15 july 2009 for personal use only - asxjul 15, 2009  · china lithium carbonate project ave values...

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GALAXY RESOURCES LIMITED ABN: 11 071 976 442 Level 2, 16 Ord Street, West Perth WA 6005 PO Box 1505, Subiaco WA 6904 T: +61 8 9215 1700 F: +61 8 9215 1799 www.galaxyresources.com.au 15 July 2009 Company Announcements Office ASX Limited 4 th Floor 20 Bridge Street SYDNEY NSW 2000 Via: www.asxonline.com Dear Sir/Madam, Presentation to South Australian Resources Chinese Investment Congress 2009 Galaxy Resources Limited (ASX: GXY) are pleased to provide the presentation being given by the Managing Director to the South Australian Resources Chinese Investment Congress 2009 on Wednesday, 15 July 2009. Yours faithfully, for GALAXY RESOURCES LTD John Sobolewski Company Secretary For personal use only

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Page 1: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

GALAXY RESOURCES LIMITED ABN: 11 071 976 442

Level 2, 16 Ord Street, West Perth WA 6005 PO Box 1505, Subiaco WA 6904 T: +61 8 9215 1700 F: +61 8 9215 1799 www.galaxyresources.com.au

15 July 2009 Company Announcements Office ASX Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000 Via: www.asxonline.com Dear Sir/Madam,

Presentation to South Australian Resources Chinese Investment Congress 2009 Galaxy Resources Limited (ASX: GXY) are pleased to provide the presentation being given by the Managing Director to the South Australian Resources Chinese Investment Congress 2009 on Wednesday, 15 July 2009. Yours faithfully, for GALAXY RESOURCES LTD

John Sobolewski Company Secretary

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Page 2: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

meeting a lithium future

INVESTMENT IN CHINA - WHATS IN IT FOR US?INVESTMENT IN CHINA - WHATS IN IT FOR US?

Galaxy Resources LimitedGalaxy Resources Limited

By Iggy Tany ggyManaging Director

Galaxy Resources Limited

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Page 3: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

meeting a lithium future

The following presentation represents Galaxy’s management’s best judgment at the time of presentation The contents include The following presentation represents Galaxy s management s best judgment at the time of presentation. The contents include forward looking statements prepared on the basis of assumptions which may prove to be incorrect. This presentation should not be relied upon as recommendation or forecast by Galaxy Resources Limited. No representation or warranty is made as to accuracy, completeness or reliability of the information

The information in this report that relates to Mineral Resources and Ore Reserves is based on information compiled by Mr. Robert Spiers who is a full time employee of Hellman & Schofield Pty Ltd and who is a Member of the Australian Institute of Geoscientists Mr Spiers has sufficient experience which is relevant to the style of mineralisation and type of deposit under Geoscientists. Mr. Spiers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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. Spiers consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Exploration Results is based on information compiled by Mr Philip Tornatora who is a full time employee of the Company and who is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr. Tornatora has sufficient experience which is relevant to the style of mineralisation and t f d it d id ti d t th ti it h i d t ki t lif C t t P d fi d i th type of deposit under consideration and to the activity 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. Tornatora consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Galaxy Resources Limited

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Page 4: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

GALAXY RESOURCES LIMITEDGALAXY RESOURCES LIMITEDmeeting a lithium future

GALAXY RESOURCES LIMITEDGALAXY RESOURCES LIMITED

Australian CompanyAustralian CompanyListed on the ASX 2006Lithium for Lithium Ion BatteriesListed on the ASX 2006Lithium for Lithium Ion BatteriesAustralian mine and resourceDown stream value adding in ChinaAustralian mine and resourceDown stream value adding in ChinaInvestment and operation in China

Wh t’ i it f G l ?

Investment and operation in China

Wh t’ i it f G l ?What’s in it for Galaxy?What’s in it for Galaxy?

