CENTAURUS METALS LIMITED — Investor Presentation 2012

Mar 19, 2012

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20 March 2012

Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

CENTAURUS METALS LIMITED (ASX CODE: CTM) CORPORATE PRESENTATION

Please find attached the latest investor presentation which will be delivered at the Mines and Money Conference in Hong Kong on 22 March 2012 and the Casimir Capital Australian Resources Conference in New York next week on Monday 26 March 2012.

Yours faithfully, CENTAURUS METALS LIMITED

Darren Gordon Managing Director

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Darren Gordon , Managing Director

Centaurus : Powering towards production

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Emerging iron ore producer in Brazil

2Mtpa domestic production by end 2013

1-2Mtpa export business by end 2014

March 2012 Investor Presentation

Page 1

Disclaimer

• 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

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

• Developing low capital/operating cost mines

• Leveraging off existing Road & Port infrastructure

• Phase 1 production – domestic supply to Brazilian steel mills:

• Jambreiro Project (Minas Gerais) = 2Mtpa by end 2013

• Meet growing domestic demand for iron ore

• Phase 2 production – export to global markets:

• Serra da Lontra (Bahia) = 1-2Mtpa by end 2014

• Existing road, port facilities at Ilhéus

• High-grade, consistent quality product

• Experienced in-country management and technical team

• Supportive strategic shareholder – Atlas Iron (19.9%)

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Page 3

The Low Capex Path to Iron Ore Production

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Brazil – Latin America’s Economic Powerhouse

•	World economic ranking:	8th
•	Ranking in Latin America:	1st
•	GDP growth (2011)	2.7%
•	GDP growth forecast (2012):	4.5%
•	Population:	~205M
•	Foreign Direct Investment (2011):	US$67B
•	Iron ore production:	>300Mtpa
•	Steel production:	~40Mtpa

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)

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

Page 5

Brazilian Iron Ore Market

• Large domestic market for iron ore consumption – in close proximity to iron ore mines (unlike Australia)

• Domestic iron ore consumption to rise by 32% by 2021

• Major steel companies, with steel mills within a 150km radius of Centaurus Metals ’ projects have significant domestic production

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

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’ Project Hubs – The Epicentre of Brazil s Economy

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Page 7

’ Centaurus Metals Projects

• 165Mt resource base – three projects

• • Cornerstone – Jambreiro Project (116.5Mt)

• • Future growth potential – Passabem, Itambé

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Itabirite Ore...A Major Source of Iron Production in Brazil

• Metamorphosed iron formation composed of iron oxides with abundant quartz

• Iron Quadrangle itabirites typically comprise hematite

• Lower mine grade than other sources of hematite (averaging 30-50% Fe)

• Extremely well suited to low cost beneficiation

• Can be upgraded to 63-68% Fe via simple and low cost beneficiation

• High-quality final hematite product with low contaminants

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Jambreiro – Overview

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Page 10

Jambreiro – Overview

• Cornerstone of domestic iron ore business

• Located 130km from key steel-making region of Ipatinga (Usiminas, Arcelor Mittal)

• Feasibility Study underway – due Q3 2012

• Targeting production of 2Mtpa @ 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

• Permitting underway ahead of project financing

• Substantial growth potential with more drilling

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Page 11

Jambreiro – Key Project Economics (November 2011 PFS)

• Operating costs: A$19.9/tonne • EBITDA: A$858 million • Annual operating cash flows A$101 million • Post-tax NPV: A$289 million • IRR: 53% • Pre-production capital: A$132 million • Assumed sales price: US$73/tonne

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Page 12

Jambreiro – Plant Layout and Process Design

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• Initial mine life: 8.5 years
• Strip ratio: 0.94:1
• Production rate: 2Mtpa
Process Flowsheet
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Jambreiro – Capital and Operating Costs

Capital Equipment	Total (A$ M)
DIRECT COSTS
Sizing & Screening	20.9
Beneficiation	38.4
Product Handling	10.0
Tails Management & Water Recovery	9.4
Water Supply	6.8
Power Supply	5.1
Site Infrastructure & Support Services	15.0
Commissioning, Spares & First Fill	6.1
TOTAL DIRECT CAPEX	111.7
Detailed Engineering & Construction Management	8.1
Contingency	11.8
TOTAL CAPEX	131.6
Operating Costs	A$ per Tonne Product
Mining (Including Equipment Leasing)	8.1
Sizing, Screening & Beneficiation	8.8
Administration	1.4
Contingency	1.6
OPERATING CASH COST	19.9

