Tellus Chandler Salt Mine Project Briefing 11th September 2013 - 7th annual Mining the Territory I Darwin Convention Centre Duncan van der Merwe - Group Managing Director

Salt / Minerals

Tellus Group

Storage

Industrial & Edible Salt Minerals -Fertiliser Storage / Disposal Renewable Energy Salt Mine Tourism

Spin Off Salt Business

Chandler Project (NT)

Complementary

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Important Notice and Disclaimer

Summary information

This presentation (Presentation) has been prepared by Tellus Holdings Ltd (ABN 97 138 119 829) (Tellus) and is for information purposes only. This Presentation

contains summary information about Tellus and its subsidiaries and their activities current as at the date of this Presentation. The information in this Presentation is

of general background and does not purport to be complete. It should be read in conjunction with other periodic announcements on www.tellusholdings.com.au.

The key information on detailed Exploration Target statements and feasibility results can be found in Tellus ’s media releases. Exploration Targets statements are

appended to comply with ASX guidelines but investors are urged to read supporting information in full on the website.

Future performance This Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, “should”, “could ”, “may”, “plan”,

“will”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of

applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-

looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice,

as are statements about market and industry trends, which are based on interpretations of current market conditions. Such forward-looking statements, opinions

and estimates are not guarantees of future performance.

Not an offer

This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither this presentation nor anything

contained in it shall form the basis of any contract or commitment.

Competent Person Statement

The information in this presentation that relates to exploration results is based on information reviewed by Dr.Simon D. Beams, a full time employee of Terra

Search Pty Ltd, geological consultants employed by Tellus Holdings Limited. Dr. Beams has BSc Honours and PhD degrees in geology; he is a Member of the

Australasian Institute of Mining and Metallurgy (Member #107121) and a Member of the Australian Institute of Geoscientists (Member # 2689). Dr Beams has

sufficient relevant experience in respect of the style of mineralisation, the type of deposit under consideration and the activity being undertaken to qualify as a

Competent Person within the definition of the 2004 Edition of the AusIMM’s “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore

Reserves”.

Exploration Target

Note All statements as to exploration targets of Tellus salt and statements as to potential quality and grade are conceptual in nature. There has been insufficient

exploration undertaken to date to define a salt resource and identification of a resource will be totally dependent on the outcome of further exploration. Any

statement contained in this document as to exploration results or exploration targets has been made consistent with the requirements of the Australasian code for

reporting of exploration results, mineral resources and ore reserves (“JORC Code”).

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Contents

About Tellus Holdings Limited

Project Locations

Tellus Salt and Associated Mineral Products

Situation, challenge and solution

Chandler Project Overview

Appendix

1

2

3

4

5

A

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About Tellus Holdings Limited 1

• Public unlisted company

• Founded July 2009 • Exploration company

with portfolio of rock salt and kaolin clay deposits

• 70M shares

• Strong Board and management team

• Proven track record of developing and operating mines and storage projects

• Chandler salt mine • JORC Exploration Target • 4.5-5 Billion tons halite+

• Sandy Ridge Kaolin

• JORC Exploration Target • 57 Million tons kaolin

• Commercial opportunities from Australia to Asia

• Commercial opportunities from Asia to Australia

• Chandler Project • Developing an

underground rock salt mine - Northern Territory

• Sandy Ridge Project • Developing a kaolin clay

mine - Western Australia

• Use voids left from mining for storage

• First mover in Asia to implement integrated salt mining and storage business

• Proven, profitable and long term business model

+ Refer to Important Notice and Disclaimer and Media Release 26 March

2013 for Competent Person Statement and Exploration Target Definition

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Project Locations - Tellus 2

State Leases Area Status Own. Project

NT 7 EL’s 879km2 Granted 100% Chandler salt mine

WA 1 ELA 59km2 Granted 100% Sandy Ridge kaolin mine

Office

Chandler Salt Mine Project

Sandy Ridge Kaolin Mine Project

ClayVault WA Government Storage Project

Asia – Japan Office

Sydney

Perth

Darwin

Project location and summary

Tokyo

Darwin – gateway to Asia

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Salt/Mineral Cavern and Mine Locations - International 2

