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TSX-V : RGX
PATHWAY TO
PRODUCTION
Corporate Presentation
November 2012
TSX-V : RGX
FORWARD LOOKING STATEMENT The information presented contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of Argex Mining Inc. (“Argex or the Company”. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production, the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; and limitations on insurance coverage. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.
The technical information contained in the presentation has been reviewed by André Laferrière, Qualified Person for Argex and conforms to National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Investors are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The Qualified Person has not done sufficient work to classify the historical resources estimates and the issuer is not treating the historical estimate as current mineral resources
The Qualified Person has been unable to verify the information related to the Ni 43-101 mineral resources reported from other companies and included in the presentation
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources
The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
2
TSX-V : RGX
HIGHLIGHTS
TiO2 prices at all-time high averaging $4,500 US/tonne*
Game-changing, patented extraction process for high-purity TiO2 production. Proprietary and innovative extraction process producing high purity TiO2
Argex and PPG Industries (2nd largest paint company in the world) signed technology collaboration agreement to develop PPGs technology for TiO2 (titanium dioxide) pigment for paints and coating applications using Argex’s TiO2 (April 2012)
Currently negotiating Purchase and Sale Agreement with PPG Industries
Low-risk proven strategy for industrial production scale-up
Expansion of TiO2 pilot plant in Mississauga, Ontario with anticipated production > 10 kg/day (September 2012)
Strategic asset: La Blache property NI 43-101 Preliminary Economic Assessment (PEA) - NPV $2.2 billion (October 26, 2011)
3
*Source: Industrial Minerals http://indmin.com/, September 2012
TSX-V : RGX
TITANIUM DIOXIDE INDUSTRY OVERVIEW
TiO2 prices are expected to double from 2010 to end of 2015
Current prices are averaging $4,500 US/tonne
There is a direct correlation between TiO2 demand and global GDP (see chart)
TiO2 is fundamental to many basic building blocks of economies: paint, coatings, housing materials, automobiles, industrial equipment, consumer packaging and construction materials
4
(Ref. Ti Insight, LLC - December 2010)
TSX-V : RGX 5
TIO2 GLOBAL PRICE HISTORY Current TiO2 prices are at all-time high averaging $4,500 US/tonne*
Prices are expected to double from 2010 to 2015**
Stable and improving industrial demand
**Source: Ti Insight LLC, Dec. 2010 *Source: Industrial Minerals http://indmin.com/Sept.2012
TSX-V : RGX 6
WORLDWIDE TIO2 PRODUCTION
Company Headquarters 2010 Capacity
(,000 metric tonnes) % World Capacity
DuPont USA 1,292 20%
Cristal Global Saudi Arabia 700 11%
Huntsman USA 565 9%
Kronos USA 533 8%
Tronox USA 465 7%
ISK Japan 237 4%
Sachtleben Germany 232 4%
Argex Canada 200 3%
Dongjia Group China 145 2%
Lomon China 134 2%
Crenox Germany 107 2%
Total World Production 6,398 100%
TSX-V : RGX
NEAR TERM PRODUCER
Argex is a near term producer of
pigment quality TiO2
Significant price increases expected
by 2015
Bankable feasibility study expected
by Q2 2013
Argex’s primary goal is to advance
rapidly to production, meeting or
exceeding industry product
standards.
7
TSX-V : RGX
GAME-CHANGING
TECHNOLOGY
Argex has an innovative,
proprietary, technological
process to extract high
purity TiO2 pigment
directly from ilmenite ore.
TSX-V : RGX 9
CANADIAN TITANIUM LTD. - CTL PROCESS
Argex controls 50.1% of Canadian Titanium Ltd. (CTL), owner of
the patented processing technology for production of TiO2
CTL Process is a proprietary, solvent extraction chemical process
The CTL technology is designed to extract TiO2 from the
processing of ilmenite, the most commonly available titanium-
bearing iron oxide mineral
Our product provides a competitive advantage. The quality and
purity make a noticeable difference in performance and testing
Ongoing refinement has driven TiO2 purity beyond 99.8%
Colour and brightness of TiO2 product meet or exceed those of the
industry’s leaders
Environmentally friendly project:
− closed-loop process
− minimal inert tailings
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DE-RISKING SCALABILITY
State of the art, off-the-shelf, proven equipment:
- Industrial-scale equipment has been used for a number of years
in Northern Saskatchewan for uranium processing and
Newfoundland for nickel processing
- The metallurgists behind CTL were key to perfecting the
uranium and nickel processes mentioned above.
