AVZ - A Namibian ExplorerIron, Base Metals and REE

ASX:AVZ

April 2011

Forward looking statements This presentation may contain certain forward looking statements

and projections regarding:

estimated, resources and reserves;

planned production and operating costs profiles;

planned capital requirements; and

planned strategies and corporate objectives.

Such forward looking statements/projections are estimates for

discussion purposes only and should not be relied upon. They are

not guarantees of future performance and involve known and

unknown risks, uncertainties and other factors many of which are

beyond the control of Avonlea Minerals Limited. The forward

looking statements/projections are inherently uncertain and may

therefore differ materially from results ultimately achieved.

Avonlea Minerals Limited does not make any representations and

provides no warranties concerning the accuracy of the projections,

and disclaims any obligation to update or revise any forward

looking statements/projects based on new information, future

events or otherwise except to the extent required by applicable

laws.

The information in this report that relates to Exploration Results is

based upon information compiled by Mr Alex Aitken a member of

The Australian Institute of Geoscientists. Mr Alex Aitken is a full

time employee of the company. Mr Aitken has sufficient

experience which is relevant to the style of mineralisation and type

of deposit under consideration and to the activity which he is

undertaking to qualify as a Competent Persons as defined in the

2004 edition of the „Australasian Code for the Reporting of

Exploration Results, Mineral Resources and Ore Reserves‟. Mr

Aitken has consented to the inclusion in the report of the matters

based on his information in the form and context in which it

appears.

Disclaimer

* Excludes Director/Vendor options 15-45 cents

Shares on Issue ~ 83.4m*

Share Price ~ 16 cents (7c – 32c)

Market Capitalisation ~ A$13m

Cash at Bank ~ A$2.75 (Dec 2010)

Enterprise Value ~ A$10m

Capital Structure and Board (ASX:AVZ)

Roger SteinepreisChairman Non-Executive

- Corporate lawyer with over 20 years experience

- Legal advisor to a number of public companies

Steve ParsonsDirector (Alternate)

- 13+ years of corporate & technical experience

- Founder & Managing Director, Gryphon Minerals Ltd

- Gold in Burkina Faso, West Africa

- Geologist/technical

Andrew GastevichDirector Non-Executive

- Chartered Accountant

- ASX listed company experience

David RiekieManaging Director

- 25+ years corporate experience

- Experienced in capital raising initiatives (public & private)

- Non executive board experience (resource & industrial)

- African Experience

Hamish HallidayDirector Non-Executive

- 13+ years corporate & technical experience

- Founder & former MD, Adamus Resources Ltd (next

major gold mine in Ghana (1.7Moz))

- Currently MD of Venture Minerals (ASX:VMS) (magnetite,

tin, tungsten project in Tasmania, Australia)

- Geologist/technical

Brett DunnachieCompany Secretary

- Chartered Accountant with B. Com-Degree

- ASX listed company experience

- Company Secretary

Shareholder Profile

Top 40

Management

Other

Corporate Structure

Rare earthsRare metalsVanadium(Iron Ore)

Iron OreBase metals

Precious metals

(4,421 sq kms)Granted - 4,341sq kms

(6 Granted/1 pending EPL)

(1,725 sq kms)Granted - 1039 sq kms

(2 Granted ,3 Pending EPL’s)

(3,361 sq kms)(5 Pending EPL’s)

Tumba Base Metals X (Proprietary) LtdHimba Iron Exploration (Proprietary) Ltd

95% ownership (AVZ)/ 5% local

A Namibia Focus

Destination of choice for mineral exploration and mine development

A Country that commands numerous “X factors”; including infrastructure,

logistics, low operating and title risk benefits, small local population

Geography very similar to North Western Australia including ease of access and

movement

Magnetite Iron potential confirmed (over wide area)

Demonstrated successful, initial low cost exploration outcomes on granted

licenses

Consistent and ongoing exploration activity coupled with local engagement

Large scale Magnetite Iron Resource/Targets

- Ondjou (521Mt inferred Resource (plus 1.0 to 1.5 Bt exploration target*)

- Hammerhead / Thresher (1.0 to 1.9 Bt exploration target*)