• A$66/t of annual production capacity

• Main processing is WHIMS circuit

• Capex and Opex benefits from highly friable, naturally liberated, iron

ore

• Key Opex inputs:

• Power: A$0.09 per Kw/h

• Diesel: A$1.06/litre

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Jambreiro – Product Quality

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Mass
PRODUCT QUALITY Fe% SiO2% Al2O3% P% Recovery %
PROCESS – WET MAGNETIC SEPARATION
FRIABLE ORE
Head Grade 28.2 51.1 5.0 0.04
Beneficiated Product 66.6 2.8 0.7 0.02 37
COMPACT MINERALISATION
Head Grade 25.0 55.9 2.2 0.07
Beneficiated Product 66.2 3.7 0.9 0.01 35
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Page 15

Timeline – Jambreiro Development

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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
Lodge EIA/RIMA Anticipated LI Operating Licence
Anticipated EIA/RIMA
Approval Issued (LO)
Approval (LP)
Lodge Installation Licence (LI)
Centaurus : Powering towards production
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Project Hubs

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Serra da Lontra Iron Ore Project

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140km
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Serra da Lontra Iron Ore Project

• 140km by sealed road from export port of Ilheus and proposed development of Porto Sul

• Provides opportunity to start a relatively low capex export business at 1-2 Mtpa

• Exploration Target = 30-50 Mt @ 35 to 45% Fe

• Potential to produce 15-25 Mt of high grade hematite

• Estimate costs to port US$50 per tonne of concentrate

• Bahia State Government very supportive of CTM and strong desire to build iron ore industry in Bahia

• Maiden drilling program underway

• Ongoing assessment of new project opportunities

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Serra da Lontra Iron Ore Project

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• Mapping and sampling has shown a higher grade nature of itabirite mineralisation at Serra da Lontra

• Average surface grade 45-47% Fe

Page 20

Company Structure

Capital Structure

Shares on Issue	133.5m
Options	16.6m
Share Price	$0.55
Market Capitalisation	$73.4m
Cash at bank (28 Feb ’12)	$17.2m
Debt	NIL
Enterprise Value	$56.2m

Shareholding

** Strategic Shareholder – Atlas Iron Ltd is an Australian iron ore exploring and producing company listed on the ASX (ASX code: AGO), currently producing at a rate of 6Mtpa. Since listing in 2004 Atlas has grown rapidly and is now a member of the S&P/ASX100 index. Atlas employs over 450 persons, has a market capitalisation of circa $3.0 billion, cash reserves of A$380 million (31 December 2011) and no debt.

Centaurus Metals Board	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
George Jones AM	Strategic Consultant

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Centaurus Key Personnel

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Geoff James – CFO & Company Secretary

Klaus Petersen – Chief Geologist – New Projects

– Alexandro de Moura GM – Operations

Bruno Scarpelli – GM – Environmental & OH&S

Roger Fitzhardinge – GM – Exploration & Evaluation Luiz Carlos Noronha Jr. – Legal Counsel & Administrator – Antonio Celso Pereira GM – Logistics

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

Page 22

Summary

• Domestic production strategy on track – BFS underway on Jambreiro Project

• Targeting maiden production by Q4 of 2013

• Export strategy gathering momentum – maiden drilling program underway at Serra da Lontra

• Ability to leverage off existing common-user port infrastructure

• Highly experienced team with strong global experience in the financing, development and operation of iron ore projects

• Supportive major shareholder experienced in delivery of low capex iron ore projects

Centaurus Metals is one of the few ASX listed companies providing direct exposure to the rapid development in Brazil

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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

Page 24

Jambreiro – Price Sensitivities

• NPV Sensitivity Analysis

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2 Mtpa			Case				Post Tax – NPV	Post Tax – NPV	(A$M)
Variable	-20%	-10%	Base	+10%	+20%	-20%	-10%	Base	+10%	+20%
Price (FOB Mine) USD/dmt	58	66	73	80	88	185.6	237.1	288.7	340.2	391.7
Capital Expenditure ($M)	158	145	132	118	105	270.1	279.4	288.7	297.9	307.2
Direct Operating Expenditure ($M/dmt)	23.8	21.8	19.9	17.9	15.9	261.0	274.8	288.7	302.5	316.4
Foreign Exchange Rate R$/AUD	1.98	1.82	1.65	1.49	1.32	241.3	262.8	288.7	320.3	359.8
Discount Rate %	10	9	8	7	6	252.9	270.1	288.7	308.6	330.0

