A‐Cap Resources The Road to Production

BRC ‐ JUNE 2012For

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Disclaimer

• This presentation has been prepared by and issued by A-Cap Resources Limited (“A-Cap”) to assist it in informing interestedThis presentation has been prepared by and issued by A Cap Resources Limited ( A Cap ) to assist it in informing interestedparties about the Company and its progress. It should not be considered as an offer or invitation to subscribe for or purchaseany securities in the Company or as an inducement to make an offer or invitation with respect to those securities. Noagreement to subscribe for securities in the Company will be entered into on the basis of this presentation.

• You should not act or refrain from acting in reliance on this presentation material. This overview of A-Cap does not purport tobe all inclusive or to contain all information which its recipients may require in order to make an informed assessment of thebe all inclusive or to contain all information which its recipients may require in order to make an informed assessment of theCompany’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourselfas to the accuracy and completeness of the information, statements and opinions contained in this presentation and makingany investment decision.

• This presentation includes certain “Forward- Looking Statements”. The words “forecast”, “estimate”, “like”, “anticipate”,“project” “opinion” “should” “could” “may” “target” and other similar expressions are intended to indentify forward lookingproject , opinion , should , could , may , target and other similar expressions are intended to indentify forward lookingstatements. All statements, other than statements of historical fact, included herein, including without limitation, statementsregarding forecast cash flows and potential mineralisation, resources and reserves, exploration results, future expansionplans and development objectives of A-Cap are forward-looking statements that involve various risks and uncertainties.There can be no assurance that such statements will prove to be accurate and actual results and future events could differmaterially from those anticipated in such statements.

• The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) setsout minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, MineralResources and Ore Reserves. The information contained in this announcement has been presented in accordance with theJORC Code and references to “Measured Resources”, “Inferred Resources” and “Indicated Resources” are to those termsas defined in the JORC Code.

• Information in this presentation relating to Exploration results, Mineral Resources or Ore Reserves is based on informationcompiled by Dr Andrew Tunks (an employee of A-Cap) who is a member of The Australian Institute of Geoscientists and MrIan Glacken of Optiro. Mr Glacken is a Fellow of the AusIMM, and a Chartered Engineer. Both Dr Tunks and Mr Glakenhave sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to theactivity which they are undertaking to qualify as Competent Persons under the 2004 Edition of the Australasian Code forreporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Tunks and Mr Glacken consent to the inclusion ofth d t i th f d t t i hi h itthe data in the form and context in which it appears.

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Corporate Detail

MARKET CONTEXT (25 June 2012)DIRECTORS AND SENIOR MANAGEMENT

ROBERT PETT – Chairman• ASX / BSE ACB • Shareprice $0.13• Market Cap $26M

ROBERT PETT  Chairman

RICHARD LOCKWOOD ‐ Non‐Executive Director

Dr . ANDREW TUNKS ‐ Non‐Executive Director• Market Cap $26M• Shares on Issue 201M• Options 7M

$

Dr. PAUL WOOLRICH ‐ Executive Director 

PAUL INGRAM ‐ Non‐Executive Director 

HARRY STACPOOLE Non Executive Director • Net Cash / (Debt) $3.5M• Top 20 52.58%

HARRY STACPOOLE ‐ Non‐Executive Director 

ANTHONY  KHAMA – Chairman  of A‐Cap Botswana

PAUL THOMSON – Chief Executive Officer

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Recent Corporate Developments

• Dr. Andrew Tunks steps aside from CEO position to take up a Non Executive Director role with A‐Cap

p p

Director role with A Cap

• Paul Thomson appointed as new CEO of A‐Cap35 years engineering experience in the mining industry and Project Manager for the Letlhakane– 35 years  engineering experience in the mining industry and Project Manager for the Letlhakane Project with A‐Cap for the past two years.  

– Previously Managing Director of African Copper Mining and Exploration Botswana, Director and Country Manager of Corridor Mineral Sands in Mozambique and Construction Manager of the Golden Pride Gold Project in Tanzania.Golden Pride Gold Project in Tanzania.

