London Global Mining Investment Conference 10.20 Platinum Group Metals Christopher Dundas Chairman & Director Duluth Metals Limited Stationers Hall, London Wednesday 30th September 2009 www.ObjectiveCapitalConferences.com
2 Nokomis Deposit: A Combined PGM & Base Metal Investment Opportunity Objective Capital’s London Global Mining Investment Conference September 2009
3 Duluth Metals’ strategy is to systematically explore and develop the Nokomis Property, which hosts the Company’s main asset – the combined base and precious metal Nokomis Deposit. The vision of the Company is to move the world class Nokomis copper-nickel-PGM Deposit through feasibility into production.
No regulatory authority has approved or disapproved the information contained in this presentation. This presentation includes certain statements that may be deemed “forward looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995. Such forward looking statements include statements about our plans, strategies, business prospects, changes and trends in our business. In some cases, you can identify forward looking statements by the use of words such as "may," "could" "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "purpose," "potential" or "continue" or the negative or derivative of such words. In particular, all statements in this presentation, other than statement of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. As they are based on management's current plans, estimates, expectations, beliefs and assumptions concerning future events, they involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those in the forward-looking statements include market prices for commodities, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions and other factors disclosed in the Company's public filings . The Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws. 4 Cautionary and Forward Looking Statement
6 Significant Contained PGM’s & Base Metals Contained Metals in Expanded Nokomis Resource* Base Precious *Based on resource estimated at 1.0% copper equivalent cut-off. Reference: July 18, 2008 Technical Report on the Resource Estimate for the Nokomis Deposit on the Maturi Extension Properties, Minnesota, U.S.A. 6
7 Nokomis Deposit NI 43-101 Resource Estimate NI 43-101 Estimate by Scott Wilson RPA dated June 2008 Scott Wilson RPA estimated the Mineral Resource using average long-term metal US$ prices of $1.75/lb copper, $7.00/lb nickel, $10.00/lb Co, $600/oz Au, $1100/oz Pt and $350/oz Pd. Copper equivalent (CuEq%) = Cu% + 3.03 x Ni% + 0.63 x Co% + 0.30 x Au g/t + 0.76 x Pt g/t + 0.24 x Pd g/t based on expected metal prices and process recovery and refining charges. TPM (g/t) = Pt (g/t) + Pd (g/t) + Au (g/t) *Cu Equivalent cut-off grade methodology approximates 0.4% Cu 7
8 Nokomis: A Diversified Basket of Commodities Potential Annual Production @ 40,000 tpd Total TPM Annual Production = 251,000 ozs *Reference: January 8, 2009 Scott Wilson RPA Preliminary Assessment on the Nokomis Project, Minnesota, U.S.A. 8
10 Financial Leverage on World Metal Prices $3.2 Billion as of September 16-09 spot prices Three different economic cases are highlighted by Scott Wilson RPA: Low Metal Price Case of 1.55/lb Cu; $4.90/lb Ni; $10.00/lb Co; $795/oz Pt; $295/oz Pd; $600/oz Au; Base Price Case of $1.75/lb Cu; $7.00/lb Ni; $10.00/lb Co; $1,100/oz Pt; $350/oz Pd; $600/oz Au; and Market Price Case* as of January 13, 2008 of $3.31/lb Cu, $12.70/lb Ni, $47/lb Co, $1,559/oz Pt, $376/oz Pd, $895/oz Au: (all monetary units are in $US) *Scott Wilson RPA used Market Prices on January 13, 2008 in the earlier NI 43-101 Report dated January 22, 2008. Reference: January 8, 2009 Scott Wilson RPA Preliminary Assessment on the Nokomis Project, Minnesota, U.S.A.
11 Valuable Asset for Future Mine Plan Dunka Property Option Advantages of Dunka:
Potential site for future tailings and processing.
