment for 2014 Soccer World Cup and 2016 Olympics

• Significant market opportunity with major steel mills located within 150km radius of key Centaurus Projects

Source: CRU International Limited – The Iron Ore Market Limited Interim Report – October 2012

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Brazilian Domestic Project Hub

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Domestic Project Hub

• 174Mt resource base – three projects

• Cornerstone = Jambreiro Project (125.2Mt) – 130km from Ipatinga steelmaking region

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• Future growth potential: Guanhaes tenements, Passabem, Itambé

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Jambreiro – Overview
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Jambreiro – Production on Track for 2013

• Pre-Feasibility Study – November 2011:

  • Operating costs: A$20/tonne

  • EBITDA: A$858M, annual cash flows: A$101M

  • Post-tax NPV: A$289M, IRR: 53% @ US$73/t

  • Pre-production CAPEX: A$132M

• Bankable Feasibility Study nearing completion

• Targeting production of 2Mtpa @ 66% Fe by Q4 2013, growing to 3Mtpa

• Consistent and reliable supplier of high-quality, low impurity iron ore to domestic steel mills

• Approvals process well advanced

• In-Pit friable resource of 48.5Mt @ 28.1% Fe for

• ~ 18Mt of high grade product

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Jambreiro – Bankable Feasibility Study

RESOURCES & MINING

• 

• In-fill drilling complete

• BFS JORC resource upgrade complete: 125.2Mt @ 26.7% Fe 

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• 

• Pit Optimization work complete

• 

• Mine Sequencing complete

• BFS Ore Reserves: October 2012

GEOTECH, WATER, TAILINGS

• 

• Geotech drilling for pit walls complete

• Geotech drilling for tailings dam, plant area and workshop complete 

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• 

• Water & Power trade-off studies complete

• 

• Tails dam design complete

PROCESS, ENGINEERING, DESIGN

• 

• Positive results from pilot plant testwork

• 

• Site Layout design complete

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• Product offtake discussions underway

• 

• Basic engineering design complete

• CAPEX and OPEX estimates nearing completion

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• Consultant: BNA Micromine do Brazil Consultoria Ltda (Brazilian branch of international Micromine services & software group) – Resource, Reserve and Mining work

• Consultant: WALM Engenharia e Tecnologia Ambiental Ltda (Brazilian-based engineering group with extensive experience working on numerous Iron Quadrangle iron ore mines) – input to BFS on geotechnical, water & waste management

• Consultant: Contecmina Consultoria em Minera ҫ ão (subsidiary of major Brazilian engineering house Contécnica) – beneficiation flowsheet, basic engineering and equipment selection for the BFS

• New Process Engineer and Engineering Manager engaged in-house to support Jambreiro BFS and development

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Jambreiro Plant Layout and Process Design

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	PFS Assumptions	BFS Assumptions
Initial mine life:	8.5 years	9.0 years
Strip ratio:	0.94:1	0.95:1
Production rate:	2Mtpa	2Mtpa

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Jambreiro – Site Layout

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Jambreiro – Product Quality

Mass PRODUCT QUALITY Fe% SiO2% Al2O3% P% Recovery % PROCESS – WET MAGNETIC SEPARATION FRIABLE ORE – PILOT PLANT (30T) Head Grade 30.4 52.3 2.7 0.02 Beneficiated Product 66.0 4.1 0.8 0.01 39.4 COMPACT MINERALISATION – BENCH SCALE Head Grade 25.0 55.9 2.2 0.07 Beneficiated Product 66.2 3.7 0.9 0.01 35.2

30 Tonne Pilot Plant Testwork Program Complete

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Jambreiro – Land Access & Approval Process

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Environmental Approvals

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• EIA/RIMA lodged with SUPRAM

• Three stage approval process

• LP October 2012 (On track)

• LI April 2013

• LO December Quarter 2013

• Strong community support for Project

• Job creation

• Share of royalty

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• SUPRAM has undertaken site visit. Successful Public Hearing held in São João Evangelista in late June