Region Projects (Underground Salt Caverns and Mines in Salt Beds

North America >100 projects (incl. 400 salt caverns)

Europe 49 Projects (Germany leader - 30 salt mines used for backfill)

Asia 13 projects (China 6)

Russia 9 projects

Africa 1 project in Morocco

South America 1 project in Brazil

Total > 150 projects incl. < 500 caverns/ mines

Source: SMRI 2003-5: Table 3,4 & 5

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End Market Application

Synesthetic soda ash Glass, chemicals, detergents

Food / food processing Taste enhancer, heath, preservation, flavoured salts

Associated minerals (fertlisers)

Mg rich salts (MgCl), Epsom salts (MgSO4), potash, fertilizers, dust suppressant, bath salts

Chlor-alkali PVC, soap and detergents, pulp and paper

Other industrial (fluxes) Aluminium fluxes, oil & gas drilling, pharmaceuticals, textiles

Water treatment Water softening, swimming pool water chlorinators

Animal feedstuffs Salt licks, some with dietary supplements

Specialty salts (Alice Springs)(1)

Flavoured gourmet salts, salt curios, building material

Tellus salt and associated mineral products 3

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Salt - situation ▪ World salt production 38% solar, 31% rock, 31%

brine with >95% Australia production via solar ponds

▪ Asia consumes 40% (137M tpa) of global supply, growing at 5% pa

▪ Australia produced 16Mt of salt in 2010 - largest producers - Rio Tinto Dampier Salt & Mitsui (14.4M tpa, 90% national total)

Situation, challenge and solution

Salt - Tellus’ competitive advantage ▪ Tellus is in a strong position to meet Asian demand

by providing a guaranteed volume and quality of salt ▪ Large scale resource – easily scalable ▪ Reliable supplier - not influenced by climate ▪ Associated minerals – e.g. fertilisers (high value) ▪ Cross selling storage solutions to salt buyers with

storage problems

Salt - challenge ▪ Difficulty getting environmental approvals

for new projects (3 recent failed applications for solar ponds 2.5M, 3-4M & ~1M tpa)

▪ Australian & Asian salt produced mostly by coastal solar ponds – heavy rain disrupts supply for months at a time

▪ No rock salt mining exists in Australia -yet

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1

2 3

Source: Salt: Global Industry Markets and Industry Outlook, 2011

Cyclone map – 25 years

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Experienced management team in place 5

Experienced corporate team Experienced commodity team Experienced waste management team

Mine development engineer BHP, Rio, Xstrata, Anglo Coal

Ex BD Coffey Environmental, IBM

Chairman Realm Resources, ex Macquarie, JP Morgan

Richard Rossiter Group Interim Chairman

Ron Sifton Tellus RockVault NED

Duncan van der Merwe Group MD

Brett Boynton Group FD

Noel Davis MD ClayVault WA

Robert Charter Business Development

Joe Luxford Tellus Mining

Mining (Gencor CSM Energy), waste & infrastructure (BOS)

Ex UBS, FBR Capital & Credit Suisse, Signature Gold

Ex FD Newalta, Canada’s largest salt cavern waste storage operator

Ex WA Environmental Regulator, Managed only Class V waste facility

Ex BD Director Penrice Soda, roles ICI Australia, Merck, Ajax Chemicals

Ex GM Dampier Salt, Ex CEO of Albany Port (WA)

Mark Shepherd Tellus RockVault NED

John Cook Tellus RockVault Chair

Michael Carter Tellus Salt Sales

Bob Emery Tellus Salt Chair

Ex NSW Chief Mining Engineer, Ex MD Waste Service NSW

Ex MD Coffey WA, managed Australia’s only Class V waste facility

Akira Harada Tellus International NED

CEO MCN Corp Ex GM Okaru & Co, Japanese trading houses

Tellus consists of an exceptional board and management team with key individuals having a proven track record developing large complex mines and heavily

regulated storage projects

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Chandler – Rediscovering the Chandler Salt Bed