Pilot plant in operation since February 2011.
Pilot plant expansion completed September 2012.
TSX-V : RGX
On April 3, 2012 Argex
announced the signing
of a technology
collaboration with
PPG Industries, the
second largest paint
company in the world.
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PPG INDUSTRIES
Pittsburgh Paints Group ® (PPG) is an internationally recognized
brand, with history exceeding 100 years.
PPG paints are sold through an independent dealer network
consisting of 2,500 locations across the United States and in over
250 PPG company-owned stores.
PPG previously manufactured TiO2 at its Natrium, W.Va.,
chemicals plant and sold TiO2 pigment for coatings and other end-
use applications.
PPG experts spent nine months prior to the early April
announcement in multiple stages of due diligence. This involved a
detailed review and validation of Argex’s chemical processing
technology as well as testing the quality of our TiO2.
TSX-V : RGX 13
PPG AGREEMENT OVERVIEW
Argex and PPG to develop and optimize pigment grade TiO2 for
paints and coatings.
Combines PPG’s coatings technology and expertise with Argex’s
TiO2 proprietary processing technology.
The TiO2 is intended to be compatible with various end-use
applications for PPG and would be produced by Argex.
Argex and PPG have agreed to certain terms of mutual exclusivity
during the negotiation period of the purchase and supply
agreement.
TSX-V : RGX
Our preliminary
economic assessment
(PEA) demonstrates the
economic viability of our
process and supports our
mission of producing TiO2
that meets or exceeds
industry standards.
TSX-V : RGX 15
PRELIMINARY ECONOMIC ASSESSMENT
La Blache NI 43-101 PEA study outlines the
following:
IRR (Pre-Tax): 32%
NPV: $2.2 billion (using an 8% discount
rate)
Payback period of 7 years assuming a
staged, modular plant construction
Total operating cost (net of by-products) of
$586/tonne of TiO2 (averaged over the life
of the mine)
Price per tonne of TiO2 used (trailing
3 year average): $2,846 ($US/tonne)
Effective date: October 26, 2011
TSX-V : RGX 16
END-USER COLLABORATION
NDA’s currently in place with major end-users
Argex’s product has been tested by PPG to produce TiO2 that
meets the required specifications
Early stage collaboration allows Argex to finalize the process
design, accelerate project development and time to market
TSX-V : RGX 17
ARGEX MINERAL PROPERTIES
Lac La Blache NI 43-101 compliant mineral resources totalling 30.9 Mt measured and indicated grading 18.8% TiO2 and 63.3% Fe2O3, with 13.0 Mt inferred grading 18.7% TiO2 and 63.1% Fe2O3.
Lac Brûlé Hosts historical resources of 3.87 Mt deposit at 27% TiO2 cut-off grade (Quinto internal report
2005). Airborne survey completed. Metallurgical testing continues; results show significant improvement over La Blache.
Mouchalagane Large (339 km²) Labrador Trough iron ore property with historic drilling results ranging from 31-36% total Fe.
Montréal
TSX-V : RGX
2012 MILESTONES
Pilot plant scale-up
Lac Brûlé property acquisition
End-user agreements
Spin-off of Mouchalagane property
Feasibility-stage study
Project financing of first industrial-sized module
18
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ARGEX TEAM Robert Guilbault – Chairman of the Board of Directors
Former President and CEO of Aluminerie Allouette Inc., Sept-Îles, Quebec.
General Manager of BHP Billiton’s Hillside Aluminum at Richard’s Bay, South Africa.
Has worked in the mining production field for twenty years.
Roy Bonnell - President & CEO, Director, Founder
CFO, Vice President, Corporate Development and Corporate Secretary of Argex 2007 to 2011.
Managing Director, Atwater Financial, 2003-2010.
M.Sc. Accounting & Finance (London School of Economics), MBA (McGill), L.L.B. (Western), B.A. (Queen’s).
Normand Bergeron
Executive Counsellor at Samson Bélair/Deloitte & Touche since October 2011
Chief Executive Officer of Infrastructure Québec from its creation in March 2010
Deputy Minister, Québec Department of Natural Resources and Wildlife, from May 2005 to July 2009.
Member of Hydro-Québec’s Board of Directors (2005-2009).
