objective capital rare earth and minor metals investment summit: reopening a former soviet producer...

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RARE EARTHS, SPECIALITY & MINOR METALS INVESTMENT SUMMIT THE LONDON CHAMBER OF COMMERCE AND INDUSTRY THURSDAY , 18 MARCH 2010 www.ObjectiveCapitalConferences.com Investment Conferences 2.55 – 3.20 Focus on rare earths projects around the world Reopening a former soviet producer Robert Mackay –CEO, Stans Energy

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Objective Capital Rare Earths, Speciality and Minor Metals Investment Summit Focus on rare earths projects around the world Reopening a former soviet producer 18 March 2010 by Robert Mackay, Stans Energy

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Page 1: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

RARE EARTHS, SPECIALITY & MINOR METALS INVESTMENT SUMMIT

THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 18 MARCH 2010www.ObjectiveCapitalConferences.com

Investment Conferences

2.55 – 3.20 Focus on rare earths projects around the worldReopening a former soviet producerRobert Mackay –CEO, Stans Energy

Page 2: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

Corporate Presentation

March 2010

TSX–V: RUU.V

Page 3: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

Statements contained in this presentation which are not historical facts are forward-lookingstatements that involve risks, uncertainties and other factors that could cause actual results to differmaterially from those expressed or implied by such forward-looking statements. Factors that couldcause such differences, without limiting the generality of the following, include: risks inherent inexploration activities; volatility and sensitivity to market prices for uranium and rare earths;volatility and sensitivity to capital market fluctuations; the impact of exploration competition; theability to raise funds through private or public equity financings; imprecision in resource and reserveestimates; environmental and safety risks including increased regulatory burdens; unexpectedgeological or hydrological conditions; a possible deterioration in political support for nuclear energyand rare earth technologies; changes in government regulations and policies, including trade laws andpolicies; demand for nuclear power and rare earth products; failure to obtain necessary permits andapprovals from government authorities; weather and other natural phenomena; and otherexploration, development, operating, financial market and regulatory risks. Although Stans EnergyCorp. believes that the assumptions inherent in the forward-looking statements are reasonable,undue reliance should not be placed on these statements, which only apply as of the date of thisrelease. Stans Energy Corp. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. United Statesinvestors are advised that while the term "inferred" resources is recognized and required by Canadianregulations, the SEC does not recognize that term. Investors are cautioned not to assume that all orany part of mineral deposits in this category will ever be converted into reserves.

Page 4: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

IMMEDIATE GOAL:

‘Stans Energy will become the first Heavy Rare Earth Elements (HREEs) producer outside of China by revitalizing its 100% owned, former REEs mine, Kutessay II’

2010 AGENDA:

1. Commence feasibility study on restarting production at Kutessay II.2. Confirm the extensive Russian and Kyrgyz data on Kutessay II by

producing a JORC Resource Estimate.3. Commence economic evaluation of KCMP REE Processing Facilities.4. Begin establishing relationships with the end-users of REEs and evaluate

partnership opportunities.5. Consult Stans Energy’s world-class partners in geology, mining

engineering and science to create a new mine plan for Kutessay II.6. Assemble a motivated team in Kyrgyzstan to implement the new mine

plan.

Page 5: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

SAMPLE REE PRODUCTS

Compact Fluorescent LightsCarbon lighting systemsLEDs and OLEDsSolar panelsThermal resistance alloys Aircraft enginesSuper magnetsFibre optic cablesIndustrial motorsMicrophonesComputer hard drivesHybrid vehicle batteriesCatalytic convertersElectric car motorsPermanent magnetsWind and tidal turbinesHydrogen fuel storage cells

Page 6: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

2009 WORLD REEs SUPPLY(95% from China’s Mining Monopoly)

2009 WORLD REEs DEMAND(1.2 billion USD world-wide)

• Strategic planning nation, China, recognizes its Heavy Rare Earths (HREEs) deposit has <10 years of mine life remaining at projected extraction rates

•China implements export quotas & tariffs on REEs

•China actively attempts to acquire new REE resources, to ensure a future supply

• World REEs demand constantly increased prior to 2009

• REEs demand forecasted to increase at over 10% per year until 2014

• Mining companies scramble to advance REEs properties, with no clear-cut resource deposit to fill the future supply gap

Page 7: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

010,00020,00030,00040,00050,00060,00070,00080,00090,000

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China USA Other

Monazite-placer │ Mountain Pass │ Chinese era → ? era era

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etric

tons

Page 8: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay
Page 9: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

Past-producing Rare Earth Elements (REEs) open-pit mine

Produced 80% of total REEs for the former USSR for 30 years

MINING LICENCE for Kutessay II and surrounding properties signed on December 29, 2009, and is 100% owned by Stans Energy Corp.

