EQUATORIAL RESOURCES LIMITED — Investor Presentation 2011

Jun 7, 2011

Large Scale Iron Projects in Africa

==> picture [722 x 136] intentionally omitted <==

==> picture [722 x 137] intentionally omitted <==

African Iron Ore Conference Cape Town June 2011

ASX: EQX

DISCLAIMER Important Notice

• This document should be read in conjunction with any public announcements and reports (including financial reports and disclosure documents) released by Equatorial Resources Limited. This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securities.

• The securities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on the Shares or that there will be an increase in the value of the Shares in the future.

• Further details on risk factors associated with the Company’s operations and its securities are contained in the Company’s prospectus dated 1 September 2010 and subsequent announcements to the Australian Securities Exchange.

• Some of the statements contained in this release are forward-looking statements. Forward looking statements include but are not limited to, statements concerning estimates of recoverable copper and gold, expected copper and gold prices, expected costs, statements relating to the continued advancement of the Company’s projects and other statements which are not historical facts. When used in this document, and on other published information of the Company, the words such as “aim” “could,” “estimate,” “expect,” “intend,” “may,” “potential,” “should,” and similar expressions are forward-looking statements.

• Although the company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forwardlooking statements include the potential that the Company’s projects may experience technical, geological, metallurgical and mechanical problems, changes in product prices and other risks not anticipated by the Company or disclosed in the Company’s published material.

• The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position.

• *Exploration Targets: The estimates of exploration target sizes mentioned in this document should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there have been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

• 3D and 2D modelling of new aeromagnetic survey data over Equatorial Resources Mayoko-Moussondji iron project in the Republic of Congo has indicated a global exploration target estimate of between 2,300Mt to 3,900Mt. Of this, 1,800 to 3,000Mt represents primary itabirite and 500 to 900Mt represents potentially enriched hematite cap mineralisation above the primary bedrock itabirite iron mineralisation. The enriched hematite cap mineralisation could potentially grade between 40% - 65% Fe and the itabirite mineralisation from 30% - 45% Fe.

• 3D and 2D modelling of new aeromagnetic survey data over Equatorial Resources Badondo iron project in the Republic of Congo has indicated a global exploration target estimate of between 1,300Mt to 2,200Mt. Of this, 1,100 to 1,900Mt represents primary itabirite and 200 to 300Mt represents potentially enriched hematite cap mineralisation above the primary bedrock itabirite iron mineralisation. The enriched hematite cap mineralisation could potentially grade between 40% - 65% Fe and the itabirite mineralisation from 30% - 45% Fe.

• The information mentioned in this report that relates to Geophysical Exploration Results is based on information compiled by Mr Mathew Cooper (B.App.Sc (Geophysics) Hons.) of Resource Potentials Pty Ltd, who was engaged by Equatorial Resources Limited to provide geophysical consulting services. Mr Cooper is a member of The Australian Institute of Geoscientists and 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 Reserves. Mr Cooper consents to the inclusion in the report of the matters based on his information in the form and context in which it appears

• The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves (but not including Geophysical Exploration Results) is based on information compiled by Mr Peter Woodman, who is a member of the Australian Institute of Mining and Metallurgy. Mr Woodman is a Director of Equatorial Resources Limited. Mr Woodman has sufficient experience, which is relevant to the style of mineralisation 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 Reserves’. Mr Woodman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

2

Africa’s Next Major Iron Company

• Multibillion tonne Iron Exploration Targets*

• Access to existing, operational rail and port

• Strong balance sheet, fully funded exploration program

• Board and management with proven track record in Africa

==> picture [293 x 319] intentionally omitted <==

*Exploration Targets: The estimates of exploration target sizes mentioned above should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there have been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

3

THE GREAT URBANISATION….. HAS ONLY JUST BEGUN

==> picture [722 x 336] intentionally omitted <==

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

% urban
100
90 UK
Japan Netherlands
Brazil
Korea
80
Spain France 'Line of best fit'
Russia USA
Germany R2= 0.6093
70 Thailand
Taiwan
Malaysia Italy
60
50 Philippines
Indonesia
40
China
30
Vietnam [India]
20
10
US$'000s/capita
0 (PPP, 2005)
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
Data: NBS, Japan Statistics Bureau, Taiwan National Statistics, UN, ICP, CRU
----- End of picture text -----