Enrico Di Cesare - COO, VP Technology
Metallurgy, operations, know-how transfer, and management; Severstal, Danieli, Sammi Atlas Steel, Hoogovens/Corus/Hatch
Metallurgical Engineer from McGill University.
TSX-V : RGX 20
ARGEX TEAM /2 Mark Billings - CFO, Director, Founder
Chief Financial Officer and Founder of Argex; President from 2007-2009
BA (Honours) from Carleton University and an MBA from the Harvard Business School; Chartered Financial Analyst.
André Laferrière – VP Mining and Geology
Argex’s NI 43-101 Qualified Person.
Professional registered geologist with over 15 years experience in exploration and mineral development projects for various commodities, including mineral resource estimation and NI 43-101 reporting.
M.Sc. in geology (Université de Montréal). Peter Smith - Director
President and CEO of Fancamp Exploration Ltd. (TSX-V: FNC).
B.Sc. in geology from McGill University and an MS and Ph.D from Northwestern University
Anthony Garson - Director
Involved in the brokerage industry as a Mines and Metals Analyst, V-P Scotiabank 1975-80, Dean Witter Reynolds (Canada) Ltd., Canaccord Capital.
Founding partner of Union Capital Markets (UK) Ltd.
Mazen Haddad - Director
Former President of Township Capital Inc.
Received a B.A. degree in Economics from Emory University of Atlanta, Georgia.
TSX-V : RGX 21
ARGEX TEAM /3
Geneviève Marchand - General Counsel and Corporate Secretary
Counsel and Partner, Davies Ward Phillips and Vineberg, from 2000-2005
LLM from London School of Economics; LLB from Laval University
Member of the Quebec Bar
Ian Cox – Head of Engineering and Construction
Over 30 years’ experience, held executive positions in technology companies, construction and technology equipment providers to the metallurgy industry.
BS (Honours) from Leeds University
Academic studies also include the University of Tennessee, Massachusetts Institute of Technology (MIT), and Harvard Business School.
Has published over 20 technical papers on the design, construction and operation of metallurgical furnaces
Philippe Guillemaille – Manager, Sales and Marketing
Regional Business Manager, Europe & Africa for Kronos, a leading TiO2 producer company, from 1998-2011
Graduate from the University of chemistry of Lyon
TSX-V : RGX
SUMMARY
Argex is a near-term producer of commodities that the world
needs (titanium dioxide, iron ore)
NI 43-101 Preliminary Economic Assessment (PEA) released
October 26, 2011
PEA outlines project’s economical viability and low-cost production
Proprietary extraction process producing high purity TiO2
Primary objective is to advance rapidly to production
Low risk strategy for project scale-up
Mouchalagane iron ore property holds significant potential
22
TSX-V : RGX 23
SHARE STRUCTURE As of November 1, 2012
Recent Price $1.02
52 week High $1.25
52 week Low $0.33
Market Cap $132 Million
CAPITALIZATION
116,385,671 Outstanding Shares
(basic)
17,000,000 Escrowed Shares
99,385,671 Free-trading Shares
8,600,000 Options
15,808,000 Warrants
140,793,671 Outstanding Shares
(fully diluted)
Market Performance
TSX-V : RGX
MANAGEMENT TEAM
Roy Bonnell, President & CEO
Tel. : +1.514.788.8932
Mark Billings, CFO
Tel. : +1.514.296.1641
Enrico Di Cesare, COO
Tél. : +1.514.843.5959 x141
CORPORATE HEADQUARTERS
Suite 410, 630 Sherbrooke Street West
Montreal, Quebec H3A 1E4, Canada
Fax : +1.514.843.9208
www.argex.ca
Auditors: BDO Dunwoody
Legal Counsel: Heenan, Blakie LLP
Transfer Agent: Canadian Stock Transfer
Company Inc.
24
All of Argex’s public filings can be found on SEDAR (www.sedar.com)
TSX-V : RGX
TSX-V : RGX
APPENDIX 1 Hydrometallurgical Process
TSX-V : RGX A1-1
CTL PROCESS FLOW
TSX-V : RGX A1-2
CTL PROCESS FLOW /2
TSX-V : RGX
CTL TECHNOLOGY COMPARED
Sulphate Process (SP)1 Chloride Process (CP)1 CTL Process (CTL)
Both lower cost and lower TiO2 content ilmenite
ores and sulfate slags may be used in this process.
Generally requires the use of high TiO2 content Primarily ilmenite ore, not optimized for rutile.
Low grade TiO2 ore feeds can be used.
