MDC10.1 Meeting Agenda

Meeting Agenda• VANITEC Antitrust Statement Review• Review of Minutes from MDC10 meeting• Market Segmentation – Review and discuss market

segmentation• Target Audience – attempt to more specifically identify the

target audience for each important Market Segment• Industry Statistics – Review current status of efforts to collect

production and consumption data• China• LEEDS

Vanitec Antitrust StatementVANITEC

 GUIDELINES FOR COMPLIANCE WITH ANTITRUST LAWS Compliance with the antitrust laws is essential to ensuring that Vanitec’s continuing activities remain free from improper or illegal anticompetitive conduct. The following guidelines apply to all Vanitec meetings, communications and other Vanitec-sponsored activities and should be observed and followed at all times. These guidelines are designed to protect Vanitec and its members from undue antitrust risks. Any member who has questions about these guidelines or compliance with the antitrust laws should consult Vanitec’s or the member’s legal counsel.

MEMBER CONDUCT Vanitec members shall not use Vanitec meetings, communications, or activities to make or attempt to make any agreement regarding prices, terms or conditions of sale, discounts, margins, strategic plans, production volumes, territories, or customers, or even to discuss any of the aboveWhen engaging in informal, social or “cocktail party” discussions in connection with a Vanitec meeting – i.e., any discussion other than official agenda items – all members shall observe these guidelines and comply with these guidelines as if they were participating in official Vanitec meetings.Members should be particularly careful to remember that these guidelines apply when engaging in discussions with competitors over dinner, at receptions, or other social events. Members should also understand that even “harmless joking” about prices or similarly sensitive topics could be misconstrued as evidence of an illegal conspiracy.Should any Vanitec member suspect that any discussion or activity violates the antitrust laws or any of these guidelines, that member should insist that the discussion be stopped immediately and referred to the Chairman and/or to legal counsel for advice.

ORGANISATION CONDUCT All Vanitec meetings, communications, and activities that involve collection, dissemination, or discussion of statistical market research – such as any information regarding prices, costs, or individual company statistics of any kind – should be reviewed with Vanitec’s legal counsel in advance.No Vanitec meeting, communication, or activity shall be used to boycott or attempt to boycott any competitor from participating in any market or selling to any customer.Neither Vanitec nor any of its Committees shall make any effort to establish product standards or “certification” requirements for any product, without first obtaining the advice of legal counsel.Vanitec shall not unreasonably deny membership to any entity who qualifies for membership or participation in any Vanitec activity under Vanitec’s by-laws.An agenda shall be prepared and approved in advance by legal counsel before any Vanitec meeting that is not solely related to technical research issues.Minutes of each Vanitec meeting involving matters other than purely technical research topics shall be prepared after the meeting. Copies of meeting minutes shall be reviewed by legal counsel prior to distribution to Vanitec members.

ANTITRUST GUIDELINESThese guidelines shall be distributed to each Vanitec member. Moreover, at each Vanitec meeting, members shall be advised of the continuing application and any modification of these guidelines by a statement from the meeting Chairman or legal counsel, as appropriate.Speakers and authors representing Vanitec shall comply with these antitrust guidelines. All speakers authors distributing papers at Vanitec activities shall be informed of these guidelines and shall comply with these guidelines at all such activities. Any Vanitec-sponsored paper involving marketing or competition issues – i.e., not purely technical issues – should be reviewed by legal counsel in advance.

