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Day 1 - Session 2: Speciality Metals
 

Day 1 - Session 2: Speciality Metals

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Day 1- Session 2: Speciality Metals ...

Day 1- Session 2: Speciality Metals

Objective Capital Global Mining Investment Conference 2010
Stationers' Hall, City of London
28-29 September 2010
Speakers:
Christoph Eibl - Tiberius Asset Management
Ron Coombes - Columbia Yukon Explorations Inc
Mark Sumich - Globe Metals & Mining

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    Day 1 - Session 2: Speciality Metals Day 1 - Session 2: Speciality Metals Presentation Transcript

    • Investment Conferences GLOBAL MINING INVESTMENT CONFERENCE 2010 DAY 1 - SESSION 2: SPECIALITY METALS Outlook for commodity prices Christoph Eibl – Managing Partner, Tiberius Asset Management Outlook for Molybdenum Ron Coombes – President, Columbia Yukon Explorations Inc. Outlook for Niobium Mark Sumich – Exec Chairman, Globe Metals & Mining ● CITY OF LONDON ● TUESDAY-WEDNESDAY, 28-29 SEP 2010 STATIONERS’ HALL www.ObjectiveCapitalConferences.com
    • GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:
    • Commodities Market Outlook Global Mining Investment Conference 2010
    • I. Tiberius Group Introduction Tiberius Group  A Swiss firm specialized in commodity management, with its headquarters in Zug as well as offices in Geneva and Stuttgart.  Expertise in fixed-income management on the basis of institutional funds.  33 employees with wide-ranging experience in commodity trading, portfolio management and research.  A model-supported, quantitative investment philosophy with a structured and transparent investment process.  The firm’s core competence lies in the active management of long- only and long/short portfolios.  Total assets currently under management by the Tiberius Group: 2.2 billion USD  Tiberius is regulated by FINMA (Swiss Banking Supervisory Authority) 4
    • Market Outlook Cyclical trend Tiberius Leading Indicator Index - despite slight decline at a very high level 50% Tiberius Leading Indicators signal (long/short) LON G Region Sharpe Weight 40% Tiberius Leading Indicators 0,7 100,0% 1. North America 0,3 46,5% 30% 2. Europe 0,4 10,0% 3. Asia 0,3 33,5% 4. Rest Of World 0,3 10,0% 20% ISM Manufacturing (New Orders) 1. North Am. 0,6 11,1% US Initial Jobless Claims (4W Avg) 1. North Am. 0,6 5,0% Johnson Redbook Sales Weekly YoY1. North Am. 0,2 5,3% 10% Conference Board Consumer Confid1. North Am. 0,6 9,8% Conference Board Ratio Coincidenta North Am. 1. 0,3 4,9% ISM Manufacturing Report 1. North Am. 0,5 10,4% 0% IFO Pan Germany Business Exp. 2. Europe 0,4 4,7% France Business Confidence 2. Europe 0,2 0,5% -10% Italy Business Confidence 2. Europe 0,4 3,0% European Business Climate 2. Europe 0,2 1,7% Japan Economy Watchers Survey 3. Asia 0,7 13,0% -20% Japan Small Business Confidence 3. Asia 0,5 8,4% Japan Tankan Business Conditions 3. Asia 0,1 0,4% OECD India Composite Leading Ind. 3. Asia 0,6 11,7% -30% OECD Total Composite Leading I. 4. Rest 0,4 2,8% SH O R T OECD Russia Composite L. Ind. MSCI World (Local Currency) 4. Rest 4. Rest 0,5 0,2 4,2% 2,9% -40% -50% 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 5
    • Market Outlook Evaluation of forward curves Forward curves have improved steadily since Q2 2009 50,0% 200 Model signal avg. term structure (combined) Backtesting performance avg. term structure (combined) 40,0% 30,0% 20,0% 10,0% 100 0,0% -10,0% -20,0% -30,0% -40,0% 50 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 6