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Jambreiro – Resources

• Mineral Resources

Prospect	JORC Category	Million Tonnes	Fe %	SiO2 %	Al2O3 %	P %	LOI %
Friable	Measured	12.1	28.6	51.2	4.6	0.03	1.7
	Indicated	39.9	27.9	51.1	5.3	0.04	2.2
	Measured + Indicated	52.1	28.0	51.1	5.1	0.04	2.1
	Inferred	15.0	24.9	55.2	5.3	0.04	2.1
	TOTAL	67.0	27.3	52.0	5.1	0.04	2.1
Compact	Measured	1.4	27.4	48.8	2.8	0.05	1.6
	Indicated	18.6	26.6	50.2	3.0	0.06	1.2
	Measured + Indicated	20.0	26.6	50.1	3.0	0.05	1.3
	Inferred	29.5	25.7	51.9	4.0	0.05	1.3
	TOTAL	49.5	26.1	51.1	3.6	0.05	1.3
	TOTAL	116.5	26.8	51.6	4.5	0.04	1.7

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Cut-off 20% Fe Resources include Reserves

• Ore Reserves

Prospect	JORC Category	Million Tonnes	Fe %	SiO2 %	Al2O3 %	P %	LOI %
Jambreiro Friable	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

Cut-off 20% Fe

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Jambreiro Iron Ore Project

• Reserve Summary by Deposit

Prospect	JORC Category	Million Tonnes	Fe %	SiO2 %	Al2O3 %	P %	LOI %
Tigre	Proven	12.0	28.6	51.2	4.5	0.03	1.7
	Probable	25.7	27.8	51.7	4.9	0.04	1.9
	TOTAL	37.7	28.0	51.6	4.8	0.04	1.9
Cruzeiro	Proven	-	-	-	-	-	-
	Probable	4.5	31.0	49.1	3.9	0.04	1.8
	TOTAL	4.5	31.0	49.1	3.9	0.04	1.8
Galo	Proven	-	-	-	-	-	-
	Probable	6.8	27.1	49.5	7.4	0.04	3.3
	TOTAL	6.8	27.1	49.5	7.4	0.04	3.3
Jambreiro Total	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
Friable	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

Cut-off 20% Fe

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Jambreiro Iron Ore Project

• Resource Summary by Deposit

Prospect	JORC Category	Million Tonnes	Fe %	SiO2 %	Al2O3 %	P %	LOI %
Tigre	Measured	13.5	28.4	51.0	4.4	0.04	1.7
(Including South	Indicated	44.3	27.1	51.3	4.1	0.04	1.6
East Extension)	Measured + Indicated	57.8	27.4	51.2	4.2	0.04	1.7
	Inferred	27.9	25.6	52.1	3.8	0.05	1.1
	TOTAL	85.7	26.8	51.5	4.1	0.05	1.5
Cruzeiro	Measured
	Indicated	6.3	30.8	48.6	4.0	0.04	1.8
	Measured + Indicated	6.3	30.8	48.6	4.0	0.04	1.8
	Inferred	2.3	29.4	45.2	6.2	0.06	2.8
	TOTAL	8.6	30.5	47.7	4.6	0.04	2.1
Galo	Measured
	Indicated	7.9	26.6	49.8	7.5	0.04	3.4
	Measured + Indicated	7.9	26.6	49.8	7.5	0.04	3.4
	Inferred	7.6	25.1	52.5	6.3	0.04	2.9
	TOTAL	15.5	25.9	51.1	6.9	0.04	3.2
Coelho	Inferred	6.7	23.8	59.6	4.3	0.03	1.5
	TOTAL	6.7	23.8	59.6	4.3	0.03	1.5
Jambreiro Total	Measured	13.5	28.4	51.0	4.4	0.04	1.7
	Indicated	58.5	27.5	50.8	4.5	0.04	1.9
	Measured + Indicated	72.1	27.6	50.8	4.5	0.04	1.9
	Inferred	44.5	25.4	53.0	4.4	0.05	1.6
	TOTAL	116.5	26.8	51.6	4.5	0.04	1.7

Cut-off 20% Fe Resources include Reserves

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