CENTAURUS METALS LIMITED — Investor Presentation 2012

Aug 6, 2012

==> picture [65 x 45] intentionally omitted <==

Centaurus : Powering towards production

• :

• Jambreiro Feasibility Study

Q3 2012

• Approvals and Financing:

Q4 2012

• Construction:

Q2 2013

Darren Gordon Managing Director

==> picture [235 x 21] intentionally omitted <==

Disclaimer

==> picture [65 x 45] intentionally omitted <==

• 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.

Page 2

Overview

==> picture [65 x 45] intentionally omitted <==

• 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 Q3 2012, approvals well advanced, financing Q4 2012

• 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 (19.85%), Liberty Metals & Mining (12.95%)

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

==> picture [913 x 114] intentionally omitted <==

==> picture [235 x 21] intentionally omitted <==

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

Page 3
----- End of picture text -----

==> picture [65 x 45] intentionally omitted <==

Brazilian Iron Ore Market

==> picture [876 x 441] intentionally omitted <==

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

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)
30% 39%
50 70
Forecast Forecast
45
60
40
35 50
30
40
25
30
20
15 20
33 33 26 32 35 37 39 41 43 48 53 48 34 42 45 49 52 55 57 68
10
10
5
0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2021 2007 2008 2009 2010 2011 2012 2013 2014 2015 2021
----- End of picture text -----

• 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 – April 2012

Page 4

Brazilian Domestic Project Hub

==> picture [223 x 280] intentionally omitted <==

Page 5

Domestic Project Hub

• 174Mt resource base – three projects

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

==> picture [117 x 83] intentionally omitted <==

• Future growth potential: Guanhaes tenements, Passabem, Itambé

==> picture [102 x 165] intentionally omitted <==

==> picture [223 x 280] intentionally omitted <==

==> picture [235 x 21] intentionally omitted <==

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

Page 6
----- End of picture text -----

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%

• Pre-production CAPEX: A$132M

• Bankable Feasibility Study underway

• Targeting production of 2Mtpa @ 65 - 66% Fe by Q4 2013, growing to 3Mtpa

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

• Approvals process well advanced

• Updated JORC resource of 125.2Mt @ 26.7% Fe with large lift in Measured Resources for BFS

==> picture [473 x 489] intentionally omitted <==

Page 7

Jambreiro – Bankable Feasibility Study

==> picture [65 x 45] intentionally omitted <==

RESOURCES & MINING

==> picture [170 x 74] intentionally omitted <==

==> picture [54 x 46] intentionally omitted <==

• 

• In-fill drilling complete

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

• 

• Pit Optimization work complete

• Mine Sequencing in progress

• BFS Ore Reserves: September 2012

==> picture [52 x 47] intentionally omitted <==

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

GEOTECH, WATER, TAILINGS

==> picture [147 x 72] intentionally omitted <==

==> picture [54 x 43] intentionally omitted <==

• 

• Geotech drilling for pit walls complete

==> picture [52 x 47] intentionally omitted <==

• Geotech drilling for tailings dam, plant area and workshop near complete. 6 rigs on site

• Water & Power trade-off studies underway

• 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

PROCESS, ENGINEERING, DESIGN

==> picture [187 x 95] intentionally omitted <==

• 

• Positive results from pilot plant testwork

• Product being prepared to deliver to potential customers

• Potential reductions in CAPEX and OPEX from introduction of jig to the plant design

• Engineering design and CAPEX and OPEX estimates underway

==> picture [52 x 45] intentionally omitted <==

• Consultant: Contecmina Consultoria em Mineraҫão (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 Jambrerio BFS and development

Page 8

==> picture [65 x 45] intentionally omitted <==

Jambreiro – Attractive Economics, Low Mining Costs

==> picture [445 x 489] intentionally omitted <==

==> picture [169 x 212] intentionally omitted <==

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

PFS Assumptions
Initial mine 8.5
life: years
Strip ratio: 0.94:1
Production
2Mtpa
rate:
----- End of picture text -----

==> picture [169 x 214] intentionally omitted <==

Page 9

Jambreiro – Planned Site Layout

==> picture [65 x 45] intentionally omitted <==

==> picture [913 x 489] intentionally omitted <==

Page 10

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 FRIABLE ORE – SEMI PILOT PLANT (2.5T) Head Grade 29.8 50.7 3.7 0.03 Beneficiated Product 65.6 2.8 0.9 0.01 38.0 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 and Product being Prepared for Potential Customers

==> picture [65 x 45] intentionally omitted <==

==> picture [405 x 483] intentionally omitted <==

Page 11

Jambreiro – Land Access & Approval Process

==> picture [65 x 45] intentionally omitted <==

Environmental Approvals

• 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

• 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

==> picture [389 x 219] intentionally omitted <==

==> picture [388 x 240] intentionally omitted <==

==> picture [32 x 482] intentionally omitted <==

Page 12

Jambreiro – Development Timeline

==> picture [65 x 45] intentionally omitted <==

==> picture [893 x 410] intentionally omitted <==

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

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

Page 13

Corporate Overview

Capital Structure (post capital raising)*

Shares on Issue	196.0m
Options	13.6m
Share Price	$0.35
Market Capitalisation	$69m
Cash at bank	$35m
Enterprise Value	$34m

*Following completion of $26.2m capital raising – September 2012

Broker Research
Broker	Date	12-Month Price Target
Hartleys	24-07-12	$1.52
Ord Minnett	09-07-12	$1.75
Cannacord BGF	20-06-12	$1.16
Bell Potter	05-06-12	$1.43
RFC Ambrian	31-05-12	$1.78
PCF Capital	04-05-12	$1.44

==> picture [65 x 45] intentionally omitted <==

Centaurus Metals Board

Didier Murcia	Non-Executive Chairman
Darren Gordon	Managing Director
Peter Freund	Operations Director
Keith McKay	Non-Executive Director
Richard Hill	Non-Executive Director
Mark Hancock	Non-Executive Director

==> picture [194 x 237] intentionally omitted <==

Major Shareholders (post capital raising)

Atlas Iron Ltd (19.85%) – 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 $2.0 billion, cash reserves of $400 million (30 June 2012) and no debt.

Liberty Metals and Mining Holdings LLC (12.95%) – A Boston based subsidiary of Liberty Mutual Insurance, the third largest diversified property and casualty (“P&C”) insurer in the US and the sixth largest P&C insurer worldwide.

Page 14

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: $35m cash following completion of

• placement – Early September 2012

• Supportive strategic shareholders: Atlas & Liberty

==> picture [65 x 45] intentionally omitted <==

==> picture [257 x 482] intentionally omitted <==

Page 15

==> picture [65 x 45] intentionally omitted <==

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

==> picture [235 x 21] intentionally omitted <==