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INVESTOR PRESENTATION Fongo Tongo Project Acquisition & Company Update April 2008.

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Presentation on theme: "INVESTOR PRESENTATION Fongo Tongo Project Acquisition & Company Update April 2008."— Presentation transcript:

1 INVESTOR PRESENTATION Fongo Tongo Project Acquisition & Company Update April 2008

2 Disclaimer The views expressed in this presentation contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking statements in this presentation have been prepared on the basis of a number of assumptions which may prove incorrect and the current intentions, plans, expectations and beliefs about future events are subject to risks, uncertainties and other factors, many of which are outside Whinnen Resources control. Important factors that could cause actual results to differ materially from the assumptions or expectations expressed or implied in this presentation include known and unknown risks. Because actual results could differ materially to the assumptions made and to Whinnen Resources current intentions, plans, expectations and beliefs about the future, you are urged to view all forward looking statements contained in this presentation with caution. This presentation should not be relied upon as a recommendation or forecast by Whinnen Resources. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. Information Sources: available on request.

3 Company Overview Perth-based exploration and development company. Aim is to identify and acquire appropriate minerals projects through direct or indirect investment in Australia or overseas with the potential to deliver significant shareholder value. ASX Code:WWW Listed:April 19th, 2007 Shares:30.5 million fully paid shares on issue Options:15.2 million options (ASX Code: WWWO) Share Price:35c 20 April 2008) Mkt. Capitalisation:A$16.00M (Diluted) Cash Position:A$2.6M 31 December 2008)

4 The Board William J. A. Witham - Managing Director Mr Witham has qualifications in Geology and over 19 years of experience working in the technical, government and financial sectors of the resources industry Felicity Repacholi - Non-Executive Director Ms Repacholi is a geologist with over five years of experience in minerals exploration after graduating from the University of Western Australia with a Bachelor of Science Richard Monti - Non-Executive Director Mr Monti has qualifications in Geology and Finance. He has gained broad experience over a 20-year career in the technical, marketing and financial fields of the international exploration and mining industry.

5 Consideration Whinnen will acquire 85% of the Yekani Mining Company of Cameroon (Yekani), the holder of the Fongo Tongo Bauxite Project. Remaining 15% ownership will be held by Cameroonian interests. Exploration Licence number 028 was granted to Yekani in March Government will have only up to 10% if proceeds to a mining stage Consideration for the acquisition is as follows: 1.US$150,000 (non-refundable) within 7 days of execution of agreement, for the right to conduct due diligence at project; 2.US$350,000 within 7 days of execution of agreement; 3.On expiration of due diligence period (approx 6 months), if Whinnen proceed with acquisition, consideration will be payment to vendors of up to US$4 million cash and the issue of up to US$4 million in Whinnen shares, as follows: (i)US$1.5m cash and US$2m Whinnen shares paid within 60 days of the election to proceed, and; (ii)US$2m cash and US$2m Whinnen shares on proving a JORC compliant resource not less than 100Mt

6 Fongo Tongo Project Whinnen has entered into an agreement to acquire 85% of the Fongo Tongo Bauxite Project in the Republic of Cameroon, Africa. A high-grade bauxite project that covers an area of 916km 2, located 14km NW of the major town of Dschang. Bauxite is an ore of aluminium. Total consideration of US$8 million: US$4m in cash and US$4m in shares, part of which is subject to confirmation of a proven resource (details of consideration follow).

7 Fongo Tongo Project Area previously explored by Cameroon Dept of Mines and Geology in 1956, and then by Alcan International in 1970s and 1980s. Feasibility Study conducted by Alcan in 1980 indicated initial mining target of 1Mtpa washed bauxite, and a hydro-electric powered alumina refinery producing 400,000tpa alumina expanding to 1.2Mtpa of alumina. Metallurgical testing done by Whinnen indicated grades of up to 54% Al 2 O 3 in random samples. World current aluminium production is around 38Mt per year, which is forecast to increase to 55Mt by 2013.

8 Fongo Tongo Project


10 About Cameroon Located on central western African coast. Bordering nations include Nigeria, Gabon, Chad, Central African Republic and Equatorial Guinea. Relative Political and social stability. Developed agriculture, roads, railways, and large petroleum and timber industries. A new and modern mining code came into force in 2004 promoting investment in exploration and mining. Cultural and geological diversity - natural features include beaches, deserts, mountains, rainforests, and savannas.

11 Why Cameroon? High Grade Bauxite reserves Hydroelectricity Existing Aluminium smelter Keen and stable government Politically stable country Good port facilities

12 Infrastructure Project is well serviced by the major town of Dschang Provides large pool of potential labour Sealed roads to the capital Yaoundé and the Port of Douala Doula is largest city in Cameroon; well developed city with deep water port capable of handling 30,000t ships Electricity grid and telecommunications (including mobile) at project Abundant flowing water near project area

13 Bauxite to Aluminium Bauxite (Laterite) > Alumina (Al 2 O 3 powder) > Aluminium (metal) Mining>Refinery>Smelter

14 Bauxite & Aluminium Whinnen plans to export the bauxite to alumina refineries in China, Russia, USA, Canada, Middle East and Japan: growing demand. Bauxite and alumina production is no longer aimed only to service the large aluminium companies needs: sales of bauxite to third parties is becoming more common. Average import price for bauxite to China has risen over 40% over the past year, and imports to China have risen to 8 Mt a quarter, largely due to dropping of import duties.

15 Bauxite & Aluminium Since 1980 the price of bauxite and alumina has risen significantly, as the world's energy resources become more important and demand for aluminium increases. Current global aluminium production is around 38Mt. Forecast to increase to 55Mt by This additional 17Mt of aluminium metal requires additional alumina capacity of 33Mt and additional bauxite capacity of 80Mt. Aluminium market needs increasing reserves of bauxite that is of a high grade and low in contaminants, located near low-cost power sources. The Fongo Tongo Project meets these attributes.

16 Bauxite & Aluminium Bauxite and Aluminium Price Graph Source: Rio Tinto

17 Bauxite & Aluminium Taken from Barclays Capital's Metal Markets Outlook China's metal needs are continuing to expand fast

18 Bauxite & Aluminium Aluminium: can supply keep up with demand? Taken from Barclays Capital's Metal Markets Outlook

19 Community Benefits Jobs Community investment programs (e.g. Education, Health) Local employment focus Environmental awareness Skills development

20 Community Benefits

21 Next Steps Whinnen will conduct due diligence and an exploration drilling programme based on a review of previous data and on-site review. Convert any previous resources to JORC compliant status within 6 months. Objective is to fast track trenching and drilling to confirm JORC resource of 100 Mt. Optimisation study to assess infrastructure and all factors affecting project economics, including hydroelectric power, slurry pipeline and exporting bauxite. Given favourable mineralogy of the resource, Whinnen will evaluate all options including the likelihood of an Alumina refinery in the medium term.

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