NICKEL LATERITE PROJECTSPROJECTS

RIU EXPLORERS CONFERENCE13 February 2008

Mathew LongworthHeron Resources Limited

ASX: HRR

Disclaimer Forward Looking StatementThe material used in this presentation is intended to be a summary of selectedgeological data, current and proposed activities, as well as resource estimatesbased on information available to Heron Resources at the time. It does not includeall available information and should not be used in isolation as a basis to invest inall available information and should not be used in isolation as a basis to invest inHeron Resources. Any potential investor should refer to Heron Resources’ ASXreleases and statutory reports before considering investing in the company.This presentation includes information relating to a completed independent scopingstudy completed independent resource estimate and a feasibility study which is instudy, completed independent resource estimate and a feasibility study which is inprogress and includes “forward looking statements” which include, without limitation,estimates of potential nickel in concentrate production based on mineral resourcesthat are currently being evaluated. While the Company has a reasonable basis onwhich to express these estimates, any forward looking statement is subject to risk.y g jRisks include, without limitation: nickel metal prices, foreign exchange ratemovements, failure to meet joint venture milestones, project funding capacity,concentrate off-take contracts and estimates of future capital and operating costs.The Company does not undertake to release publicly any revisions to forwardp y p y ylooking statements included in this presentation to reflect events or results after thedate of this presentation, except as may be required under applicable securitieslaws.

THE PROJECTSDevelopment projects

• KNP• KNP • Completion of PFS January 2009• Partnership with Vale Inco (formerly CVRD Inco)

J D• Jump-up Dam• Beneficiated ore into atmospheric leaching• Scale of production determined by scoping studyp y p g y• Intermediate product• Heron 100%• Technology Licencing and Product Supply Agreement• Technology Licencing and Product Supply Agreement• Studies

– Scoping study – 4 months Pre feasibility study end of 2008– Pre-feasibility study – end of 2008

FINANCIAL SNAPSHOTListed on the ASX in 1996

Issued Shares 240.93MShare Price $0.80-$0.9012 M th R $0 68 $1 4712-Month Range $0.68-$1.47

Market Cap. $200M

Cash $48.0M

Top Shareholders• Directors and associates 19.7%• BHP Billiton 14.7%• Inco Limited 13.9%

BOARD AND MANAGEMENT TEAMBoard

Chairman, Craig ReadheadgManaging Director, Mathew Longworth Executive Director Strategy, Ian BuchhornNon Executive Director Stephen DennisNon Executive Director, Stephen DennisNon Executive Director, Ken Hellsten

ManagementManaging Director, Mathew LongworthProject Manager Jump-up Dam, Kevin ReynoldsProject Manager Jump up Dam, Kevin Reynolds Company Secretary/General Counsel, Robert Klug Exploration Manager, David von Perger

CONSOLIDATION

-28 °LeinsterMt KeithMt Keith

HoneymoonWell

28

Laverton

Leonora

0 50km

Murrin Murrin

-30 °

Menzies

JUMP-UP DAMPROJECT

JUMP-UP DAMPROJECT

KALGOORLIEKALGOORLIENICKELNICKEL

PROJECTPROJECT

Coolgardie

KALGOORLIE

Ni k l

Bulong

Ni k l

Cawse

Silver/BlackSwan

Southern Cross

Coolgardie

July 07

Kambalda

Nickelsmelter

Kambalda

Nickelsmelter

PROJECT LOCATION

InfrastructureLeonora

Laverton

GasRail-30 ° -30 °

Menzies JUMP-UP DAMPROJECT

Kookynie

KALGOORLIENICKEL

PROJECT RoadPorts

Skilled labour poolKambalda

Coolgardie

KALGOORLIE

PROJECT

Skilled labour pool

-32 ° -32 °

Southern Cross

Norseman

PERTH

KALGOORLIE0 50 100

Kilometres

Balladonia

Main roads

Railway

Gas pipeline

ESPERANCE

PERTHKWINANA

Kilometres

-34 ° -34 °

Esperance

Port

KNP PROJECT OVERVIEWGhost Rocks Siliceous

M i

Large scale nickel laterite project in partnership with V l I20kmScale0

Highway Siliceous

Menzies Vale Inco.