Metal Value Contributions 12 Metal Value Contributions Base Case Metal Distribution – Approximate Relative Contribution to Value. Ratio is dependent on relative world spot metal prices. Reference: January 18, 2008 Technical Report on the Preliminary Assessment on the Nokomis Project, Minnesota, U.S.A. 12
Forecast Production Cost* Viewed as a Potential Copper Mine (with all other metals as by-product credits) Including Capital Costs Not Including Capital Costs $6 $4 $2 $0 -$2 -$4 -$6 -$8 -$10 $6 $4 $2 $0 -$2 -$4 -$6 -$8 -$10 Base Case Low Metal Price Case Low Metal Price Case Base Case Market Case** Market Case** Cost per Pound of Production $0.32 -$0.30 -$0.09 -$0.72 -$1.94 -$2.36 *Based on NI 43-101January 2009 Scoping Study **Market case as of January 13, 2008 13 13
Forecast Production Cost* Viewed as a Potential Nickel Mine (with all other metals as by-product credits) Including Capital Costs Not Including Capital Costs $6 $4 $2 $0 -$2 -$4 -$6 -$8 -$10 $6 $4 $2 $0 -$2 -$4 -$6 -$8 -$10 Base Case Low Metal Price Case Low Metal Price Case Base Case Market Case** Market Case** Cost per Pound of Production -$2.15 -$0.36 -$1.82 -$3.61 -$9.83 -$11.63 *Based on NI 43-101 January 2009 Scoping Study **Market case as of January 13, 2008 14 14
A World Class Deposit 15 “Mineral deposits occur rarely in the Earth’s crust and large ones are especially uncommon”1 Nokomis is a World Class Deposit “World class deposits are defined as the upper 10 percent of deposits in terms of contained metal”2 1 ,2 Singer, D.A., (USGS Geologist), 1995, World-Class Base and Precious Metal Deposits – A Quantitative Analysis: Economic Geology, v. 90, p. 88-104.
17 Contained Metal: Duluth Deposits Nokomis is the largest and still growing NE SW
18 Important to the United States Nokomis as a percent of the identified resources (Measured, Indicated & Inferred) of the United States U.S. Geological Survey, 2008, Mineral commodity summaries 2009: U.S. Geological Survey, various pages. 18 October 8, 2009
Importance of the Nokomis Deposit 19 Based on reported data of contained metal, the Nokomis Deposit is the second largest Cu-Ni-PGE deposit on Earth, only Russia’s Noril’sk deposit is larger.
20 Non-ferrous Exploration Activity The Nokomis Deposit Part of an evolving mining district. Nokomis 449 Million Tonnes Indicated 0.624% Cu, 0.199% Ni, 600 ppb Pt+Pd+Au 284 .2 Million Tonnes Inferred 0.645% Cu, 0.180% Ni , 697 ppb Pt+Pd+Au Reference: University of Minnesota Duluth see athttp://www.d.umn.edu/prc/workshops/08_InvWorkshop.html Duluth Metals resource estimates are NI 43-101 compliant, other deposits are as reported. 20 October 8, 2009
21 Strategic Land Additions Acquisition of additional mineral rights and/or surface rights including: • Dunka Property Option • State Lands (multiple properties) • Other Private Lands (multiple properties) The new land acquisitions bring the current mineral holdings of Duluth Metals to approximately 18,500 acres and 14,000 acres of surface rights.
Exploration Summary 22 Exploration From 2006 to 2009 the Company operated the largest concerted drilling program ever undertaken in Minnesota to define the Nokomis Deposit. Duluth Metals completed a total of 155 vertical holes & 67 wedge holes, totaling 153,425 meters (503,363 feet) or 153.4 kilometers (95.3 miles). All holes drilled to target depth intercepted mineralization in varying widths and grades (all assay results available on SEDAR.com) Cumulative Meters Drilled
Advancement of the Nokomis Project 23 A year of accomplishments in a challenging economic climate: • Expanded the size of Nokomis deposit – 30% increase in Indicated Resources to 449 Million Tonnes – 162% increase in Inferred Resources to 284 Million Tonnes • Second NI 43-101 Preliminary Assessment of the Nokomis Project – Expanded 40,000 tonnes per day production rate scenario demonstrates positive economics • Delineated significant Eastern Area Higher Grade Zones • Increased strategic land assets • Environmental baseline studies underway • Commenced a third NI 43-101 Resource Estimate with Scott Wilson RPA
Geological Interpretation: Nokomis Deposit 24 Cross sections views through the Nokomis Deposit Figures from Peterson, 2008
28 Next Steps – 2009 and Beyond Major Activities: • Geologic analysis – insight of the mineralization leads to enhanced understanding and discovery. • Resource definition – identifyingcontiguous, large tonnage, higher grade zones is important. • Mine planning – designing the optimal extraction system. • Metallurgical testing – confirming the optimal recovery system. • Environmental assessments – critical to the permittability and future development of the project. • Project optimization – insuring the best operation and the most profitable economic scenario, within the operational constraints. 28
29 Timeline to Advance the Nokomis Deposit Towards Production 2006 -2009 Exploration to define Nokomis Deposit 2007 ongoing Environmental Base Line Studies for EIS 2008 ongoing Collection of Drill Core for metallurgical tests Mine Planning and Engineering 2009 ongoing Pre-Feasibility and subsequent Bankable Feasibility Studies Project Optimization Environmental Review, EIS and Permitting
Environmental work on Nokomis began in early 2007.
Baseline studies are proceeding well and many are almost completed.
Nokomis will have reduced surface impact as an underground mine vs an open pit mine.
Reuse of the Dunkabrownfields site is considered positive.
Nokomis appears to be permittable within current environmental standards.
PolyMet has helped define the process for permitting a nonferrous mine in Minnesota.
Duluth Metals continues to work with the State, Federal Government, local groups and other stakeholders to address all environmental questions and issues.
31 As of August 31, 2009Share Structure
Management Christopher DundasChairman & DirectorFormerly Senior Partner Murray & Co. Over 30 years experience in project & corporate finance. Debt & equity finance specializing in real estate and infrastructure. B.Commerce – Queens University & MBA - U. of California, Berkeley. Henry SandriPresident, CEO & DirectorFormerly President of Select Resources, former executive of Inco Ltd., Queensland Nickel, and Burlington Northern Inc. International mineral economist. BSc Foreign Service-Georgetown U., MA Applied Economics-American U. & PhD Mineral Economics-Colorado School of Mines. Dean PetersonSenior Vice-President ExplorationPre-eminent authority on Duluth Complex mineralization through previous position as Senior Research Associate at the Natural Resources Research Institute of the U. of Minnesota in Duluth as well as co-director of the Precambrian Research Center at the University. John FrancisChief Financial OfficerEarned his Chartered Accountant degree in 1976 with Coopers & Lybrand. Over 25 years experience in finance & accounting within the mining and natural resource sectors. Has held senior finance positions with Jaguar Nickel, Queenston Mining, and Harbinson Mining Group. H. James BlakeSecretarySenior law partner of McLean & Kerr LLP. Appointed Queen’s Counsel in 1980. Member of the Ontario Bar Association. LLM Business Law-York University. 32 32
Directors James J. Jackson, R.C.A. DirectorFormer Alcan executive, former Senior Vice-President and Chief Financial Officer of MobiFon. Current member of the supervisory board of Bite Lithuania, a mobile telephone company and Board member of Neo Materials Technologies Inc. A member of the Canadian Institute of Chartered Accountants and a registered Certified Public Accountant in the United States. He serves as Director & Chairman of the Audit Committee. Michael J. Knuckey DirectorFormer President and CEO of Noranda Mining and Exploration and involved in the discovery and development of numerous mines including the giant Collahuasi deposit, Chile; Corbet; Winston Lake; Ansil; Thayer Lindsley; Samatosum; Raglan’s new zones and Ujina. Inductee to Canadian Mining Hall of Fame. Thomas F. Pugsley DirectorFormer Senior Vice President of Projects and Engineering at Falconbridge Limited, he managed Falconbridge’s interest in the US$1.8 billion Collahuasi Copper Project, Chile, and, was responsible for the implementation of Falconbridge’s $600 million Raglan Project, Nunavik Quebec as well as the design, planning and development of Falconbridge’s US$3 billion Koniambo Ferronickel Project in New Caledonia. Barry Simmons B.Sc. DirectorFormer executive of Teck Cominco Ltd., Falconbridge Limited and Cameco Corporation, with worldwide experience in exploration and development of copper, nickel, precious metals and uranium. Alar Soever P.Geo Director President of Wallbridge Mining Company and Professional Geologist with over 25 years experience in the mining industry in Canada and overseas. 33
Company Highlights Single Focus Focused on One Property • Growing the Asset Value of the Nokomis Deposit • Advancing Nokomis to Development and Production Experienced Management Experienced Board, Management & Staff Debt Free Cash Position Approximately $6.7 Million Cash as of June 30, 2009 34
London Global Mining Investment Conference Christopher Dundas Chairman & Director Duluth Metals Limited Chris Dundas is the Chairman and a Director of Duluth Metals Limited. Mr Dundas obtained an MBA from the University of California (Berkeley) in 1973 and has 33 years of investment banking experience in real estate, corporate, and infrastructure finance. During that period he participated in arranging financings totalling several billions of dollars. Since late 2005, he has led the IPO, development and growth of Duluth Metals Limited, a publicly listed company on the Toronto Stock Exchange. He is formerly a Director of Murray & Company Holdings Limited, a full service financial intermediary headquartered in Toronto and formerly the President of Murray & Company’s Quebec subsidiary. He is a former Director of Wallbridge Mining Limited. Stationers Hall, London Wednesday 30th September 2009 www.ObjectiveCapitalConferences.com