Western Areas NLWestern Areas NLCorporate Presentation

January/ February 2011

1

Disclaimer and forward looking statements

This presentation is being furnished to you solely for your information and for your use and may not be copied, reproduced or redistributed to any other person in any manner. You agree to keep the contents of this presentation and these materials confidential. The information contained in this presentation does not constitute or form any part of any offer or invitation to purchase any securities and neither the issue of the information nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment on the part of any person to proceed with any transaction.p , y p y p p y

You must not take or transmit this presentation or a copy of this presentation into the United States or Japan or distribute it, directly or indirectly, in the United States or Japan or to any US persons. By your acceptance of this document, you acknowledge that you are a not a “U.S. person” for the purposes of the US Securities Act. Neither this document, in whole or in part, nor any copy thereof may be taken or transmitted to any other person. The distribution of this document to other persons or in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the federal securities laws of the United States and the laws of other jurisdictions. The distribution of this presentation in other jurisdictions may be restricted by law, and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions.

The information contained in this presentation has been prepared by Western Areas NL. No representation or warranty, express or implied, is or will be made in or in relation to, and no responsibility or liability is or will be accepted by Western Areas NL, employees or representatives as to the accuracy or completeness of this information or any other written or oral information made available to any interested party or its advisers and any liability therefore is hereby expressly disclaimed.No part has an obligation to notif opinion changes or if it becomes a are of an inacc rac in or omission from this presentation All opinions and projectionsNo party has any obligation to notify opinion changes or if it becomes aware of any inaccuracy in or omission from this presentation. All opinions and projections expressed in this presentation are given as of this date and are subject to change without notice.

This document contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause the performance or achievements of Western Areas NL to differ materially from the information set forth herein, although such information reflects forecasts and projections prepared in good faith based upon methods and data that are believed to be reasonable and accurate as at the dates thereof and although all reasonable care has been taken to ensure that the facts stated herein are accurate and that the forward-looking statements opinions and expectations contained herein are based on fair andensure that the facts stated herein are accurate and that the forward-looking statements, opinions and expectations contained herein are based on fair and reasonable assumptions. Western Areas NL undertakes no obligation to revise these forward-looking statements to reflect subsequent events or circumstances. Individuals should not place undue reliance on forward-looking statements and are advised to make their own independent analysis and determination with respect to the forecasted periods, which reflect Western Areas NL’s view only as of the date hereof.

The information within this PowerPoint presentation was compiled by Mr. Julian Hanna and the information as it relates to mineral resources and reserves was prepared by Mr. Dan Lougher and Mr. John Haywood. Mr. Hanna, Mr. Lougher and Mr. Haywood are full time employees of Western Areas. Mr. Hanna, Mr. p p y g y , g y p y ,Lougher and Mr. Haywood are members of AusIMM and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Hanna, Mr. Lougher and Mr. Haywood consent to the inclusion in this presentation of the matters based on the information in the form and context in which it appears.

For Purposes of Clause 3.4 (e) in Canadian instrument 43-101, the Company warrants that Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

THIS PRESENTATION IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.2

Western Areas Summary & Global Nickel Industry

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Agenda

Western Areas Summary and the Global Nickel Industry

O tiOperations

Flying Fox

S tt d Q llSpotted Quoll

Concentrator

Q arterl Operational PerformanceQuarterly Operational Performance

Exploration & Growth

Strategy & OutlookStrategy & Outlook

WSA Board – back row: Joe Belladonna (Company Secretary),  Rick Yeates (non exec), Robin Dunbar (non exec) David Cooper (non exec) Dan Lougher (Operations) front row: Julian

4

Dunbar (non exec), David Cooper (non exec), Dan Lougher  (Operations), front row: Julian Hanna (Managing Director), Terry Streeter (Chairman).  Absent: David Southam (Finance).  