    • Market Outlook Short term capital flows Speculative sentiment has improved again $80.000 Net Long Position Non Commercials in Mio. USD (nom.) Net Long Position Non Commercials, 52-week Average $70.000 Net Long Position Non Commercials in Mio. USD 2001 prices (real) Net Long Position Non Commercials 2001 prices, 52-week Average $60.000 $50.000 $40.000 $30.000 $20.000 $10.000 $0 -$10.000 -$20.000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 7
    • Market Outlook Long term capital flows Continued buying interest of institutional market participants 8
    • Market Outlook Conclusion The Lights for commodity investments mainly give positive signals 1. Ecomomic Cycle - Uptrend in industrial production is intact 2. Forward Curves - Gradual improvement 3. Spot Price Level - After correction many markets at attractive entry level 4. Short Term Speculative Capital Flows - Sentiment has turned especially in the agricultural sector 5. Long Term Insitutional Capital Flows - Sustained Interest in Commodities 6. Market Technicals - Lately first technical buy signals Conclusion: Outlook has recently improved significantly 9
    • Market Outlook Long term market analysis Our yearend forecast is still the same Dow Jones UBS Commodity Index Total Return Prognose 2010 500 450 400 350 300 250 200 150 100 10
    • Market Outlook Crude oil Cruide Oil globally attractive; in the US, especially in Cushing, still high excess inventories 60,00% -50000 Convenience Yield 1 Year and Excess Stocks Crude Oil 50,00% -40000 Dez. 2004 40,00% -30000 30,00% -20000 20,00% -10000 10,00% 0 0,00% 10000 -10,00% 20000 -20,00% 30000 Convenience Yield Nearby to 1 Year contract in% (left scale) -30,00% 40000 Spread US-crude-stocks to 5 year average (right scale, inverted) -40,00% 50000 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 11
    • Market Outlook Crude Oil Despite constant demand high increasing excess inventories 35,00 Crack Spread 3:2:1 in USD per Barrel 30,00 25,00 20,00 15,00 10,00 5,00 0,00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 12
    • Market Outlook Gasoline US Gasoline consumption is now at the level of 2008 US Gasoline - Seasonal Demand (Product Supplied) 9800 9600 9400 9200 1000b/d 9000 8800 2007 2008 8600 2009 2010 8400 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 Calendar Week 13
    • Market Outlook Natural Gas Enhanced storage capacity and high short-exposure argue against a price decline; like in 2009 sudden price reversal is expected in 2010 250000 16 US Natural Gas: Non-Commercial Net Position in Contracts (incl. Swap adjusted to NYMEX Contract Size) (left scale) 14 200000 NYMEX Natural Gas: Nearby Futures Price in USD per mmBtu (right scale) 12 150000 10 100000 8 50000 6 0 4 -50000 2 -100000 0 14
    • Market Outlook Distillates US distillate consumption is disappointing given the economic upswing Seasonal US Distillates Demand (Product Supplied) 5000 4800 4600 4400 4200 4000 1000b/d 3800 3600 2008 3400 2009 3200 2010 3000 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 Calendar Week 15
    • Market Outlook Industrial Metals High correlation of industrial metals based on a constant demand; average of the six at the LME trated metals approximantely +0.69 in 2010 Correlation Table (based on daily returns, 31.12.2009 - 31.08.2010) Copper Alum. Nickel Lead Zinc Tin S&P 500 USD Index Copper 1,00 0,81 0,67 0,80 0,84 0,59 0,40 -0,37 Aluminium 1,00 0,66 0,70 0,78 0,56 0,44 -0,42 Nickel 1,00 0,70 0,68 0,52 0,30 -0,31 Lead 1,00 0,81 0,58 0,41 -0,45 Zinc 1,00 0,58 0,35 -0,34 Tin 1,00 0,37 -0,37 S&P 500 1,00 -0,42 USD Index 1,00 16
    • Market Outlook Base Metals Rolling correlation of base metals and stock market currently near top Rolling Correlation (26W) between Base Metals and Stock Market (S&P 500) 0,8 DJUBS Industrial Metals 0,6 0,4 0,2 0,0 -0,2 -0,4 -0,6 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 17
