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7/30/2019 Alumina Production Using Our Innovative and Proprietary Process
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TSX: ORT OTCQX: EORBFTSX: ORT OTCQX: EORBF
Corporate Presentation, February 2013
TSX:ORT OTCQX:EORBF
Alumina Production Using Our Innovative and Proprietary Process
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ThinkingOutsideTheBauxiteTM
Orbite Aluminae Inc. 3
Orbitesinnovativeandproprietaryhydrochloricacidprocess,canproducealuminaandhighvaluebyproductsincludingrareearths,atoneofthelowestcostsintheindustry,usingaluminousclay,bauxite,kaolin,nephiline,redmudandflyash.
Nowastesgeneratedsinceallconstituentelementsarerecoveredduringacidregeneration.
Defiesconventionalminingapproachwhichattemptstorecoveronlyafewelements.
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WhatistheOrbiteProcess?
Chemicalprocessbasedonhydrochloricacid:
Efficientlydissolvesmostrockswithinhours.
Filtrationandselectiveprecipitationofelements.
Recoveryandregenerationof99.75%oftheacid:
Lowelementconcentrationsbuildupwitheachcycle.
Allconstituentelementsarerecoveredincludingrareearths.
Nomineralwastesortailingsaregenerated.
Enabledbychemicalindustryinnovations:
Corrosionresistantglasslinedleachingvessels.
Advancesinfiltrationandprocesscontrolsystems.
Scalingachievedbyreplicatingvesselcapacityinparallel.
4Orbite Aluminae Inc.
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PatentedandPendingProtectionwith14IPFamilies
1) Processesforextractingaluminumfromaluminousores.
PatentprotectiongrantedinUSA1,Canada2 andAustralia3.
ReceivedNoticeofAllowanceinRussiaandChina4.
PatentpendinginEU,Japan,India,HongKong.
2) Processesforextractingaluminumfromaluminousores5.
3) Processesforextractingrareearthelementsfromaluminumbearingmaterials5.
4) Processesforextractingrareearthelementsfromvariousores5.
5) Methodsforpreparinghematite5.
6) Methodsforseparatingironionsfromaluminousions5.
7) Processesforpreparingaluminaandvariousotherproducts5.
8) ProcessesfortreatingRedMud6.
9) ProcessesfortreatingFlyAsh6.
10) Processesforrecoveringrareearthelementsfromvariousmaterials6.
11) Processes
for
preparing
titanium
oxide
and
various
other
products6
.12) Processesforrecoveringrareearthelementsandraremetals5.
13) Processesfortreatingvariousmaterials5.
14) Processesforpurifyingaluminumions6.
1:USAPatents7,837,961,8,241,594and8,337,789. 2:CanadaPatents2,684,696and2,711,013. 3:Australia Patents2008253545and2012100165.
4:SeeORTSeptember20,2012pressreleased. 5:TheseIPfamiliesarepatentpendingintheUSAandPCT. 6:TheseIPfamiliesarepatentpendingintheUSA.
5Orbite Aluminae Inc.
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Vision
and
Business
Strategy Ourvisionistochangethealuminaindustrybybuildinguptotensmeltergradealumina(SGA)plants
servingQuebec,thethirdlargestaluminumproducingregionintheworld,bybuildingseveralhighpurityalumina(HPA)plantsandbylicensingourSGAtechnologyinternationally.
OurfirstHPAPlantinCapChat,QuebecwillbegincommercialproductioninQ22013.
OurfirstSGAPlantisintheFeasibilityStudystage.
6Orbite Aluminae Inc.