• Richard Lockwood appointed to Board as a Non Executive Director – 30 years global experience in mining, mining investment and stock broking

– Founder of the specialist Geiger Counter Limited Uranium Fund and a Director, until recently, of AIM listed Kalahari Minerals Ltd

• Anthony Khama appointed Chairman of A‐Cap Botswana (October 2012)– Mr Khama a successful businessman with a wealth of experience and an intimate knowledge of the 

business and operating environment in Botswana.

• Company well placed to enter development phase of Letlhakane Uranium Project (“LUP”)

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A‐Cap’s Portfolio

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The Letlhakane Uranium Project

• Discovered 2006• Spent approximately BWP250m• Have drilled over 3,500 holes for > 140km of drillingfor > 140km of drilling

• One of largest undeveloped uranium deposits in the world

• Resource still open and growing• Feasibility studies well advancedadvanced

• Poised to meet predicted growing demand for Uranium within the next few yearswithin the next few years

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A‐CAP IN BOTSWANA ‐ S.H.R.E.C

• Operating in Botswana since 2004

• Currently employ 72 permanent employees, including:― 66 Batswana citizens (most from local villages)

• Involved in many community health initiatives:– Regular HIV VCT activities (working closely with Tonota District Council)

– Built 2 houses for destitute people in Gojwane and Serule villages

– Regularly sponsor Women’s Day activities in Gojwane – Serule district

– Regular Community consultations (involvement in Kgotla and VDC)

• Workplace and community radiation monitoring and educationp y g

• ESIA and EMP in Progress– SLR Environmental Engineers and Ecosurv

– Phase I – Project initiation and Screening – Complete Feb 2009

– Phase II – Scoping – Complete Sept 2010

– Phase III – ESIA/EMP – In progress, completion by Q1 2013 targeted

• A‐Cap are considered by the communities in which we work to be an exemplary community member and strong contributor to the advancement of local stakeholders 7

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Key Ingredients for a successful project

• Resource Scale Letlhakane well within the top 10 largest undeveloped

project

• Resource Scale – Letlhakane well within the top 10 largest undeveloped uranium deposits in the world and growing 

• Stable Jurisdiction – Botswana rank’s No1 as the most politically stableStable Jurisdiction Botswana rank s No1 as the most politically stable country in Africa

• Infrastructure – Existing power, road, rail and water.

• Technical (Mining & Metallurgy) – soft ore from surface to 70M depth, low cost heap leach acid processing, 

• Development Potential – of the top 10, Letlhakane is one of only 5 undeveloped deposits capable of production in the next 5 years

• Quality Management – management have a strong track record in developing mines in Africa and around the world

• Road to Production – Clearly understood and in progress8

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Resource Scale June 2012 Mineral Resource (100 ppm cut off)

1041Mt at 153ppm U3O8

Ore Type Category Mt U3O8

ppmU3O8

MlbsSecondary Indicated 9 172 3.4

di d &pp 3 8

for a contained 351.8 Mlbs of U3O8

Oxide Indicated & Inferred 184.8 138 56.3

Primary Indicated & Inferred 846.7 157 292.1

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Letlhakane Project at 100ppm cut‐off (includes both Gojwane & Serule)

Total Resource 1041 153 351.8

Resource Growth( j )

300

350

400

261Mlbs

352Mlbs

200

250

300

158Mlbs

Mlbs

Mlbs

50

100

150

20.1Mlbs

98Mlbs

02007 2008 2009 2011 2012

YEAR

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Resource Scale – Higher GradeJune 2012 Mineral Resource‐ (200ppm cut off)

143 2Mt at 284ppm U O

Ore Type Category Mt U3O8

ppmU3O8

MlbsSecondary Indicated 2.9 256 1.6

I di d &143.2Mt at 284ppm U3O8

for a contained 89 7Mlbs of U O

Oxide Indicated & Inferred 14.8 274 8.9

Primary Indicated & Inferred 125.5 286 79.2

89.7Mlbs of U3O8

Letlhakane Project at 200ppm cut‐off (includes both Gojwane & Serule)