Base particle size control is less consistent than in
the chloride process, negatively impacting
product performance.
Generally higher product consistency Very high purity (99.8 %) TiO2 (rutile) product
Produces either the rutile or anatase crystal form Produces only rutile crystal forms Can produce rutile or anatase pigment
Larger buildings Smaller buildings Larger buildings
More vessels Fewer vessels but pressurized *No pressure vessels
More manpower necessary Less manpower necessary More manpower than Chloride Process
Lower training requirements for the staff Higher training requirements for plant operations
staff
Mix of qualified staff and operating personnel
A batch process A more continuous process Continuous process
More environmental impact due to much higher
waste generation
Less environmental impact due to less waste
generation
Environmentally attractive: energy efficient,
chlorine not used, closed loop operation, very
low inert tailings that can be used by local
construction raw materials
1 Source: Modified from http://www.ti-cons.com/Ti-Cons/index.php?option=com_content&view=article&id=1&Itemid=12&lang=en
A1-3
TSX-V : RGX
CTL TECHNOLOGY COMPARED
Sulphate Process (SP)1 Chloride Process (CP)1 CTL Process (CTL)
Process needs co-product management and attractive
markets for co-products
Limited possibility to rework some of the waste to
sellable co-products
Sellable byproducts (dependent on the source of
ilmenite) of iron, vanadium and chromium, acid
recovery and recycle
Process is easier to handle because of batch process Requires stable production environment and
infrastructure
Process is flexible – can handle variation in feed
material
Production does not directly stop if one step fails The process is more sensitive to production shortfall
because it has a closed loop front end
Production does not directly stop if one step fails
Higher safety requirements due to the use of Cl2 and
TiCl4
Safer operation - chlorine not used, organic solvents
used
Lower requirements to equipment and automation Higher degree of automation necessary Continuous process – can be automated
In general, the production costs are higher than
chloride process plants, especially outside of China
In general, the production costs are lower and do vary
by plant
Lower capital costs, lower operating costs – reagents
recycled, by-product revenue
1 Source: Modified from http://www.ti-cons.com/Ti-Cons/index.php?option=com_content&view=article&id=1&Itemid=12&lang=en
A1-4
TSX-V : RGX
APPENDIX 2
Mouchalagane Property
TSX-V : RGX
THE MOUCHALAGANE PROJECT
Large (335 km²) undeveloped iron ore property with potential to become a Tier 1 mining asset
The southern-most Labrador Trough iron ore property, 100% owned by Argex
Located in the prolific Wabush geological formation hosting the iron mines of the Fermont-Labrador City area
Historical shallow drilling tested 5 targets with results of up to 100 m mineralization thickness grading 31-36% Fe total
Deposit type is coarse grained magnetite and hematite “meta-taconite” deposit very similar to nearby Mont-Reed and Fire Lake mining projects.
Recent conceptual data analysis of the entire property returned an exploration potential ranging between 940 million and 2.31 billion tonnes of 30-35% Fe total mineralization
A2-2
TSX-V : RGX
MOUCHALAGANE - UNLOCKING VALUE
Argex is credited with no value in terms of market capitalization from Mouchalagane
High potential iron ore properties are presently a sought-after commodity
Iron ore demand is expected to continue to increase
Quebec’s North Shore accounts for 95% + of Canadian iron ore production and benefits from existing infrastructure
Argex is pursuing alternatives to unlock the value of this property
100 km
A2-3
TSX-V : RGX
MOUCHALAGANE - ADDING VALUE
Airborne geophysical
survey completed in late
2010
Property sized tripled by
staking
environmental impact
study initiated
Site visit completed with
grab samples consistent
with historic values
NI 43-101 Technical
Report
Exploration potential study
completed
A2-4
TSX-V : RGX
MOUCHALAGANE - AIRBORNE GEOPHYSICS
TSX-V : RGX The recent airborne magnetic survey
outlines several km-scale magnetic
anomalies on the property.
