Tainui Kawhia Incorporation

Ironsands development by a Maori incorporation in New Zealand

Brendon GreenChairman, TKI

Maori migration800 years ago

Tainui KawhiaIncorporation

- whakapapa to Tainui waka

- Established 1964

- 1,200 Hectare forest located 200km south of Auckland

- 1,100 owners

- Established pine forest, 100% owned by TKI, 15 years old.

Ironsands in NZWaikato North head • 1.4 M T/year• 120m thick• High grade up to 75% magnetics• 140 million tonnes of concentrate

Taharoa C• 1.4 M T/year• 35% magnetics• December 2013 announced

expansion to 4 M T/year

Kawhia• 9 – 13% magnetics• Potential for 1 to 2 Million Tonnes

per year possibly for 100 years or more

NZ Steel ironsands investigations (1971-72)

• In 1970 NZ Steel approached TKI about ironsandsinvestigations. This was all shortly after the time that investigations had been carried out on the Taharoa C block.

• In 1971-72 drilling was carried out over the Kawhiaarea to depths ranging between to 10 to 60 meters.

TKI’S APPROACH TO A PROJECT

Key Maori values

Kaitiakitanga

Manaakitanga

Custodianship of our history & resources. Providing for future generations

Management and leadership

Operating with respect Hospitality and community

ManaWhakahaere

Wahi tapu

Water supply

Ironsandconcentrating

Resource Management

Act

Capital cost-Funding

Iron ore market

Shipping

MāwhaiwhaiKawhia ironsands

Community

Iwi

Electricity supply

Ironsandscontent

Commercial model

Supply chain components

Resource – size and quality

Crown permit & Royalties Resource

Consents

Mining expertise

Mining Process

Transportation / Shipping

Buyer / offtaker

Processing/End product

Shareholders & iwi

Raw material

Iron ore concentrate

Shipping End use

Water, power and roads

Community

FinancingForeign

exchange

TKI influence

Locations of expected core sampling

The area of interest at this stage is the Ngati Hikairorohe and the Runanganui o Ngati Hikairo have proposed a process to undertake a cultural assessment of the whenua.

Ngati Hikairo

Ngati Mahuta

Kawhiatownship

Photos from the Ngati Hikairo site visit to TKI’s lands

Ngati Hikairo cultural study March 2015 (draft)

Recommendations:

• Fence off wahi tapu and urupa

• Protocols for the recovery of bones & artefacts

• Re institute the Burial Ground Committee . TKI-Ngati Hikairo-Ngati Mahuta

Further work to be undertaken to complete the cultural assessment.

THE YEAR AHEAD & BEYOND

Tainui Kawhia Incorporation

Forestry

Maintenance of our 1200 Ha forest

and Harvesting (2030).

59,640 NZU carbon credits

Commercial

Real Estate

Two buildings & billboard that

provide cashflowto offset forestry

costs and opportunity for

capital gain

Banking

Cash, term deposit and mortgage on

buildings

Growth

initiatives

Iron sands

Ring fencing the project from TKI

2015 activities:

Today: High Risk Low Value

Land area: 1,200 Ha

Ironsands: 9-13 % Fe Estimate (+/- 50%)500 to 2,000MT est. (+/-50%)

Community support:Iwi - oppositionCommunity – don’t knowTKI owners – not sure

Water supply:don’t know

Power supply:don’t know

Next year: Low Risk High Value

Land area: 1,200 Ha (possibly more)

Ironsands : 10 – 12 % Fe proven (+/- 10%)1,500 MT proven (+/- 15%)

Community support:Iwi - supportCommunity – supportTKI owners – support

Water supply:confirmed X m3/s

Power supply:confirmed YMW

The next 12 months: from Concept to a Project

Timeline

Cultural assessment followed by exploration

Identify a commercial

partner

Resource consents

Pilot scale plant

Full scale plant

Next 24 months

COMMERCIAL MODEL

THE LAST 10 YEARS IN NZ

Taharoa C Ironsandsdevelopment

NZ Steel – Bluescope

Over 40 years of operationunder a lease with royalties

2013 decision to increase capacity to 4 MTPA

Nga Awa Purua geothermal stationCommissioned 2010$400 million project50/50 JV model between Mighty River Power & Maori trust Tauhara North Number 2 Trust

Te ia a Tutea geothermal venture

• Maori landowners and Mighty River Power

• Investigations with rights to undertake a joint venture

2014 Agreement between Mighty River Power and Tuwharetoa Maori Trust Board. NZ’s largest lake. Water storage for hydro power stations

PARTNERSHIP

Alignment with a commercial partner

We are seeking this:

As preferred to this:

Aspirations for Tainui Kawhia

• We are looking to align our dreams of realizing adevelopment over our lands that providesmeaningful and practical involvement in theproject whilst providing a fair allocation of thefinancial value.

• We envisage a partnership that provides alignmentand ideally provides for:– Co-management– Co-ownership– Capacity building – employment, internships– Community, Iwi and Marae programs– Cashflow

Brendon GreenChairman, Tainui Kawhia Incorporation+64 276 939 701, brendonjohngreen@gmail.com