Ongoing target generation and significant Fe exploration upside on licence areas

Continuing activity for Base metals and REE*This exploration target mineralisation tonnage and grade is conceptual in nature as there has been insufficient exploration completed to define a Mineral Resource

in accordance with the JORC Code (2004), and it is uncertain if further exploration will result in the determination of a Mineral Resource

Avonlea Minerals - Some Distinguishing Features

Namibia has mineral wealth

Diamonds, Uranium, Base metals

...... but still remains largely underexplored

Namibia has an effective mining and exploration framework

100 + years and “Tier 1” projects

A mining “culture“ and

Australian styled Mining Act (1992)

Ranked # 3 African country of choice and low critical risk/performance criteria*

Developed logistics and infrastructure

Deep water ports (and a new facility in blueprint for Cape Fria/Angra Fria)

Good roads and rail (and expanding across Northern / Central Namibia)

Hydro power operating (and expanding with Baynes Hydro Project)

Telecommunications system providing 93% coverage

..... Namibia is largely underexplored and Avonlea is well placed with its substantial

exploration ground holdings

Namibia - Some compelling Country Facts

Etango Project 160MlbsU3O8

Inferred & Indicated Resource

Tubas/87.8Mlbs U3O8

Inferred & Indicated Resource

Langer Heinrich/164Mlbs U3O8

All Resource Categories

Rössing South 367MlbsU3O8

Inferred Resource

Rossing Uranium/4150t U3O8

Inferred & Indicated Resource

Trekkopje

560MtlbsU3O8 Inferred Resource

Rosh Pinah 95ktpa Zn conc

Mining & Exploration Activity...not just Uranium

Ongaba Fe Deposit

Tsumeb Deposit

World Renowned 1.7Mt Cu2.8Mt Pb

0.9MtZn

Navachab Gold

Annual production 70,000ozs Au

Skorpian Mine

150,000t high grade Zn per year

Uis Sn Deposit

JORC compliant inferred resource of 521 Million tonnes at 24% Fe (Ondjou)

Inferred Resource estimate on 35% of 10km strike length within licence area

Additional 1 -1.5 billion tonne Fe exploration target range* at Ondjou

Extensional resource definition, diamond core drilling Ondjou; recommenced Q1 2011

Delineated a sizable initial Exploration Targets *

Lower grade (20 to 30 %Fe) - Hammerhead ~ 1.6 Bt+ (mid point)

Higher grade 30%+Fe - Thresher ~ 150 Mt+ (mid point)

Mapping before re-drilling

- Focus!

….. a Combined Exploration Target range~ 3 Bt at Ondjou, Hammerhead, Thresher

This target mineralisation tonnage and grade is conceptual in nature as there has been insufficient exploration completed to

define Mineral Resource in accordance with the JORC Code (2004), and it is uncertain if further exploration will result in the determination

of a Mineral Resource.

Current Magnetite Fe Resource/ Exploration Target ranges

….and further upside potential being drilled

Ondjou

Hammerhead / Thresher

Ondjou

(39 km2)

Hammerhead & Thresher

(1,000km2)

Iron Rich Chuos Formation

(115km strike on EPL‟s)

Our Current Regional Magnetite OpportunitiesThresher, Hammerhead and Ondjou Prospects

31.5km of surface channel sampling / 1,000m diamond core drilling (6 holes)

Broad zones Fe rich magnetite encountered in all diamond drill holes (5 - 50m width)

High grade units at Thresher West showing upper & lower horizons

Delineated a sizable initial Exploration Target *

Lower grade (20 to 30 %Fe) - Hammerhead ~ 1.6 Bt+ (mid point)

Higher grade 30%+Fe - Thresher ~ 150 Mt+ (mid point)

……and the large Bronzy Prospect has not yet been include in these calculations

Fe mineralisation remains open along strike and at depth

Fe mineralisation hosted within massive strata bound magnetite unit within chlorate schist

Aeromagnetic imaging confirms high grade potential

Additional mapping

for high grade target definition

In summary our historical results are the upper end of industry benchmarks:

Scale of exploration target

Grade (up to 30+% Magnetite Fe)

Positive Davis Tube Recovery (up to 61%)

Concentrates (up to 70% Fe)……. (impurities below 5%)* This exploration target mineralisation tonnage and grade is conceptual in nature as there has been insufficient exploration completed to define a Mineral

Resource in accordance with the JORC Code (2004), and it is uncertain if further exploration will result in the determination of a Mineral Resource

