CLARA RESOURCES AUSTRALIA LTD — AGM Information 2012

Nov 27, 2012

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2012 Annu al General Meeting Presentation

28 November 2012

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Disclaimers

Forward Looking Statements

Whilst based on information from sources considered reliable, AusNiCo Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information in this document and presentation is complete or accurate. To the maximum extent permitted by law, AusNiCo Limited disclaims any responsibility to inform any recipient of this document and presentation of any matter that subsequently comes to its notice, which may affect any of the information contained in this document and presentation. Competent Persons Statement The information in this presentation that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Nicholas Mather B.Sc (Hons) Geol., who is a Member of The Australian Institute of Mining and Metallurgy. Mr Mather is employed by Samuel Capital Pty Ltd, which provides certain consultancy services including the provision of Mr Mather as a Director of AusNiCo. M r M a th er h as more th an fi ve years exper ence i w hi c h i s re evan l t t o th e s t y e l o f m nera i li sa ti on an d t ype o f d epos it b e ng i repor t e d 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, Minerals Resources and Ore Reserves’ (the JORC Code). This public report is issued with the prior written consent of the Competent Person(s) as to the form and context in which it appears.

Exploration Target

The Exploration Target is based upon a historic estimate supported by a pre‐feasibility study, that included 33,350m of drilling and bulk sampling and which demonstrated three major zones of mineralisation to a depth 200m and strike length of up to 650m. It is the view of Taronga’s Competent Person that the Taronga Tin Project is significantly more advanced than an Exploration Target, but is limited within the framework of the VALMIN Code. Further information can be found on Taronga’s website at www.tarongamines.com.au or at http://digsopen.minerals.nsw.gov.au/, Report GS1984/35. There has been insufficient recent exploration to define a Mineral Resource. It remains uncertain if further exploration will result in the determination of a Mineral Resource.

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2.

Agenda

	Page
	E l i d 4 xp orat on up ate Taronga Mines – Acquisition Summary and Rationale 5
	Tin Market – Supply and Demand Fundamentals 7
	Taronga Mines Company Overview 10 – Independent Expert’s Report – Summary 17
	Conclusions 18

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3.

Exploration Update 2012

Completion of drilling program at the Black Snake Project

• ”

• A 1,287m ( 12 hole ) Reverse C irculation “R C drilling campaign was completed in the Black S nake Plateau region to test geochemical and geophysical targets at the following prospects:- The Peak, Orion’s Belt, Pembroke, Mt Coora North, Mt Cobalt, Mt Clara North and Silver Valley South.

• A new gold (Ag-Cu) target has been identified from interrogation of all Pembroke drilling data in the NW sector near the contact of Mt Mia Serpentinite and Mt Clara Beds metasediments with PEM7 reporting 4m @ 1.3 g /t Au, 1.06% Cu & 12.6 g /t A g from 164m and PEM 14 ( 125m south ) re p ortin g 18m @ 1.3 g /t Au from 92m including a significant 2m @ 7.64g/t Au.

Marlborough Project granted in Queensland

• Neighbouring the currently producing Marlborough Nickel Laterite Mine

• Subject to native title clearances

New Nickel-prospective tenement in NW Tasmania

• EL 50/2011 Heazlewood River, Tasmania was granted on 21/5/2012. The tenement is located within the Devonian Meredith Granite and Cambrian Heazlewood Ultramafic complex and has numerous nickel (Avebury style nickel sulphide up to 1.4% Ni at Fenton’s Knob) and platinoid prospects as well as enhanced Cu, Pb, Zn and Au prospectivity.

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4.

Acquisition of Taronga Mines

• AusNiCo Limited has made an offer to acquire all the issued shares of the public unlisted tin exploration company Taronga, with Taronga shareholders to be offered 5 AusNiCo shares for every 1 Taronga share.

• The offer implies a value of $0.12 per Taronga share or approximately $6.9 million for all of Taronga’s issued .