Galaxy Resources Limited

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Page 5: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

FAST TRACK PRODUCT TO MARKETFAST TRACK PRODUCT TO MARKETmeeting a lithium future

FAST TRACK PRODUCT TO MARKETFAST TRACK PRODUCT TO MARKET

Q3 2010 Q4 2010Q3 2010 Q4 2010

Pit

SpodumeneConcentrate

Lithium Carbonate

Li hi C bMinerals PlantPit Lithium Carbonate Producer

Lithium Battery Producers

Electric Vehicle

Galaxy Resources Limited

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meeting a lithium future

VLithium Carbonate Lithium Carbonate

Our Visiont u Ca bo atet u Ca bo ateManufactureManufacture

Lithium Carbonate Lithium Carbonate

World Player in Lithium

Second largest hard rock mine in the worldDistributionDistribution

World’s fourth largest Lithium Carb producer

Spodumene Spodumene ShipmentsShipments

China largest Lithium Carb producer

Lowest cost producer in China

Strategic supplier of Lithium Carb to Asia

Spodumene MineSpodumene Mine

Galaxy Resources Limited

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Page 7: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

LITHIUM ALL AROUND USLITHIUM ALL AROUND USmeeting a lithium future

LITHIUM ALL AROUND USLITHIUM ALL AROUND US

Manufacture of other lithium saltsManufacture of other lithium saltsPharmaceuticalsFuel cells, electricity cogenerationPharmaceuticalsFuel cells, electricity cogenerationGlass industry & optics screensEnamels, iron coatingGlass industry & optics screensEnamels, iron coatingGlass ceramics, telescope mirrorsAluminium productionGlass ceramics, telescope mirrorsAluminium productionConstruction, concreteLithium ion/polymer batteriesConstruction, concreteLithium ion/polymer batteriesp yp y

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meeting a lithium future

Galaxy Resources Limited

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meeting a lithium future

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Page 10: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

meeting a lithium future

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Page 11: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

ELECTRIC VEHICLE REVOLUTIONELECTRIC VEHICLE REVOLUTIONmeeting a lithium future

ELECTRIC VEHICLE REVOLUTIONELECTRIC VEHICLE REVOLUTION

Green Power

AutomobilesAutomobiles

EmissionsEmissions

HybridsHybrids

Reduced EmissionsReduced Emissions

Plug In Dual Mode

Plug In Dual Mode

Plug In ElectricPlug In Electric

Zero EmissionsZero Emissions

Li+

Increasing Use of LithiumIncreasing Use of Lithium

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Page 12: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

WORLD IS CHANGINGWORLD IS CHANGINGmeeting a lithium future

WORLD IS CHANGINGWORLD IS CHANGING

1 mil PHEV by 2015$1 mil PHEV by 2015$$2 bil US domestic battery manufacturing$2 bil US domestic battery manufacturing$300 bil greentech plan$300 bil greentech plan

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meeting a lithium future

Misconception Misconception Misconception

Electric cars are small slow powerless

Misconception

Electric cars are small slow powerless Electric cars are small, slow, powerless city vehicles

Electric cars are small, slow, powerless city vehicles

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Page 14: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

meeting a lithium future

0 to 60 mph in 3 9 secThe Tesla Roadster100% Electric

0 to 60 mph in 3.9 sec

U Lithi I b tt iUses Lithium Ion batteries

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Page 15: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

meeting a lithium futureTop speed 125 mphr 244 miles per charge

Regenerative brakingg gCost 1c per mile

Top Gear Road

Galaxy Resources Limited

“the only emission is the sound of the radio”Top Gear Road Test

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Page 16: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

LITHIUM ION BATTERIESLITHIUM ION BATTERIESmeeting a lithium future

LITHIUM ION BATTERIESLITHIUM ION BATTERIES

Voltage – 4 timesP ll ti F Cd Pb HVoltage – 4 timesP ll ti F Cd Pb H

ElectronsCharger

ElectronsCharger

Pollution Free – no Cd, Pb, HgLong Cycle Life- 500 charge/discharge Pollution Free – no Cd, Pb, HgLong Cycle Life- 500 charge/discharge

A dSeparator

Current

A dSeparator

CurrentGraphite Lithium Meta

Oxide

No Memory EffectFast Charge Capacity – 1-2 hoursNo Memory EffectFast Charge Capacity – 1-2 hours

+ + ++

Anode Cathode

Li+++ ++ +++

Anode Cathode

Li+Li+

Energy density x 2, price ¼ $36b today $51b in 2013Energy density x 2, price ¼ $36b today $51b in 2013