    • Market Outlook Base Metals Tin and copper - the only base metals showing market deficit in 2011 10,00% Market Balance 2007 Surplus 8,00% Market Balance 2009 Market Balance 2010 (estimate) 6,00% Market Balance 2011 (estimate) in % of Yearly Demand 4,00% 2,00% 0,00% Zinc Nickel Aluminium Lead Copper Tin -2,00% -4,00% Deficit -6,00% 18
    • Market Outlook Copper Structural deficit of copper since turn of the millennium 10000 Copper, 3-Months-Forward (USD / Tonne) Copper, 63-Months-Forward (USD / Tonne) 8000 6000 4000 2000 0 2003 2004 2005 2006 2007 2008 2009 2010 19
    • Market Outlook Precious metal Price ratio between platinum and palladium again on a long-term average 100 6 Gold/Silver Ratio (left scale) Platinum/Palladium Ratio (right scale) 90 5 80 4 70 3 60 2 50 1 40 30 0 1994 1996 1998 2000 2002 2004 2006 2008 2010 20
    • Market Outlook Gold Gold benefited by the end of Q2 2010 from excessive risk aversion Performance of Various Risk Aversion Indicators (01.01.2010 = 100) 140 116 Gold in Euro / Ounce (left scale) 135 114 Yen / Euro - Exchange Rate (left scale) 130 112 German Bund Future (generic, right scale) 125 110 120 108 115 106 110 104 105 102 100 100 95 98 21
    • Market Outlook Gold The original selling points for gold have disappeared Gold market in comparison In the year of 2000 In the year of 2010 1. Physical market balance Market deficit High surplus 2. Strategic positions 30% of production Mines are unhedged hedged 3. Spekulative positions Net-short Extreme net-long 4. Sentiment/Market penetration Extremely negative Excessively positive 5. Relative Value (CPI, Commod.) Too low Too high 6. Macro-environment - Inflation risks Low/middle Low/middle - Deflation/systemic-risk Middle High 22
    • Market Outlook Gold Seasonal tendence of gold purchase at the futures market and ETFs in the last years Gold - ETF Flows and Futures Positions Change CFTC Net Long Position (Non-Commercials + Non-Reportables) Change in ETF Volumes Rolling 4-Week Flow 15.000 10.000 5.000 in m oz 0 -5.000 -10.000 -15.000 Jan 07 Jan 08 Jan 09 Jan 10 Oct 07 Oct 08 Oct 09 Oct 10 Jul 07 Jul 08 Jul 09 Jul 10 Apr 07 Apr 08 Apr 09 Apr 10 23
    • Market Outlook Softs Increasing Net-Long volume of the Non-Commercials in grain sector 25.000.000.000 200 Aggregate Net Long Position Non Commercials CBOT Wheat, Corn, 180 Soybeans, Soybean Oil in USD (left scale) 20.000.000.000 160 DJ UBS Subindex Grains Excess Return (indexed to 100, right scale) 140 15.000.000.000 120 10.000.000.000 100 80 5.000.000.000 60 40 0 20 -5.000.000.000 0 24
    • Market Outlook Wheat Significant production losses compared to previous year caused by extreme weather events USDA: Erwartete Rückgänge bei wheat production and exports USDA: expected declines in Weizenproduktion und -exporten in million tonnes in Mio. Tonnen Kanada Exporte Exports EU 27 Produktion Production Ukraine Kasachstan Russland -20 -15 -10 -5 0 5 25
    • Market Outlook Wheat Wheat stocks are still well above critically low level of 2007/08 USDA: Wheat Ending Stocks of the Major Export Nations in Million Tons 80 70 60 USA 50 Australia Canada 40 EU 27 Ukraine 30 Kazakhstan Russia 20 10 0 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 26
    • Market Outlook Soybeans/ Corn Expected decline in the spread soybean vs. corn Soybeans vs.vs. Mais Sojabohnen Corn Difference Differenz Nearby-Kontrakte incents per bushel nearby-contracts in US US-Cents per Bushel 1.000 900 •Substitution of wheat by corn as 800 animal feed 700 • Expected acreage shift in the U.S.: 600 Growth of double-cropping (wheat followed by soybeans) 500 400 • Potential for higher U.S. corn exports 300 • Global corn market tighter than soybeans 200 100 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 27