• capital

• Taronga has 13,100,000 options on issue each exercisable at $0.20. AusNiCo has offered 5 AusNiCo options exercisable at $0.04 per option exercisable by 30 June 2015 to Taronga Option holders in exchange f or th e cance ll a ti on o f every T aronga O p ti on h e ld .

• For Taronga shareholders, the offer represents a premium of 20% to the last capital raising conducted by Taronga in early 2012 at $0.10 per share.

• The transaction will be implemented through an off-market takeover offer for Taronga, which will be subject to certain conditions including ANW shareholder approval.

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5.

Acquisition Rationale

The Board of AusNiCo considers there to be a compelling strategic rationale for the transaction, including:

• Acquiring an advanced-stage project that can be brought into the development phase following the completion of a scoping study in 2013.

• Exposure to a new suite of commodities including tin . Tin has very attractive fundamentals .

• Brings to AusNiCo a well credentialed management and exploration team lead by Mr Peter Williams.

• Exploration upside from an additional 368km[2] of exploration tenements prospective for tin, tungsten, silver an d copper.

• Still provides AusNiCo shareholders with continued exposure to AusNiCo’s existing nickel sulphide projects in Queensland and Tasmania.

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6.

Tin Consumption

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Glass Others
Brass & 2% 10%
Bronze
5%
Chemicals
Solder
15%
52%
Tinplate
16%
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Key Statistics

• Global refined consumption 356kt (2011)

• Global forecast consumption 400kt (2015)

• Forecast growth of 2.8% driven by

• Demand for electronic goods (transition to lead-free solder alloys has underpinned demand since 2006/07)

Future Uses

• Growth opportunities in Lithium batteries, solar cells, and stainless steel

Distribution of Global Consumption

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7.

Tin Supply

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Key Statistics

• Global refined supply 349kt (2011)

• Global forecast production 291kt (2015)

• Supply deficit forecast to continue

Future Trends

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• Declining alluvial production from Indonesia

• –

• Increasing artisanal production from DRC however may be restricted due to push for conflict free tin (CFT)

• Increasing hard-rock production from Australia

• I ncrease d cap it a l cos s t

• Importance of by-products

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Global Mine Production (2012 estimate)

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Source: ITRI April 2012

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8.

Tin Price Outlook

CRU Commodity Heat Chart for 2016

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� A decline is expected in mined tin from the major global producers, China and Indonesia, with very little in the wa y of lar g e new p ro j ects. � The CRU (well respected independent commodity forecaster) forecasts a significant rise in tin prices through to 2016.

Note: 2016 annual average price forecast (nominal $ or benchmark) versus 2012 Q2 average actual prices

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9.

Taronga Location & History

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Taronga Location (Emmaville, NSW)

• New England Tablelands

• Local population @ 550 people and mainly rural (wheat/sheep)

• Taronga situated on freehold farming property

Taronga History

• Di scovery d a e t un k nown b u t ti n m n ng i i a t E mmav ill e since 1870s

• Newmont and JV partners (1980s) completed a PreFeasibility Study (PFS)

• –

• Exploration Target of 30Mt 50Mt grading 0.15% to 0.25% Sn[(1)]

• Taronga (2008) acquired project and subsequently secured adjacent Exploration Licenses

• Note: (1) Refer Exploration Target note on slide 2.

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10.

Significant Exploration Potential

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Historic Production

• 89kt contained tin mined since 1872

• � Region hosts >500 known tin occurrences

TML has four Exploration Licenses

• 368km[2] total area

• R eg ona i l G eo ogy l

• Projects situated in the New England Fold Belt hosting granitoids intruded into volcanics & sediments, the Mole Granite being the most notable

• Significant potential for tin, silver, copper, tungsten & gold

Key Targets

• McDonalds

• Emerald

11.

Grade Potential – Volume / Variance

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12.