• Land Access

• 10-year land access and co-operation signed with land owner CENIBRA

• Project land used to grow eucalypt trees

• Much of Project area already cleared

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Jambreiro – Development Timeline

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2012 2013 2014
On Site Construction
BFS Complete Commences Production
Commences
Commence Off Site
Pre-Fabrication
Lodge Mining
Lease Application Project Financing
In Place
Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar
Anticipated LI
EIA/RIMA Lodged Operating Licence
Anticipated EIA/RIMA Approval
Issued (LO)
Approval (LP)
Lodge Installation Licence (LI)
Centaurus : Powering towards production
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Jambreiro – Exploration Upside

G100 Project

• Initial mapping and detailed ground magnetic survey completed

• Large magnetic anomaly, with 30km strike only 15km from Jambreiro

• Similar geological setting to the friable ore identified at Jambreiro

• To date magnetic signature has not been explained – no outcrop

• 2,500m initial RC drilling program to commence Q4 2012

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Serra da Lontra Iron Ore Project – Bahia

• 140km via sealed road from export port of Ilheus

• Opportunity for relatively low CAPEX export business

• Supportive State Government in Bahia

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• Resource nearing completion

• Scoping Study underway

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Curral Velho Iron Ore Project – Paraiba

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• Acquired via tenement swap

• 20km strike of prospective iron formation

• 65km from major rail line under construction

• 350km from major export port of Suapé

• Tenement extensions being applied for with DNPM

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Corporate Overview

Capital Structure (post capital raising)

Shares on Issue	196.0m
Options	13.6m
Share Price	A$0.30
Market Capitalisation	A$58.8m
Cash at bank	A$28.7m
Enterprise Value	A$30.1m

Broker Research
Broker	Date	12-Month Price Target
Canaccord Genuity	07-08-12	$0.98
RFC Ambrian	06-08-12	$1.58
Investec	02-08-12	$0.70
Hartleys	24-07-12	$1.52
Bell Potter	05-06-12	$1.43
PCF Capital	04-05-12	$1.44

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Centaurus Metals Board	Centaurus Metals Board
Didier MurciaB.Juris, LL.B	Non-Executive Chairman
Darren GordonB.Bus, CA. FFin, ACIS, MAICD	Managing Director
Peter FreundFAusIMM(CP), F.AIM	Operations Director
Keith McKayBSc (Hons), FAusIMM, MAICD	Non-Executive Director
Richard HillB.Juris, LL.B, BSc (Hons), FFin	Non-Executive Director
Mark HancockB.Bus, CA, FFin	Non-Executive Director
Sheila LyonsBA(Econ), MBA	Non-Executive Director

Major Shareholders (post capital raising)

Atlas Iron Ltd (19.6%) – An Australian iron ore company listed on the ASX (AGO), currently producing at the rate of ~6Mtpa. Since listing in 2004, Atlas has grown rapidly as is now an S&P ASX 100 company. Atlas employs over 450 people, has a market capitalisation of circa $1.5 billion, cash reserves of $400 million (30 June 2012) and no debt. Liberty Metals and Mining Holdings LLC (12.8%) – A Boston based subsidiary of Liberty Mutual Insurance, the third largest diversified property and casualty (“P&C”) Atlas Iron Ltd - 19.6% insurer in the US and the sixth largest P&C insurer Liberty Metals & Mining Holdings LLC - 12.8% worldwide. Institutions - 12.7% Directors and Management - 5.5% Others - 49.1%

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Centaurus Key Personnel

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Geoff James: CFO & Company Secretary

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Alexandro de Moura : GM – Operations

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Bruno Scarpelli: GM – Environmental & OH&S

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Roger Fitzhardinge: GM – Exploration & Evaluation

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Rodrigo Branco: GM – Commercial

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Luiz Carlos Noronha Jr.: Legal Counsel & Administrator

• Strong Management team predominantly based in the Belo Horizonte office experienced in developing Brazilian resource projects

