TALGA GROUP LTD — Investor Presentation 2014

Jun 12, 2014

ASX: TLG

13 JUNE, 2014�

==> picture [71 x 45] intentionally omitted <==

~~TALGA~~ R E S O U R C E S

Talga Resources Ltd ABN 32 138 405 419

1st Floor, 2 Richardson St, West Perth, WA 6005 T: +61 8 9481 6667 F: +61 8 9322 1935

www.talgaresources.com

Corporate Information

ASX Code TLG Shares on issue 105.1m Options (unlisted) 3.75m

Company Directors Keith Coughlan

TALGA PRESENTATION AT 2[ND] ANNUAL GRAPHENE SUPPLY, APPLICATIONS & COMMERCIALISATION CONFERENCE

Talga Resources Limited (ASX:TLG) (“ Talga ” or “ the Company ”) is pleased to provide a copy of the presentation to be delivered by Managing Director Mr Mark Thompson at the 2nd Annual Graphene Supply, Applications & Commercialisation Conference today.

The presentation summarises Talga’s bulk graphene solution to meet growing graphene demand utilising it’s wholly owned Nunasvaara graphite deposit in Sweden. The presentation will be made available on the Company’s website www.talgaresources.com

The presentation details are as follows:

Date: Friday, 13[th] June 2014 Time: 10.20am Venue: University of Manchester, UK.

Further information on the Company’s graphene developments will be available at Talga’s booth at the conference.

For further information, contact:

Non-Executive Chairman

Mark Thompson

Mark Thompson

Managing Director

Grant Mooney

Managing Director Talga Resources Ltd

Tel +61 (08) 9481 6667 Email admin@talgaresources.com

Non-Executive Director

ABOUT TALGA

Talga Resources Limited (Talga) (ASX: “TLG”) is a diversified mineral explorer and developer with a portfolio of 100% owned graphite, iron, copper/gold projects in Sweden and gold projects in Western Australia.

==> picture [12 x 12] intentionally omitted <==

ASX Code: TLG

The main focus is development of its unique graphite-graphene deposits of northern Sweden utilising the advantages of ultra-high grade deposits, low cost power, established mining infrastructure and short transport distance to high demand markets in Europe.

TALGA RESOURCES LTD ASX AND MEDIA RELEASE

PAGE 1

R E S O U R C E S

==> picture [1247 x 361] intentionally omitted <==

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

A unique natural graphite
source for economic bulk
graphene platelet supply
----- End of picture text -----

2nd Annual Graphene Conference ‘Supply, Applications & Commercialisation’ Manchester, 13 June 2014

Cover; Nunasvaara graphite core sample and graphene schematic.

Forward Looking Statements and Disclaimer:

This presentation has been prepared by Talga Resources Limited (ACN 138 405 419) (“Issuer”) for the sole purpose of providing an overview of its current prospects and proposed exploration and development strategy to recipients (“Recipient”). This presentation and its contents are provided to the Recipient in confidence and may not be reproduced or disclosed in whole or in part to any other person, without the written consent of the Issuer.

The presentation is based on information available to the Issuer as at the date of the presentation. The information contained in this presentation has not been verified by the Issuer nor has the Issuer conducted any due diligence in relation to that information. The presentation contains selected information and does not purport to be all inclusive or to contain all information that may be relevant to the Recipient. The Recipient acknowledges that circumstances may change and this presentation may become outdated as a result. The Issuer accepts no obligation to update or correct this presentation.

This document includes forward-looking statements. When used in this document, the words such as "could," “plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although the Issuer believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of the Issuer, its directors, employees or agents, advisers, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including, without limitation, any liability arising from fault or negligence on the part of the Issuer or its directors, employees or agents. Nothing in this Presentation is a promise or representation as to the future. Statements or assumptions in this presentation as to future matters may prove to be incorrect and differences may be material. The Issuer does not make any representation or warranty as to the accuracy of such statements or assumptions.

The information in this presentation does not take into account the investment objectives, financial situation and particular needs of any Recipient. The Recipient should not make an investment decision on the basis of this presentation alone and the Recipient should conduct its own independent investigation and assessment of the content of this presentation. Nothing in this presentation constitute financial product, investment, legal, tax or other advice. Nothing in this presentation should be construed as a solicitation to buy or sell any security or to engage or refrain from engaging in any dealing in any security.