Thresher & Hammerhead ProspectsHistorical Exploration Outcomes

Thresher & Hammerhead ProspectsTWDD

D From D To Interval Fe % SiO2% Al2O3% Total S % P2O5% LOI% DTR Wt%

TWDD001 26 38 12 31.43 51.99 3.94 0.00 0.23 3.84 Head assays

69.30 2.83 0.25 0.05 -3.00 38.65 DTC (75UM)

TWDD001 38 56 18 32.76 40.84 3.75 0.05 0.57 0.79 Head assays

68.00 4.58 0.37 0.09 -3.23 39.02 DTC (75um)

TWDD002 28 38 10 26.71 42.38 5.12 0.23 0.53 3.97 Head assays

68.70 3.65 0.29 0.09 -3.21 27.38 DTC (75um)

TWDD003 16 26 10 30.58 42.80 4.50 0.0042 0.53 0.93 Head assays

67.80 5.19 0.28 0.069 -3.17 28.66 DTC (75um)

Hammerhead, Thresher (and Bronzy) Fe Exploration targets

Topographic view Hammerhead / Thresher and Bronzy from Nail & Tack (looking North West)

BronzyThresher

High DTR (David Tube Recovery)

Characteristics

- From surface samples

Highlights included

- 62% DTR (Fe head 48%)

- 46% DTR (Fe head 31%)

- 47% DTR (Fe head 32%)

High weight (DTR recovery) XRF concentrate grades awaited

DTR Wt% Recovery for Surface Samples

Highlights of sample with DTR Wt% greater than 30% with laboratory Head XRF grade

Thresher & Hammerhead

Sample ID DTR Wt% Head Fe% Head Al2O3 % Head SiO2% Head P2O5%

58645 37.4 30.1 5.5 39.0 0.8

58651 61.6 48.1 1.5 26.9 0.5

58764 36.9 36.1 3.8 28.3 0.5

58901 30.2 22.9 2.5 28.8 0.4

58942 36.0 43.4 1.2 33.6 0.5

58944 35.8 27.1 4.3 39.1 0.6

58967 42.3 42.8 3.2 26.8 0.8

58973 46.5 31.5 3.8 28.9 0.8

59204 40.9 42.7 0.4 36.9 0.5

Hammerhead, Thresher (and Bronzy) Fe Exploration targets

Bronzy

Thresher

Hammerhead

Nail & Tack

Thresher West

DD Holes

Thresher East

DD Holes

10 kms

Hammerhead, Thresher (and Bronzy) Fe Exploration targets with DTR

Wt% grades

Bronzy

Nail/Tack

Thresher

Hammerhead

10 kms

Ondjou Prospect

10 km strike

Iron Rich Chuos Formation

Ondjou Prospect - “Maiden” Inferred Magnetite Resource….and some key features for consideration

Ease of access for ongoing exploration

Proximity to regional township

Proximity to proposed infrastructure/coast

Evidence of (scarce) water resource

Scale and consistency of mineralisation encountered

Known Exploration upside

Existing resource and drilling to expand

Large scale Exploration targets over 100km strike

Inferred JORC Resource 521Mt at 24% (head grade Fe)

Total Cost circa $0.5m including assay costs

Reverse Circulation (3,400m) drilling program complete, confirmed:

Broad zones of Fe mineralisation encountered in all (21) drill holes

Mineralisation from surface and shallow dipping ~ 30o

Average down hole length of mineralisation - 90m at 25% Fe (average)

Current drilling covered 3,600m strike length (of 10,000m)

Mineralisation at Ondjou is an iron rich diamatite (glacial sediment)

Mag Suss / weight recovery correlation

New aeromagnetics confirm prospectivity over magnetic horizon

Drilling recommenced February 2011 (5,000m diamond drilling)

Ondjou ProspectSummary of Recent Activity and Milestones reached

Ondjou ProspectMagnetite Resource - Inferred

Outline of JORC

Resources

Current areas of

extensional

resource definition

Proposed Drill Holes

Completed Drill Holes

6 km

s

~ 1

0km

s

Images from Ondjou ProspectSouthern Extension

RC drilling at Ondjou north in 2010 Avonlea geologist indicating Fe rich outcrop in escarpment (dark grey outcrop)

