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RARE EARTHS, SPECIALITY & STRATEGIC METALS INVESTMENT SUMMIT IRONMONGERS’ HALL, CITY OF LONDON TUESDAY-WEDNESDAY, 13-14 MARCH 2012 www.ObjectiveCapitalConferences.com 1 Soviet expertise, Canadian security Robert Mackay – CEO, Stans Energy

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Objective Capital's Rare Earths, Speciality & Strategic Metals Investment Summit 2012 Ironmongers' Hall, City of London 13-14 March 2012 Speaker: Robert Mackay, Stans Energy

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Page 1: Soviet expertise, Canadian security

RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT

IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY, 13-14 MARCH 2012

www.ObjectiveCapitalConferences.com1

Soviet expertise, Canadian securityRobert Mackay – CEO, Stans Energy

Page 2: Soviet expertise, Canadian security

Russian Metallurgy, Canadian Expertise

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DISCLAIMER

Statements contained in this presentation which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices for uranium and rare earths; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in political support for nuclear energy and rare earth technologies; changes in government regulations and policies, including trade laws and policies; demand for nuclear power and rare earth products; failure to obtain necessary permits and approvals from government authorities; weather and other natural phenomena; and other exploration, development, operating, financial market and regulatory risks. Although Stans Energy Corp. 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 this release. 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

Cautionary Note to United States and Other Investors Concerning Estimates of Measured, Indicated and Inferred Resources: Certain tables may use the terms “Measured”, “Indicated” and “Inferred” Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, however, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.

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WHO IS STANS ENERGY?

Stans Energy is focused on re-starting a past producing Rare Earth Elements mine and processing facility in Kyrgyzstan

Kutessay II Mine:• Past producing open pit mining operation• Produced equal quantities of heavy and light rare earth elements• Known metallurgical processes• 20-year mining license in place

Kashka Rare Earth Processing Facility (KRP):• Processed ore from Kutessay II Mine for 30 years• Produced 120 metal, alloy, and oxide products• Under care-and-maintenance since 1991• Private rail terminal provides access to Russia, Europe, and Asia

Strong Board, Technical Advisors, and Management:• Many involved with Kutessay II and the KRP prior to 1991

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FINANCIAL SUMMARY

Stock Exchange HRE (TSX-Venture)

Shares Outstandingas at March 8,2012

157,263,986

Warrants 8,475,476

Options 13,663,333

Total (fully diluted) 179,402,795

Market Cap C$138m

Share price (Mar 9) C$0.88

52 week high/low C$2.45/ C$0.52

Net cash C$17 m

Debt Nil

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Major REEs to be produced by Stans Energy Properties Industry Use

YttriumTerbium ReducesEuropium WeightDysprosium EmissionsGadolinium Energy ConsumptionHolmiumErbium AllowsThulium Greater Effi ciencyLuteium PerformanceYtterbium MiniaturizatoinLanthanum SpeedCerium DurabilityPraseodymium Thermal StabilityNeodymiumSamarium

High Tech Defense Applications

Hybrid Electric Vehicles Green Tech

Water Treatment Other Applications

INDUSTRY OVERVIEWRARE EARTHS END USES

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INDUSTRY OVERVIEWRARE EARTHS

7

0

50,000

100,000

150,000

200,000

250,000

2005 2006 2007 2008 2009 2010 2011f 2012f 2013f 2014f 2015f

ROW Supply China SupplyChina Demand Adjusted Global Demand

(Ton

nes

of R

EO)

Global REE Demand Pacing to Outstrip Supply

Source: IMCOA – Industrial Mineral Company of Australia

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INDUSTRY OVERVIEWCRITICAL RARE EARTHS

Source: US Department of Energy

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MAP AND INFRASTRUCTURE

Kyrgyzstan

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CHINA

RUSSIA

JAPAN

EUROPE

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KUTESSAY II

• 100% ownership of former Soviet-era mine• Produced 80% of FSU’s REE needs• March 2011: Pit-contained mineral resources

– Measured + Indicated: 45,650 tonnes of contained TREO – Inferred: 3,560 tonnes of contained TREO

• Preliminary Feasibility Study (PFS) to be completed by end of Q1 of 2012

• 20-year mining license and all permits are in place• Adjacent beryllium deposit provides additional upside

– 9.245 million tonnes grading 0.128 % BeO***

***Based on historical reserves

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Kutessay II

Kutessay III

Aktyuz

Aktyuz Ore Field: Kutessay II REE MineAnd Exploration Areas

Kalesay

Aktyuz Mill

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Kutessay II REE Mine

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2011 – NEW MINERALIZED ZONE DISCOVERY

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NEWMINERALIZED

ZONE

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14BN Bastnasite, MZ monazite, XN xenotime, LP loparite, ED eudialyte, AP apatite, CH churchite, PA parisite, SY synchisite, FL florencite,… JP.TOGNET 2012

Poor, fine, disseminatedRE Minerals

REO

con

tent

Rich , coarse, concentratedRE Minerals

IX, SXIn

Cl or NO3

solutions

Hydro, PyroMetallurgy range

Physical Conc.

