TUNGSTEN MINING NL — AGM Information 2013

Nov 26, 2013

The New Model for Mining Tungsten

ASX:TGN www.tungstenmining.com Presentation to AGM 27 November 2013

Disclaimer

This presentation has been prepared by Tungsten Mining NL (“Tungsten Mining”) and consists of slides for a presentation concerning the company. By reviewing/attending this presentation, you acknowledge and agree the following:

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• This presentation includes forward-looking statements. Forward-looking statements inherently involve subjective judgement and analysis and are subject to a number of risks, uncertainties, contingencies and other factors, many of which are outside the control of, and may be unknown to, Tungsten Mining. As such, actual results or performance may vary materially from those expressed or implied by forwardlooking statements. The types of factors that could cause such variation in actual results or performance include (without limitation) commodity prices, operational problems and general economic conditions. Given these factors, over-reliance should not be placed on forward-looking statements, which speak only as at the date of this presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, Tungsten Mining does not undertake any obligation to publicly update or revise any forward-looking statements contained in this presentation, including (without limitation) where Tungsten Mining’s expectations change in relation to such statements and where there is a change in events, conditions or circumstances providing the basis for any such statement.

• No representation or warranty, express or implied, is made as to the accuracy, completeness, reliability, fairness or correctness of the information contained in this presentation. To the maximum extent permitted by law, Tungsten Mining and its related bodies corporate and affiliates, and each of their respective directors, officers, employees, agents and representatives, disclaim any liability or responsibility for loss or damage arising from or in connection with the use of the information contained in this presentation.

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Further Disclaimer

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Economic Potential

The Kilba project remains at an early stage of planning and assessment and there are risks associated with the estimates of key parameters (including but not limited to further drilling to upgrade the resource estimate to JORC indicated status or better, the availability of sufficient water from nearby underground sources, further metallurgical test work to confirm the ore’s amenability to the project enhancement of Heavy Medium Scalping).

However, the data is sufficient to allow assessment to a scoping level of study and no fatal flaws have been identified at this stage.

A key conclusion of the scoping study is that the project is considered to have positive economic potential.

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Investments Highlight

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Tungsten is STILL the right sector to be in; sound fundamental drivers continue to give strong demand and firm pricing

TGN STILL offers the best value investment in the tungsten space:

• We understand tungsten better than anyone

• In our Kilba project, we have a straightforward development proposition

• We can deliver a profitable tungsten business within a short timeframe

• Significant project book value within a year

• Profit multiplier via the project pipeline

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Excellent Technical Progress at Kilba

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Resource drilling completed

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JORC-compliant Indicated + Inferred Resource: 5.0MT @ 0.27%WO3

(Refer ASX announcement 31 May 2013)

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Large diameter core sample tested for metallurgical response Simple metallurgy confirmed

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Engineering carried out to scope a project

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No fatal flaws identified

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Scoping Study results showed potentially viable project Enhancement to Scoping resulting from Heavy Medium Scalping

KEY MILESTONES MET

TGN HAS DELIVERED ON ITS PROMISES

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Mining Lease ML08/0314 Geo Plan

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Cross-section, Eastern end Zone 11

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Cross-section, Western end Zone 11

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Kilba Milestones

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Project Commitment
Production
Decision
Updated JORC
Resource
Commence Detailed
Engineering Feasibility Study
Commence in-fill
Drilling
Feb ‘14 Apr ‘14 Jun ‘14 Jun ‘15
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IMMEDIATE PROJECT OPPORTUNITIES

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There are good assets available at the right price where we can leverage our tungsten knowledge more effectively

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Consequently, we have been investigating various opportunities to buy-in to an operating asset or a nearterm operating asset as a path to early cash flow

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We are working towards entering into possible JV arrangements concerning a number of operating tungsten mines

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Appendix: Overview of Tungsten

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Tungsten

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Tungsten is unique in its extreme qualities and difficult to replace:

• Very hard

• Only diamonds are harder

• 100x harder than steel

• Very heat resistant

• Highest melting point

• Lowest expansion

• Very dense

• Greater than lead or uranium

Tungsten Demand

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8%
18%
12%
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62%
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Steel Alloy Cemented Carbides Mill Products Other

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Tungsten uses:

• Heavy construction machinery

• Drilling for mining, oil and gas

• Pipelines

• High temperature equipment and parts

• Electronics

• Heavy artillery and missiles

• – Automotive

• Light bulbs

Source: Roskill Information Services (2012), Minor Metals Association, Vanitec

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Global Tungsten Market

Global Supply vs. Demand

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China’s decision to serve growing domestic demand brings decrease in Chinese tungsten export quotas

Like with REE, this presents a significant potential for new non-Chinese supply to fill a growing ROW tungsten supply-demand gap

Delays in any new projects being commenced will likely keep tungsten prices elevated

Source: Roskill Information Services (2012)

• Assuming no new ROW (Rest of the World) capacity

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Tungsten Pricing

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Tungsten price is relatively inelastic

• China is effectively the “price setter” with >80% of global production – Tungsten concentrate price is ~ 80% of the APT* price

• Europe and US prices tend to follow Chinese APT price

• Not exchange traded

• Prices published by Metal Bulletin and Platt’s Metals Week

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Tungsten production costs rising globally

• Chinese production sensitive to rising energy, labour, and compliance costs

• Average Chinese operating costs expected to rise to $150/mtu by the end of next year.

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• Current APT price $400/mtu in Europe, $420/mtu in China. CM Group expect price volatility up to $500/mtu in next 2 years.

• *APT: Ammonium Para-Tungstate, a chemical into which most of the world’s tungsten concentrate is converted into as part of the tungsten supply chain.

Sources: Metal Bulletin, 04 Sept, 2013 . CM Group’s Global Tungsten Outlook to 2022

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Contact

Paul Berndt Managing Director Mobile +61 (0) 427 074 477 pber@tungstenmining.com

Patrick McManus Chairman Mobile +61 (0) 408 956 798 patrick.mcmanus@tungstenmining.com

Suite 3, 23 Belgravia Street Belmont WA 6104

PO Box 588 Belmont WA 6984 Phone +61 (0) 8 9477 3031 Fax +61 (0) 8 9475 0847

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