Images from Ondjou ProspectSouthern Extension

Summary Fe Exploration Activity /Milestones - 6mnths to Jun „11

Resource definition drilling recommenced 1 Mar 2011 (5,000m ~$1.4m + assay costs)

6km extension being tested

Reprocessed Aeromagnetic data confirms high grade potential

Focussed mapping program to finalise targets exploration/drilling program(s)

Awaiting formal EPL grant (prior to remote sensing data acquisition)

Reconnaissance and target generation on 100+km iron rich Chuos formation

......and a scoping study will commence in conjunction with current programs

Ondjou

Hammerhead/Thresher/Bronzy

Himba Fe Licences

The Revised Valuation Metric - based on Fe potential

Africa is widely recognised as host emerging and significant iron ore provinces

Recent transactions have created a benchmark for a revised valuation metric

“...Shandong’s proposed US$1.5b investment in African Minerals’ Tonkolili Project (for a 25% interest) is equivalent to A$0.63 EV/t. Zanaga Iron ore recently listed on the AIM and is trading at ~A$0.26 EC/t (100% basis) and $0.52 EV/t (assuming Xstrata exercise their option to acquire 50%)” *

Company Estimated

Current

EV (A$M)

Current

Resources

(Mt)

Target Resource Tonkolili

Implied

EV/t

Discount Target EV/t Target EV (A$M) Current

Market Cap

Low High Low High

AKI 146 33 @ 56% Fe 900 1,300 $0.63 50% $0.32 286 413 150

AVZ 10 521 @ 24% Fe 2,680 3,420 $0.63 75% $0.16 425 543

CFE 290 197 @ 29% Fe 600 900 $0.63 25% $0.48 286 429 335

EQX 254 - 2,300 3,900 $0.63 50% $0.32 730 1,238 280

*Source: Foster Stockbroking Equity Research West African Iron Ore Explorers Report 12/01/2011. Fosters have applied a range of discountsto this metric to account for the respective resource size, infrastructure access and timeline to production

.... Circa $80m enterprise value (EV) for AVZ’s current Fe resource 521Mt @ 16 cents per tonne = $80m EV

.... OR $1 per contained tonne of Fe 521Mt x 24% Fe x 65% (concentrate)

= ~ 80Mt contained Fe @ $1per Fe tonne

13

All Prospects are proximal the Namibian coastline

(between 120 - 200 km)

Blueprint for transport corridor under consideration/ tenders being called

Government remains committed (AVZ will perpetuate in stakeholder dialogue)

New port option(Cape Fria/Angra Fria)

Rail link (east/west corridor in northern Namibia)

Rail/ Road/ Slurry options are practical alternatives (within scoping study mandate)

Existing and expanding Hydro electric power

Ruacanna 3rd turbine expansion program

Baynes project area being progressed

H2O options

Kunene River proximity (130km)

Coastal desalination potential (120km)

Logistics considerationsSolutions for bulk commodities have been identified

Avonlea‟s Other Exploration Equation.......

9,500 sq kms less 1,700 sq kms (Fe) Equals

7,800 sq km of licences with significant exploration potential to host

Base metal (Cu, Pb, Zn)

Vanadium

Rare earth / Rare metals

Precious metal

Commodity specific entities have been incorporated (local ownership established)

EPL‟s have been applied for (our licences are “in the queue”)

The regional geological potential has been independently assessed

Exploration programs including target definition is already underway

Himba Fe Projects

Eris Mining Butterfly & Hoarusib Projects

Tumba Base Metal

Projects

Eris Mining Abenab V

Project

Avonlea Project Areas - 9,500sq km (Pending/Granted EPL‟s)

Eris Mining Sn & REE Projects

Base Metal, Precious REE

Projects

Rare and base metal prospectivity/ proximity to mineral occurrences

Radiometric and Aeromagnetic images purchased

Regional/ geological mapping commenced; “ground truthing” underway

Geological settings for Cu, Ag, Au, Pb, Zn?