SGAPlants
HPAPlants
AluminumSmelters
SmelterGradeAlumina(2N)
HighPurityAlumina
(4N6N),Gallium,Scandium
FuelCells,Alloys,Magnets,
Aerospace,Automotive
Silica,Hematite,Titanium,RM,REE
andOtherElements
Orbites
ProprietaryProcess1
MultipleFeedstocks:
AluminousClay,
Bauxite,Kaolin,Nephiline,RedMud
andFlyAsh. InternationalTechnologyLicensing
LEDLights,
Displays,Semiconductors
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OrbiteisanAluminaGameChanger
Aluminaisabundantinmostrocks,Orbitehassuccessfullytestedthefollowing:
OrbitesprocessmakesBayerobsoletewhileresolvingcriticalaluminaindustryissues:
Steadily decreasing bauxite quality Aluminous clay is an inexhaustible resource.
Rising transport costs to smelters Domestic alumina supply near smelters.
Generates red mud waste No wastes.
Red mud stockpiles are a liability Remediation converts it to an asset.
Operating costs rising each quarter OPEX is at the bottom of industry cost curve.
8Orbite Aluminae Inc.
Element AluminousClay Bauxite RedMud Kaolin Clay FlyAsh Nepheline
Al2O3 1825% 4060% 1825% 18%80% 1217% 3040%
Fe2O3 710% 220% 2835% 02% 1015% 01%
SiO2 >50% 17% 812% 10%65% 2735% 3545%
REE/RMPotential Ga2O3,Sc2O3,REE Ga2O3,Sc2O3 Ga2O3, Sc2O3 None None None
Other Potential MgO, K2O,TiO2 TiO2 TiO2 Not Determined NotDetermined K2O, Na2O
Note:Grade rangesandpotentialelementsareonlyprovidedforgeneralcomparisonbetweenfeedstocksandshouldnotberelieduponasbeingrepresentativeoreconomic.
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SGA
Plant Economics
as
per
PEA
(1)
1: See ORT May 31, 2012 press release for detailed breakdown of resource and PEA Scenario 2. *:Assumes 85% REE/RM recovery instead of 75% used in PEA Analysis. **:REE and RM lowcase pricing is a 65% discount to Aug 2011 China domestic price. Additional Notes: SGA plant will produce >98.5% purity SGA, 99.5% purity hematite, 95%99.9%, purity silica, and >99% purityREOs and RMOs. SGA spot price for 96% purity was $425 per tonne in Aug 2011 and $325 per tonne in Dec 2011. Hematite spot price is for 62% purity. Silica spot price is for a low quality
product. EBITDA includes 3% Net Operating Profit Royalty (option to purchase $0.5M after year 5). Financials and NPV are pre
tax using $500M capex.
PEASensitivityAnalysis1
Alumina,
$175.449%
Hematite$23.7
7%
Silica,$12.3
3%
OtherOxides,
$8.62%
RareEarths,$137.5
39%
PEALowCaseRevenues($M)
9Orbite Aluminae Inc.
AluminaPrice
($/tonne)
Hematite
Price($/tonne)
SilicaPrice
($/tonne)
REO/RMO
Average
BasketPrice
($/Kg)
RareEarth
Revenues(Million$)
TotalAnnual
Revenues(Million$)
Annual
EBITDA(Million$)
Capex
(Million$) IRR
Payback
(Years)
NPV@10%
(Million$)
$425 $200 $25 $479 $393 $702 $572 $500 114% 0.9 $4,782
$325 $125 $10 $167 $138 $358 $237 $500 48% 2.1 $1,690
Product PurityRecovery
Rate
Tonnes
ProducedPer
Year
SmelterGradeAlumina >98.5% 93.2% 539,711
Hematite 99.5% 92.1% 189,298
HighPuritySilica >95.0% 100.0% 1,228,628
MagnesiumOxide >95.0% 86.6% 27,816
MixedOxides >95.0% 99.8% 104,089
RareEarth&MetalOxides >99% *85% 1,097
Total 2,090,639
REO/RMO
ProductSymbol Purity
Tonnes
Oxidesper
year
Gallium Ga 99.99% 86.3
Scandium Sc 99.99% 54.5
Yttrium Y 99.999% 124.4
Lanthanum La 99% 177
Cerium Ce 99% 366.4
Praseodymium Pr 99% 45.8
Neodymium Nd 99% 158.6
Samarium Sm 99% 29.9
Europium Eu 99.90% 5.6
Gadolinium Gd 99% 23.7
Terbium Tb 99% 3.5
Dysprosium Dy 99.90% 20.9
Total 1,096.6
TotalCAPEXof$500Mor$925pertonneofproductioncapacity. TotalOPEXof$113Mor$209.59pertonneSGA(100%costallocation). Byproductsareessentiallyproducedatzerocost.