    • Market Outlook Cotton Continuous improvement of the fundamental data due to rising demand USDA Cotton Estimates for USA: Stocks to Use Ratio vs. Domestic Demand and Exports (in the respective current marketing year) 45% 20 US Stocks to Use Ratio (left scale) 40% 19 Demand for US-Cotton in mn 480 lbs bales (right scale) 35% 18 17 30% 16 25% 15 20% 14 15% 13 10% 12 5% 11 0% 10 28
    • Market Outlook Conclusion Metals will stay in contango in the course of the next 12 months Backwardation Contango Market surplus Market deficit High inventories Low inventories 29
    • Contact Tiberius Asset Management AG Baarerstr. 53 CH-6300 Zug Schweiz +41 41 560 00 81 (Phone) +41 41 560 00 82 (Fax) info@tiberiusgroup.com www.tiberiusgroup.com
    • Disclaimer © Copyright This publication is copyright-protected. All rights appertaining thereto, even in case of only partial use, shall remain reserved, particularly with regard to the following: translation, reprinting, recital, use of images and graphics, broadcasting, duplication via microfiche or other means, and/or storage in data processing equipment. Any duplication of this publication or portions thereof, even in isolated cases, shall be subject to the limitations set forth by the legal provisions of the Copyright Act of the Federal Republic of Germany of September 9, 1965 (in its most current version). Any breaches may be subject to the penalties provided for under law. Liability exclusion The information in this publication was compiled from data assumed to be accurate. Nonetheless, we assume no liability or guarantee for said information. This publication is not to be seen as a sales offer, nor as a solicitation for an order to purchase securities. The representations made in this publication may be changed at any time without prior notice.
    • GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:
    • Presented by Ronald A. Coombes, President Columbia Yukon Explorations Inc.
    • THESE PRESENTATION MATERIALS INCLUDE CERTAIN STATEMENTS WHICH MAY BE DEEMED TO BE “FORWARD LOOKING STATEMENTS” WITHIN THE MEANING OF SECTION 21E OF THE UNITED STATES SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT, INCLUDED HEREIN ARE FORWARD- LOOKING STATEMENTS THAT INVOLVE VARIOUS RISKS AND UNCERTAINTIES. THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS WILL PROVE TO BE ACCURATE AND ACTUAL RESULTS AND FUTURE EVENTS MAY DIFFER MATERIALLY FROM THOSE FORWARD- LOOKING STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE COMPANY’S EXPECTATIONS INCLUDE (BUT ARE NOT LIMITED TO) MARKET PRICES, EXPLOITATION AND EXPLORATION SUCCESSES, CONTINUED AVAILABILITY OF CAPITAL AND FINANCING, AND GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS. ADDITIONAL INFORMATION ON FACTORS THAT MAY AFFECT THE COMPANY’S RESULTS ARE DISCLOSED IN THE COMPANY’S DOCUMENTS FILED FROM TIME TO TIME WITH THE BRITISH COLUMBIA SECURITIES COMMISSION. THIS IS NOT TO BE CONSTRUED AS AN OFFER TO BUY OR SELL SECURITIES OF COLUMBIA YUKON EXPLORATIONS INC.
    •  What exactly is Molybdenum (“Moly”)?  What is “Moly” used for?  And why is this important in today’s economy?  Supply/Demand and price projections  The China factor  Pure Moly Mines vs. By-product Mines  The Storie Molybdenum Project
    •  Molybdenum is a naturally occurring element  Molybdenum has one of the highest melting points of all the elements yet its density is only 25% greater than that of iron.  Molybdenum is contained in various ores, but only Molybdenite (MoS2) is used in the production of marketable molybdenum products.  Molybdenum’s coefficient of thermal expansion is the lowest of the engineering materials.
