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RARE EARTHS, SPECIALITY & STRATEGIC METALS INVESTMENT SUMMIT IRONMONGERSHALL, CITY OF LONDON THURSDAY , 17 MAR 2011 www.ObjectiveCapitalConferences.com Developing Tanzania’s rare earths Tony Harwood – CEO, Montero Mining

Developing Tanzania’s rare earths

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Objective Capital's Rare Earths, Speciality & Strategic Metals Investment Summit 2011 Ironmongers' Hall, City of London 17 March 2011 Speaker: Tony Harwood, Montero Mining

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Page 1: Developing Tanzania’s rare earths

RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT

IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 17 MAR 2011www.ObjectiveCapitalConferences.com

Developing Tanzania’s rare earthsTony Harwood – CEO, Montero Mining

Page 2: Developing Tanzania’s rare earths

Focus on exploration for Rare Earth Elements and associated minerals

March 2011

Page 3: Developing Tanzania’s rare earths

Disclaimer

This presentation contains certain statements that may be deemed “forward-looking statements”. All statements in this release, other thanstatements of historical fact, that address events or developments that Montero expects to occur, are forward-looking statements.

Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”,“anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”,“could” or “should” occur. Although Montero’s forward-looking statements are based on the reasonable beliefs, expectations, opinions andassumptions of Montero’s management, such statements are inherently uncertain and provide no guarantees of future performance. Actual resultsmay differ materially from Montero’s expectations as reflected in such forward-looking statements as a result of various factors, many of which arebeyond the control of Montero. Such factors include, but are not limited to, market prices, exploitation and exploration success, continued availabilityof capital and financing and general economic, market or business conditions. Except as required by law, Montero does not assume any obligation toupdate these forward looking statements, and investors should not attribute undue certainty to, or place undue reliance on, such forward-lookingstatements. Please consult Montero’s public filings at www.sedar.com for more detailed information concerning these matters.

The information in this presentation is intended for use only by persons resident in jurisdictions where such use is lawful. Nothing in this presentationconstitutes, and under no circumstances is to be construed as, an offer or solicitation to purchase securities of, or advertisement for, securities ofMontero. The securities of Montero have not been registered under the United States Securities Act of 1933, as amended, or any state securitieslaws.

The information in this presentation is provided “as is” and without warranty of any kind. Although it is believed to be accurate at the time it ispresented, Montero disclaims all liability for any failure to update it. This presentation could include inaccuracies, typographical errors, or out-of-dateinformation, and changes to it may be made at any time without prior notice. You are therefore advised to use the information contained in thispresentation at your own risk.

The technical information contained in this presentation has been reviewed by Mr. Mike Evans, M.Sc. Pr.Sci.Nat., who is a qualified person for thepurpose of National Instrument 43-101 and a consulting geologist to Montero.

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Page 4: Developing Tanzania’s rare earths

Company Background

Management active in African mining sector for over 26 years

• ex-Placer Dome and Phelps Dodge team

Montero Mining and Exploration Ltd. established in 2007

• listed on the TSX-V (MON) February 2011

• focused on rare earth elements

Wigu Hill - flagship REE project in Tanzania

• project identified in 2007, JV agreement secured in 2008

• 60% shareholding and opportunity to obtain 100%

• high grade and high tonnage potential first identified in 1950s

• mining development friendly country

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Page 5: Developing Tanzania’s rare earths

China Dominates REE Production

China controls > 97% of global REE supply

Bayan Obo mine, China: world’s largest

REE resource (bastnasite mineralisation)

Chinese impose 30% export tariff to attract

end user manufacturers to China

Chinese REE industry consolidation

Chinese delay export of rare earths to Japan in

August 2010, Japanese respond swiftly to tie

up existing supply outside of China

China unofficially temporarily suspends

shipments of rare earths to Japan (September

and October 2010)

China declares ‘heavy’ rare earths resources

are finite (approximately 15 years)

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Source: http://pubs.usgs.gov/fs/2002/fs087-02/

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REO Price Increases In 2010

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Source: Metal-Pages.com. Prices are indicated and basis FOB China and average between high/low. All Light and Heavy Rare Earths - 99% min

Feb '10May '10

July '10Oct '10

CeriumSam

ariumLa

nthan

um

Praseo

dymium

Neody

mium

$73.50

$26.75

$71.00

$25.75

$40.50

$5.55

$34.50

$4.50

$37.00

$4.15

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

Rare Earth Oxides - Prices over 8 month period

Page 7: Developing Tanzania’s rare earths

Wigu Hill Project – Overview

Ownership• 60% ownership with option to increase to 100% with Tanzanian JV partner

World-class deposit• large carbonatite complex (6.4km x 3.2km) intruded by sheeted high grade

bastnasite bearing dykes • first identified in 1957, sampled by junior mining companies, the UN, bilateral

institutions and the Tanzania and German geological surveys• historic grades of 12.7% to 16.5% TREO• high grade identified by Montero 26.2% TREO