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SGAOPEX2 versusAluminaIndustry Cost Curve3
1:SeeORTOct2,2012pressreleaseforSGAPlantFinalDesignimprovementsoverthePEA2:SeeORTMay31,2012pressreleasefordetailedbreakdownofresourceandPEA Scenario2. Operatingcostsof$113Mdividedby539,711tonnes.3:CommodityResearchUnit(CRU)InternationalLtd. Q32012Report.4:Operatingcostsof$113Mallocationonapproximatebasisof15GJforalumina,14GJforhematite3 and12GJforMagnesiumOxide.5:Operatingcostsof$113Misreducedbylowcasebyproductrevenuestotalling$183Mresultingin $70M.
Note:ChinaRefineryproductionisanadditional20MtonnesSGAperyear.
Alumina
FOBAustralia
SpotPrice
PEA2 100% of Opex Allocation - $210 / tonne Alumina
PEA2 100% of Opex Allocation $210 / tonne AluminaPEA2 Co-Product Opex Allocation by Energy4 $91 / tonne AluminaPEA2 Opex Net of Low-Case By-Product Revenues5 -$129 / tonne Alumina
CRUs World ex-China Alumina Refinery CashCosts for Q3-2012 (nominal US$/t)3
Industry Avg. Cash Cost3
10Orbite Aluminae Inc.
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QuebecisanImportantAluminaMarket
Quebecs Gasp region is strategically situated near 14 smelters1 producing 8% of theworlds aluminum, representing the worlds 3rd largest producing region after China andRussia, importing up to 8M tonnes SGA per year.
100% of 34km2 aluminous clay property at GrandeValle, Quebec contains a 1 billiontonne Indicated Resource2 that could potentially satisfy 50% of Quebecs annual aluminaimports for >50 years.
1:Thereare9smeltersinQuebec,2inupstateNewYorkand3inIceland. 2:SeeORTMay31,2012pressreleasefordetailedbreakdownofresource.
3:SeeORTNov14,2012pressreleasefordetails. Orbitemustincurexplorationexpenditurestotalling$1MbyDec31,2013, produceatechnicalreportandissue2.4Mshares.
100% of 550km2 along the same aluminous clayformation near CapChat and Rimouski.
Option agreement3 to earn 100% on the 26km2
Chaswood kaolin property near Halifax, Nova Scotia.
Orbites vision is to build up to ten SGA plants servedby several different openpit mines.
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GrandeVallePropertyandResourceEstimate
GrandeValles Marin sector hosts a NI 43101 compliant 1.04 billion tonnes Indicated Resource grading 23.37%Al2O3, 52.62% SiO2, 8.42% Fe2O3 and 563ppm TREO+RMO
2 to a depth of 100m 2.
1:BCCResearchAVM018G,RareEarths:WorldwideMarkets,Applications,Technologies,Jan2012. 2:SeeAppendixandORTMay31,2012pressreleasefordetailedbreakdownofresource.
12Orbite Aluminae Inc.
Aluminous clay is homogeneous
throughout the deposit.
Already ranks 11th worldwide forREE insitu value1.
Ranks Top 10 worldwide forheavy REE content at 22.4%.
Received 70 million tonne 20year renewable mining lease.
Signed agreement with theMicmac First Nation in support ofdevelopment.