Source: McGraw Hill

Source: xx

Image: Victoria Museum, Source: Colorado Plateau Geosystems Source: Colorado Plateau Geosystems

Cambrian -580myo lifeless land teeming ocean Salt trap for oil and gas Gillen 700myo-Chandler 500myo-Late Cambrian

Source: Ambrose and Young (2007)

Mt Charlotte 1 Well – 95% halite Mt Charlotte 1 and Magee 1 (6.6km) 145km seismic, 6.6km core

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Potentially Australia’s largest UG salt deposit

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Chandler - Mine Site

Production -salt 1M tpa salt and associated minerals (3 year ramp up) Scale up depending on market

Mining method Underground, room and pillar design, cut and blast mining

Room dimensions 140mL x 10mW x 6mH 10m support pillar

Processing - Dry and wet

Management Core - owner operator Non core - alliance & contractor Wholesaler

Jobs Build (270), operational (70), indirect (240)

Budget – A$219m

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PFS results: Project technically feasible, economically viable - no fatal flaws

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Chandler - Salt Mining

Blasting after shift end Auger drilling

Muck pile load and dump

Roof scaling

Roof bolting

Cleaning

Drilling

Loading with explosives

0

2

3

4

5

6

7

1

5

Simple, proven room and pillar, cut and blast mining techniques

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Chandler - salt cavern storage seen as world’s best practice 5

Archives Disposal Storage Bulk commodity/ SES Equipment K+S-German salt Mine K+S-German salt Mine Compass Minerals – Deep Storage

Recovery (Al flux salts)

Vaults created from mining used for safe storage and disposal

General Licensed

Type

Unloading Testing & document control

Transport underground

Unloading in rooms (storage)

Disposal – containers backfilled

Disposal – rooms closed

Process flow

Using international “best practice”, tried & tested techniques

1 2 3 4 5 6

1

2

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Country Australia United States of America

Comment Tellus Chandler Project has potential to service the oil and gas and mining sector

400 underground salt storage caverns in 27 US states and Canada servicing the local oil and gas industry

Location

Storage caverns

Source: http://www.worldoil.com/September-2008-Cementing-across-salt-formations.html

15 salt storage caverns , Gulf of Mexico

Darwin

Darwin marine supply base – service hub for NW offshore oil and gas industry

Cross selling services Drilling salts (mine to oil & gas operations) Drilling muds/waste (oil & gas operations to mine site (disposal)

Sandy Ridge

Chandler

ClayVault

5 Chandler - potential to service oil, gas & mining industry

Darwin

Gulf of Mexico

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Chandler – 6 skin safety case 5 Tellus ISO compliant

Five engineered barriers and one natural salt barrier – 200-350m thick

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Chandler – Darwin port – marine supply base 5

Tellus 3ha transfer station

Port

Railway that runs past mine

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Chandler – Darwin port – marine supply base

Bulk & container handling infrastructure for salt exports

Darwin – marine supply base (artist impression)

Darwin – main marine supply base for offshore oil fields

$35billion Inpex project being built in Darwin

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Marine supply base

Large volume of upstream, midstream and downstream oil and gas waste – Chandler well suited to take it

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What are the opportunities for Central Australia?

Pre mine Mine build Mine operations

Jobs – exploration

Training - apprenticeships, traineeships, work experience

Training - apprenticeships, traineeships, work experience

drilling Jobs – mine & plant build Jobs – mine & plant operations

ecological Jobs – Alice & Darwin plant build Jobs – Alice processing plant operations

studies Business opportunities – mine contractor services

Business opportunities – salt related & mine services

Sponsorships Community benefits trust

Sponsorship

Environmental offset program – improving the land (ranger programs)

Infrastructure – power, improved roads, training centre, visitor centre

Tellus has a commitment to local employment and training

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How have neighboring communities benefited from salt mines? German case study - Sondershausen

http://www.erlebnisbergwerk.com/

Underground (UG) tourism attractions

Underground mine tours (3 hours)