Pure & easy liberatedPlacers, Veins,… deposits

M.Mixed & liberated

F.Carbonate : BNPhosphate : MZ, XN

Oxides : LP,…Silicates : ED ,… Phosphates : AP, CH,… F.Carbonates : PA,SY,…

Weathered, Adsorbed

Al.Phosphates : FL,..Ionic ores : Clays

BeneficiationRange

Leaching

Exo,

Rad

* Pu

ficati

on

Pure &MixedSalts,

Oxides,Metals

Finishingsfor

Markets

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15JP.TOGNET 2012

Non RE + Rad* Purification of Mix RE solutions by Chem and/or SX

Mineralogy complexity

Physical ConcentrateHigh REO content

Crude oreLow REO content

Mix Physical ConcentrateIntermediate REO content

Purified Mix RE solution (Cl, NO3, SO4) ready for individual separation

NaOHcracking

Crude REHydroxide

MZ, XNBN

HCl, HNO3

dissolution

BN

direct/alkalRoasting

HCldissolution

Ce conc. +RE3 Cl solution

H2SO4

Roasting

Waterdissolution

ED,…Silicates

Crude RESO4 solution

LP

Carbochlorination

Waterdissolution

Crude RECl solution

IO

Saltleaching

Selct.REprecip.

HCldissolution

BN Bastnasite, MZ monazite, XN xenotime, LP loparite, ED eudialyte, AP apatite, CH churchite, PA parisite, YS synchisite, FL florencite,…

YS

AlkalineRoasting

HNO3

dissolution

Crude RENO3 solution

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Based on Mineralogy :- Crude ore : Low REO- Physical conc. : High REO

- Roasted or notSulfuriccracking

Baking or in pulpAtmospheric or Pressure

Cake SlurryRE+M+Gangue Sulphates

DilutionPurification

Sulfuric acid H2SO4

RE Sulphate solutionLow REO conc.

RE recovery &concentration

Mix.RE Chloride/Nitrate solutionready for SX separation

Gangue residue

Unproven Metallurgical Process for Complex Silicate RE Ores

JP.TOGNET 2012

Purif & changing anion by :- Precipitations + Dissolutions- IX / Solvent eXtraction ?!

Washing, Precipitation,L/S Filtration

Effluent treatment…

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KASHKA RARE EARTH PROCESSING PLANT (KRP)

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• 100 % ownership• Processed Kutessay II ores for 30 years• 120 metal, alloy, and oxide products• Under care and maintenance since 1991• Private Rail Terminal provides access to

Asia, Europe, and Russia• Facility originally designed by VNIIHT, one

of Stans Energy’s core consultants

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KASHKA RARE EARTH PROCESSING PLANT (KRP)

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KRP- Historical REE Production Flow Sheet

1930 year proven track record of 99.99% oxide production

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AKTYUZ MILL AND INFRASTRUCTURE

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AKTYUZ MILL

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KUTESSAY IIBasket TREO Value Comparison

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REE Breakdown by Value (FOB prices in USD February)

KUTESSAY II REE VALUE BREAKDOWN

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Element Oxide REEs % REO USD/kg

Dysprosium Dy 6.14 1,550Yttrium Y 26.73 145Terbium Tb 1.55 2600Neodymium Nd 8.18 175Europium Eu 0.23 3400Erbium Er 3.25 205Praseodymium Pr 3.78 75Gadolinium Gd 3.59 148Samarium Sm 4.1 74Holmium Ho 0.57 128Thulium Tm 0.25 790Ytterbium Yb 3.29 155Lutetium Lu 0.5 1,270Cerium Ce 19.68 33Lanthanum La 16.55 35

= Critical = Potentially Critical

Based on historic production

La3%

Ce3%

Pr3% Sm

1% Gd2% Lu

0.3%Nd6%

Dy42%

Y17%

Eu4%

Tb18%

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FORMULA FOR SUCCESS

VNIIHT’S ROLE

• Stans Energy’s feasibility studies (Q1 2012) will be conducted under the guidance of VNIIHT. VNIIHT’s sixty years of chemical technology experience combined with their capabilities of executing the complete cycle of rare earths research, development, and production will give Stans Energy a significant advantage relative to its competitors.

• VNIIHT will also assist with evaluation and acquisition of other HREE properties in areas of the Former Soviet Union (FSU)

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Who is VNIIHT?