Total Resource 143.2 284 89.7

( j )

L tlh k P j tLetlhakane Project at 200ppm cut‐off

Letlhakane Project at 100ppm cut‐off

Basement topography with 100ppm (green) and 200ppm (Red) grade shells

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Exploration potential

3D Basement model with 200ppm grade shells – looking SE Vertical Exaggeration 10x

Priority Exploration Target

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Main channels – focus of fluid flow

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Greenfields Exploration Success

PL138• New zone of mineralisation 

discovered north of LUP on PL138discovered north of LUP on PL138 Bolau

– 2.75m @ 344 ppm eqU3O8

– 3.75m @ 204 ppm eqU3O8

– 2.55m @ 285 ppm eqU3O82.55m @ 285 ppm eqU3O8

– 2.8m @ 173 ppm eqU3O8

– 2.55m @ 135 ppm eqU3O8

PL125 

• Testing of Radiometric anomalies returned encouraging greenfields uranium intersections

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― 9.8m @ 145ppm eqU3O8

― 2.25m @ 154ppm eqU3O8

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Botswana – A Stable Jurisdiction

• Botswana ranks #1 in Africa for political stability, democracy and rule of law.P l ti 2 2M (2 7/k 2)• Population 2.2M (2.7/km2), 

– no land access issues, 

– skilled mining work force, 

– English speaking.

• Climate – operational capability year round• Mining accounts for 40% of current GDP and is critical for continued economic 

growth.• Simple Mining Law with demonstrable track record e.g. DebswanaSimple Mining Law with demonstrable track record e.g.  Debswana

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Infrastructure

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MINING

• A mix of conventional mining equipment and surface miners is underconsideration

• Most of the waste stripping during the first two years can be achieved usingconventional equipmenth d li h f d h f d 1 d• The secondary ore types lie at the surface to a depth of around 15m andprovide opportunities for ore processing early in the operation

• Secondary mudstone material will be used in the main acid heap leach.• These zones together with areas that have be pre‐stripped are likely to be

mined using a surface miner like a Wirtgen 2500 or 4200

SURFACE MINER ‐ ADVANTAGES

N i i idth ( d dil ti )• Narrow mining widths (reduces dilution)

• Allows a number of ore sorting options

• Reduces crushing requirements

15Wirtgen 4200 operating at FMG

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Metallurgical TestworkCurrent & Future Programs

• For primary whole of ore, currently achieving 66% ‐ 75% recoveries (continually improving!)

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recoveries (continually improving!)• Similar recoveries in 1m, 2m and 4m columns

C d 17 X 2 l i t l h l ti• Commenced  17 X 2m columns using mature leach solution and testing 4 ore types, 3 crush sizes and 2 acid regimes

• 4 x 4m columns testing 4 ore types using preferred acid• 4 x 4m columns testing 4 ore types using preferred acid regime and crush size as defined in current tests

• More detailed IX & SX• More detailed IX & SX testwork

• Pilot Test (10 tonne ore)Pilot Test (10 tonne ore) including variability testwork(2013)

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Standard Heap Leach Process p

AGGLOMERATION

OreH2SO4

CRUSHINGCRUSHING

AGGLOMERATION

HEAP LEACHINGLEACHING

PRIMARY ORE STAGE 2 WASHPRIMARY ORE

STAGE 3PRIMARY ORE

STAGE 1

TO BARREN

HEAP(Ripios

WASHATEPLS ISL H2SO4

(Ripios Contains the solute

bleed)

H2O

MUDSTONEFERRIC

OXIDATION

2 4Fortification

SOLVENT

RaffinatePLS

TO REFINERY

EXTRACTION PLS

Barren LiquorStrip

LiquorEluant

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ION EXCHANGELiquor

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Highly Experienced Management