UG sports events: mine marathons,

mountain bike races, ten pin bowling

UG cultural events: music events,

private functions (weddings, corporate)

Catering for 200 people (beer hall)

Benefits • ~ 20,000 UG visitors per year • ~ $4m in local economy per year • Transport, hotels, food, souvenirs • Community pride • Renewable energy • Viable mine – salt/backfill – large local

employer, intergenerational

5

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Chandler - timetable approvals & agreements

Ch

and

ler

Completed Pre-feasibility study (FEL2)

National search for best salt deposit

Secured and expanded NT EL leases

Expanded team

Mine Management Plan – EO approved

Exploration Deed signed

Definitive feasibility study (FEL3)

Completed desktop study (FEL1)

Positive early stage commercial negotiations

JORC Expl. target

Stu

die

s C

om

me

r R

egu

lat.

MMP– Operations application & EIS

Extensive community & government engagement

Approvals mid 14

Financial close

Final engineering (FEL4) & build

2010 2011 2012 2013 2014 2015 2009 2016

1st salt sales

Final commercial negotiations

JORC Resource

What has been achieved to date << >> Future milestones

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1st storage sales

DFS Stage 1

DFS Stage 2

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Tellus Holdings & Tellus Salt Contacts

Tellus Holdings Level 5 / 71, Macquarie Street, Sydney NSW 2000

Tel: +61 (0)2 9241 7678 Fax: + 61 (0)2 9241 7691

Corporate

Duncan van der Merwe or Robert Charter duncan@tellusholdings.com.au

robert@tellusholdings.com.au

Community, Alice Springs

Jane Munday, Michels Warren Munday jane@michelswarrenmunday.com.au

0427 880 083

Duncan Robert

Appendix

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Chandler Project overview A

Name Chandler Salt Mine Project

Location ▪ Northern Territory (120km south of Alice Springs)

Asset ▪ 100% owned by Tellus – 7 granted exploration licences covering

879km2 over Chandler and Gillen salt beds in the Amadeus Basin

Product ▪ Edible and industrial salts, Agricultural minerals (fertiliser)

Project stage

▪ Definitive Feasibility Study (FEL3)

▪ Pre-feasibility study led by URS concluded that the Chandler Project is technically feasible and economically viable – no fatal flaws

Next step ▪ Step out drilling, 2D, 3D seismic, JORC resource and reserve, mine

planning, approvals, ongoing community engagement

Historic exploration ▪ General area – 29km of drilling holes from 14 oil and gas wells

(A$17.5m) project area – 15 seismic lines (145km) 2 wells (6.6km) cost A$6.5m

JORC exploration target ▪ 4.5-5 Bt halite (refer to Media Release 26 March 2013 for

Competent Person Statement

Mine life ▪ 25 years – site can be expanded for generations

Geology ▪ Flat, 450m – 700m deep, 200m – 375m thick salt bed

Quality ▪ Export quality, post processing 97%+ sodium chloride, traces of

magnesium and polyhalite (potash)

Mining method ▪ Underground (500m deep) room & pillar design, cut & blast

Processing

▪ Dry processing – crush, screening, mix and bag

▪ Wet processing – evaporation, crystallisation and bittern ponds, harvest, mix and bag

Production ▪ 1 Mtpa industrial, edible salts (86%) and minerals (14%) scale up

depending on demand

Complementary businesses

▪ Storage and disposal in voids left from mining

▪ Mine technology park – renewable energy

▪ Salt mine tourism

Infrastructure ▪ 25km from Adelaide/Darwin railway, export via Darwin

First salt sales ▪ 2015

Processing

Mining

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Chandler - Complementary Storage Business

Source & materials accepted Not accepted

Oil& Gas sector Nuclear waste

Mining sector Uranium mining waste

Manufacturing sector Infectious wastes

State Emergency Services Wastes that can react with salt

Agricultural sector Waste not properly containerised or

sampled

A