4

…AND WILL BE DRIVEN BY CHINA AND INDIA

• Current urbanization rate of 46% is • Urban population expected to grow WORLD POPULATION 2011 predicted to rise to 73% by 2050 by 250M people by 2030 (UN) China 19% • Expected to build the equivalent of Other • China will build 20,000 to 50,000 India 17% one new Chicago every year until new skyscrapers and more than 170 2030 cities will need mass transit systems by 2025 • Export restrictions on iron ore USA 5% already in place in key Indian states • 60% of seaborne iron ore destined to protect growing domestic for China consumption needs China India USA Indonesia Brazil Pakistan Bangladesh Nigeria Russia Japan Other * Source: Geohive, McKinsey

5

GLOBAL DEMAND

The scale of Chinese Seaborne demand is breathtaking

==> picture [722 x 291] intentionally omitted <==

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

1000 Global Seaborne Demand
900
800
700
600
500
400
300
200
100
0
2009 2010 2011E 2012E 2013E 2014E 2015E
China Japan Korea Taiwan Europe Rest of world
Million Tonnes
----- End of picture text -----

• Source: GTIS, Macquarie Research, May 2011

6

GLOBAL IRON ORE SUPPLY

And China is increasingly sourcing supply from new regions

Chinese imports from non-traditional supply regions

==> picture [463 x 156] intentionally omitted <==

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

…..Where will new supply come from?
----- End of picture text -----

• Source: Shipping sources, ISSB, Macquarie Research, May 2011, May 2011: Big 4 supply Regions:

7

WEST AFRICAN IRON ORE: The next major iron ore province

==> picture [722 x 137] intentionally omitted <==

Source: Zanaga Iron Ore Company

8

WEST AFRICAN IRON ORE: High Quality, Massive Scale, Low Cost

• High Quality, Coarse Grain ore

• Low cost of production

• Potential supply pipeline of

• 500mtpa by 2020 (up to 25% of global supply)*

• Alternative source of supply for global steel manufactures

• Transport infrastructure the key to unlocking value

==> picture [364 x 175] intentionally omitted <==

==> picture [364 x 175] intentionally omitted <==

*“African Iron Ore Equities” GMP Securities, Metals and Minerals, 9 July 2010

9

EQUATORIAL RESOURCES Africa’s Next Major Iron Company

EQUATORIAL RESOURCES Africa’s Next Major Iron Company	EQUATORIAL RESOURCES Africa’s Next Major Iron Company
	Iron Project Exploration Targets Hematite (40- 65% Fe) Itabirite (30- 45% Fe) TOTAL (30-65% Fe) Mayoko- Moussondji 500 – 900Mt 1.8 – 3.0Bt 2.3 – 3.9Bt Badondo 200 – 300Mt 1.1 – 1.9Bt 1.3 – 2.2Bt Total: 700 – 1,200Mt 2.9 – 4.9Bt 3.6 – 6.1Bt*
10 *Exploration Targets: The estimates of exploration target sizes mentioned above should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there have been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

*Exploration Targets: The estimates of exploration target sizes mentioned above should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there have been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

10

REPUBLIC OF CONGO (“CONGO BRAZZAVILLE”)

Stable country attracting multi-billion dollar investment

• Former French colony, recently celebrated 50 years of independence

• Total, Eni and Chevron operating in ROC for ~30 years

 * Real GDP Growth rate in 2010 of 9.1%

==> picture [161 x 111] intentionally omitted <==

==> picture [155 x 111] intentionally omitted <==

==> picture [168 x 110] intentionally omitted <==

==> picture [122 x 156] intentionally omitted <==

==> picture [166 x 110] intentionally omitted <==

• World Economic Outlook, April 2011

11

MINING IN THE REPUBLIC OF CONGO

Active development of strong mining industry

• Economic diversification away from dependence on oil

• New mining code adopted in 2005

• Favourable fiscal terms for miners

• 3% Royalty on Revenues

• 10% government participation on conversion to Mining Permit

==> picture [285 x 263] intentionally omitted <==

Booth for the Ministry of Mines, Republic of Congo at the 2011 Indaba Conference in Cape Town

12

MAYOKO-MOUSSONDJI IRON PROJECT - 100% owned

==> picture [722 x 136] intentionally omitted <==

Emerging iron province

46km of prospective iron strike

Drill program commencing

==> picture [636 x 144] intentionally omitted <==

Operational railway line

High grade hematite potential

Deep water port

13

MAYOKO-MOUSSONDJI IRON PROJECT

==> picture [722 x 136] intentionally omitted <==

==> picture [722 x 137] intentionally omitted <==

14

2.3–3.9 BILLION TONNES EXPLORATION * TARGET at 30-65% Fe

==> picture [353 x 178] intentionally omitted <==

==> picture [353 x 177] intentionally omitted <==

 46km STRIKE LENGTH of magnetic anomalies prospective for iron mineralisation



2.3 - 3.9 BILLION TONNES * exploration target of iron mineralisation (grade 30% - 65% Fe), of which:

