1. KAOLIN: STATE OF THE INDUSTRY U.S. Clay Producers Traffic Association Spring Meeting March 22, 2011

2. Agenda  Current Environment Kaolin Industry Coated Paper Markets  Industry Outlook Magazines Coated Paper

3. Kaolin Current Environment

4. Major Producers

5. Source: Industrial Minerals, August 2008 1980 Carbonates 9%2003 Carbonates 62%2014 Carbonates 65% Worldwide Pigment Usage in Paper

6. World Kaolin Sales by Market* *as of 2007

7. Coating Kaolin Production & Demand 2010 North America South America Europe Asia Japan CapacityDemand Total Capacity ≈ 9.1 mm tpy Total Demand ≈ 7.9 mm tpy 2.7 3.4 2.8 2.3 3.4 1.0 0.8 0.5

8. Coated Paper Current Environment

9. NA Coated Leaders Coated GroundwoodCoated FreesheetTOTAL NewPage150117673268 Verso9776201597 Sappi--1215 AbitibiBowater69040730 Kruger399--399 UPM-Kymmene390--390 Appleton Coated--350 Catalyst Paper255--255 Domtar238--238 Belgravia--234 Evergreen200--200 Other154125279 TOTAL480443519155 83%52%66%

10. NA CFS & CGW Shipments 3Q10 vs. 3Q09 = 8% Source: RISI and AF&PA 2Q3Q

11. US Coated Papers Utilization Rate Source: RISI

12. US Coated Paper Prices Source: RISI

13. Industry Outlook

14. Magazine Ad Pages % Change y-o-y Source: UPM & Zenith Optimedia

15. NA CFS Operating Rate Forecast Source: Risi & EMGE Balanced market

16. NA CGW Operating Rate Forecast Balanced market Source: Risi & EMGE

17. Recessionary Adjustments

18. Trends for Coated Paper  Positive  Magazine advertising pages up  Catalogers increasing circulation  Retailers using more direct mail  Olympics  Mid-term elections  Negatives  Electronic EVERYTHING  Consumer confidence

19. Paper Growth Rates by Region 2006 through 2025

20. Questions? Cynthia Willcox Marketing Associate Thiele Kaolin Company 478-552-9710 Cynthia.willcox@thielekaolin.com