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Highpurity alumina (HPA) is used primarily to manufactureindustrial sapphires which are used as substrates in LED lights anddisplays.
CapChat HPA plant is a showcase of the SGA technology:
Plant commissioning is currently in progress.
Produced first tonne of 4N HPA (99.99% purity) in January,independently verified by EAG.
Commercial production of 4N to 6N HPA by Q2 2013:
Orbite will focus on 5N to 6N HPA market.
Production will ramp to 3 tpd by mid2013 and 5 tpd by 2014.
Smallscale scandium and gallium production as of mid2013.
PEA was not completed therefore OPEX and CAPEX estimates areunavailable. Additional CAPEX will be required throughout 2013.
HPAPlantinCapChat,Quebec
14Orbite Aluminae Inc.
Figure 10. High Purity Alumina Demand and Price Forecast
Source: Secor-KPMG; Company reports; Euro Pacific Canada
0
5000
10000
15000
20000
25000
30000
$0
$20
$40
$60
$80
$100
$120
$140
2009 2010 2011 2012 2013 2014 2015
Demand 5NPrice 4NPrice
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TechnologyLicensingOpportunities
Orbite intends to license its SGA technologyinternationally in return for a revenue royalty:
New Orbite alumina plants will be at the bottom of
the industry cost curve.
Addon Orbite plant could treat red mud effluentand existing stockpiles while moving existing Bayerplants down the cost curve.
Provides stable domestic supply of alumina.
Other potential licensees include:
Coal power utilities with fly ash stockpiles.
RareEarth companies seeking alternatives tocapital intensive and inefficient sulphuric acidcracking processes.
Mining companies seeking technology alternatives.
Orbite does not intend to license HPA technology.
3 Billion Tonnes of Red Mud World Wide
Over 100M Tonnes Produced per Year
BayerProcess OrbitesProcess(1)
ApplicabilityHighGradeBauxite
(lowsilicacontent)
AluminousClays,Bauxite(lowand
highgrade),Kaolin,Nepheline,Red
Mud,Flyashandotheraluminous
sources
ResiduesRedMud
(1.52.0TonnespertonneofAlumina,
pH13,concentration1030%)**
Minimal
CAPEX/tonneofAlumina
(IncludingInfrastructure) $1500* $1000
OPEX/tonneofAlumina $180to$400(Avg$265in2011)*** $91to$210****
ByProducts SomehavegalliumValueAdded&Marketable
(Silica,Hematite,MgO,otheroxides,
Scandium,Gallium,RareEarths)
1: Revised PEA dated May 2012. *: 2011 Aluminum Summit. **: The Red Mud Project.***: Commodity Research Unit (CRU). ****:Co-Product and Alumina-only opex allocation.
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PotentialCatalysts
17Orbite Aluminae Inc.