Development potential• 170km south west of major port of Dar es Salaam• 12km to rail siding of the Tazara rail linking Zambia and Dar es Salaam• good infrastructure, water, transport (road, rail & port) and mining support• unweathered mineralisation, large tonnage open pit potential on a hill

Mining friendly country• good mining law with major mining companies operating• mining friendly jurisdiction should allow rapid permitting• objective to be a low-operating cost producer

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Page 8: Developing Tanzania’s rare earths

Flagship REE Property

Wigu Hill, Tanzania

• large carbonatite complex

• bastnasite-rich REE mineralisation in sheeted dykes

• historic sample grades of 12.7% to 16.3% TREO with average of 14.5% TREO from trenching and grab samples (1957)

• 2010 Montero sample grades of up to 26.2% TREO from grab samples

• Phosphate potential

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Page 9: Developing Tanzania’s rare earths

Wigu Hill Project Location

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Uranium license

Dar es Salaam

Wigu Hill licences –142km²

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Wigu Hill – Drill Targets

2009/2010 mapping and sampling program defined 10 drill target areas

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N

Tembo drill target

Twiga drill target

Page 11: Developing Tanzania’s rare earths

Wigu Hill – Location of Drill Targets

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Page 12: Developing Tanzania’s rare earths

Tembo Drill Target: Geology and Sampling

Tembo drill target - detailed mapping, trenching and channel-sampling completed:

• 350m x 450m area exposed

• detailed geology mapping

• 39 channels cut across mineralized zone using portable rock saws

• continuous samples taken along channels at ~0.5-1m intervals (constrained by lithology)

• >700 samples assayed

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N

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Wigu Hill – Twiga Geology

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Page 14: Developing Tanzania’s rare earths

Wigu Hill – Twiga Drill Section

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These sections give an indication of the attitude of the carbonatite dykes and the proposed drilling mainly at an angle of 50 degrees.

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Wigu Hill - Drilling

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Current diamond drilling at Wigu Hill

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Wigu Hill –BH TW0001 Core

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Page 17: Developing Tanzania’s rare earths

Wigu Hill – BH TW0001 Bastnasite-Rich Intersection

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Page 18: Developing Tanzania’s rare earths

Wigu Hill Mineralogy

Simple REE mineralogy predominantly:

Occur as course crystalline aggregates intergrown with barite, strontianite and Fe-dolomite; REE, Ba, Sr minerals replace earlier minerals

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Bastnasite Synchisite

LREE* (CO3) F Ca LREE* (CO3)2 F

Density: 4.7 to 5.0 Density: 3.9 to 4.0

Hardness: 4 to 4.5 Hardness: 4 to 4.5

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Carbonatite Dykes

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The carbonatite dykes consist of finely to coarse crystalline dolomite with minor amounts of iron as hematite and goethite and a complex intergrowth of

Burbankite crystals.

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Hexagonal Burbankite

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Hexagonal burbankite hosts abundant bastnasite and related rare earth minerals, plus barite strontianite, quartz and dolomite.

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Wigu Hill: Photograph of Mineralization

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Bastnasite and synchisite (white)Mg-Fe carbonate (dark brown)

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Wigu Hill - A High Grade Undeveloped REE Deposit

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Deposit Grade (% RE2O3)

Size (tonnes RE2O3)

Mount Weld 11.2% 1,700,000

Mountain Pass 8.9% 1,800,000

Wigu Hill 7.44%* To be determined

Bayan Obo 6% 48,000,000

Mrima Hill 5% 300,000

Nolan’s Bore 4% 400,000

Source of deposit data: SB Castor & JB Hedrick

* Average of regional grab samples at Wigu Hill compared to other deposits

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Uranium Exploration Properties in Quebec, Canada – 100% Ownership

Lac Yvonne Project• mapping/sampling/radiometric survey

• 6 Short drill holes in 1957• 0.08% U3O8 and 3 g/t gold over 4 feet• 0.30% U3O8 and 3 g/t gold over 4 feet

Girard Claims Project• ground radiometric survey• outcrop rock chip sampling• channel sampling of zones >100ppm U• Ridge anomaly

• >100ppm U over 600 x 40m drill target defined

• LDZ anomaly • >100ppm U over 300 x 200m drill target

defined• North Beraud Lake anomaly

• anomalous area covers 1600 x 250m • infill sampling program - 2010 ongoing

NI 43-101 report completed – SRK Consulting

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Page 24: Developing Tanzania’s rare earths

Bierkraal Project

Lamberts Bay Project

Duyker Eiland and Phillips Kraal Projects

Phosphate Project Locations Duyker Eiland, Phillips Kraal and

Lamberts Bay projects:

• 150 to 200km north of Cape Town

• 10 - 70km from Saldanha Bay deep-water harbor, Western Cape

• close to Western Cape agricultural nodes (wheat, wine)

Bierkraal Project:

• 120km west of Johannesburg, within the Rustenburg platinum mining node

• 20km from Omnia’s phosphate chemical production complex situated at Phokeng, North West Province

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Page 25: Developing Tanzania’s rare earths

Option agreement to acquire 74% interest to develop 4 phosphate

deposits in South Africa:

• 4 prospecting licenses - approximate size 14,600ha

• Current drilling on Duyker Eiland and Phillips Kraal

• historical resource base of approximately 90Mt

• all open pit resources with historical mining

• located within 10 - 70km from export port and/or fertilizer producer

with infrastructure (road, rail, power, water)

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Page 26: Developing Tanzania’s rare earths

Use of Proceeds - 2011

Wigu Hill exploration program objectives:• 2,500m diamond drill program to delineate a NI43-101 resource on

Twiga and Tembo Targets to 100m depth• mineralogical and metallurgical test work• map and channel sample 2-3 additional targets • Phase I - $1.17million to be completed by mid 2011 and

Phase II to continue to end 2012 Phosphate and Uranium exploration program objectives:

• 1,400m RC drill program to delineate a NI43-101 resource• mineralogical and metallurgical test work of phosphates• Regional exploration for further projects• proposed $ 0.5million exploration expenditure

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Page 27: Developing Tanzania’s rare earths

Capital Structure

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as at March 02, 2011 Shares

(million)

Shares issued* 42.3

Stock options 3.7

Warrants 7.1

Total – fully diluted 53.1

Director and officers 15.49%

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Management and Directors

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Dr. Tony Harwood – President and Chief Executive Officer – DirectorTony Harwood is an economic geologist with 30 years of exploration & mining experience and graduated from University of Wales, CollegeCardiff, with a B.Sc. (Honours) degree and Ph.D. in Economic Geology. He was appointed President and CEO of Montero Mining &Exploration in June, 2009. Prior to joining Montero, Tony held the position of President and CEO of Africo Resources Ltd., a Canadiancompany engaged in exploring, acquiring and developing base metal and gold assets in Africa. From 1998 to 2006 Tony served as VicePresident of Global Generative Exploration and Africa-Eurasia Exploration at Placer Dome Inc., a major Canadian gold mining company. Tonyis a non-executive director of Adamus Resources (ASX/TSX: ADU) and Auryx Gold Corp. (TSX: AYX).

Toni Chapman – Chief Financial Officer - DirectorToni Chapman has 20 years financial and administration financial experience in Africa for South African and Canadian companies and has aManagement Advanced program diploma from the University of Witwatersrand, South Africa. She is currently CFO - Oryx Mining andExploration Ltd., and other professional edits include the former CFO - Tri Origin Exploration Ltd., a consultant to Placer Dome, South Africaand former Business Administrator Director for Bastillion Group of Companies.

Greg Hall – Non-executive DirectorGreg Hall is a seasoned geologist with over 35 years of international experience. His past credits include former Chief Geologist - Placer DomeGroup. Greg had a senior role in the discoveries of both Barrick Gold's Granny Smith mine and Rio Tinto's Yandi iron ore mine. In addition, hetook part in the discoveries of Keringal and Wallaby in Australia's Eastern Goldfields, as well as the definition of AngloGold Ashanti's Sunrisegold mine. Greg holds a Bachelor of Applied Science from the University of New South Wales, Australia.

John Dixon – Non-executive DirectorJohn Dixon obtained a B.Sc and B.Sc Honours in Geology and Applied Geology from the University of Natal (Durban) and a Ph.D from theUniversity of Kwazulu Natal, South Africa. John became a director of Montero Mining & Exploration in February 2007. Since 2006, he has heldthe position of President of Oryx Mining and Exploration Limited, a private junior exploration company engaged in the exploration anddevelopment of gold and base metal assets in East Africa. Between 1996 and 2006, John worked as an independent geologist with BastillionResources (Pty) Ltd., a South African geological and mining consulting company.

Andrew Thomson– Non-executive DirectorAndrew Thomson has 15 years of experience in mineral exploration in Central America and is an entrepreneur who has actively explored inMexico and Honduras and Panama since 1993. His past credits include former President of Link Mineral Ventures Ltd. and Azul Resources(Bermuda) Ltd and he is currently President and CEO for Soltoro Ltd. (TSX.V: SOL), a junior mining and exploration company focused onexpanding a primary silver resource at its property in Mexico. Andrew is a non-executive Director for Gossan Resources Ltd. (TSX.V: GSS).

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Thank you

Montero Mining & Exploration Ltd.Registered and Records Office:

1900-1040 West Georgia Street

Vancouver, B.C. V6E 4H3

www.monteromining .com

Dr Tony Harwood

[email protected]

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