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Summary

• Brazil-focused iron ore developer

• Proven business model: Mine Beneficiate Deliver , ,

• Low capital intensity, low operating costs

• Strong forecast cash flows

• Close to production: Feasibility Study nearing completion

• Well-funded: $28m cash

• Supportive strategic shareholders: Atlas & Liberty

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Centaurus : Powering towards production

Darren Gordon Managing Director Contact details: Registered Office: Level 1, 16 Ord Street, West Perth, Western Australia 6005

Telephone: +61 8 9420 4000 Email: office@centaurus.com.au

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Jambreiro – Resource Table

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Prospect/ Deposit	**Material Type **	Million Tonnes	Fe %	SiO2 %	Al2O3 %	P %	LOI %
Tigre	Friable	39.5	28.3	51.7	4.4	0.04	1.7
	Compact	41.2	25.6	51.8	3.8	0.06	1.0
	TOTAL	81.3	26.9	51.7	4.1	0.05	1.3
Cruzeiro	Friable	9.7	28.9	47.3	4.0	0.05	1.9
	Compact	12.2	25.8	37.3	3.1	0.06	1.4
	TOTAL	22.2	27.1	41.8	3.6	0.05	1.7
Galo	Friable	10.2	26.7	49.8	6.7	0.04	2.8
	Compact	4.2	26.0	50.4	7.0	0.05	1.1
	TOTAL	14.4	26.5	50.0	6.8	0.04	2.3
Coelho	Friable	5.4	23.9	58.2	4.8	0.03	1.8
	Compact	1.8	25.0	58.7	3.6	0.02	1.2
	TOTAL	7.2	24.2	58.3	4.5	0.03	1.6
Jambreiro Total	FRIABLE	64.7	27.8	51.3	4.7	0.04	1.9
	COMPACT	59.4	25.6	49.0	3.9	0.06	1.1
	TOTAL	125.2	26.7	50.2	4.4	0.05	1.5
							20% Fe Cut-Off

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Jambreiro – Resource Table

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	JORC Category	Million Tonnes	Fe %	SiO2 %	Al2O3 %	P %	LOI %
Friable	Measured	37.6	28.8	50.7	4.4	0.04	1.7
	Indicated	16.1	27.3	50.2	5.4	0.04	2.4
	Measured + Indicated	53.7	28.4	50.6	4.7	0.04	1.9
	Inferred	12.1	25.0	54.2	5.1	0.04	2.0
	TOTAL	65.7	27.7	51.2	4.8	0.04	1.9
Compact	Measured	9.1	25.9	52.2	3.5	0.06	1.1
	Indicated	19.5	25.8	49.5	3.4	0.06	1.2
	Measured + Indicated	28.6	25.8	50.4	3.4	0.06	1.2
	Inferred	30.8	25.5	47.6	4.3	0.06	1.0
	TOTAL	59.4	25.6	49.0	3.9	0.06	1.1
Total	Measured	46.7	28.3	51.0	4.2	0.04	1.6
	Indicated	35.5	26.5	49.9	4.3	0.05	1.7
	Measured + Indicated	82.3	27.5	50.5	4.3	0.05	1.7
	Inferred	42.9	25.3	49.5	4.5	0.06	1.3
	TOTAL	125.2	26.7	50.2	4.4	0.05	1.5
						20% Fe Cut-Off

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Jambreiro – Resource & Reserve Estimates

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Ore Reserve Classification – Nov 2011	Million Tonnes	Fe %	SiO2 %	Al2O3 %	P %	LOI %
Proven	12.0	28.6	51.2	4.5	0.03	1.7
Probable	37.0	28.0	51.0	5.2	0.04	2.2
TOTAL	49.0	28.2	51.1	5.0	0.04	2.1
In-Pit Resource – Sept 2012
Measured	35.4	28.5	49.6	4.3	0.04
Indicated	13.1	27.2	49.0	5.3	0.04
Total	48.5	28.1	49.4	4.6	0.04

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