• 500 to 900 MILLION TONNES of enriched “hematite cap” potential estimated at a grade of 40% - 65% Fe

• Hematite Rock sample assays returned iron grades as high as 61.7% Fe at surface with low contaminants

*Exploration Targets: The estimates of exploration target sizes mentioned above should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there have been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

15

MAYOKO-MOUSSONDJI IRON PROJECT ACCESS TO OPERATIONAL RAILWAY AND PORT

==> picture [313 x 354] intentionally omitted <==

• Operational heavy haulage rail line passes through the project area and leads directly to the deep water port of PointeNoire

• Railway capable of 10Mtpa and currently being used only for a weekly passenger service

• Port currently capable of handling Panamax sized vessels

• Potential for very low project capex by utilising existing transport infrastructure

• Agreements signed with state-owned rail and port authorities

16

MAYOKO-MOUSSONDJI IRON PROJECT PLANNED DRILL PROGRAM

==> picture [722 x 136] intentionally omitted <==

==> picture [722 x 137] intentionally omitted <==

17

MAYOKO-MOUSSONDJI IRON PROJECT PROJECT DEVELOPMENT PLANS

 Drilling

• Diamond drill program commenced in March (Partners Drilling)

• Additional RC and Diamond rigs to commence in July (Wallis Drilling )

 Railway

• Access agreement signed in September 2010

• Railway study currently underway (R&H Railway Consultants)

• Framework in place for 25-year User Agreement – open access

 Port

• Agreement signed with the Port Authority of Pointe Noire in January 2011

• Port study currently underway (Murray & Roberts Marine and Demcotech)

Equatorial is focused on the definition of high grade direct shipping ore (“DSO”) and the subsequent rapid development of production using the existing transport infrastructure

18

THE BADONDO IRON PROJECT – 100% owned

==> picture [722 x 136] intentionally omitted <==

Strategic location

22km iron strike

==> picture [528 x 162] intentionally omitted <==

Identified hematite cap

High grade iron

19

BADONDO IRON PROJECT

REGIONAL DEVELOPMENT

==> picture [722 x 137] intentionally omitted <==

20

1.3–2.2 BILLION TONNES EXPLORATION * TARGET at 30-65% Fe

==> picture [304 x 192] intentionally omitted <==

Large-scale, high grade potential

• 22km strike length of magnetic anomalies prospective for iron mineralisation

• Rock samples revealed hematite iron grades as high as 64.7% Fe at surface with low contaminants

==> picture [304 x 192] intentionally omitted <==

• Global exploration target of between 1.3 and 2.2 billion tonnes * of iron mineralisation at a estimated grade range between 30-65% Fe

*Exploration Targets: The estimates of exploration target sizes mentioned above should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there have been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

21

BADONDO IRON PROJECT PROJECT DEVELOPMENT PLANS

• Field work in June 2011

• Geological mapping and sampling

• Preparation of helicopter landing zones

• Preparation for drill program

• Drill Program 2011

• Drill rigs under construction for initial helicopter-supported initial drill program

• Leverage value from the regional development of bulk commodity rail and port infrastructure

==> picture [203 x 153] intentionally omitted <==

==> picture [219 x 172] intentionally omitted <==

22

EXPERIENCED BOARD OF DIRECTORS

 Proven development experience in the resource sector

Ian Middlemas Non-Executive Chairman

• Highly respected resource company executive with significant experience in company building in emerging markets

• Currently Chairman of a number of ASX listed natural resource companies including Mantra Resources Ltd and Coalspur Mines Ltd

John Welborn Managing Director & CEO

==> picture [17 x 44] intentionally omitted <==

• Extensive experience in the natural resources sector as a senior executive and in corporate management and finance.

