23 May 2008Annual General Meeting

P A N A U S T R A L I A NR E S O U R C E S L I M I T E D

Share price performance

Share price more than trebled in 2007; up a further 20% since 1 January 2008

Entered the S&P/ASX 200 Index in August 2007

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Phu Kham Phase 1 Development

Delivered within capital budget; US$241m (50/50 debt/equity)

Lowest quartile capital intensity1

Lowest strip ratio (1:1) world best for primary copper ore-body2

Second quartile cash operating costs3; ~US¢91/lb after precious metal credits4

Ore Reserve contained copper increased by over 25%; higher grade, more ore tonnes

1, 2, 3 – Reference: CRU

4 – Price assumptions: US$700/oz gold, US$14/oz silver

Phu Kham Operations

Copper-gold concentrate production commenced April 2008

First concentrate sales June qtr 2008

2008 production of ~120,000t conc:

30,000t copper, 57,000oz gold1, 300,000oz silver

2009 production of ~240,000t conc:

60,000t copper, 80,000oz gold2, 600,000oz silver

1 – Assumes 30,000oz from the Phu Kham Heap Leach Gold Operation2 – Assumes 20,000oz from the Phu Kham Heap Leach Gold Operation as oxide gold reserves are depleted

Phu Kham Phase 2 Expansion

From 2010 average annual output to increase to approx.:

75,000t copper, 65,000oz gold and 600,000oz silver

Expansion to cost only US$40m; scheduled for completion during December qtr 2009

Phu Kham Heap Leach Gold Operation

Successful implementation of seasonal leach operation in 2007

Record gold production for 2007; 31,380oz

Fully integrated with copper-gold operation, scheduled to be depleted at end of 2009

Scheduled to contribute:30,000oz in 2008, and20,000oz in 2009

Process plant

Phu Kham cash flow

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50012Mt/yr Phase 1 (2009)16Mt/yr Phase 2 (from 2010)

Copper US$2.00/lbGold US$600/ozSilver US$14/oz

Copper US$3.00/lbGold US$700/ozSilver US$14/oz

Copper US$4.00/lbGold US$1000/ozSilver US$14/oz

Indicative pre-tax cash flows at various price assumptionsUS$M

Marketing – the BHP Billiton advantage

BHP Billiton – manager of all concentrate sales - exposure to global market presence and expertise

Spot sale contracts for ~30% of production between 2008 and 2010 at combined smelter charges of only ~US$0.05/lb (~50% of benchmark terms)

First concentrate delivered to the port yesterday

Benefits to Laos

Over 90% of the 1,140 employees at Phu Kham are LaoIncluding 400 local villagers

Lao Technician (Apprenticeship) Program established

Joint cooperation agreement to enhance skills of graduates from the Lao polytechnic system

Work experience program

Benefits to Laos

US$300,000 Community Development Fund launched to develop sustainable socio-economic livelihoods beyond the life of the mine

Estimated export value from Phu KhamOperations in 2009 of over US$0.5bn –compared to US$1.0bn in total exports from Laos in 2007

Lao government is a 10% shareholder in Phu Bia Mining Limited

Lao government will also receive substantial income from taxes and royalties

Exploration – searching for elephants

Organic growth a priority

US$30m exploration and evaluation budget for 2008

Ban HouayxaiGold-Silver Project

PhonsavanCopper Project

Pha Nai Copper Prospect

Phu KhamCopper-Gold

Operation

Puthep Copper Project

Project 100

Target is to produce 100,000t copper per annum from the Phu Kham Operation

Conceptual studies are underway

Near-Mine Exploration Potential

Searching for an additional 50Mt to support Project 100 objective

Similar host-rock geology to Phu Kham; extends over 800m

Copper mineralisation confirmed by soil sampling

Scout drilling commenced

Target area for step-out drilling

Phu Khamcopper-gold

open pit

Organic Growth - A Priority

Ban HouayxaiGold-Silver

Project

PhonsavanCopper Project

Pha Nai Copper Prospect

Phu Kham Copper-Gold Mine Expansion Project

Puthep Copper Project

Ban Houayxai Gold-Silver Project

Target - ore reserve to support a +100,000oz/yr gold operation

Pre-feasibility study September quarter 2008

Target for first gold production in 2011, subject to feasibility

Preliminary carbon-in-leach test work results indicate excellent recoveries: +90% for gold, +80% for silver