Corporate Summary

Listings: ASX & TSX

Shares on Issue: 179.7m

Options: 7.4m (at varying strike prices >$7.00)

Share Price: $6.66 (13 January 2011)

Market Cap: $1,197m (undiluted)

%Top 15 Shareholders WSA 12 Month Share Price%1 T Streeter 14.362 M & A Greenwell 5.383 Commonwealth Bank 4.284 Paradice Investment Management 3.645 Giovanni Santalucia 3 20

Top 15 Shareholders

$5 50

$6.00

$6.50

$7.00 RSPTannounced

5 Giovanni Santalucia 3.206 Northward Capital 3.187 Aviva Investors 2.528 Oppenheimer Funds 2.239 Ausbil Dexia 2.2110 I d d A M 2 06

$3.50

$4.00

$4.50

$5.00

$5.50

Spotted Quoll10 Independent Asset Management 2.0611 Mt Kellet Capital Management 1.7012 Vanguard Investments 1.7013 Front Street Capital 1.5414 AMP Capital Investors 1.44

$2.00

$2.50

$3.00 Cosmic Boy upgrade

15 Goldman Sachs Insitutional 1.37

TOTAL 50.81

5

Closing Share Price

The Business

Assets

Dominant position in 500km long nickel province in Western Australia100% of two of the highest grade, lowest cost nickel mines in the world20% of Canadian Nickel Company, Mustang Minerals Corp75% on Finland Nickel Company, FinnAust Mining PlcDominant position in major nickel/zinc/copper province in Finland100% BioHeap sulphide leaching process to process low grade ores

Core Business

Australia’s 3rd largest nickel miner.  25,000tpa Ni production10 Years mine life based on current resources and reserves Nickel concentrate plant plus all major surface infrastructureDiversified offtake contracts in Australia and ChinaUnrivalled exploration potential for new nickel sulphide discoveries

People

Experienced management, exploration, mining and processing teamTwo major Australian awards for exploration and mining

Company Growth – Next 12 Months

Increase ore reserves Flying Fox and Spotted Quoll to >10 years Commence development of Diggers South MineDiscover new high grade nickel deposit at ForrestaniaConfirm potential of Sandstone JV Project as a new nickel campList FinnAust Mining Plc (75% WSA) for Finland assets 6

The Nickel Industry

AUSTRALIA CANADA CHINA RUSSIA FINLAND1 nickel camp

BRAZIL  AFRICA 3 nickel camps  4 nickel camps 1 nickel camp 2 nickel camps 1 nickel camp

BHP BILLITON VALE INCO JINCHUAN NORILSK NORILSK VOTORANTIM BCL

XSTRATA JILIN JIEN

1 smelter 4  smelters 3  smelters 4  smelters 1 smelter 1 smelter 1 smelter

W t A M t *Western Areas(100% WSA)

Mustang *         (19.9% WSA) Talvivaara Mirabela Norilsk

IndependenceFinnAust Mining

(75% WSA)FNX

MincorFNX Xstrata *

Panoramic Liberty *

Victory Nickel*Continental

C. Royalties *Noront

Xstrata

1 colour coded for offtake party

2 * project : commissioning or feasibility stage

Independence 7

Nickel Supply and Demand

Mature nickel camps contribute ~50% global production

1. Conventional Nickel Sulphide 2010e 2011e 2012e 2013e 2014e

GLOBAL NICKEL PRODUCTION 1,449 1,578 1,691 1,818 1,938global production

NO MAJOR NEW DISCOVERIES

2 S l hid B t i l L hi

World Mine Capacity 1,511 1,652 1,771 1,903 2,030

World Mine Production Growth Rate  9.0 8.9 7.2 7.5 6.6

GLOBAL NICKEL CONSUMPTION 1,437 1,542 1,636 1,716 1,790Primary Nickel in Stainless 998 1 074 1 137 1 188 1 2412. Sulphide Bacterial Leaching

Talvivaara in Finland is first large scale commercial mine.  

KEY: LOW CAPEX, LOW ENERGY

Primary Nickel in Stainless 998 1,074 1,137 1,188 1,241

Primary Nickel in Non‐Stainless 439 468 498 528 549

World Nickel Usage Growth 10.4 6.8 6.4 5.9 4.0

CHINA NICKEL CONSUMPTION 525.7 565 3 601 5 645 6 694 7

3. Nickel Laterite

Laterite & Ferro Nickel contribute ~40% 

, CHINA NICKEL CONSUMPTION 525.7 565.3 601.5 645.6 694.7USA  123.3 133.8 142.0 148.6 155.2

W Europe 322.9 340.2 362.0 374.0 379.2

ROW 464.7 502.6 530.2 547.6 561.2

i k l i

global production

KEY: HIGH CAPEX = HIGH COST

4. Nickel Pig Iron

Chinese nickel pig iron, 10% global production.  Announced cut backs

KEY: ENERGY INTENSIVE

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Operations

9

Western Australia – Nickel Provinces 

Nickel processing & sales

100% Western Areas Owned FORRESTANIA NICKEL PROJECTFORRESTANIA NICKEL PROJECT

Current Mineral Resources:16.7Mt @ 2.0% Nickel(340,440 tonnes nickel)