Grade Potential – Higher Grades at Depth

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The geological model

• Hypothesis of increasing vein width at depth based on morphology of other deposits globally

Limited drilling at depth

• Majority of holes shallow

• Northern Zone to 200m

• Southern Zone to 150m

• One hole drilled to granite (1m @1.67% Sn)

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13.

Grade Potential – Test Work Results

Positives

• Extensive Bench scale testing

• Pilot scale testing, including 8 tonne composite for heavy medium separation

• Crushing & grindability testing undertaken

• Cassiterite coarse (0.1 to 3mm) and suited to recovery by gravity concentration

• Final concentrate up to 74% Sn produced

“ Comprehensive and thorough ” & “ work done on a scale rarely encountered in current practices” – Peter Munro (Mineralurgy 2012)

But….

• Significant losses of fine tin (~8.9% of total tin)

• Copper recovery to bulk sulphide was low (lead to abandonment of further testing)

Recommended Program (Mineralurgy)

• Preconcentration - Examine ore sorting (for application prior to HMC)

• Comminution - High Pressure Grinding Rolls (as alternative to rod milling)

• Gravity Concentration – Centrifugal separators for improved recovery of fine tin

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14.

Grade Potential – Test Work Results

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Results from 8 tonne pilot plant trial Grade Aueq (g/t)
Assayed Head for Heavy Medium Feed 1.29
-
%Sn 0.21
-
%Cu 0 . 11
-
Ag g/t 6.27
Calculated Concentrator Feed 2.72
-
%Sn 0.46
-
%Cu 0.18
-
Ag g/t 10.89
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Gold Equivalent provided for comparison purposes only, Taronga contains no notable gold. (Aueq calculated at US$25,000/t Sn, US$7,300/t Cu & US$29/oz Ag

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15.

Roadmap to Creating Value

Taronga is already a World Class deposit and historic PFS provides road map for creating value

Stage 1: Updated Scoping Study

• JORC Compliant Resource

• Preliminary metallurgical test work

• Grade enhancement

Stage 2: Expanded Life of Mine

• Regional exploration

• Evaluation for depth extension at Taronga

Stage 3: Updated Pre-feasibility study

• Evaluate increased production rate

• Incorporation of supplementary ore sources

• Metallurgical test work for copper & silver recovery

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16.

Independent Expert’s Report

• BDO Corporate Finance (QLD) Limited (‘ BDO ’) were engaged by the directors of AusNiCo to prepare an independent expert’s report to the shareholders of AusNiCo in relation to the proposed takeover of Taronga Mines Limited by AusNiCo.

• BDO concluded that the proposed transaction is both fair and reasonable .

• The independent geologist, Xstract Mining Consultants Pty Ltd, valued Taronga Mines with a mid point value of $8.1 million and a high point value of $14.5 million .

• AusNiCo is pay ngi an implied va uel of $6 9. million for Taronga Mines , assum ng i a A us NiC o s h are pr ce i

of 2.4 cents.

	Valuation Method Preferred ($ million)
	Comparable Market 8.5 Taronga Mine (EL7348) 5.4 Exploration (EL7800, 7801 & 6839) 3.1
	Geoscientific Rating 7.7 Total 8.1

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17.

Conclusion

• A us NiC o t i T Mi nes m Li it e d su ec t t o cer a n con t i diti ons o acqu re aronga bj

• Taronga Tin Project is a world class tin deposit and 100% owned

• Exploration target of 30Mt – 50Mt at 0.15% - 0.25% Sn[(1)]

• Exploration upside from 368km[2] of g ranted exploration licences prospective for tin, tungsten, silver, copper

• Strong tin market fundamentals with the supply deficit expected from slowing pro d uc ti on an d con ti nue d d eman d

• Maintained exposure to existing grass roots exploration projects in Queensland and Tasmania

• Clear road map to creating shareholder value

Note: (1) Refer Exploration Target note on page 2.

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18.