• Previously the Managing Director of a resources company focused on bulk commodities and Head of Specialised Lending in Western Australia for Investec Bank (Australia) Ltd

Peter Woodman Non-Executive Director

==> picture [18 x 45] intentionally omitted <==

• Highly experienced geologist with over 20 years of experience in exploration, development and operations in the natural resources sector

• Currently Managing Director WCP Resources Ltd

Mark Pearce Non-Executive Director

• Resources executive with substantial experience in business development and capital raisings

• Currently Director of a number of natural resources companies

23

EXPERIENCED MANAGEMENT TEAM

• Proven operation and development skills; finance and operating experience within major mining houses

==> picture [722 x 361] intentionally omitted <==

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

• French speaking Mining Engineer with 24 years experience in the African mining
Jonathan Hericourt industry including Hatch, TWP Projects, Goldfields and Gencor
General Manager: Operations • Most recently Managing Director of CBG (Rio Tinto/Alcoa), a 13Mtpa open-pit
bauxite mine with a 140km rail system and a deep water port facility in Guinea
• Geologist with over 22 years experience in West and Central Africa and Australia
Sean Halpin • Most recently he was Chief Geologist for Cape Lambert Resources Limited where
General Manager: Geology he was responsible for managing all corporate geological functions of the company
including its West African iron ore projects
• Geologist with 30 years exploration and mining experience across a wide range of
Roger Staley commodities and mineralisation styles
John Exploration Manager • Most recently Country/Exploration manager for Denison Mines (previously
Welborn OmegaCorp) in Zambia
(MD) • London capital markets experience. Management experience in the development
Hugo Schumann of exploration projects in Africa
Head of Business Development • Holds an MBA from INSEAD, a Bachelor of Business Science from the University of
Cape Town and is a CFA Charterholder
• Chartered Accountant with over 10 years of accounting and finance experience in
Brendon Morton Australia, Africa, United Kingdom and South East Asia
Chief Financial Officer • Inaugural member of Sundance Resources team, responsible for financial systems
implementation, reporting , procurement and contract management.
• Congolese-born with 15 years international management experience in the UK and
Florent Deckous Russia
Manager, In-country Logistics • Fluent in French, English and Russian. Original project vendor and founder of
Congo Mining SARL
----- End of picture text -----

24

EQUATORIAL RESOURCES

ANALYST COVERAGE

GMP Securities

“We initiate coverage on Equatorial Resources with a Speculative Buy rating GMP Iron Ore Book* and A$6.10 price target.”

*** Ocean Equities**

* “A unique African iron ore development play”

*** Fosters Stockbroking**

==> picture [680 x 149] intentionally omitted <==

*January 2011

25

UNIQUE DEVELOPMENT POTENTIAL AND VALUE DRIVER

SHORT TERM

LONG TERM

High value DSO production potential High volume, low cost globally based on existing infrastructure significant supply Significant cash generation, low capex Xstrata, Sundance, CMEC accelerating development of new regional transport infrastructure

==> picture [190 x 112] intentionally omitted <==

26

Africa’s Next Major Iron Company

Africa’s Next Major Iron Company	Africa’s Next Major Iron Company
	EQUATORIAL RESOURCES LTD (ASX: EQX) June 2011 Fully Paid Ordinary Shares 101.5 million Market Capitalization Undiluted (@ A$2.50) A$253.7 million Cash A$61.3 million Unlisted Options (Various Expiry and Exercise Prices) 11.4 million Vendor Milestone Shares (100Mt JORC Mineral Resource) 2.0 million Top 20 Shareholders: 73.6% Directors & Associates 12.3% M&G Investments (UK) 15.0% BlackRock Group (UK) 6.9% Pala Assets Holdings Ltd (Jersey) 5.5% Other Top 20 33.8%
	Fully Paid Ordinary Shares 101.5 million
	Market Capitalization Undiluted (@ A$2.50) A$253.7 million
	Cash A$61.3 million
	Unlisted Options (Various Expiry and Exercise Prices) 11.4 million
	Vendor Milestone Shares (100Mt JORC Mineral Resource) 2.0 million
	Top 20 Shareholders: 73.6%
	Directors & Associates 12.3%
	M&G Investments (UK) 15.0%
	BlackRock Group (UK) 6.9%
	Pala Assets Holdings Ltd (Jersey) 5.5%
	Other Top 20 33.8%
27

27

ASX: EQX

www.equatorialresources.com.au

AUSTRALIA:

Level 9, BGC Centre 28 The Esplanade Perth WA 6000 Australia Tel: +61 8 9322 6322 Fax: +61 8 9322 6558

REPUBLIC OF CONGO

03 Avenue de Loango, 2eme. Etage, Ndjindji, Arrondissement 1 EP Lumumba, Pointe-Noire Republic of Congo

UNITED KINGDOM:

18 Pall Mall London SW1Y 5LU United Kingdom Tel: +44 207 389 5021 Fax: +44 207 389 5011

==> picture [434 x 172] intentionally omitted <==

==> picture [434 x 172] intentionally omitted <==

28