• Board and management have strong track record of t ki j t f l ti t d ti

g y p g

taking projects from exploration to production

• Exploration, assessment & production

• Project evaluation & feasibility

• Project development, infrastructure & construction

• Financial planning & managementFinancial planning & management

• International debt & equity markets 

• International government negotiations

• Investor relations• Investor relations18

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The Road to Production

• Letlhakane is currently one of the top 10 largest y p gundeveloped deposits in the world

• Only 5 of the top 10 have development potential to be inOnly 5 of the top 10 have development potential to be in production within the next 5 years due to permitting and development hurdlesdevelopment hurdles

• Of the 5 capable of being in production in the next 5 years Letlhakane is the ONLY deposit:next 5 years, Letlhakane is the ONLY deposit:– with plant capex currently estimated at less than

$500M$500M,– In a stable political and permitting friendly

environmentenvironment.19

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Resource ScaleWorld’s largest Undeveloped 

Chart Title

g pUranium Deposits

1000

1200

Chart Title

800

1000

es

Letlhakane at 352Mlbs is well inside top 10

400

600

Axis Title

Mlbs well inside top 10

200

0Viken Elkon Haggan Husab Cigar Lake Letlhakane Imouraren Kvanefjeld Jabiluka Itatira Etango

Development and permitting notCapable of production by 2016

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sufficiently advanced to be in production by 2016

Capable of production by 2016

Resources compiled from  Individual Company Data.  Olympic Dam omitted

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Profile of projects capable of d b

Project Resource Size over 

Estimated Plant Capex

Estimatedproduction 

EstimatedOpex

Low Technical 

Low Sovereign 

Does not currently 

production by 2016

100Mlb under $500M

over 2Mlb per annum

below  3rdquartile of new production

Risk Risk have a Strategicinvestor

Husab ✔ XX ✔ ✔ ✔ XX XX

Cigar Lake ✔ XX ✔ ✔ XX ✔ XX

I ✔ XX ✔ ✔ ✔ XX XXImouraren ✔ XX ✔ ✔ ✔ XX XX

LetlhakaneLetlhakane ✔✔ ✔✔ ✔ ✔ ✔✔ ✔✔ ✔✔

Trekkopje ✔ XX ✔ XX ✔ XX XX

Etango ✔ XX ✔ ✔ ✔ XX XX

Mkuju River ✔ ✔ ✔ ✔ ✔ XX XX

Wiluna XX ✔ XX ✔ ✔ ✔ ✔

Lost Creek XX ✔ XX ✔ XX ✔ ✔

Lance XX ✔ XX ✔ XX ✔ ✔

Madouela ✔ XX ✔ ✔ ✔ XX ✔Madouela ✔ XX ✔ ✔ ✔ XX ✔

21Letlhakane ticks all the boxes in a tight supply sector!

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The Road to Production 

• PFS & BFS– PFS complete Q2 2013– BFS complete Q1 2014

• Water– Well field exploration complete, applied for abstraction permit

W bl b 2nd H lf 2013– Water access capable by 2nd Half 2013

• Mining LicenceInitiated on final ESIA & EMP acceptance– Initiated on final  ESIA & EMP acceptance 

– Mining Licence approval capable by 2nd half of 2013

• Construction & ProductionConstruction & Production– Construction  capability  Q2 2014 – Production capability 2nd Half 2015Production capability 2 Half 2015

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Summary

• Resource continuing to grow

y

g g– Higher‐grade resource well defined

• Road to production clearly understood and inRoad to production clearly understood and in progress

• Project Optimisation studies advancing• Project Optimisation studies advancing• Ongoing discussions with potential strategic 

ff kcornerstone investors and off take partners• Highly experienced management / operational team• Positioned to be in production and a supplier of choice for the nuclear industry. y

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THANK YOU

CONTACTA‐Cap Resources Botswana (Pty) Ltd Plot 946 Old Matsiloje Rd, Francistown, BotswanaTelephone: +267 241 9717  Email: info@a cap com auEmail: info@a‐cap.com.auWebsite: www.a‐cap.com.au

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