Photographs, maps, charts, diagrams and schematic drawings appearing in this presentation are owned by and have been prepared by or commissioned by the Issuer, unless otherwise stated. Maps and diagrams used in the presentation are illustrative only and may not be drawn to scale. Unless otherwise stated, all data contained in charts, graphs and tables is based on information available at the date of this presentation. By accepting this presentation the Recipient agrees to be bound by the foregoing statements.

2

• Supply Side Problem Pace of graphene uptake & commercialisation is hampered by current limitations of production scale and cost more than quality.

Main factors delaying uptake of graphene platelets into ordinary products include:

‣[Lack of ] [scale][: most production methods are not ] scalable to the large quantities required to guarantee supply and expand uptake ‣[High ] [costs][: platelets are still vastly ] [expensive] compared to most material inputs. ‣[Quality: most lower cost scalable production ] methods have reduced quality that limit applications/markets.

• [constraints][ as they ]

• ‣ [Scale][ and ] [Cost][ are ] [main] can

• have most physical limitations but Quality be manipulated to a degree.

3

• Scale Problem Paradigm shift in scale of production required

• ‣ While the media is excited by future ‘hi-tech’ applications the main additives .

• driver of near term graphene commoditisation may be

• ‣ Small amounts of graphene ( 0.05-2% ) added to common bulk cement

• materials can impart exponential increases in strength e.g. (global consumption 3,300Mt/ann), and aluminium (45Mt) allowing less material/lighter builds. Similar additions of graphene to steel (840Mt) can impart anti-corrosion properties and plastics

• (100Mt) can become conductive.

• ‣ If 0.5% by weight average graphene was added across these Steel

• materials now, it requires 2.1Mt graphene per annum . Not 840

• Plastics 100

• many production processes are capable of addressing this scale. Aluminium 45

• ‣ Natural graphite ores are abundant (exceeding several billion tonnes in resources) so it seems realistic to attain this scale at lower cost, but few natural graphite sources suit economic bulk scale production either.

4

• The Graphite Ore Problem Abundant natural graphite requires multi-stage expensive processes ‣ The problem with scalable natural graphite sources though is they require multiple stages of crushing, milling and flotation to form a concentrate for further stages of purification commonly involving oxidation and reduction, sonication, electrode forming etc to reach graphene stage. The multiple increase costs and can decrease

• stages quality of the graphene.

• ‣ Other simple processes have either such low yields (eg, ‘Blender’ method) or source material not commercial or

• require high purity (expensive) they are cannot lower cost generate significantly of graphene supply.

• ‣ As graphite ores already contain ‘natural graphene’ an ultra-low cost path considering energy and commerciality is a single stage process where raw graphite ore can be processed to graphene without multiple steps.

==> picture [172 x 1042] intentionally omitted <==

==> picture [11 x 17] intentionally omitted <==

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

5
----- End of picture text -----

“Ultimately, the best way to slash costs and propel graphene into the mainstream would be to make highquality monolayers from bulk graphite....but a practical, scalable method still seems a long way off. We need some sort of a breakthrough here.” Rod Ruoff, University of Texas. CVD VIP.

~~TALGA~~ R E S O U R C E S

The Breakthrough

• In Feb 2014 Talga announced exceptional results from testing a 1-step scalable method on the Nunasvaara graphite deposit, Sweden.

• ‣ The Nunasvaara graphite deposit is the world’s highest grade graphite mineral resource[1] compliant to JORC or NI43-101 standards and is located Sweden . in the Kiruna mining district of

• ‣ Testwork this year demonstrated a 1-step to raw ore

• processing methodology applied directly liberates mono-to-few layered graphene platelets with consistent morphology.

• ‣ The ore is abundant and as there is no crushing, grinding or purification stages required; ultra-low production cost.

==> picture [121 x 77] intentionally omitted <==

==> picture [761 x 816] intentionally omitted <==

1 See appendices for details of JORC (2004) resources and www.techmetalsresearch.com for world graphite resources grade comparison.

7

• Paradigm Shift to Lower Cost ‣ Because of the unique characteristics of the ore deposit , both graphite and graphene platelets can be liberated from the ore in a single step process. This means no expensive multiple stage processing or purification stages that impart complexity and costs.

R E S O U R C E S RAW GRAPHITE ORE

• ‣ Other minerals liberated in the same process can also be sold, lowering cost of production further.

• ‣ This shows strong potential for Talga to enjoy a vastly different production and capital cost structure compared to other producers globally, and represents a bulk .