The Kyrgyz government is supportive in bringing Kutessay II back into production

Page 10: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

Estimated remaining REE Reserves A+B+C1+C2+r/b = 63,300,000 Kilograms*

Conservative average REE oxide price of $35.23 per Kg

LREEs/HREEs ratio of approximately 50/50

Located 150 km from Bishkek, with existing infrastructure of paved roads and power

*Reserve estimate is historical, not NI 43-101 compliantand should not be relied on

Page 11: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

Deposit has quantities of all 15 REE, plus thorium, silver, molybdenum, lead, zinc, tantalum, niobium, hafnium and bismuth with KNOWN METALLURGY

Historical REEs recovery rate of 65%

120 REE products were produced, including oxides, metals and alloys from Kutessay II concentrate

Abundant amount of qualified labour available in the area

Page 12: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

Element Oxide % of Historical REEs

*Price/Kg USD

Weighted AVG P/Kg of REEs contained

Lanthanum (La) %9.12 $5.10 0.47

Cerium (Ce) 25.02 4.20 1.05

Praseodymium (Pr) 3.2 20.00 0.64

Neodymium (Nd) 8.49 21.00 1.78

Samarium (Sm) 3.81 3.40 0.13

Europium (Eu) 2.51 480.00 12.05

Gadolinium (Gd) 2.69 7.86 0.21

Terbium (Tb) 1.15 350.33 4.03

Dysprosium (Dy) 6.26 118.00 7.39

Holmium (Ho) 1.16 25.38 0.29

Erbium (Er) 4.82 25.50 1.23

Thulium (Tm) 0.05 790.00 0.40

Ytterbium (Yb) 1.77 155.30 2.75

Lutetium (Lu) 0.06 238.09 0.14

Yttrium (Y) 26.69 10.01 2.67

Totals **%96.8 35.23

*Prices taken from asianmetal.com FOB & are subject to change. **Stans is currently confirming historical percentages.

Page 13: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

La9.42%

Ce25.85%

Pr3.31%

Nd8.77%

Sm3.94%

Eu2.59%

Gd2.78%

Tb1.19%

Dy6.47%

Ho1.20%

Er4.98%

Tm0.05%

Yb1.83%

Lu0.06%

Y27.57%

LREEsHREEs

Page 14: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

La1.32%

Ce2.98%

Pr1.82%

Nd5.06% Sm

0.37%

Eu34.20%

Gd0.60%Tb

11.44%

Dy20.97%

Ho0.84%

Er3.49%

Tm1.12%

Yb7.80%

Lu0.41%

Y7.58%

LREEsHREEs

Page 15: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay
Page 16: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

KCMP was designed to separate REEs from concentrate derived from Kutessay II

Almost all equipment remains on site

Produced Oxides, Metals, and Alloys up to 99.99%

Under care and maintenance since 1990

Stans Energy owns an exclusive option to purchase KCMP for 1 year.

Page 17: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

Kyrgyz-Russian Slavic University

CSRL

ARRICT

GEOTEP

UranGeo

IGPMG RAS

ARRIMR

Russia Kyrgyzstan

Canada

Honorary Consul of the Kyrgyz Republic for

Canada

Legend

Signed Partnership

Negotiations in Progress

Page 18: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

Kutessay II will require a limited amount of capital to bring back into production compared to other REE properties because of the following value drivers:

i) Mining licenseii) 30 years of known metallurgy and recoveriesiii) Existing infrastructure and processing facilitiesiv) 50/50 LREEs to HREEsv) Scientific & Geological partners with REEs expertisevi) Qualified local labour force

Surrounding REE properties signal further exploration. Kalesay and Kyzyluraanskaya could be economic in the future. Alabuga and Koshdube require drilling to determine the potential of the properties.

Page 19: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

DR. DOUGLAS H. UNDERHILL; Ph D, M Sc, QPBA (Geology), MBARetired Uranium Specialist with the IAEA

DR. MARAT FAZLULLIN;Leading world expert on acid ISL technologies

Page 20: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

Share Type NumberCommon 108,647,183

WarrantsOptions

23,025,0009,490,000

Total 141,162,183

Page 21: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

RODNEY IRWIN, MAChairman of the BoardRetired Canadian Ambassador to RussiaHonorary Consul of Kyrgyz Republic in Canada

GORDON BAKER, QCVice Chairman of the Board

Corporate Law Specialist

ROBERT MACKAY; BSc. MiningPresident, CEO& Director20 years experience inthe capital markets

Page 22: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

BORIS ARYEV; MSc., PEng

COO & DirectorFounding Director of the Canadian-Eurasia-Russia Association; Founder &

Chairman of its Mining & Northern Development

Committees

DR. GENNADY SAVCHENKO, CGeol FGS, QPManaging Director of STANS ENERGY KG

DR. DOUGLAS H. UNDERHILL; Ph D, M Sc, QPBA (Geology), MBADirectorRetired Uranium Specialist with the IAEA

LENA MASTERS; CGA, B. Law, BA (Finance)

CFO12 years of financial and

operational experience in Investment Industry.

Page 23: Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

DR. MARAT FAZLULLIN;Leading Russian expert on uranium, gold, and rare metals

MR. JAMES ALLAN; P.Eng, BASc, MSc.

Rare earths exploration and deposit evaluation expert

MR. JAMES B. HEDRICK;Retired mineral commodities expert for the USGS for rare earth elements, thorium, zirconium, hafnium, and the mica group minerals.