Ban Houayxai Gold-Silver Deposit

North Primary Zone

South Primary Zone

Oxide Resource

Steeply dipping zone of primary gold mineralisation; contains bonanza grade chutes

Puthep Copper Project, Thailand *

* The Puthep Project is a joint venture between PanAust Limited and PadaengIndustry Public Company. PanAust will earn a 51% interest in Puthep by completing a feasibility study on the Puthep Copper Project and has further options to acquire a total 60-70% interest.

PUT 1 near-surface Mineral Resource (0.1% Cu cut-off):

Indicated– 22Mt @ 0.4% CuInferred – 62Mt @ 0.4% Cu

Targeting 100Mt of extra resource to support attributable production of 30,000t copper/annum

Feasibility study March qtr 2009

Puthep Copper Project

Puthep Copper Project – another Phu Kham?

86m @ 0.6% Cu, 0.1g/t Au 48m @ 1.1% Cu, 0.5g/t Au

90m @ 0.6% Cu, 0.2g/t Au

240m @ 0.6% Cu, 0.2g/t Au incl. 10m @ 1.6% Cu, 0.5g/t Au& 23m @ 2.1% Cu, 0.7g/t Au

250m @ 0.4% Cu, 0.1g/t Au Inc. 27m @ 1.0% Cu, 0.2g/t Au

18m @ 1.0% Cu, 0.1g/t Au 26m @ 0.4% Cu, 0.1g/t Au 14m @ 1.3% Cu, 0.5g/t Au

14m @ 0.3% Cu, 15.8g/t Au

84m @ 0.8% Cu, 0.1g/t Au

Pipeline of Growth Projects

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Heap leach gold Phu Kham gold + silver Phu Kham copper Growth Target

1 Copper equivalent assumptions: copper US$2/lb, gold US$600/oz, silver US$12/lb2 Subject to feasibility study and other project approvals

Ban Houayxai Gold-Silver2

Puthep Copper2

Phu Kham expansion

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Acquisition Ready

New opportunity evaluation team

Philosophy – give organic growth a chance but don’t rely solely on exploration

This presentation has been prepared by the management of PanAust Limited (the 'Company') for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person.

The information is based on publicly available information, internally developed data and other sources. No independent verification of those sources has been undertaken and where any opinion is expressed in this document it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. The Company disclaims and excludes all liability (to the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way outof or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it.

Where the Company expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future projects, such expectation or belief is based on management’s current predictions, assumptions and projections. However, such forecasts are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forecasts. Such risks include, but are not limited to, exploration success, gold and copper price volatility, changes to the current mineral resource estimates, changes to assumptions for capital and operating costs as well as political and operational risks and governmental regulation outcomes. For more detail of risks and other factors, refer to the Company’s other Australian Securities Exchange announcements and filings. The Company does not have any obligation to advise any person if it becomes aware of any inaccuracy in, or omission from, any forecast or to update such forecast.

Important Notice

Calculation of copper equivalent tonnes

Copper equivalent production referred to in this report was calculated by combining copper, gold and silver production using thefollowing equation:

Copper equivalent tonnes = copper tonnes + value of gold produced (US$) + value of silver produced (US$)copper price (US$/tonne)

Assumptions unless otherwise stated are:Copper US$2.00/lbGold US$600/ozSilver US$12/oz

Calculation of copper equivalent tonnes

The data in this report that relates to Exploration Results and Mineral Resources are based on information reviewed by Mr DanielBrost who is a Member of the Australasian Institute of Mining and Metallurgy.

Mr Brost is a full time employee of PanAust Limited. Mr Brost has sufficient experience 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 Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Brost consents to the inclusion in the report of the matters based on his review in the form and context in which it appears.