Survey results outline km-scale
magnetic anomalies including a series
of continuous anomalies over 40 km
in length corresponding to previously
recognised iron formations
Historical drilling confirmed the
presence of economic grade iron
mineralisation in five magnetic area to
date
Numerous untested km-scale
magnetic targets
Baie-Comeau
A2-5
TSX-V : RGX
Estimated Exploration Potential for Untested Areas (white)
Area Size of Magnetic Anomaly (km2)
Estimated Thickness of Iron Formation
Volume (million m3)
Conceptual Tonnage (million tonne)
North 4.91 10 - 15 m 50 - 75 160 - 240
Central 9.88 10 - 25 m 100 - 250 320 - 800
Southeast 3.68 10 - 15 m 35 - 55 110 - 170
Total Estimated Exploration Potential for Untested Iron Formation 590 - 1,210 Mt
Estimated Exploration Potential for Areas with Historical Drilling (yellow)
Area Size of Magnetic Anomaly (km2)
Estimated Thickness of Iron Formation
Volume (million m3)
Conceptual Tonnage (million tonne)
Everett Lake 0.85 10 - 15 m 9 - 13 30 - 40
Crazy Lake 0.68 15 - 35 m 20 - 46 60 - 150
North Parr Lake 0.68 10 - 15 m 7 - 10 20 - 30
South Mountain 1.68 15 - 80 m 25 - 134 80 - 430
South Parr Lake 2.39 20 - 60 m 48 - 143 150 - 460
Total Estimated Exploration Potential for Known Iron Formation 340 - 1,110 Mt
South Parr Lake
South Mountain
North Parr Lake
Crazy Lake
Everett Lake
North Area
Central Area
Southeast Area
Exploration potential tonnage is based on the volumetric estimate using first vertical derivative magnetic anomalies and conceptual mineralized iron formation thickness from historical drilling. Bulk density of 3.2 t/m3 used.
The exploration potential quantity and grade stated in the
presentation is conceptual in nature, there has been
insufficient exploration to define a mineral resource, and it
is uncertain if further exploration will result in the target
being delineated as a mineral resource
MOUCHALAGANE – EXPLORATION POTENTIAL
A2-6
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MOUCHALAGANE – HISTORIC RESULTS
A2-7
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MINERAL DEPOSITS UNIQUE LOCATION
EXISTING INFRASTRUCTURE
Main access roads & forestry roads
Power lines
Deep sea ports
Skilled labour
Affordable housing for employees
Rail lines
100 km
A2-8
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APPENDIX 3
Analysts Summary
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ANALYSTS SUMMARY
BUY – 12 month target - $3.00
Analyst: John Hykawy
July 16, 2012
Different Process: Argex’s process is
hydrometallurgical. This process has
a distinct advantage in terms of being
able to process low grade feedstock
and also it has the potential to be
extremely competitive with cost.
Feedstock Squeeze: Argex’s process
can exploit lower quality titanium
feedstocks that cannot be processed
by the standard chloride or sulfate
processes for making higher-grade
TiO2.
Pigment Plus: As a producer of
feedstock and a vertical supplier of an
engineered product like pigment,
Argex will be better protected against
cycles in the industry than its
competitors.
Leverage: Pigment-grade TiO2 is now
selling for $4,500 per tonne. “High
enough margins to absorb the
occasional misstep” and by-products
can also contribute to earned income.
BUY – 12 Month Target - $1.65
Analyst: Fadi Benjamin
June 22, 2012
Demand for Titanium Dioxide
(TiO2) has grown historically at
3.3% annually and is projected to
remain strong.
Argex’s CTL Process estimated
cost savings of 65% over existing
TiO2 processes.
CTL produces very small amounts
of inert waste compared to other
TiO2 processes.
The price target of $1.65 has been
determined using a price of
$2,800/tonne for TiO2. The actual
current price is approximately
$4,500/tonne.
BUY – 12 month target - $3.10
Analyst: Matt Gowing
July 10, 2012
Lower Cost: Argex’s La Blache PEA
quantifies an opex of $1,500/tonne, lower
than the current industry’s costs ranging
between $2,000/tonne to $4,000/tonne.
Should Argex secure a higher grade
feedstock, its opex may drop to $400-
$500/tonne.
Lower Capex: Depending on ore source,
Argex’s capex/tonne range between
$2,000/tonne to $4,000/tonne, compared
to existing the sulphate processes which
require $4,000-$5,000/tonne. These
advantages may allow Argex to achieve
30%-plus IRRs on certain projects.
Cleaner: The CTL process runs in a
closed loop, continuous fashion. It also
has the ability to separate and purify
impurities thereby reducing the toxicity of
waste tailings.
Process flexibility: Having the ability to
process a low grade feedstock that
nobody else wants provides a cost
advantage, particularly in a rising cost
environment. Being vertically integrated
will allow Argex to capture more margin,
and enhance its assurance of supply.