Subject to milestones, Vale Inco sole funds Feasibility

Ultramafic

Goongarrie Hill Siliceous

Goongarrie South GoethiteSiberia North Siliceous

Big Four Siliceous

Inco sole funds Feasibility Study;

Vale Inco earn 60% on

Major Roads

Granite

Major Road

Mineralised Drillholes

Big Four Placer SiliceousScotia Siliceous

Siberia Siliceous

Bl k R N t itKalpini Nontronite

Vale Inco earn 60% on completion of Feasibility and securing project funding;Black Range Nontronite funding;

• Heron equity capped at 4.5% of total equity

KALGOORLIE

121.5 º121 º 121.25 º

Bulong Nontronite

• Vale Inco lends Heron its remaining equity funds

JOINT VENTURE MILESTONESCompletion of Full PFS - Jan 2009

• $13.8 million budget approved for first six monthsg pp• Significant drilling component to increase confidence in the

resource • Metallurgical test work• Metallurgical test-work

• Pressure acid leach• Heap leach• Atmospheric leach

• Engineering• The PFS will be conducted by a third party independent• The PFS will be conducted by a third party independent

engineering consultancy

Feasibility Study - July 2011y y y

KNP PRE-FEASIBILITY STUDYClose resource drill spacing to <160x80m focus on resource zones >1.4% head or beneficiated gradeTesting of five project areasSince December 2007

• Completed 55 line km of ERI surveys.• Completed 32 Sonic core holes for 1,118 metres.• Completed 22 RC holes for 933 metres.

METALLURGICAL TEST-WORKCurrent concurrent study of 60 samples.

Evaluate most suitable leaching methodologyEvaluate most suitable leaching methodology.• Heap Leach• Atmospheric Leach• Atmospheric Leach• Pressure Acid Leach

Test-work developed in association with CSIRO and pVale Inco technology centre.

JUMP-UP DAM PROJECT 100% Heron owned and managedHeap leach would not provide adequate return to support the

0 10 20

Kilometres

Murrin MurrinLeonora 15km

adequate return to support the project significant increases in Capex and OpexTechnology Licensing and

-29.2 °

Aubils Technology Licensing and Product Supply agreement with BHPBTrial Mining proceeding Leaching

AubilsResource est.in progress

Kookynie

g g gon Care and MaintenanceExpanded resource base in the district to base revised project on

-29.5 °Boyce Creek18mt @ 0.82% Niupgrading to Indicated

Heron tenements

Ultramafic lithologies

Jump-up Dam22mt @ 1.01% Ni53mt @ 0.7% NiExtensions identified

50km

Kalgoorlie 130km

Main Roads

Rail Pianto RoadInitial drillingin progress

ATMOSPHERIC LEACHLeaches a slurry of beneficiated ore in tanks at 90ºC and atmospheric pressure.Leaches nickel in 6 to 24 hours vs 6 to 9 months for heap leach.More control over reagents and potential to manage acid use.

BENFICIATION - HOW IT WORKSScreened rejectsSilica fragments 60%Reject grade 0 3% Ni

Screen UpgradeReject grade 0.3% Ni

Scrubbed slurryinto pilot plant

trommel screen deck

Grade approximately 0.8%Ni

Screened slurryLimonite 40%

Leach feed grade 1.5% Ni

JUMP-UP DAM FLOW SHEET

Acid supply

Goldfields

Mining

Acid supply

Acid plantMining

Acid plant

DrumAgglomeration Heap stacking

conveyor

ConveyorCrusher

Crushed ore stockpile

Reticulated solution

ROM Stockpile

BeneficiationConveyorCrusher

C h d t k il

Agitated Leaching Tanks

ROM Stockpile

Stage 1Neutralisation

with Limestone

Dilute acid solutionrecirculating

Crushed ore stockpile

Fine ore after crushing

Recycling of process water

Agglomerate nodules in heaps

Limestone

Stage 1Neutralisation

with Limestone

Crushed ore stockpile

Fine ore after crushing

Recycling of process water

Limestone

waste

PrecipitationStage

Acid addition

Filtering and drying

Intermediate ProductBulk Bags

PrecipitationStage

Acid addition

Filtering and drying

Intermediate ProductBulk BagsBulk Bags

Shipping from Esperance

Zero discharge site

Bulk Bags

Shipping from Esperance

Zero discharge site

JUMP-UP DAM PROJECT1km

ASX: HRR

Mathew LongworthManaging DirectorManaging Director

Phone: +61 8 9215 4444Mobile : +61 418 935636