• paradigm shift in the production outlook for graphene cost and scale

==> picture [126 x 147] intentionally omitted <==

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

PROCESS
1 STEP
GRAPHENE
----- End of picture text -----

==> picture [501 x 310] intentionally omitted <==

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

Current resource
7.6 million tonnes
----- End of picture text -----

Raw Ore is 24.4% graphite

==> picture [832 x 322] intentionally omitted <==

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

10-20% bulk graphene platelets
graphite vol
1-Step
Process
80-90% graphite
graphite
graphite vol concentrator
----- End of picture text -----

8

~~TALGA~~ R E S O U R C E S

• Quality and Consistency ‣ The ore source provides high level of consistency and size of graphene platelets.

• ‣ Initial tests of graphene platelets from the raw ore demonstrate single to few layered graphene of surprisingly high quality (Raman defect-to-layer ratio <0.25).

• ‣ Morphology is naturally consistent but can be modified and optimised to a degree in the production process.

==> picture [121 x 77] intentionally omitted <==

Atomic force microsscopy images of Nunasvaara unoptimised graphene platelet size, distribution and morphology.

==> picture [683 x 443] intentionally omitted <==

==> picture [710 x 443] intentionally omitted <==

9

Scalable to Market Size

• ‣ Robust outcropping high grade resource and extreme homogeneity (see drilled section) makes Nunasvaara a unique source for low-cost and high quality bulk supply potential.

• ‣ With JORC compliant resource[1] of (ASX:TLG 8 Nov 2012) 7.6Mt @ 24.4% graphite (“Cg”) there is abundant contained graphite for .

• graphene platelet production in short term

• ‣ Process pathway has been demonstrated at benchtop scale and upscaling tests are underway to design a 5 tonne/hr pilot plant .

• to be operational in north Sweden Jul-Sep 2015

Talga Resources

• ‣ The pilot plant will be designed to supply 100-200 tonnes graphene samples over few year test period.

• ‣ A scoping study underway will include potential for production scenarios 10x this level.

• ‣ The process and graphite deposits are entirely scalable to meet what additive markets may require.

Nunasvaara Mineral Resource[1] (10% Cg lower cut-off grade)

JORC 2004 Tonnes Grade Contained Classification (Mt) (%Cg) Graphite (tonnes) Indicated 5.6 24.6 1,377,600 Inferred 2.0 24.0 480,000 Total 7.6 24.4 1,857,600

10

~~TALGA~~ R E S O U R C E S

It’s More About The Ore Multiple physio-chemical factors required for raw ore to work in lowest cost production pathway

==> picture [121 x 77] intentionally omitted <==

1-step process

==> picture [155 x 149] intentionally omitted <==

Grade Mineralogy Structure Strength

Natural graphite ore enabled for lowest cost single stage processing.

Very high grade ore eg,>16%Cg which is rare in global resources.

Massive and homogenous crystalline nature.

High compressive strength but low hardness.

~~TALGA~~ R E S O U R C E S

• ‣ constant stream Methods for measuring graphene platelet quality in production scenarios include:

• ‣ Nanoscale - Raman and atomic force microscopy (AFM) is revealing factors of graphene platelet morphology and defects.

• ‣ Macroscale - Tornado and other in-situ 3-d scanning technologies to measure mineral distribution and morphology with implications for genesis of deposit.

• ‣ Pilot plant - 5t/hr plant will provide steady state production data and samples for integration into large scale quality-controlled manufacturing processes.

Movies of 3-d ‘Tornado’ scans of Nunasvaara graphite ore. Field of view = approx 5cm width.

12

~~TALGA~~ R E S O U R C E S

Summary

• ‣[In recent tests Talga has demonstrated ] [ability][ to produce ] [high ] direct from its raw

• quality graphene (uncrushed/unpurified) graphite ore which provides Talga with unique economic advantages compared to global graphene peers. [cost][ and ] [abundant][ supply potential is a paradigm shift ]

• ‣[This new ] [low] in the production outlook for bulk graphene, and will be able to ‘commoditise’ supply into everyday applications.

• ‣[Talga has defined 7.6 million tonnes source ore to date and is ] ramping up its low-cost development strategy to focus on becoming a global graphene supplier with industry leading margins.

• ‣[The current development stages underway include upscaling the ] metallurgical process to use the dual graphite-graphene process, completing a scoping study and permitting a trial mine for 2015.