VNIIHT ACHIEVEMENTS Technologies developed in the Institute became the production cycle

base for over 20 hydrometallurgical plants Over 150 sorbents, extractants and resins were engineered Over 3600 developments were industrially implemented Over 2600 inventors certificates and patents were issued 7 minerals were discovered Over 100 PhDs are employed

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Collaborationsfor New Opportunities

Kyrgyz-Russian Slavic

University

VNIIHT

GEOTEP

IGPMG RAS

ARRIMR

Russia Kyrgyzstan

Canada

Honorary Consul of the Kyrgyz Republic for

Canada

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Asiarudproject

Ecoservice

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CORPORATE STRATEGY

• Complete Preliminary Feasibility Study by the end of Q1 2012

• Updated mineral resource statement• First opportunity to present mineral reserves

• Bankable Feasibility Study expected in H2-2012• Advance off-take agreement discussions with end users• Continue to explore:

• Deep drilling of areas of know mineralization• Refurbish Kashka Rare Earth Processing Facility (KRP)

• Optimize recovery process with new technology• Build out operating and construction teams• Assess HREE and joint-venture opportunities

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MANAGEMENT

Chairman of the Board; RODNEY IRWIN, MA , Honorary Consul of Kyrgyz Republic in CanadaFrom 1972 to 1974, Rodney joined the Department of External Affairs, in Ottawa, then in 1978 through to 1980, he served abroad in New-Delhi, Moscow & Port of Spain. From 1988 to 1990 Rodney served as High Commissioner, then in 1992, was named Ambassador to Yugoslavia. Due to the war with Croatia, he served as Ambassador to Albania, Bulgaria, Slovenia & Croatia. From 1993 to 1996, he was Ambassador to Hungary while retaining his Balkan country accreditations. From 1999 to 2003, he served as Ambassador to the Russian Federation with concurrent accreditation to the Republics of Armenia & Uzbekistan.

President, CEO & Director, Stans Energy Corp; ROBERT MACKAY, BSc MiningRobert worked in various facets of Mineral Exploration from 1969 to 1975 including diamond drilling, geophysics, geological mapping and prospecting. In 1975, Robert graduated from the Haileybury School of Mines. From 1975 to 1980, he gained extensive experience in mining, including mine planning, surveying, grade control, industrial engineering, open pit and underground production. Robert graduated from The South Dakota School of Mines Technology in 1980 with a Mining Engineering Degree and over the next twenty years he worked in the investment business and was a Vice President of two national investment firms. In 2000 Robert started a consulting business and over the next 5 years he worked as a Project Engineer on projects in Canada, United States, China and Africa.

Chief Operating Officer & Director; BORIS ARYEV, MSc, P.engAfter migrating to Canada in 1983, he worked as a software development consultant with NCR Canada Limited & OPTIMOD Inc. until 1986 and then with Verifact Inc. until 1996. In 1990, Boris became and still is President of Marhope Systems Inc., providing management and consulting services to both public and private sectors. Boris is the founding Director of the Canada-Eurasia-Russia Business Association, founder and chairman of its Mining & Northern Development Committees and co-founder of IEC Minerals Working Group.

Vice President of Operations; DAVID NEWTON, MSc.During his forty year career in various mine management functions, Mr. Newton has held increasingly senior positions with such firms as Anglo American Corporation and Newmont Gold. Throughout the course of his distinguished career, Mr. Newton has overseen both open-pit and underground mining operations most recently having worked in jurisdictions as diverse as: Democratic Republic of Congo, Armenia, Georgia, Uzbekistan, Ghana, United Kingdom, and South Africa.

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MANAGEMENT

Managing Director of STANS ENERGY KG; DR. GENNADY SAVCHENKO, CGeol, FGS, Qualified Person (QP)

Dr. Savchenko graduated from Frunze Polytechnical Institute with a Mining Engineer-Geologist Diploma and Ph. D in Geology & Mineralogy in 1971, then worked till 1981 in exploration & mining enterprises for Uranium in Kazakhstan, East Germany and China. From 2000 to 2002, Dr. Savchenko was Deputy Chief in the Department of Geology & Investment for the Kyrgyz State Geology & Mineral Resources Agency.

Director; DR. DOUGLAS H UNDERHILL, CPG, PhD, MSc, BA (Geology), MBA, Qualified Person (QP)From 1993 to 2002, Doug was a Uranium Resource & Production Specialist for International Atomic Energy Agency in Vienna. He has over 40 years of minerals industry experience with nearly 30 of those years dedicated to uranium (including experience in Kazakhstan & Uzbekistan). As Senior Consultant with Nuclear Assurance Corporation (USA), he is responsible for consulting on Uranium supply strategy and maintaining a worldwide uranium production projects database. Doug represented IAEA in Joint IAEA-NEA Uranium Group. Has an MBA in Strategic Planning & Finance.