    •  Molybdenum increases the strength of alloy steels  Molybdenum increases the corrosion resistance of stainless steels  Alloying in iron, steel and super-alloys accounts for 80% of all Mo use  A wide range of high-technology products, including catalysts, jet engines, medical equipment and semi-conductors, rely on molybdenum metal and chemicals
    •  The principal molybdenum mines are found in Canada, USA, Mexico, Peru and Chile - with the largest mines capable of moving over 50,000 tonnes of ore per day.  About 20% of new molybdenum produced from mined ore is used to make molybdenum grade stainless steel.  Engineering steels, tool and high speed steel, cast iron and superalloys taken together, account for an additional 60%.  The remaining 20% is used in upgraded products like lubricant grade molybdenum disulfide MoS2), molybdenum chemical compounds and molybdenum metal.  Ore reserves: In 2008 the ore reserve base totaled 19,000,000 tonnes (source: US Geological Survey). China has the largest reserves followed by USA and Chile.
    •  Molybdenite can occur as the sole mineralization in an ore body, but is often associated with the sulfide minerals of other metals, notably copper. There are two classes of molybdenum mines:  Primary mines – molybdenum recovery is sole objective  By-product mines – recovery of copper bearing ores is prime objective and recovery of molybdenite adds value
    • The Storie Molybdenum Project
    • Columbia Yukon Explorations Inc. TSX- V: CYU Frankfurt: VOR Current Trading Price $0.135 Issued & Outstanding 42,095,606 Options & Warrants 3,639,000 Fully Diluted 45,734,606 Market Capitalization $6,174,171 (based on fully diluted) As at September 22, 2010
    • Molybdenum Fundamentals • Exceptional The Property • Just off Highway Management Team • Experienced Milestones • Surpassing Plans Strategic Partner Negotiations • Underway
    • Current fair value of equity Company details Expected value C$14.6 m TSX CYU.V Value per share C$0.38 Pinksheets CYUXF.PK Derisked upside potential* Hi-Lo last 12 mos. (p) 0.48 - 0.10 Our core scenario C$0.91 Shares issued 38.8 m Our optimistic scenario C$2.54 Fully diluted 42.5 m Maximum potential C$3.26 Market capitalization C$8.8 m *potential assuming projects reach permitting Our base-case core valuation for Columbia Yukon is Our lowered valuation is entirely the result of the lowered to C$0.38 per share from our August 2008 dramatic and sudden drop in the price of molybdenum estimate of C$0.92 per share, but it remains since our initiation note and the weakening US dollar, substantially above the company’s recent share price rather than some inherent negative change in the of C$0.20 per share, which appears to be a reflection underlying geology of the Storie deposit. of the markets lingering pessimism for the resource Source: Will Purcell, Research Director, Objective Capital sector in the wake of the recession, which we believe will@objectivecapital.co.uk is an over-reaction. T +44 (0) 870-080-2965
    • USD/lb – 12 months (Aug 15/09 – Aug 10/10) Molybdenum Market - TSX-V:CYU • Molybdenum trading on the London Metals Exchange (LME) CYU Cdn$ – 12 months (Aug 18/09 – Aug 16/10)
    • Company Highlights • Sept 21, 2010: Columbia Yukon Conducts Further Exploration at the Storie Property Moly Deposit • July 6, 2010: Columbia Yukon announces non brokered private placement • June 30, 2010: Columbia Yukon acquires additional properties near its Storie Molybdenum property • June 3, 2010: Columbia Yukon submits draft project description to Federal & • Dec 2, 2009: Columbia Yukon significantly increases the exploration potential for its Storie Property moly deposit • Nov 27, 2009: Columbia Yukon reports on exploration work Charting for S&P/TSX Venture Composite Index completed on its Storie Property in 2009 • Nov 2, 2009: Columbia Yukon signs Traditional Knowledge Protocol with First Nations • Mar 4, 2009: Columbia Yukon releases 2009 updated NI 43- 101 mineral resource estimate • Nov 18, 2008: SGS reports that “10 KG sample flotation tests on variability composites produced very good moly grades and recoveries in the batch testing”