==> picture [121 x 77] intentionally omitted <==

==> picture [475 x 450] intentionally omitted <==

13

Wimmer&Financial&

==> picture [1468 x 65] intentionally omitted <==

Disclaimer To get further information or register interest in graphene products, specifications and collaboration contact: Mark Thompson - Managing Director 1st Floor, 2 Richardson St West Perth 6005 Australia Tel +61 89481 6667 admin@talgaresources.com www.talgaresources.com

==> picture [220 x 216] intentionally omitted <==

==> picture [48 x 48] intentionally omitted <==

ASX: TLG

14

Appendices Talga Asset Structure and JORC (2004) Resources*

==> picture [141 x 140] intentionally omitted <==

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

TALGA
R E S O U R C E S
----- End of picture text -----

TALGA RESOURCES LTD

100%

1 Note: This information was prepared and first disclosed under the JORC code 2004. It has not been updated since to comply with the JORC code 2012 on the basis that the information has not materially changed since it was last reported. The Company is not aware of any new information or data that materially affects the information included in the previous announcement and that all of the previous assumptions and technical parameters underpinning the estimates in the previous announcement have not materially changed.

Talga Mining Pty Ltd

100%

Swedish Branch 100% IRON Iron Mineral Resources @ 20% Fe lower cut-off July 2013 Tonnes Grade Deposit JORC Category (Mt) %Fe Vathanvaara 51.2 36.0 Inferred Resource Kuusi Nunasvaara 46.1 28.7 Inferred Resource Mänty Vathanvaara 16.3 31.0 Inferred Resource Sorvivuoma 5.5 38.3 Inferred Resource Jänkkä 4.5 33.0 Inferred Resource Masugnsbyn 87.0 28.3 Indicated Resource Masugnsbyn 25.0 29.5 Inferred Resource Total 235.6 30.7

100%

GRAPHITE

Nunasvaara Graphite Mineral Resource @ 10% Cg lower cut-off Nov 2012

==> picture [741 x 507] intentionally omitted <==

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

Tonnes Graphite
Classification
(Mt) (%Cg)
Indicated 5.6 24.6
Inferred 2.0 24.0
Total 7.6 24.4
Raitajärvi Graphite Mineral Resource @ 5% Cg lower cut-off Aug 2013
Tonnes Graphite
Classification
(Mt) (%Cg)
Indicated 3.4 7.3
Inferred 0.9 6.4
Total 4.3 7.1
----- End of picture text -----

15

References & Qualified Persons

1 Resource Note: All Talga owned resources referred to in this report are based on information prepared and first disclosed under the JORC code 2004. They have not been updated since to comply with the JORC code 2012 on the basis that the information has not materially changed since it was last reported. The Company is not aware of any new information or data that materially affects the information included in the previous announcement and that all of the previous assumptions and technical parameters underpinning the estimates in the previous announcement have not materially changed. 2 Research references

Graphene in concrete “Materials Genome for Graphene-Cement Nanocomposites for Infrastructure Applications”; Hunain Alkhateb et al Department of - - - Civil Engineering, University of Mississippi USA plus see http://www.monash.edu.au/assets/pdf/industry/graphene oxide reinforced concrete.pdf Graphene in aluminium “Reinforcement with graphene nanosheets in aluminum matrix composites”. Wang, J et al (2012). Scripta Materialia, 66 (8). - Graphene in plastics “Graphene Nanoplatelets: A Multi functional Nanomaterial Additive for Polymers and Composites” (2013) Lawrence T. Drzal, Chief Scientist XG Sciences, Inc. Professor, Chem Engin and Materials Science Michigan State University

Graphene on iron/steel “Hybrid nanocomposite coatings for corrosion protection of low carbon steel: A substrate-integrated and scalable active–passive - - - - - - with to approach,” (2011) G.K. Rout et al, J. Mater. Res., 26, 837–44 and see http://www.steeltimesint.com/news/view/tata partners epsrc develop - - coated steels. graphene

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information compiled and reviewed by Mr Mark Thompson, who is a member of the Australian Institute of Geoscientists. Mr Thompson, an employee of the Company, has sufficient experience which is relevant to the activity which is being undertaken to qualify as a "Competent Person" as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (“JORC Code”). Mr Thompson consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

The information in this report that relates to Resource Estimation is based on information compiled and reviewed by Mr Simon Coxhell of CoxsRocks Pty Ltd. Mr Coxhell is a consultant to the Company and a member of the Australian Institute of Mining and Metallurgy. Mr Coxhell has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this document and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (“JORC Code”). Mr Coxhell consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

16