Market Segmentation

Vanadium Market Forecast by Segment

Based on optimistic view of future steel production

2011-2025 Vanadium Demand Forecast

Steel Production Million MTSpecific V Consumption

KgV/MT SteelV Consumption 000

MTVIncrease In V Consumption 000

MTV From Growth In

Country 2011 2025 CAGR 2011 2025 CAGR 2011 2025 CAGRSteel

ProductionSpecific V

Rate TotalChina 683 1,065 3.2% 0.037 0.096 7.0% 25 102 10.6% 14 63 77

India 72 188 7.1% 0.028 0.093 9.0% 2 17 16.5% 3 12 15

Europe 177 243 2.3% 0.092 0.122 2.0% 16 30 4.6% 6 7 13

North America 119 174 2.8% 0.087 0.115 2.0% 10 20 5.1% 5 5 10

South Korea 68 126 4.5% 0.035 0.091 7.0% 2 11 12.9% 2 7 9

Japan 108 133 1.5% 0.060 0.091 3.0% 7 12 3.9% 2 4 6

Brazil 35 66 4.6% 0.031 0.092 8.0% 1 6 13.7% 1 4 5

Ukraine 35 70 5.1% 0.057 0.099 4.0% 2 7 9.4% 2 3 5

Turkey 34 67 5.0% 0.074 0.097 2.0% 3 6 5.1% 2 2 4

Middle East 20 38 4.7% 0.030 0.088 8.0% 1 3 8.2% 1 2 3

Taiwan 23 40 4.0% 0.100 0.115 1.0% 2 5 6.8% 2 1 2

Totals 1,374 2,210 3.5% 0.052 0.100 4.8% 72 220 8.3% 40 109 149

Market Segments and Source of Volume

Country Steel

ProductionSpecific V Rate Total

Hot Rolled Flat

Hot Rolled Long

Forging Steel

HSLA/AHSS Automotive

Hot Rolled Flat

Hot Rolled Long

Forging Steel

HSLA/AHSS Automotive

China 14 63 77 12.5 12.5 3.1 3.1 12.5 12.5 3.1 3.1

India 3 12 15 1.2 3.7 0.6 0.6 1.2 3.7 0.6 0.6

Europe 6 7 13 4.3 0.7 0.7 0.7 0.2 0.2 0.2 0.2

North America 5 5 10 2.7 0.5 0.7 0.5 0.1 0.1 0.1 0.1

South Korea 2 7 9 0.4 0.4 0.4 0.4 1.4 1.4 1.4 1.4

Japan 2 4 6 0.2 0.2 0.2 0.2 0.8 0.8 0.8 0.8

Brazil 1 4 5 0.8 0.8 0.2 0.2 0.8 0.8 0.2 0.2

Ukraine 2 3 5 0.4 1.0 - - 0.4 1.0 - -

Turkey 2 2 4 0.2 0.6 - - 0.2 0.6 - -

Middle East 1 2 3 0.3 0.8 - - 0.3 0.8 - -

Taiwan 2 1 2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Totals 40 109 149 23 21 6 6 18 22 7 7

Stimulate Demand Maximize Market Share

2011 to 2025 Potential Increase In V

Consumption 000 MTV From Growth In

Market Segments and Source of Volume

000 MTV 000MTV %Hot Rolled Flat 23 18 41 38%Hot Rolled Long 21 22 43 39%Forging Steel 6 7 13 11%HSLA/AHSS Auto 6 7 12 11%

Total 56 53 109 100%

TotalStimulate Demand

Maximize Market

Share

Market Segments and source of Volume

000MTV %

China 31 31 63 57%

India 6 6 12 11%

Europe 6 1 7 7%

North America 4 0 5 4%

South Korea 1 6 7 6%

Japan 1 3 4 4%

Brazil 2 2 4 4%

Ukraine 1 1 3 3%

Turkey 1 1 2 1%

Middle East 1 1 2 2%

Taiwan 0 0 1 1%

Totals 56 53 109 100%

Stimulate Demand

Maximize Market

Share

Total

Market Segments and Volume

• 40% of the opportunity lies in Hot rolled long products and 40% in hot rolled flat products

• 10% of the opportunity lies in forging steels, and 10% in HSLA/AHSS Auto applications

• 57% of the opportunity lies in China• 11% of the opportunity lies in India• Europe, South Korea and North America are

significant contributors to opportunity

Market Segments and Volume

• Stimulating demand for HSLA steel in China, India, North America and Europe are important contributors to opportunity

• Maximizing market share relative to Nb or other options in China, India and South Korea are important contributors to opportunity

Target Audience• Target Audience

The target audience identified for each market segment includes:– Metallurgical community within the steel industry– New entrants into the steel industry metallurgical community –

professors, graduate and post graduate students at strategic universities

– Standard setting bodies– Steel producing organizations– Steel Service Centers (North America)– Steel plant manufacturers

• A list of specific targets for our message for each critical market segment must be developed

Target Audience

• Specific Target Audiences within geographical regions identified at MDC 9.4 14 Sept 2012

Industry Statistics

• J. Hilbert is in the process of sending requests for information to the various industry contacts

• We aspire to have some initial data to review at the meeting in Venice in September

LEED

• The LEED rating system for building design and construction was discussed. The system is current up for public comment. There is a lack of knowledge within VANITEC of the details of this rating system and an effort to more fully understand the details of the system and the potential for this standard to support or deter our vanadium market development efforts needs to be undertaken.

Follow up Items• Review and agreement of market segmentation and

source of volume data• Development of specific target audience list• Refinement of market data collection process• Deployment of China development plan• Development of positioning statement for each key

target audience• Development of executionable actions to deliver

positioning statement to each target audience group• Develop comment for LEED system to consider use

of HSLA steel as substitute for C-Mn steel in the standard