    • Completed Q3 & Q4 2008 2009 2010 • Objectives  Assay reports commence and Advanced Metallurgical EA Permitting Applications – continue to Q4 2008 at the rate Scoping Study in Q1 Provincial and Federal of approximately ten to fifteen Reclassified NI 43-101 Completion of Traditional holes a month Report in Q2 Knowledge Study  Initial Metallurgical Scoping Traditional Knowledge • Preliminary Economic Study from SGS (Lakefield) Protocol signed Assessment by AMEC  Begin 21,000 metre drilling SEPA negotiations begin with • Q4 complete SEPA agreement program First Nations in Q4 • Development of an end user  Reclassified NI 43-101 Report Exploration program agreement  Normal Course Issuer Bid in place
    • • Measured Resource of 30.8 million tonnes grading 0.075% Mo at 0.035% cutoff grade • Indicated Resource of 89.7 million tonnes grading 0.068% Mo at 0.035% cutoff grade • Inferred Resource of 48.4 million tonnes grading 0.065% Mo at 0.035% cutoff grade
    • • Past two years most significant results • Discovered higher grade zone
    • Power on the way! Northwest Power Line underway Est. $90 million to complete from Bob Quinn to Dease Lake (Cassiar)
    • Molybdenum Fundamentals • Exceptional The Property • Just off Highway Management Team • Experienced Milestones • Surpassing Plans Strategic Partner Negotiations • Underway
    • Ronald A. Coombes President Columbia Yukon Explorations Inc. Vancouver, BC Canada Tel 604 922 2030 www.columbiayukon.com
    • GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:
    • Globe Metals & Mining Investor Update Global Mining Investment Conference – London 28 September 2010
    • Disclaimer The views expressed in this presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking statements in this presentation have been prepared on the basis of a number of assumptions which may prove incorrect and the current intentions, plans, expectations and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside Globe Metal & Mining Limited’s control. Important factors that could cause actual results to differ materially from the assumptions or expectations expressed or implied in this presentation include known and unknown risks. Because actual results could differ materially to the assumptions made and Globe Metal & Mining Limited’s current intentions, plans, expectations and beliefs about the future, you are urged to view all forward looking statements contained in this presentation with caution. This presentation should not be relied upon as a recommendation or forecast by Globe Metals & Mining Limited. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. Competent Person: The contents of this report relating to geology and exploration results are based on information compiled by Dr. Julian Stephens, Member of the Australian Institute of Geoscientists and Non-Executive Director for Globe Metals & Mining Limited. Dr. Stephens has sufficient experience related to the activity being undertaken to qualify as a “Competent Person”, as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources & Ore Reserves, and consents to the inclusion in this report of the matters compiled by him in the form and context in which they appear. 58
    • Investor Highlights  Kanyika Niobium Project (GBE: 100%)  Production of ferro-niobium (FeNb) to commence in 2013 (+Ta credits)  Updated financial forecast (Sept. 2010) confirms project economics  Machinga Rare Earth Project (GBE: up to 80%)  7 REE targets over 935sqkm EPL  1,500m maiden drill program underway – results due mid – Sept. 2010  Mount Muambe Flourite Project (GBE: up to 90%)  Ultra high-grade flourite target – 6km diameter carbonatite crater  1,000m drill program to commence Sept. 2010  Corporate Overview  94 million shares on issue – market cap. A$17m  A$2.9m cash @ 30 June 2010 59
    • Niobium 4kg of niobium used in the manufacture of a mid-sized vehicle would save 100kg of steel, which would translate into fuel savings of half a litre per 100km¹ 1. “Niobium Demand, Price Stays High, Despite Steel Weakness”, Mining Weekly.com, 7 November 2008 60
    • Niobium Market Size and Growth Niobec forecast 15%p.a. growth for next 4 years: • 5% steel volume growth • 10% consumption intensity growth² CBMM announces pre-crisis production levels to return by early 2011 (Jan. 2010)³ Source: 1,2. IAMGOLD, “Niobec Tour Presentation”, June 2009; 3. Metal Pages, 7 January 2010. 61