Vice - Chairman of the Board; Gordon R Baker, Q.C.In 1972, Gordon was called to the Bar of Ontario, then in 1983, he was appointed to the Queens Counsel. A highly regarded corporate law specialist, Gordon holds extensive experience in business law (mergers, acquisitions, joint ventures, financing & structuring) and has acted as counsel (including as a registered lobbyist) advising on government relations (strategic planning, negotiation, compliance issues).

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ADVISORS

Advisor; DR. GENNADY SARYCHEVDirector of the Leading Research Institute of Chemical Technology (VNIIHT) is a former professor of the Moscow Engineering Physics Institute. He has held the position of Director/Department Head of the following institutions: Department of Scientific Research and Development, Department of Scientific Research Work, Department of State Policy on Science, Innovations and Intellectual Property, Department Head of Planning and Construction of Infrastructure Objects for Special Economic Zones. Dr. Sarychev adds invaluable experience to Stans Energy in areas of international cooperation amongst the scientific and business communities. 

Advisor; MR. JAMES ALLAN BASc (Geological Engineering) MSc (Geology, Engineering)Mr. Allan is a Registered Professional Engineer with the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA). James has over 45 years of experience working with several major mining and petroleum companies and as an independent consultant in mining exploration and exploration management, mineral property evaluation and mining geology. James has been involved in the exploration for, and evaluation of, rare earth deposits both as manager of exploration in Canada for a large rare earth company from 1982 to 1990 and as an independent consultant.

Advisor; DR. VALERY KOSYNKIN; Ph.D., ProfessorDr. Kosynkin is one of the world’s preeminent chemists and metallurgists for Rare Earth Elements (REEs). Dr. Kosynkin holds a doctorate of philosophy from Moscow State University. His dissertation was on uranium and the development of REEs through processing loparite concentrate. Since 1959, Dr. Kosynkin has been employed by VNIIHT – The Russian Leading Institute of Chemical Technology, initially as a research in uranium technologies, and from 1973 as the Head of Research and Development for REE chemistry and technology. Dr. Kosynkin has overseen the commissioning of REE production and extraction facilities in Russia, Ukraine, Estonia, and Kazakhstan. In addition to his work at VNIIHT, Dr. Kosynkin served as a USSR IAEA representative from 1968-1973. He has lectured on REE metallurgy and chemistry in Russia, China and Korea.

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ADVISORS

Advisor; DR. MARAT I FAZLULLINLeading Russian expert on uranium, gold, and rare earths. Dr. Fazlullin is a renowned Professor, Doctor of (engineering) Science, member of the Mineral Resources International Academy and an Honorable Geologist of the Russian Federation. He has written over 300 publications on Uranium and gold-ore deposits including treatment by the heap and underground leaching methods. He also lead prospecting teams and expeditions for poly-metallic, mercury deposits, oil and gas fields located in Kyrgyzstan, Tajikistan & Algeria as a Chief Engineer. 

Advisor; MR. JAMES B. HEDRICKMr. Hedrick is a rare-earth elements, scandium, yttrium, thorium, zirconium, hafnium, and the mica group of minerals expert. James possesses a wealth of knowledge with over 31 year of experience in Mineral commodities. Mr. Hedrick served as Chairman and Executive secretary of the U.S. Government’s Minerals, Metals, and Materials Advisory Board from 1981 to 1995, and chaired two sessions on the rare-earth elements and one on strategic and critical minerals for The Society for Mining, Metallurgy, and Exploration (SME).

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Kyrgyzstan Mining Friendly Region

Kyrgyzstan Foreign Investment

• New Kyrgyz Government has made mining and property rights its number 1 and 2 priorities in terms of foreign investment

• The Basic Foreign Investment Law, adopted in June 1991, allows foreign investors full use of their profits, including unlimited export of profits in the form of foreign currency or merchandise.

• Foreign firms also enjoy considerable tax advantages, which extend to Kyrgyz partners in joint ventures.• Investors are granted relief from import duties on materials needed to establish a business, and they

continue receiving tax relief for up to five years, depending on their type of business. • After that time, several other types of tax relief are available, including various forms of reinvestment in

Kyrgyzstan's economy. Mining in Kyrgyzstan

• In contrast to the previous regimes, the current government is enhancing the procedure for obtaining exploration licenses in favor of the mining companies.

• As for the general licensing procedures, the laws stick to a more transparent procedure providing for issuance of a license on a “first come first served” basis.

• As opposed to licensing, concession and production sharing agreement regimes should allow companies to negotiate with the state individual terms that meet the companies’ needs.

• Additionally, in order to avoid the state courts, the concession or production sharing agreement can provide for the jurisdiction of international arbitration courts if any legal disputes occur.

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Kutessay III

TSX-V: HREOTCQX: HREEF

STANS ENERGY CORP.8 King St. East, Suite 205Toronto, ON, M5C 1B5

Tel: 647 426 1865 Fax 647 426 [email protected]