Limited or no exploration previously undertaken

Stream sediment and rock chip sampling program currently in progress

Independent Regional review to be finalised in the current quarter

......the Potential - Rare metals / Base metals focus

Hoarusib (EPL 4126, 4127, 4128) (2,964 sq kms)

Avonlea adjoining Project Areas to Hoarusib

Eris Mining Projects

Himba Iron Projects

INV Metals JV (Teck Cominco)

Areas of significant interest & activity

EPL‟s 4126, 4127, 4128

Hoarusib - Base metal potential

Copper, Lead, Zinc

Proximity to mining licences and

historical activity with known base

metal occurrences

Geological continuity of mineralised

sequences identified in the south and

east of the project area

Targeted exploration model to be

based around Stratiform Cu and

SEDEX models

Tsongoari

Pb-Zn-Ba Project

Granted licence EPL

4339 - prospective

for Cu, Pb, Zn

Tsongoari North Prospect

Base Metal Potential EPL 4339 (342sq km)

Avonlea Project Areas - Eastern Namibia

Companies already in playTeck Cominco

Etruscan (Namibia REE)

Auryx Gold

Okoruso Flourspar

Sabre Resuorces

Ambase Exploration

Weatherly

Cullen Resources

Tschudi43Mt 0.83% Cu;

10.52g/t Au

Tsumeb30Mt 10% Pb; 4.3% Cu;

3.5% Zn; 100g/t Ag

Tsumeb West1Mt 2.1% Cu;

18g/t Ag

Okorusu80,000t in 2009

97.5% pure CaF2

Otjikoto40.5Mt 1.5g/t Au

Kombat10Mt 3.1% Cu;

1.1% Pb, 26g/t Ag

Groot Otavi157,000t 5.85% Pb;

1.54% Zn, 15g/t Ag

Kaskara

Abenab West76,994t 58% Pb

5% V2O5

Berg Aukas1.6Mt 0.93% V2O5;

4.04% Pb; 16.77% Zn

Tzamin200,000t 1.9% Cu;

56.1% Ag

Abenab1.85Mt 17.05%

V2O5; 72% Pb

Otavi Carbonate Platform....known mineral occurrences & notable interest

Prospective for high grade poly metallic ore bodies

similar to the nearby Tsumeb Deposit ; production of

30Mt

10% Pb

4.3% Cu

3.5% Zn

100g/t AgFigures from Mineral Resources of Namibia 1992

Licence applications pending along strike from

Tsumeb covering the same stratigraphic horizons

Little modern systematic exploration has taken place

over the majority of the application / areas

Otavi Carbonate Platform Licence Holdings

Tumba

EPL‟s 4436, 4437, 4438, 4439, 4430 (3,361sq kms)

Images from Ore Deposit Conceptual Models, UWA, 2007, Frimmel, H.E.

Base Metals, Precious Metals & REE

potential

Limited previous exploration

- 14 historical base metal stream sediment

anomalies

Precious metal potential, similar to

Otjikoto Gold deposit

Base metal potential, similar to Tsumeb

deposit

REE potential, Bostonite / pegmatites

dykes

EPL4125 617sq kms

ParesisPrecious and base

metal potential

Rare Earths

Rare Earths

Historic Abenab vanadium mine

- Produced 42 million pounds V2O5 in

concentrate

40kms from Tsumeb mine (Cu, Pb,

Zn) but region is underexplored

Abenab VanadiumEPL 4416 (420sq km)

Immediate exploration target(s) based on significant MME database review

Abenab VanadiumEPL 4416 (420sq km)

Managing Director

David Riekie

admin@avonleaminerals.com.au

Freemasons Hall

181 Roberts Road

Subiaco WA 6008

Tel: +61 8 9287 5900

Website: www.avonleaminerals.com.au

ASX: AVZ

Targets Pb, Zn, Cu, Ag (Au)

Licence PendingEPL

Area sq km

Mooihoek 4439 998

Patton 4436 942

Tsumis 4437 497

Hotsaus 4438 741

Guinas 4,440 183

Total 3,361

Tumba Base Metals X (Proprietary) Ltd

Licence details / expenditure

Tumba Base Metals X

Commitments over 3 years from issue and grant

Expenses as of 31 December 2010

The licence details

Eris Mining

Licence Status/Date Area sq km

Hoarusib

EPL 4126 Dec ‘08 996

EPL 4127 Dec ‘08 990

EPL 4128 Dec ’08 978

EPL 4339 Oct ‘10 342

Paresis

EPL 4125 Dec ‘08 617

Abenab

EPL 4416 Oct ‘10 420

Brandberg

EPL 4624 Application 78