    • Steel Growth Metal consumption and GDP per capita, 1965-2005 Aluminium Steel 62
    • Niobium Key Facts  >90% niobium consumed by the steel industry (as FeNb)  Niobium a micro-alloyer; standard addition of 3.5 - 5.0 grams/tonne to molten steel acts as a grain refiner, encouraging the formation of a micro-structure that adds toughness, corrosion resistance, tensile strength, formability, and strength  Increasing “consumption intensity” of niobium in steel: “The growth in consumption of niobium…has resulted from both the overall growth in total steel consumption and a shift from mild steels to higher quality steels, which often contain niobium. Worldwide, in 2008 the unit consumption of niobium in steel was around 55-60g/t of steel produced. In the most highly developed countries the figure was 100g/t or more, whereas in China only around 40g/t were consumed. There would appear, therefore, to be significant potential for the increased use of niobium in this end-use market. “ “In 2008, ferro-niobium was used in about 10% of total steel production. There is good potential for that figure to grow, perhaps to as much as 20%, as higher-quality steels continue to replace mild steel in a number of applications.” (Roskill)  FeNb price historically very stable – benefits suppliers and consumers  FeNb a small % cost input to steel mills  Globe’s production of 3,000tpa niobium to represent 3-4% market share (or 4 months of one year’s growth in market size) “The best substitute for steel is better steel” 63
    • Kanyika Niobium Project  Grade targeted for first ~7 years mining 21Mt High-Grade (3,000ppm cut-off) 4,700ppm Nb2O5 Category Mt Nb2O5 Ta2O5 U3O8  100-110Mt exploration target (incl. 40- 3 5,400 250 160 50Mt high grade @ 3,700-4,000ppm) Measured 7 4,400 200 110  Production: 3,000tpa Nb (70-85% Indicated revenue); and 192tpa Ta2O5 (15-30%) Inferred 11 3,600 160 90  1.5-2.5Mtpa mill feed; open cut with low Total 21 4,100 180 110 strip ratio  Updated JORC resource estimate  Project currently in feasibility stage released June 2010 - total 60Mt: 5Mt  Commencement of production scheduled Measured, 18Mt Indicated and 37Mt for 2013 Inferred (@ 1,500ppm Nb2O5 cut-off)  >20 years mine life potential Clause 18 of the JORC Code requires inclusion of a statement that the potential quantity and grade of the Exploration Target (excluding that portion already drilled and classified into JORC Indicated and Inferred Resource categories) is conceptual in nature, that there has been insufficient exploration to define additional Mineral Resources and that it is uncertain if further exploration will result in the determination of any additional Mineral Resources. 64
    • Kanyika Section 65
    • Updated Financial Forecast  Completed September 2010, incorporating new JORC resource  Confirms positive economics and project viability:  US$187 NPV (@ 10% discount rate)  IRR 27%  Capex. US$155m (+ US$31m contingency)  Capital payback period 3 years (including yr.1 production ramp-up to name plate volumes)  Annual revenue US$170m  Key assumptions:  Fixed 3,000tpa niobium metal output, plus tantalum credits  Same “deal” with Government of Malawi as Paladin/Kayelekera: 15% GoM project equity for fiscal trade-offs incl. VAT and fuel excise exemption and income tax and royalty reductions  FeNb price of US$44.5/kg ctd. metal (current spot China “60-B”)  Ta2O5 price US$180/kg (current spot US$230/kg)  Blended diesel/hydro power @ $0.21/kwh (12-14MW)  Uranium revenue and expense excluded 66