Current Ore Reserves:5.2Mt @ 3.3% Nickel (172,220 tonnes nickel)

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Flying Fox Mine

Flying Fox Summary 

Continuous high grade Ni to 1300m.  Open at depth  

Mine decline currently at 1030m vertical depth

Probable Ore Reserve – 1,062,500 @ 5.7% Ni containing 58,370t Nickel

O d i t d th f 3 9% t 5 9% NiOre grades increase at depth from 3.9% to 5.9% Ni

Current Production

T4 Deposit – fully developed, in production 7,860t nickel in high grade (4.0% Ni) Ore Reserve

Lounge Lizard – KZL Agreement for 50,000tpa ore

T5 Deposit:Commenced productionCommenced productionBest Intersection: 78m @ 9.3% Ni in ore reserve50,560t Ni (5.9% Ni) Ore Reserves

Additional Exploration & Resource UpsideAdditional Exploration & Resource Upside

Resource extension potential north and below T5

Drilling in progress to test T6/ T7/ T8

T6/ T7/ T8 B t i t ti t d t 9 3 @ 5 1% Ni i T7T6/ T7/ T8 – Best intersection to date 9.3m @ 5.1% Ni in T7

11

Flying Fox Mine

Massive Sulphide at T5 Flying Fox

12

Spotted Quoll Mine

Probable Ore Reserve – Open Pit Mine

254,700t  @ 4.9% Ni containing 12,490t NickelTarget cash cost : US$2 00/lb NiTarget cash cost : US$2.00/lb Ni

Probable Ore Reserve  ‐ Underground mine

1,725,000  @ 4.1% Ni containing 70,200t Nickel, , @ g ,Target cash cost : US$2.70/lb NiDecision to Mine Underground ‐made 15 Dec 2010

Ni Price US$/lb $6.00 $8.00 $10.00 $12.00Ni Price US$/lb $6.00 $8.00 $ 0.00 $ .00Exchange Rate US:AUD 0.80 0.90 0.95 1.00NPV(BT) A$90M A$184M A$297M A$385IRR(BT) 41% 67% 96% 116%C1 Cost (US$/lb Ni in Conc.) $2.29 $2.57 $2.71 $2.86

Target  >10 years mine life, >10,000tpa nickel to 2020

TOTAL NET CASH A$ M $162M $320M $500M $640M

Drilling for Extensions 400m Below Mineral Resource

Best intersection to date: 3.5m @ 6.5m Ni

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Spotted Quoll Mine

Open Pit at 31 December 2010

14

Forrestania Nickel Concentrator

Concentrator Summary

Plant upgrade project delivered on time and budget

Current capacity of 550,000tpa of ore

Nickel concentrate output >25 000tpaNickel concentrate output >25,000tpa

Expansion configured for Stage 3 upgrades to 1mtpa

Concentrate grades of around 14.0% Ni

Averaging 90% recovery (ahead of plan)

14,000t of concentrate storage capacity

Excellent infrastructure & close to Esperance Portp

Well established Logistics contract to Port, BHP & Minara

Access to >1000 sealed shipping containers

Utilising 25 trucks for concentrate transportationUtilising 25 trucks for concentrate transportation

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Nickel Offtake Contracts

T l 25 000 Ni

Spotted Quoll oxide oreMinara, Murrin Murrin 

Total 25,000 tonnes Ni Jinchuan Smelter

GANSU, CHINA

Forrestania Concentrate

10,000 tpa Ni

BHP Billiton Smelter

Kalgoorlie, WA

Significant uncommitted nickel concentrate expected from 2012

16

Quarterly Operational Performancey p

17

Delivery of our Targets

Following Targets were detailed in WSA’s September 10 Quarterly Report :

Maintain high production levels from two operating mines & increase resources:

Record half year mine & mill productionOn track to exceed full financial year production guidance of 25 000t Ni in oreOn track to exceed full financial year production guidance of 25,000t Ni in oreDrilling at Flying Fox below T5 very favorable with high grade intersectsSpotted Quoll UG feasibility completed (robust @ US$6.00/lb Ni)

Increase rate of nickel sales to China:

Record shipments to Jinchuan (6,785t Ni in five months) with increased container & logistics capacity

Discover and develop new high grade nickel deposits at Forrestania:

Increased investment in exploration program announcedMultiple drill rigs at Forrestania and regional targets (eg Sandstone)

Maintain regular dividend payments to shareholders:Maintain regular dividend payments to shareholders:Interim dividend for six months to 31 December 2010 expected to be announced in February

Mine production for the 12 months ended 31 December was 26,281 tonnes (57.9M lbs) nickel in ore compared with guidance of 20,000 tpa for CY 2010 and cash costs were US$2.02/lb nickel incompared with guidance of 20,000 tpa for CY 2010 and cash costs were US$2.02/lb nickel in concentrate compared with guidance of US$2.50/lb

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December Q 2010 ‐ Performance

Highlights

7,959t Ni in ore production averaging 5.2% Ni (16,261t Ni for 1H 2010/11):

On target to exceed full year guidance of 25,000t Ni in ore6,061t Ni higher (+59%) than 2H 2009/10

5 602t Ni in concentrate sold (11 752t Ni for 1H 2010/11):5,602t Ni in concentrate sold (11,752t Ni for 1H 2010/11):

On target to exceed full year guidance of 22,000t Ni in concentrate6,760t Ni higher (135%) than 2H 2009/10

I d d d hi h th h t f ll i th t t i d i fImproved grades and higher throughput; following the concentrator expansion, drive performance

A$2.01/lb cash cost (US$1.99/lb using 0.99 exchange rate for the quarter):WSA continues to be the lowest cash cost producer in Australia

Cash at Bank of $123.5m, plus $33.2m in nickel receivables

Convertible bond due in July 2012 successfully restructured – new profile of all bonds as follows:

$105.5m due in July 2012 @ 8.0% coupon (converts $8.16)$110.2m due in July 2014 @ 6.4% coupon (converts $7.71)$125.0m due in July 2015 @ 6.4% coupon (converts $6.61)

5,936t Ni in Stockpiles of ore and concentrate at cost of $27.8m.  In situ value of $143m (prior to processing, smelting & transportation charges)

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December Q 2010 – Summary

3.50 

4.00 

4.50 

5.00 

5.0%

6.0%

7.0%Milled Grade & Cash Cost A$/lb

FYTD

Tonnes Mined Dec Qtr Mar Qtr Jun Qtr Sep Qtr Dec Qtr Total

Flying FoxOre Tonnes Mined Tn's 53,618        67,072      91,437        84,935      96,635      181,570            Grade Ni % 3.3% 4.5% 4.0% 4.0% 4.6% 4.3%Ni Tonnes Mined Tn's 1,776          2,990        3,697          3,363        4,459        7,822                

2009/2010 2010/2011

1.00 

1.50 

2.00 

2.50 

3.00 

1.0%

2.0%

3.0%

4.0%

A$/lb

Grade

 %Spotted QuollOre Tonnes Mined Tn's ‐              6,293        46,258        66,978      56,696      123,674            Grade Ni % 0.0% 3.5% 6.7% 7.4% 6.2% 6.8%Ni Tonnes Mined Tn's ‐              220           3,113          4,939        3,500        8,439                

Total ‐ Ore Tonnes Mined Tn's 53,618        73,365      137,695      151,913    153,331    305,244            

‐

0.50 

0.0%

1.0%

Dec Qtr 2009 Mar Qtr 2010 Jun Qtr 2010 Sep Qtr 2010 Dec Qtr 2010

Milled Grade % Cash Cost Ni in Con

Grade Ni % 3.3% 4.4% 4.9% 5.5% 5.2% 5.3%Total Ni Tonnes Mined Tn's 1,776          3,210        6,810          8,302        7,959        16,261              

Tonnes Milled and Sold Dec Qtr Mar Qtr Jun Qtr Sep Qtr Dec Qtr Total

Ore Processed Tns 64,985        61,662      83,639        131,542    123,027    254,569            Grade % 3.1% 4.2% 4.5% 5.7% 5.4% 5.6%Ave. Recovery % 88% 92% 88% 89% 90% 89%Ni T i C t t T 1 791 2 416 3 303 6 678 5 976 12 654

6.0%

6.5%

140

160 

180 

)

Mined Grade & Ore Tonnes  

Ni Tonnes in Concentrate Tns 1,791         2,416      3,303        6,678      5,976      12,654            

Ni Tonnes in Concentrate Sold Tns 3,091          2,444        2,307          6,151        5,602        11,753              Ni Tonnes in Ore Sold Tns ‐              ‐            241             987           507           1,494                Total Nickel Sold Tns 3,091          2,444        2,548          7,138        6,109        13,247              

Stockpiles Sep Qtr Dec Qtr

Ore Tns 73,293      92,405     G d % 4 6% 4 4%

3.5%

4.0%

4.5%

5.0%

5.5%

40

60 

80 

100 

120 

140 

Ore Ton

nes Mined

 (Ktn's)

Grade

 %

Grade % 4.6% 4.4%

Concentrate  Tns 11,386      13,052     Grade % 14.1% 14.1%

Contained Ni in Stockpiles Tns 4,977        5,936       

Financial Statistics Dec Qtr Mar Qtr Jun Qtr Sep Qtr Dec Qtr Total

Group Production Cost/lbMining Cost (*) A$/lb 3 30 2 03 1 72 1 36 1 36 1 36

2.5%

3.0%

‐

20 

40 

Dec Qtr 2009 Mar Qtr 2010 Jun Qtr 2010 Sep Qtr 2010 Dec Qtr 2010

Ore Mined Tns Ore Mined Grade %

Mining Cost ( ) A$/lb 3.30           2.03        1.72          1.36        1.36        1.36                Haulage A$/lb 0.14            0.11          0.09            0.07          0.08          0.07                  Milling A$/lb 0.96            0.59          0.56            0.37          0.40          0.39                  Admin A$/lb 0.16            0.17          0.17            0.15          0.19          0.17                  By Product Credits A$/lb (0.21)           (0.02)         (0.03)          (0.02)         (0.02)         (0.02)                

Cash Cost Ni in Con (***) A$/lb 4.34            2.88          2.51            1.93          2.01          1.97                  

Cash Cost Ni in Con/lb (***) US$/lb (**) 3.95            2.61          2.22            1.75         1.99         1.86                 

20

Exchange Rate US$ / A$ 0.91            0.90          0.88            0.90         0.99         0.95                 

(*) Mining Costs are net of deferred waste costs and inventory stockpile movements(**) US$ FX for Relevant Quarter is RBA ave daily rate  (Dec Qtr = A$1:US$0.99)(***) Payable terms are not disclosed due to confidentiality conditions of the offtake agreements. Cash costs exclude royalties.Note. Grade and recovery estimates are subject to change until the final assay data are received.

Note. All reported numbers in this table exclude Lounge Lizard..

Nickel  Sales – past 6 months 

Commentary

Record six months for nickel sales84,687

80,000 

90,000 Concentrate Tonnage Sold ‐ 2nd Half 2010

CumulativeRecord six months for nickel sales

Includes 49,160t of concentrate containing 6,785t Ni (15.0M lbs) exported to Jinchuan.

43,89049,768

64,820

40,000

50,000 

60,000 

70,000 Cumulative

Jinchuan

BHP

Over 1000 container capacity with increased logistics capability from mine to port.

Concentrator performing above expectations with recoveries (89%) and tonnage throughput

12,730

‐

28,084

10,000 

20,000 

30,000 

40,000 

with recoveries (89%) and tonnage throughput

Strength of customer diversity is major differentiator from other WA nickel companies

‐

Jul‐10 Aug‐10 Sep‐10 Oct‐10 Nov‐10 Dec‐10

13 24714,000 Nickel Tonnage Sold ‐ 2nd Half 2010

All numbers quoted exclude Lounge Lizard and payability

7,1388,264

10,537

13,247

8,000 

10,000 

12,000 CumulativeMinaraJinchuanBHP

2,057

4,520

,

2,000 

4,000 

6,000 

‐

Jul‐10 Aug‐10 Sep‐10 Oct‐10 Nov‐10 Dec‐1021

Exploration & Growth

22

Exploration

Exploration Budget increased 30% to A$20M for 2011, majority to be spent on drilling

Outstanding track record for discoveries using sophisticated geophysical and drilling techniques

100km strike length of prospective Forrestania Nickel Project, within 500km long nickel province

Drilling Priority within 8km long zone (below).  New discovery would access existing mine infrastructure

Drilling in progress at Spotted Quoll Deeps and testing T6 T7 and T8 deposits below Flying FoxDrilling in progress at Spotted Quoll Deeps and testing T6, T7 and T8 deposits below Flying Fox

23

Diggers South – Planned underground mine

Summary

Feasibility Study and surface works completeFeasibility Study and surface works complete

Major dewatering infrastructure in progress

Existing mine development to access higher grade Core Zone (red)

$25M spent on exploration & infrastructure

Approx $100m capex required to fullyApprox $100m capex required to fully develop mine and 1.0Mt plant expansion

2011 Drilling & Development Program

Target: to increase ore reserves > 60,000t Ni

Target: Sustainable production 6,000tpa Ni

Find strategic partner to help fund project

24

Regional Exploration – eg: Sandstone JV

Comments

WSA earning 70% of nickel rights to the Sandstone with Troy Resources

Targeting a major new nickel camp with t ti l f lti l ipotential for multiple mines

One of largest areas of untested nickel prospective ground in Western Australia

Very encouraging early results with nickel intersected in 2010

Major step up in drilling and geophysical program nder a in the March Qprogram underway in the March Q

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FinnAust Mining Plc 

Finland based exploration company being prepared for AIM listing in 2011

75% owned by WSA 25% owned by Finland investors75% owned by WSA, 25% owned by Finland investors

Dominant position in a major, underexplored mineral province in central Finland

>50 Targets identified with 14 high priority targets to be drilled in 2011g g p y g

Targeting Talvivaara, Outokumpu and Volcanic Massive Sulphide type deposits

Initial mineral resource established at Rautavaara R1 deposit with significant nickel and zinc

€5‐7m pre IPO seed funds planned to be raised from Finnish and UK investors in February 2011

Intention to use BIOHEAP™ leaching technology, similar to that used by Talvivaara Mining Plc

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FinnAust Mining Plc – 14 Priority Drilling Targets

Talvivaara Type Outokumpu Type

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Talvivaara Mining PLC

Talvivaara Snapshot• Europe’s largest Nickel sulphide deposit.   World’s largest bacterial leaching nickel operation

• Rapid progress:  ‐ Incorporated 2003, IPO 2007, first production 2008• Production targets:2010 ‐ 15,000 tpa nickel, 30,000 tpa zinc  500 

550 

600 

650 

Talvivaara 12 Month Share Price

2012 ‐ 50,000 tpa nickel, 90,000 tpa zinc  (target cash cost US$2.20/lb)

Reported first operating profit of EUR 10.9 million for Q3 2010 

Nov 2010 Market Cap ~ GBP 1 3 billion in LSE

250 

300 

350 

400 

450 

Nov. 2010 Market Cap   GBP 1.3 billion in LSE

• Second hydrogen plant to increase capacity of nickel and zinc to reach TALV targets of 50,000tpa Ni &100,000tpa Zn

• Talvivaara out performed all other nickel stock in the last 6 months

Daily Share Price

p

“FinnAust Mining Plc can provide investors with an opportunity with similarities to the Talvivaara story”

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Mustang Minerals Corp

WSA owns a strategic stake in Mustang Minerals ‐ Canadian based nickel company

Mustang has successfully raised C$6 7M:Mustang has successfully raised C$6.7M:

WSA ownership increased to 19.9% (C$1.76m contribution)

Funds used to purchase a 2nd hand base metals plant and accelerate feasibility and drilling p p y g

Technical support and input from WSA to assist development of Makwa nickel mine

WSA Operations Director Dan Lougher to join Mustang Board (2 out of 6 are WSA reps)

Makwa Deposit: Nickel and Copper Sulphides in drill coreMakwa Deposit:  Nickel and Copper Sulphides in drill core

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Targets, Strategy & Outlook

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Targets, Strategy & Outlook

Targets and Strategy

WSA to become the established No 2 nickel producer in Australia (No 1 BHP)WSA to become the established No.2 nickel producer in Australia (No.1 BHP)

Long life production assets to sustain +25,000tpa Ni in ore production over 10 years.  

Remain bottom quartile cash costsRemain bottom quartile cash costs

Develop high value international projects such as FinnAust and Mustang Minerals

Take a considered and disciplined approach to strategic acquisition opportunities

Outlook

2nd half expected to be another strong period2 half expected to be another strong period

Full Year operational targets are likely to be exceeded

Exploration updates in Q3 & Q4 as activity is ramped up

Substantial cashflow producing company:

Reliable and progressively increasing dividend streamDebt fully covered & balance sheet flexibilityDebt fully covered & balance sheet flexibilitySurplus cash directed to growth (increased exploration spend to $20m pa)

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The End

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