Li+

Li+Li+

Li+ Li+

Li+ Li+

Li+Li+

Li++

+Li+

Li+

Li+Li+

Li+Li+Li+Li+

Li+Li+ Li+Li+

Li+Li+ Li+Li+

Li+Li+Li+Li+

Li+Li++

+Li+Li+

Li+Li+

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LITHIUM BATTERY GROWTHLITHIUM BATTERY GROWTHmeeting a lithium future

LITHIUM BATTERY GROWTHLITHIUM BATTERY GROWTH

Lithium Ion BatteriesLithium Ion Batteries

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meeting a lithium future

Misconception Misconception Misconception

Energy efficiency of

Misconception

Energy efficiency of Energy efficiency of power plant / electric car

Energy efficiency of power plant / electric car

vs petrol car is similar vs petrol car is similar

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Page 19: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

ENERGY EFFICIENCY COMPARISONENERGY EFFICIENCY COMPARISONmeeting a lithium future

ENERGY EFFICIENCY COMPARISONENERGY EFFICIENCY COMPARISON

30 mpg30 mpg

Petrol VehiclesPetrol Energy

100 mpg100 mpg

Power Station Electric Vehicles

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Page 20: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

ENERGY EFFICIENCY COMPARISONENERGY EFFICIENCY COMPARISONmeeting a lithium future

ENERGY EFFICIENCY COMPARISONENERGY EFFICIENCY COMPARISON

Petrol VehiclesPetrol Energy

Zero PollutionZero PollutionZero PollutionZero EmissionZero PollutionZero Emission

Renewable Energy Electric Vehicles

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Page 21: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

VALLEY FILLINGVALLEY FILLINGmeeting a lithium future

VALLEY FILLINGVALLEY FILLING

Total installed capacityElectricity system under utilisedElectricity system under utilised

Peak day load shape

Valley

Electricity system -under utilisedCapacity caters for the peakS t h i t ti

Electricity system -under utilisedCapacity caters for the peakS t h i t ti

Seasonal averageload shape

a eyFilling Smart re-charging station

EVs can use shaded areasSmart re-charging stationEVs can use shaded areas

load shapeUS Grid – 160 million EVsMass Energy storage SystemsUS Grid – 160 million EVsMass Energy storage Systems

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

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CAR MAKERS & BATTERY MAKERSCAR MAKERS & BATTERY MAKERSmeeting a lithium future

CAR MAKERS & BATTERY MAKERSCAR MAKERS & BATTERY MAKERS

Panasonic EV Energy

Automotive Energy SupplySupply

Lithium Energy Japan

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Page 23: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

TYPICAL DEVELOPMENTTYPICAL DEVELOPMENTmeeting a lithium future

TYPICAL DEVELOPMENTTYPICAL DEVELOPMENT

Porsche 996

Subaru R1eSubaru R1e

Mitsubishi MiEV Sales in 2009

BMW Mini E

Mitsubishi MiEV Sales in 2009

Galaxy Resources Limited

GM Chevrolet Volt

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FULL CHARGE OF EV IN MINUTESFULL CHARGE OF EV IN MINUTESmeeting a lithium future

FULL CHARGE OF EV IN MINUTESFULL CHARGE OF EV IN MINUTES

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Page 26: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

CONSUMER CHINA SURVEYCONSUMER CHINA SURVEYmeeting a lithium future

CONSUMER CHINA SURVEYCONSUMER CHINA SURVEY

20.4% 140% >10% 26% 26-35Age group

Of middle income

Of middle income

BYD brand cars in first BYD brand cars in first

Auto sales growth, 10m Auto sales

growth, 10m Planning to buy a car

Planning to buy a car

“Green” cars are

“Green” cars are

learning to drive

learning to drive

two months of 2009

two months of 2009

g ,units

Worlds largest national auto

k

g ,units

Worlds largest national auto

k

yyfashionablefashionable

marketmarket

Galaxy Resources Limited Source: China Confidential (Financial Times Publication) April 2009

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Page 27: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

LITHIUM CARBONATE GROWTH LITHIUM CARBONATE GROWTH meeting a lithium future

LITHIUM CARBONATE GROWTH LITHIUM CARBONATE GROWTH

Total market lithium growth 5 to 7% last 5 years *Secondary (Rechargeable) Batteries growing at 20-22% *Total market lithium growth 5 to 7% last 5 years *Secondary (Rechargeable) Batteries growing at 20-22% *Secondary (Rechargeable) Batteries growing at 20-22% Secondary (Rechargeable) Batteries growing at 20-22%

Lithium Carbonate UsersOther, 22

Battery, 25

Ch i l 3

Aluminium, 4

Casting, 3

Chemical, 3

Ceramic Glass 12

Pharmaceuticals, 7

Air Conditioning, 6 Lubricants, 12Ceramic Glass, 12

Galaxy Resources Limited Source: ^ TRU Group – 2009 Lithium Markets & Supply Markets Conference, Santiago, Chile

*SQM - 2009 Lithium Markets & Supply Markets Conference, Santiago, Chile

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Page 28: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

TOTAL MARKET DEMAND FORECAST TOTAL MARKET DEMAND FORECAST meeting a lithium future

TOTAL MARKET DEMAND FORECAST TOTAL MARKET DEMAND FORECAST

Total Lithium Carbonate Demand 2002 - 2020

290,000

Year 2020SQM ~300 ktpa LCECh ll 24 k LCE

Year 2020SQM ~300 ktpa LCECh ll 24 k LCE

210,000

230,000

250,000

270,000

onta

ined

t

Chemetall ~245 ktpa LCEFMC Lithium ~309 ktpa LCETRU Group 290 ktpa LCE

Chemetall ~245 ktpa LCEFMC Lithium ~309 ktpa LCETRU Group 290 ktpa LCE 110 000

130,000

150,000

170,000

190,000

hium

Car

bona

te C

o

TRU Group ~290 ktpa LCETRU Group ~290 ktpa LCE

50,000

70,000

90,000

110,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Lit

LC D d f t t i 3 f ld i j t 10 !

Source; TRU Group

LC Demand forecast to increase 3 fold in just over 10 years !

Galaxy Resources Limited Source: 2009 Lithium Markets & Supply Markets Conference, Santiago, Chile

LCE – Lithium Carbonate Equivalent

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Page 29: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

LITHIUM CARBONATE PRICESLITHIUM CARBONATE PRICESmeeting a lithium future

LITHIUM CARBONATE PRICESLITHIUM CARBONATE PRICES

China Lithium Carbonate ProjectAve Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

6,7316 504 6 495 6 624 6,757$7,000

$8,000

Ave Values of Lithium Carbonate exports by China 2000 2008 (US$/t) with Galaxy forecast 2009 201

5,370

6,504

6,000 6,120 6,242 6,367 6,495 6,624

$5,000

$6,000

$7,000

2,5562 120 2,246 2 156

2,385

4,173

$3,000

$4,000

2,120 2,156

$1,000

$2,000

$0

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Page 30: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

SUPPLY CHAINSUPPLY CHAINmeeting a lithium future

SUPPLY CHAINSUPPLY CHAIN

Off Take PartnerOff Take Partner

Spodumene Mine

Spodumene Mine

Lithium Carbonate Producer

Lithium Carbonate Producer

Upgraders& Component

Mixers

Upgraders& Component

Mixers

Cathode & Electrolyte Producers

Cathode & Electrolyte Producers

Battery ProducerBattery

ProducerCarmakerCarmaker

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SOURCES OF LITHIUMSOURCES OF LITHIUMmeeting a lithium future

SOURCES OF LITHIUMSOURCES OF LITHIUM

BrinesLithi C b t

BrinesLithi C b t

Hard Rock (Pegmatite)S d > Lithi C b t

Hard Rock (Pegmatite)S d > Lithi C b tLithium Carbonate

Chile, Argentina, USA, ChinaLithium CarbonateChile, Argentina, USA, China

Spodumene -> Lithium CarbonateWestern Australia, Canada, Finland, Zimbabwe

Spodumene -> Lithium CarbonateWestern Australia, Canada, Finland, ZimbabweSolar evaporation pondsSolar evaporation ponds ZimbabweZimbabwe

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LITHIUM BRINE SOURCES meeting a lithium future

Oregon

Nevada

Israel

ChinaChina

CaliforniaChina

Bolivia

Chile

Argentina

Argent

g

Galaxy Resources Limited

Brine Deposits

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meeting a lithium future

Galaxy Resources Limited Brine process - typical evaporation pond

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LITHIUM HARD ROCK SOURCES meeting a lithium future

ManitobaFinland Manitoba

Ontario

PortugalChina

Congo

Greenbushes RavensthorpeZimbabwe

South Africa

Galaxy Resources Limited

Hard Rock

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meeting a lithium future

Galaxy Resources Limited Spodumene process – hard rock mining

Photo courtesy of Talison Minerals Pty Ltd

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meeting a lithium future

Ph t t f T li Mi l Pt Ltd

Galaxy Resources Limited

Photo courtesy of Talison Minerals Pty Ltd

Spodumene process – concentrator

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SPODUMENE MINESPODUMENE MINEmeeting a lithium future

SPODUMENE MINESPODUMENE MINE

1 Mtpa processing1 Mtpa processing137,000 tpa 6% Spodumene15 year mine life137,000 tpa 6% Spodumene15 year mine lifeyMine & ConcentratorCapital around A$68m

yMine & ConcentratorCapital around A$68mCapital around A$68mCapital around A$68m

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DFS DESIGNSDFS DESIGNS OPENOPENmeeting a lithium future

DFS DESIGNSDFS DESIGNS OPENOPEN

OPENOPEN

Galaxy Resources Limited

OPENOPEN

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LITHIUM CARBONATE DEVELOPMENTLITHIUM CARBONATE DEVELOPMENTmeeting a lithium future

LITHIUM CARBONATE DEVELOPMENTLITHIUM CARBONATE DEVELOPMENT

Scoping Study & Testwork

Pre-feasibility Study

Definitive Feasibility Study

Ravensthorpe Ravensthorpe China

Outotec (Finland)Engineering Firm

Status of Work Completed

MSP Engineering

Completed

Hatch China

In ProgressStatus of Work Completed Completed In Progress

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meeting a lithium future

S l h ti Kil

Sulphuric Acid

Milling

Sulphation KilnLi Carb Precipitation

Residue Removal

Cooling

CalcinationCalcination

Leaching

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WHY CHINA?WHY CHINA?meeting a lithium future

WHY CHINA?WHY CHINA?

Galaxy Resources Limited

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JIANGSU LITHIUM CARBONATE PLANTJIANGSU LITHIUM CARBONATE PLANTmeeting a lithium future

JIANGSU LITHIUM CARBONATE PLANTJIANGSU LITHIUM CARBONATE PLANT

Zhangjiagang Free Trade ZoneJiangsu ProvinceZhangjiagang Free Trade ZoneJiangsu ProvinceJiangsu ProvinceInternational Port 3 379 enterprises

Jiangsu ProvinceInternational Port 3 379 enterprises 3,379 enterprises 40 international companies like Dow Chemical, Dow Corning,

3,379 enterprises 40 international companies like Dow Chemical, Dow Corning, Dow Chemical, Dow Corning, Chervron Philips, DupontDow Chemical, Dow Corning, Chervron Philips, Dupont

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meeting a lithium future

Galaxy Resources Limited Zhangjiagang City in Jiangsu Province, China

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meeting a lithium future

Galaxy Resources Limited Entrance to one of the Zhangjiagang’s industrial parks

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meeting a lithium future

Galaxy Resources Limited Zhangjiagang Free Trade Zone

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meeting a lithium future

Galaxy Resources Limited Galaxy meeting the Zhangjiagang Administrative Committee

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meeting a lithium future

Galaxy Resources Limited Galaxy’s site in the background

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meeting a lithium future

Galaxy Resources Limited Two Lions Logistics berth 500m from Galaxy’s site

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meeting a lithium future

Galaxy Resources Limited Two Lions 2.4 mtpa Sulphuric acid plant next to Galaxy’s site

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meeting a lithium future

Galaxy Resources Limited State of the art wharf facility

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meeting a lithium future

Galaxy Resources Limited Two Lions Logistics grab crane loading conveyor

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meeting a lithium future

Galaxy Resources Limited Conveyor system from wharf to Galaxy’s site

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meeting a lithium future

Galaxy Resources Limited Utliliies are piped to the Galaxy site in park wide pipe racks

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meeting a lithium future

Galaxy Resources Limited Soda Ash plant in the industrial park

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Page 56: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

CAPITAL COSTSCAPITAL COSTSmeeting a lithium future

CAPITAL COSTSCAPITAL COSTS

C it l C t CCapital Costs Capex

Ravensthorpe mine and A$ 68 millionconcentrator A$ 68 million

Jiangsu lithium carbonate facility ^ A$ 50 million

Working Capital A$ 12 million

T t l C it l C t A$ 130 illiTotal Capital Costs A$ 130 million

^ Preliminary estimates, subject to final DFS

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FINANCIALSFINANCIALSmeeting a lithium future

FINANCIALSFINANCIALS

0.75 AUD/USDFX Rate FX Rate

Capital Costs A$ 130 million

Revenue pa *^ A$ 119 millionNet Cash (pre tax) pa *^ A$ 59 millionNet Present Value NPV (non-geared, real @8%) ^ A$ 511 million

Internal rate of Return IRR% 45%

Payback 2.1 Yearsy

* Life of Mine ^ Preliminary estimates, subject to final DFS

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OFF TAKE ARRANGEMENTSOFF TAKE ARRANGEMENTSmeeting a lithium future

OFF TAKE ARRANGEMENTSOFF TAKE ARRANGEMENTS

Available 17,000 tpa Lithium Carbonate Available 17,000 tpa Lithium Carbonate Letters of Intent received for 22,000 tpa Lithium CarbonateEurope, Japan, ChinaLetters of Intent received for 22,000 tpa Lithium CarbonateEurope, Japan, ChinaYet to be finalisedYet to be finalised

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SHARE PRICE PERFORMANCESHARE PRICE PERFORMANCEmeeting a lithium future

SHARE PRICE PERFORMANCESHARE PRICE PERFORMANCE

GXY price divide ASX

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SALE OF 30% OF THE PROJECT SALE OF 30% OF THE PROJECT meeting a lithium future

SALE OF 30% OF THE PROJECT SALE OF 30% OF THE PROJECT

Galaxy Resources Ltd InvestorResources Ltd

(GXY) Investor

70% 30%Strategy to fund project without massive dilution of GXY

Strategy to fund project without massive dilution of GXYJV Company

100% 100%

of GXY

Maintains control of

of GXY

Maintains control of

Cons

%

RevenueGalaxy Lithium

Maintains control of company and project Maintains control of company and project

Minerals PlantMt Cattlin Resource 100%

Ltd (GLL)

P d S l

Jiangsu LC Plant

Product Sales

Galaxy Resources Limited

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Page 61: 15 July 2009 For personal use only - ASXJul 15, 2009  · China Lithium Carbonate Project Ave Values of Lithium Carbonate exports by China 2000-2008 (US$/t) with Galaxy forecast 2009-201

INVESTMENT IN CHINA WHATS IN IT FOR US?INVESTMENT IN CHINA WHATS IN IT FOR US?meeting a lithium future

INVESTMENT IN CHINA -WHATS IN IT FOR US?INVESTMENT IN CHINA -WHATS IN IT FOR US?

Reduced capital costsReduced capital costspLower operating costsDownstream value adding benefits

pLower operating costsDownstream value adding benefitsgNet Present Value $128M to $574MTechnology and implementation timeframe

gNet Present Value $128M to $574MTechnology and implementation timeframeCloser to the end marketLarge internal market Closer to the end marketLarge internal market Access to Chinese capital marketsAccess to Chinese capital markets

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A GREAT INVESTMENT PROPOSITIONA GREAT INVESTMENT PROPOSITIONmeeting a lithium future

A GREAT INVESTMENT PROPOSITIONA GREAT INVESTMENT PROPOSITION

Exciting Lithium PotentialExciting Lithium PotentialExcellent Growth ForecastMeeting a Lithium FutureExcellent Growth ForecastMeeting a Lithium FuturegSpecialty Minerals Producer

gSpecialty Minerals Producer

A Great Investment PropositionA Great Investment Proposition

Thank YouThank YouThank YouThank You

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