    • Project Upside  Price: FeNb historically stable, with incremental rises. Major producers planning significant capacity expansion to meet growing demand, which must be funded.  Products:  Within existing flowsheet: niobium oxide  Additional potential products: high-grade magnetite, zircon, uranium and feldspar  Power:  Reduction in total usage  Access to reliable grid power (via Mozambique interconnector or Malawi hydro expansion)  Capex: third party estimates for downstream refinery built in China less US$20m  Process Flowsheet: major opportunity from optimisation program to significantly improve recoveries and reduce operating costs  Exploration: additional high-grade material (~4,000ppm Nb2O5) from within the identified exploration target will further enhance economic returns  Pit Optimisation: existing financial forecast does NOT include fully optimised pits, maximising the mining of high-grade material in the initial years Clause 18 of the JORC Code requires inclusion of a statement that the potential quantity and grade of the Exploration Target (excluding that portion already drilled and classified into JORC Indicated and Inferred Resource categories) is conceptual in nature, that there has been insufficient exploration to define additional Mineral Resources and that it is uncertain if further exploration will result in the determination of any additional Mineral Resources. 67
    • Machinga Rare Earth Project  Globe earning up to 80% from Resource Star Ltd (ASX: RSL)  7 REE targets over 935sqkm EPL  1,500m maiden drill program underway – results due mid-Sept. 2010  China dominates REE production: >95%  China continually reducing export quotas to protect domestic demand  High ratio of HREO: TREO (up to 34%) – HREO prices up to 100x LREO prices  Main HREO is dysprosium  Significant niobium and tantalum values  Eudialyte identified as main REE mineral – common HREO ore mineral  Malawi one of the few recognised REE provinces 68
    • Machinga Targets 69
    • Machinga Trench Results  7m @ 1.26% TREO & 0.63% Nb2O5 (T1)  33m @ 0.71% TREO & 0.40% Nb2O5 (T2)  Inc.11m @ 1.00% TREO & 0.46% Nb2O5  10m @ 1.00% TREO & 0.50% Nb2O5 (T5)  15m @ 0.45% TREO & 0.75 Nb2O5(T3)  Inc. 5m @ 0.54% TREO & 1.34% Nb2O5  First 5 trenches in Machinga North 2.7km strike length 70
    • Heavy Rare Earths “…the most important of all the rare earths are the magnet metals – the big four: neodymium and praeseodymium (light REEs) and dysprosium and terbium (heavy REEs). These four metals, in varying proportions, make up the critical materials in 90% of rare earth permanent magnets made and used today.” “… in Beijing…at the Chinese Society for Rare Earths 6th Annual Rare Earths’ Summit stated that a goal of the next two five-year plans, to be completed in 2020, was to have 330 GW of wind-turbine-generated electricity installed by that time…I will estimate that at most it would be one thousand tons of terbium and three thousand tons of dysprosium. As to electric and hybrid cars, they require neodymium, dysprosium and terbium for the magnets in the rare earth permanent magnet electric motors – both that drive them and that power their accessories… The real issue for the future of rare earth utilization and therefore of mining, is the continued growth of the use and need for the heavy rare earths, terbium and dysprosium. These “heavy rare earths” are believed by the Chinese to be in short supply domestically. China today is the world’s only producer of heavy rare earths …China believes that its own domestic supply of the heavy rare earths has between five and 30 years remaining at present levels of use.” Prices for dysprosium oxide, the most economically important HREO at Machinga, have risen dramatically over the past 12 months to ~US$290/kg Sources: Jack Lifton, “North America Doesn’t Need China’s Rare Earths”, The Gold Report, August 2010; Jack Lifton “The Green Revolution in China”, Resouce Investor, August 2010 71
    • Southern Malawi REE Province 72
    • Mount Muambe Flourite Project  Globe earning up to 90%  Very high-grade flourite potential:  Peak rock chip grade > 71% CaF2  Average grade of 26 samples 56% CaF2  Maiden 1,000m drill program to commence Sept. 2010  Area serviced by major power, road and rail infrastructure  Historical metallurgical work demonstrates that concentrates of >97% CaF2 can be produced  Project area also prospective for REE, Nb and Ta  China the largest producer and consumer of flourite – seeking to protect its supply for domestic demand 73
    • Project Location 74
    • Contacts For more information, please contact: Mark Sumich Executive Chairman mark.sumich@globemetalsandmining.com.au 75
    • GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations: