FOR SALE / TAKE OVER WITH ALL PERMIT C&C READY . MINE-ABLE FOR MORE THAN 30YRS, DEPOSIT +70.000.000 TON MORE.MINING DESIGN READY JETTY 3KM MINING 5KM .

1. IRON SAND MINING
EXECUTIVE SUMMARY

2. Overview of PT. TIMUR RAYA MAS
1. The IUP covers two large concession: 710 Ha and 7,378 Ha
2. Measured deposit in explored area: 69 million tonnes
3. Inland and offshore concession. 25 km coastline length
4. Offshore potential for Iron Sand and Heavy Minerals
5. Mining permit: IUP Operasi Produksi for 20 years
6. CNC (Clear and Clean) certified from ESDM (Ministry of Energy and Mineral
Resources)
7. Low operating cost to achieve profitable margin.

3. Resources
• From the exploration of the 710ha there is measured deposit of 18
million tonnes
• From exploration of 4 blocks in the 7378Ha concession there is a
measured deposit of 51 million tonnes.
• The offshore potential has yet to be explored
• The Fe content of the concessions range from 12% to 25%
• With simple beneficiation the Fe content can be increased to >50%.
Grinding of the concentrate increases the iron content to 55 -58% by
breaking off the pyroxene ( Aluminium Sulfate and Silica ).
• From the deposit resource, it is more than sufficient for 30 years of
mining.

4. Company Vision
To realise the value of Indonesia’s
abundant natural resources to
establish an Indonesian steel
industry using 100% local raw
materials:
We will be:
 The supplier of choice to the growing Indonesian Steel Industry
and the
 The Indonesian supplier of choice to the Asian metals industry

5. Establishing a Steel Industry in Indonesia
• The origins of the world steel industry can be traced back to
the early 1800’s and the development of the Bessemer and
Blast Furnace processes in Europe
• The processes were established to process local Haemetite
iron ore
• Indonesia has a limited Haemetite resource but an abundant,
low cost local iron ore in the form of iron sand
• The development of iron making processes to consume iron
sand commenced 150 years ago in New Zealand and UK
• The commercialisation of Direct Reduced Iron (DRI)
technology has created the opportunity to develop a steel
industry based entirely upon local iron sand
5

6. Project Implementation Strategy
6
Phase 1
12 Months
Product
Mining Magnetic
Separation
Grinding +
Magnetic
Separation
Phase 2
36 Months
Iron
Concentrate
Pelletising DRI
(Sponge
Iron)
Phase 3
40 Months
Direct
Reduction
Ladle
Furnace
Electric Arc
Furnace
Billet
Caster
Steel
Billets
6.7mt 1mt
550kt1.1mt
550kt610kt
Inert Gas
Cooling

7. Phased Implementation
Two critical elements drive the implementation Strategy: Financing, Sourcing of
a fuel / reductant
Financing Fuel / Reductant Source
Following the Global Financial Crisis the tightening of
rules and regulations governing financial markets has
impacted project structure
1. Projects are required to be broken down into value
chain components financed on a stand alone basis
2. Detailed engineering design is now required prior
to finance approval thus requiring significant funds
to be raised prior to Project finance e.g. The DRI
Definitive Feasibility study will now cost $20 to $40
million.
3. Issuing of government, licenses and permits are
conditions of funding e.g. Construction permits,
Environmental permits, Export permits etc
1. Choice of DRI technology is dependent on the choice and
availability of the fuel / reductant source
2. The DRI process uses either natural gas or coal as the fuel /
reductant
3. The process is a chemical reaction which uses Hydrogen and
carbon to remove oxygen from the ore
4. Significant coal reserves in Indonesia make coal the obvious
choice, however small changes in coal chemistry have a
significant impact on the operation of the DRI process
5. DRI plants are designed for a minimum 25 year life
6. Ideally the process requires the same coal from the same
coal seam for the life of the plant. This requires a long-term
commercial contract from a large seam (>30 million tonnes)
7. If consistent coal quality can not be guaranteed, coal
gasification may be required
8. Clean natural gas provides a consistent reliable fuel source

8. Project Financial Summary (Phases 1& 2)
IRR 25%
NPV $327
Iron Concentrate Sales 10mt
DRI (Sponge Iron) Sales 26mt
Construction Period 4 Years
Plant Life 25 Years
CAPEX $337m
Project Costs $511m
Cash Requirements Year 1 $92m
Iron Concentrate selling price $39/t
DRI Selling price $250/t
Iron Concentrate Production
cost
$26/t
DRI Production Cost $146/t
Financial Assumptions:
1. Mineral reserve >30 years
2. The deposit will use dredge mining
methodology
3. Two million tonnes of iron concentrate
will be produced each year
4. Iron concentrate will be exported for
the first 5 years of the project
5. A one million tonne per annum DRI
plant will commence commissioning
year 4
6. A 2.5 years ramp up period to achieve
full iron making design capacity
7. RP to US$ exchange rate 12,500
8. A 10 year tax free exemption period
will apply
9. The project will be funded 70% debt,
30% equity

9. Project Financial Profile (Phases 1 & 2)
Year
1
Year
2
Year
3
Year
4
Year
5
Year
6
Yea
r 7
Yea
r 8
Yea
r 9
Yea
r 10
Yea
r 11
Year
12
Yea
r 13
Year
14
Year
15
Concentrate
Sales /mt
0 1 2 1.45 0.7 0.4 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
DRI Sales/mt 0 0 0 0.3 0.7 0.9 1 1 1 1 1 1 1 1 1
CAPEX / $m 92 53 125 150 77 31 0 0 0 0 0 0 0 0 0
Gross Revenue
$m
0 39 78 132 203 239 257 257 257 257 257 257 257 257 257
Cash Cost /$m 8 26 51 80 117 136 146 146 146 146 146 146 146 146 146
EBITDA /$M -8 6 11 41 80 85 94 94 94 94 94 94 94 94 94
Nett Income $m -8 5 11 38 77 82 44 47 50 54 58 62 67 72 77

10. Iron Ore Price and Relationship to Iron sand
10
The full cost of iron ore to the Steel companies reflects international ore plus freight rates:
The International Iron sand price standard has
been established by New Zealand Steel indexed
against the 62% Iron ore index:
•Ironsand CIF price=(Index price/62)*X*Y
-. Where X= iron content of ironsand
Y= % Discount
e.g: Assuming today’s 62% index price $65/t and
55% Fe ironsand concentrate:
=(65/62)*55*0.85
= $49/t CIF
Assume shipping rates $10/t, realised price ex
barge: $39 /t
F/Cast 62%Fe long-term $80/t applying ironsand
formula = $50/t ex barge

11. High Level Organisational Structure
Project
Director
Project
Managers
External
Turn Key
Providers
Technical
Consultant
s
President
Director
HR Legal
External
Affairs
Finance
The Project Director:
• Is Accountable for the technical
and financial success of the project
• Overseas the project teams and
coordinates activities
• Has the authority to direct the
project team
• Manages the vendor supplier
client relationship
President Director
• Is accountable for the
Socialisation and
environmental success of the
project
• Manages national and local
government relations
• Overseas the financial
control of the business
• Ensures legal compliance

12. Direct Reduced Iron (DRI) - Overview
◦ DRI or Sponge Iron is a source of iron units demanded by Electric Steelmakers. It
allows them to produce higher specification steel grades than is possible with
conventional steel scrap
◦ Global DRI production of >80 million tonnes has been growing at a steady rate,
mostly in regions where cheap natural gas is available
◦ It is estimated that 75% of the worlds DRI is produced via gas based technologies
◦ Coal based plants make up the balance
◦ The Middle East countries are major uses of the DRI process using cheap abundant
natural gas and imported iron ores to supply the regions growing steel demand
◦ DRI production in the USA, led by Steel market leader Nucor, is increasing rapidly on
the back of cheap natural gas and the surge in shale gas extraction in Canada
◦ India is the largest producer of DRI with >35million tonnes of capacity, 70% using
coal based technology

13. Process Overview
• The Iron Sand resource is similar to the deposits in New Zealand which
are beneficiated for export, and also processed in New Zealand to
finished steel products by New Zealand Steel
• The mine beneficiation process comprises of magnetic separation and
grinding to produce iron concentrate
•The iron making process will use DRI (Direct Reduced Iron) technology
similar to that used by New Zealand Steel
• The technology can be supplied by a number of international specialist
companies
• Flow chart of processing :
Mining Beneficiation DRI Steelmaking
• Coal or Natural Gas is required for the DRI process

14. Examples of DRI Technologies
Coal based DRI process using a rotary Kiln Natural gas based DRI using a reactor vessel

15. Recently Completed & Pending Gas Based
DRI/HBI Plants

16. Project Location
1. Mine site is in Saleh Bay - on the island of West Nusa Tenggara
2. The concessions are located in Dompu district
1. The mine site is approximately 3 hours drive from Bima
airport
1. Bima is a 1 hour flight from Bali with a daily service

17. Geographic Location Of The Concession
Concession

18. Concession

19. 710 Ha Concession Map

20. 7.378 Ha Concession
Map

21. Jetty Location
Jetty

22. Site Photographs

23. 20 Ha Site at the Jetty to construct an export facility and DRI processing
plant

24. Unloading Activities at Jetty 8 Feb 2015

25. Requirements To Sustain the Business
Model
Infra Structure:
•Electricity / Co-gen
•Natural Gas
•Diesel
•Water, and water
treatment
•Port facilities
•Rail
•Road
Service Industries:
•Training /
Education
•Medical facilities
•Cleaning
services
•Food and
catering
•Transport
services
•Administration
services
•Engineering
services
•Environmental
monitoring
Support
Businesses:
•Fabrication
•Construction
•Brick and
refractory's
•Storage
•Oxygen plant
•Lime
manufacture

26. Key to Project Success:
Socialisation
• An absolute key to a successful
project and essential at three levels:
National Government
Provincial Government
Local villages
• Mining has a very poor image in the
minds of many Indonesian people
• Perceived threats to way of life and
traditional values are very real
26
Factors to Consider:
•Current land use
•Current drivers of the
local economy
•What is currently
missing
•Employment &
training
•What legacy will be
left after mining

27. Key to Project Success: Environment and
Sustainability
Environment:
• Intimately linked to Socialisation
• Create leverage through imposing Western
Standards:
Adopt a zero waste philosophy
Rehabilitate immediately employing local
businesses
Sustainability:
• Demonstrate a whole of business approach,
profit, environment and social responsibility
• Demonstrate the long term benefits to the
local people, employment, training etc
• Plan mine closure from day 1
27

28. 28
Committed to Sustainability and Environmental Values
Vision:
The Safest, Cleanest, sustainable
development in the world
Mission Statement.
•To achieve 100% use of Resources through
innovative Process and Product design.
•Zero waste, 100% recycling, restructuring
production and distribution systems to
prevent waste from being generated.

29. Committed to Providing Local
Benefits
• Establish programs to train and employ local
operators
• Full scale iron concentrate operations to
create 300+ jobs
• Establish local community boards to grow
local businesses and create employment
opportunities
• Scholarship program to provide further
education opportunities
• Developing new regional community facilities
and infrastructure