Dec 2012Q1 2013
Q2 2013Q3 2013
Q4 2013
2014
HPA PlantCommissioningInitiated
HPA PlantInitialProduction
CommercialHPAProduction
SGA Plant
FeasibilityStudyProductionof Scandiumand Galliumat HPA Plant
SGA PlantPhase IConstructionBegins
SGA PlantInitialProduction
2015
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Capital
Structure
SharePricePerformance ThreeYearsMarketCapitalization(AsofJanuary11,2013)
(inCAD)
ClosingSharePrice(TSX:ORT) $2.69
BasicSharesOutstanding 184.1M
Options@$1.35wap 14.4M
WarrantsExpiringJul2013@$4.36wap 10.1M
ConvertibleDebenture($25M@$3.50pershare) 7.1M
FullyDilutedSharesOutstanding 215.7M
FullyDilutedMarketCap. $580M
Asof
September
30,
2012
CashandShortTermInvestments $43M
LongTermDebt $2.4M
WarrantsExpiring2013@$4.36wap $43.8M
Orbiteisinthefollowingindices:
S&P/TSXGlobalMining
S&P/TSXGlobalBaseMetals
S&P/TSXCleanTech Index
S&P/TSXSmallCap Index
AnalystCoverage:
LuisaMoreno EuroPacific
PhilShen RothCapital
MattGowing MackieResearch
Orbite Aluminae Inc. 18
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ContactUs
ORT
EORBF
ExecutiveOffice:
6505,routeTranscanadienne,Suite610StLaurent,Qubec,CanadaH4T1S3Tel: 5147446264Fax: 5147444193www.orbitealuminae.com
Tickers:
MarcJohnson,VPCorporateDevelopmentTel: [email protected]
JacquesBdard,VPFinance&ChiefFinancialOfficerTel: 5147446264
TM
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Appendix
GrandeValle NI 43101 Compliant 1.04B tonnes Indicated Resource1
SiO2 (Silica) 52.62% Ga2O3 (Galium) 43ppm
Al2O3 (Alumina) 23.37% Sc2O3 (Scandium) 28ppm
Fe2O3 (Hematite) 8.42% Y2O3 (Yttrium) 49ppm
CaO (Calcium) 0.48% La2O3 (Lanthanum) 76ppm
MgO (Magnesium) 1.64% Ce2O3 (Cerium) 152ppm
Na2O (Sodium) 1.06% Pr2O3 (Praseodymium) 19ppm
K2O (Potassium) 2.86% Nd2O3 (Neodymium) 71ppm
MnO (Manganese) 0.16% Sm2O3 (Samarium) 11
ppmCr2O3 (Chromium) 0.01% Eu2O3 (Europium) 2ppm
TiO2 (Titanium) 0.85% Gd2O3 (Gadolinium) 13ppm
P2O5 (Phosphate) 0.14% Tb2O3 (Terbium) 1.5ppm
SrO (Strontium) 0.02% Dy2O3 (Dysprosium) 9ppm
BaO (Barium) 0.05% Other Contained REO 88ppm
V2O5 (Vanadium) 0.03% Total RM & REO 563ppm
H2O (LOI) 6.50% Other Elements 1.79%
Notes: Content in oxide form. CIM definitions were followed for mineral resources. Effective date is Nov 23, 2011. Assumes a cutoff of 18% Al2O3 and a density of 2.6g/cm3.Amounts may not add due to rounding. Mineral resources have no demonstrated economic viability. There is no certainty that all or part of the mineral resources will beconverted to reserves.
1:
See
ORT
May
31,
2012
press
release
for
detailed
breakdown
of
resource
estimate.
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ExperiencedManagementTeamandBoard
Mr.RichardBoudreault,M.Eng,MBA,Adm.A Director,PresidentandCEO
Mr.JacquesBdard,CPA/CGA VPFinance&CFO,CorporateSecretary
Mr.DenisPrimeau,Eng.,MBA ChiefEngineer
Mr.YvesNol,Eng.,MBA ChiefMarketingOfficer
Mr.MarcJohnson,CFA VicePresidentCorporateDevelopment
Mr.GuyLouisBoucher LL.L. VicePresidentSustainableDevelopment
Mr.JonathanLabranche LL.B. DirectorLegalandCorporateAffairs
Dr.MarcFilion,PhD,Eng.,MBA StrategicandResourcesAdvisor
Mr.PierreDesprs,B.A.LL.L CommunicationsandPublicAffairsAdvisor
Mr.LionelLveill, ChairmanoftheBoardofDirectors
Mr.RichardBoudreault,
PresidentandCEO
Mr.CharlesChevretteLL.B.MBA.
Dr.TobyGilsig,Eng
Mr.Stphane Bertrand
Mr.PierreMeunier LL.L.
Mr.ChristianVanHoutte
Mr.MichaelHanley,CPA/CA
Mr.JeanSbastien David,MPM,Geo.
Management Team Board of Directors
*Seeappendixfordetailedbiographies.
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