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Tellus Holdings Ltd

Certainly worth its salt

NT Minerals Summit 2014, DarwinMD Duncan van der Merwe

4 December 2014

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Important Notice and Disclaimer

Summary information This presentation (Presentation) has been prepared by Tellus Holdings Ltd (ABN 97 138 119 829) (‘Tellus’) and is for information purposes only. This Presentation contains summary information about Tellus and its subsidiaries and their activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete. It should be read in conjunction with other periodic announcements on www.tellusholdings.com.au. The key information on detailed exploration target statements, mineral resource estimates, and feasibility results can be found in Tellus’ publically released media announcements. Exploration target statements and mineral resources estimations are appended to comply with ASX guidelines but investors are urged to read supporting information in full available on the company’s website, and available in their data room.

Future performance This Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, “should”, “could ”, “may”, “plan”, “will”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions, and independent third party expertise. Such forward-looking statements, opinions, and estimates are not guarantees of future performance.

Not an offer This presentation does not constitute an offer, invitation, or recommendation to subscribe for or purchase any security and neither this presentation nor anything contained in it shall form the basis of any contract or commitment.

Competent Person Statement – Chandler ProjectThe information in this presentation that relates to Mineral Resources - Chandler Project - is based on information compiled by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH (‘ERCOSPLAN’). Jana Neubert is a senior geologist and employee of ERCOSPLAN and a member in good standing of the European Federation of Geologists registered as “European Geologist” (Registration Number 1033). Ms Neubert has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.

Dr Henry AM Rauche is a senior geologist and Managing Director & C.E.O. of ERCOSPLAN and a member in good standing of the European Federation of Geologists registered as "European Geologist" (Registration Number 729). Dr Rauche has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.

Competent Person Statement – Sandy Ridge ProjectThe information in this presentation that relates to Mineral Resources - Sandy Ridge Project - is based on information compiled by Terra Search Pty Ltd. Mr Jenkins is Principal Geologist of Terra Search and a Member of the Australian Institute of Geoscientists. Mr Jenkins has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.

The information in this presentation that relates to exploration targets is based on information reviewed by Dr. Simon D. Beams, a full time employee of Terra Search Pty Ltd, geological consultants employed by Tellus. Dr. Beams has BSc Honours and PhD degrees in geology. He is a Member of the Australasian Institute of Mining and Metallurgy (Member #107121) and a Member of the Australian Institute of Geoscientists (Member #2689). Dr Beams has sufficient relevant experience in respect of the style of mineralisation, the type of deposit under consideration, and the activity being undertaken to qualify as a Competent Person within the definition of the 2004 edition of the AusIMM’s “Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves”.

Exploration Target Any statement contained in this document as to exploration results or exploration targets has been made consistent with the requirements of the Australasian code for reporting of exploration results, mineral resources, and ore reserves (‘JORC Code’). All statements as to exploration targets of Tellus salt and kaolin, and statements as to potential quality and grade are conceptual in nature. There has been insufficient exploration undertaken to date to estimate a resource and identification of a resource will be totally dependent on the outcome of further exploration.

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Tellus Strategy

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Chandler Salt Mine Project Update

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Chandler Strategy – Pit to Port1

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Project location

Drilled 1,937m

Field work Grade Analysis Expert analysis

370 samples Dual business

FEL 2 (Update)

Engineering DFS/ EIS Commercial

Site investigations Customer visits

Chandler - Progress1

Study categories: 17 DFS /15 EIS Study contributors: 22 companiesCountry of study contributors: 5

Site visits to other salt mines:Trade trips

Project technically feasible, commercially viable, no fatal flaws

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Chandler - Resource Estimate1

1 Refer to Tellus Media Release ‘2014 Chandler – JORC Estimation’ 1 July for further details, JORC Table 1, Proximate and Competent Person Statement 2. JORC statement prepared by Ercosplan (Germany)

Flat Salt Bed ~ 18km wide (hole CH003 ~ 300m thick salt bed), sedimentary rock suitable for low cost decline

309 Mt Measured Resource = 525 year mine lifeMineral resource covers 8% of EL 29018

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Chandler - Design1

*Not to scale – underground workings not directly under surface plant

Salt dry processing plantStorage processing plant

Wet processing ponds (evaporation, crystallization, bittern ponds)

2 MW solar plant

Vertical ventilation shafts

Portal and decline

Traffic management – blue line salt traffic, orange line – waste traffic

Ventilation management –intake (2nd egress) and exhaust air

Isolation management –store like with like

Room dimensions – 240m L, 15m W 4.5m H,11 rooms pa

Water management –decline stops above salt bed, with sump

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Chandler - Summary

Mine life – 29 years (4 + 25 years), rolling terms

Production -salt0.5 M tpa salt and associated minerals, Scale up on demand

Mining method Underground, room and pillar design, Continuous miner

Room dimensions240mL x 15mW x 4.5mH, 15m support pillar

Processing – Dry (crush, bag, ship), some wet, backfill

ManagementCore business - owner operator, Non core - contractor

Jobs Build (280-350), operational (180), indirect (>540-720)

Historic spend: General area 41.5km (>$18.5M)Project area: 6.6km, 15 lines seismic (145km) – (A$6.5M)

Capex – A$464 M

Opex – Labour, transport, utilities, services

Taxes – Corporate tax, GST, levies, royalties

Could potentially be Australia’s longest life mine Could potentially be one of central Australia’s largest private employers

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Chandler – Power requirements

2 MW solar plant

Could potentially be Central Australia’s largest solar power station

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General - archives

Licensed - disposal

Licensed - storage

K+S-German salt Mine

Compass Minerals – Deep Storage

1 Chandler - Underground design

Salt mining

K+S-German salt Mine

K+S-German salt Mine

Tellus is planning to develop the safest mine in Australia

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Contractor and Employer Opportunities

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Opportunities for the Alice Springs Region and NT

Category Pre mine Mine build Mine operations

Jobs Limited Mine & plant build Mine & plant operations

Training Limited work experience

Apprenticeships, traineeships, work experience

Apprenticeships, traineeships, work experience

Investment Studies, approvals, team & internal & customer processes

Capex (civils, plant &equip), team & internal & customer processes

Investment (sustaining capex & opex) team & internal & customer processes

Business opportunities

Contractor labour, drilling, studies, equip. & supplies

Mine contractor services,equipment & supplies

Mine contractor services Equipment & suppliesSalt related spin off businesses

Sponsorships & trust

Sponsorships Sponsorships SponsorshipCommunity benefits trust

Environmental Work exp. (rangers) Work exp. (rangers) Offset program (ranger programs)

Infrastructure Industrial shed/ office

Improved roads, bridges, power, comm’s

Improved roads, bridges, power, comm’s, training & visitor centre

RoyaltiesTaxes & rates

Exploration Agreement CLC

Exploration Agreement CLCFederal, NT , Local taxes/ rates

Royalties - MineralFederal, NT , Local taxes and rates

Tellus has a commitment to local employment, training, spending and being transparent

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How to Engage with Tellus

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Opportunities – Local contracts awarded during DFS 1Category Service / equipment provided Local

Industrial real estate Shed/ office rental & utilities

Studies - environmental contractors & TO’s Field surveys

Station / Landholder Earthworks machinery, accommodation

Mining service providers Camp and equipment supply

Wholesale fuel distributor Diesel supply

Vehicle rental supplier Vehicle rental

Freight provider Freight service

Geotechnical contractors Personnel

Camping & safety equipment supplier Field equipment supply

Helicopter charter service Charter flights

Accommodation & food and beverage Hotels, taxis, catering, room hire

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How to engage with TellusInitial engagement is via registration with: Industry Capability Network (ICN) www.chandlersaltmine.icn.org.au or contact ICNNT 08 8922 9422ICNmatches projects with potential suppliersTier I Primary contract –overarching contractTier II Secondary/ sub contracts

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Next Steps

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Next Steps – Priorities in the Next 12 Months

Corporate

Focus on converting commodity (salt / kaolin) and waste EOI’s into binding agreements Expansion of the management team Move to new premises in Sydney and opening a Perth and Tokyo office

Chandler Project

Chandler planning, dry and wet salt processing pilotCommencement of DFS stage two (FEL 3)Ongoing regulatory approval progress (lodge EIS)

Sandy Ridge Project

Planning, 40t field program, 15t pilot, complete PFS (FEL 2)Commencement of EIS Ongoing regulatory approval progress (lodgement of MLA)

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Next Steps – Chandler Salt Project

Field work, pilot, DFS/EIS studies, commercial

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Next Steps – Sandy Ridge Kaolin Project

Field work, pilot, PFS/EIS studies, commercial

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Next Steps – Regulatory Progress

MLA lodged, Completing Environmental Impact Assessment Studies

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Health Safety and Environment

Long term success is linked to safe and sustainable operations

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Community and Stakeholder Engagement

Aim to make a positive contribution in the communities we operate in

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Questions

Duncan van der Merwe

Group Managing DirectorE: info@tellusholdings.com.auT: +61 2 9241 7678

www.tellusholdings.com

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Appendix

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Waste Acceptance Criteria Chandler

Liquid waste in barrels, lined & bunded

Dry waste multiple lined and bagged

Nuclear waste (Defence, Energy)

Uranium mining waste

Infectious (Medical) Waste

Uncertified waste

Tellus is bringing “worlds best practice” solutions and recognized high development standards

Industry Waste Sources

Oil & Gas

Mining

Heavy Industry / Power Generation

Manufacturing

Agricultural

Government/SES

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X1

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Strategy – Tellus Complementary Storage Service Offering

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Best Practice Systems

Certified Management System

Strict acceptance criteria

Packaging and transport criteria

Safety case – man made engineering

Safety case – natural engineering (geology)

Insurance, bonds, Permanent Isolation Certificates

1 Tellus plans to accept NORM’s (naturally occurring radioactive material as found in oil and gas, mining, and heavy industry processed waste etc)

Tellus’ certifications and values

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