Metal Bulletin Iron Ore Conference 22 November 2005

Koolan Island Iron Ore Project

Contents• Location

• Project Outline

• Project Schedule

• Corporate Overview

• History

• Equipment

• Geology

• Resource

• Development Data

Location

WA Map

Koolan Island Project

• Western Kimberley Region WA

• 2,000km NNE of Perth

• Nearest towns: Derby 150km S and Broome 320km SW

Koolan Island

Project Outline

• Brownfields development

• Based on Main orebody, supplemented by four satellites, Mullet, Acacia, Eastern and Barramundi

• Deepwater port able to accommodate panamax vessels to 75,000 dwt

• Resource sufficient to support 4Mta operation for 10+ years

Project Schedule

• BFS completed August 2005

• Environmental Recommendations in Approval stage• Land Access Agreement with Traditional Owners being

completed

• Mining Lease Grant expected early 2006

• Construction Commencement Q1, 2006

• Plant Commissioning Q2, 2006

• Wharf & Shiploader Completion Q3, 2006

• 1st Shipments Q3, 2006

(As Anticipated 14/11/2005)

BFS Highlights• Bankable Feasibility Study (BFS) completed, with positive results, encouraging

the Company to proceed with mine development, subject to Government approvals, formalisation of off-take contracts and Board approval of funding arrangements

• Initial capital costs of A$108 million, inclusive of mine development costs of A$26 million

• Financial modeling of the Project has been based on a sales mix of fines (70%) and lump (30%), producing total revenues of A$1.4 billion over the nine year life of the mine

• Operating cash surplus of A$583 million (EBITDA) over the nine year life of the project

• The project returns, based on 29.1 million tonnes of saleable ore, a net present value (NPV) of A$217 million (before interest and tax) at a 10% discount rate, with an Internal Rate of Return (IRR) of 39.7%

• First shipment of iron ore scheduled to commence in second half of 2006• BFS takes no account of exploration upside of the Koolan Island Project

Corporate Overview

• Aztec Resources Limited is a public company listed on ASX and the London Stock Exchange’s AIM market

• Market Capitalisation: A$85,000,000

• 497,700,000 + shares

• Major Shareholders:

Cambrian Mining plc…………………………………...18.7%National Nominees Limited…………………………….6.3%ANZ Nominees Limited….…………………………..….5.3%CITIC Resources Australia Pty Ltd.………………..…3.4%HSBC Custody Nominees (Australia) Ltd……………3.1%

(10/10/2005)

History – Pre BHP• Ore deposits on Koolan and Cockatoo Islands

discovered in 1880

• First mining leases granted, small scale mining commenced 1907

• First attempt at large scale mining in 1936 when Yampi Sound Mining Company (a consortium including Nippon Mining Co) announced intention to export to Japan

• Federal Government embargo on all iron ore export in 1938

• First ore mined on Koolan fed small charcoal-iron plant built by State Government in 1945

• BHP granted leases in 1951

The BHP Years 1965 - 1993

• By the conclusion of mining in 1993, 68Mt ore had been produced

• Shipment grade declined from >67%Fe for the early Main pit production to 65% - 65.3%Fe for the final blend

• On closure, all infrastructure removed or buried, stockpiles and roads ‘moonscaped’ and the Main pit opened to allow ingress of the sea

The Aztec Era

• Aztec granted tenements in 2003

• Notice of Intent approved January 2004, drilling commenced February 2004

• Camp established on Koolan Island August 2004

• Data collection for BFS completed February 2005

• Land Access Agreement negotiations commence with Traditional Owner’s March 2005

• BFS completed August 2005

Koolan Island Mine & Infrastructure Layout

Mining Operations

• Contractor-based operation

• Conventional open-pit operation, rotary drills, 200t hydraulic backhoes, FEL’s, rear dump trucks and ancillary plant

Transportation System

• Truck haulage to ROM pad, primary crusher and stockpiles

• Conveyor to shipping stockpile

• FEL reclaim from shipping stockpile

• Conveyor to sampling station, wharf and shiploader

Port Facilities

• Steel-pile wharf able to accept Panamax vessels up to 75,000 dwt

• Berth pocket 16m draft

• Fixed, luffing shiploader, capacity 3,000tph

• 20m minimum draft in departure channel - no dredging required

• Vessel berthing/departure assisted by tugs

Regional Geology

• Kimberley Basin is a large structural basin occupying most of the Kimberley region with sediments of Lower-Mid Proterozoic age dominant

• The Yampi ore bodies lie at the western end of the NW –SE trending King Leopold Mobile Zone which forms the south western border of the Kimberley Basin

• Hematite concentration occurs in the basal Yampi, member of the Pentecost Sandstone in the Kimberley group

Local Stratigraphy

Pentecost SandstoneWhite well sorted quartz sandstone, grey siltstone

Yampi MemberPink-brown arkose and feldspathic sandstone; minorsiltstone, hematitic quartz sandstone, glauconitic sandstone

Iron ore

Elgee SiltstoneRed-brown and grey sitstone and minor phyllite; thin sandstone interbeds

Basal boulder to pebble conglomerate

Warton SandstoneWhite well-sorted quartz sandstone and feldspathicsandstone; siltstone interbeds; andalusite granofelsin places.

• The Kimberley Group comprises essentially a succession of sandstones, quartzite's and siltstones, with some interbeddedphyllite, unconformably overlying the Speewah Group

• The stratigraphy on Koolan Island comprises the Warton sandstone, Elgee Siltstone and Yampi Member of the Pentecost Sandstone (distinguished by its hematite content)

Local Structure

Main Ore Body

Warton San

dstone

ElgeeSilts

tone

Yampi M

ember

Main Ore Body

Eastern-Barramundi Ore Body

Eastern-Barramundi Ore Body

Mullet-Acacia Ore Body

Mullet-Acacia Ore Body

Resource Drilling

Resource Estimates

0.73.366.335 600Main

1.15.664.653,400Total0.615.558.53,700Acacia-East

1.010.361.26 200Mullet-Acacia

2.97.660.97 900Eastern-Barramundi

%%%('000)

Al2O3SiO2FeTonnesOrebody

55% Fe cut off grade (as at 14 Oct 2005)

Koolan Island

Complete mining Main Pit2014 / 2015

Complete mining Eastern and Mullet Pits2009 / 2010Waste stripping at Main pit reaches sea levelDecember 2009Full production 4mtpa2008 / 2009De-water Main pit lake and re-hab footwall2007 / 2008Seawall construction2006 / 2007First ore shipmentSeptember 2006Commence crushingAugust 2006

Mobilise remaining fleetCommence mining Mullet/EasternWaste stripping at MainCommence seawall construction

June 2006

Establish mining facilities and roads, initial clearingFeb - May 2006Mobilise first mining fleetJanuary 2006ActivityDate

KEY MINE DEVELOPMENT DATES (As Anticipated 14/11/2005)