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The Life of the Mine Before “The Life of Mine”. Forward Looking Statements 2 Certain information regarding Morien Resources Corp. ("the Company") contained.

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Presentation on theme: "The Life of the Mine Before “The Life of Mine”. Forward Looking Statements 2 Certain information regarding Morien Resources Corp. ("the Company") contained."— Presentation transcript:

1 The Life of the Mine Before “The Life of Mine”

2 Forward Looking Statements 2 Certain information regarding Morien Resources Corp. ("the Company") contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date. Unless otherwise indicated, all dollar values herein are in C$.

3 3 What if You Had?  A deposit 30 km from tidewater  Superior ore quality  Pre-spent capital of $100+ mln  Local market for product  Long history of local mining  Ready employment & strong community support  Constructive regulatory environment

4 4 What if You Had? Short Transportation DistanceLow Operating Cost Distance to Port (km)$USD / tonne

5 5 What if You Had? Source: BMO Capital Markets, Jan 2012 Among the Lowest FOB Cash Costs Globally

6 6 What if You Had? Peer Comparison Lic. Issued Explor / JORC First Nations PEA/ PFS/ EIS Rail/ Port Permit Mining Permit First Prod Full Prod J 2012[2013] A F M N A H O unkwn K P Q R S A Mine Ready for Production Mine Readiness

7 7 How Long Would You Take to Develop This? Relative Value (share price) High RiskLowered RiskFull Value Speculators Leave Orphan Period Institutional Investment Speculation EXPLORATIONMINING ConceptPre-DiscoveryDiscoveryFeasibilityDevelopmentStartupDeplete

8 8 How Long Would You Take to Develop This? Relative Value (share price) High RiskLowered RiskFull Value Speculators Leave Orphan Period Institutional Investment Speculation EXPLORATIONMINING ConceptPre-DiscoveryDiscoveryFeasibilityDevelopmentStartupDeplete Global Standard 4-5 Years Years 35 Years 4-5 Years

9 9 What is this Deposit? Donkin Coal Project

10 10 A Short History in Time  DEVCO drill 11 boreholes into the Donkin deposit, the eastern extension of the Sydney Coalfield, and the largest undeveloped coal deposit in Cape Breton.  DEVCO spends $100+ mln boring two, 3.6 km long access tunnels to the coal face at Donkin.  1992Development plans at Donkin cease due to downturn in global coal economy. Tunnels sealed and allowed to flood.  2001 Last underground coal mine in Cape Breton shuts down; thermal $34/t, met $40/t  2003 With the cessation of coal mining activities, CBDC relinquished their mineral claims back to the Nova Scotia Government.  2004NS Government begin tender process for sale of Donkin.  2005 A JV consortium between Xstrata Coal (75%) and Erdene Resource Development (25%) win tender to develop the deposit.  Xstrata and Erdene invest CAD$50 mln in the Project.

11 11  Massive Resource − 481 Mt MI&I coal resource  High Quality Coal − High volatile bituminous-A coking coal; 14,600 BTU, 2.8% Ash, 35% Volatiles, 2.25% Sulphur, 8 CSN, and >20,000 Fluidity  Simple, Predictable Geology − “Low Type-A” structural complexity; typifies one of the least complex coal deposits in Canada  Easy Access to Ore − Two, 3.6 km x 7.6 m dewatered tunnels allowing unimpeded access to the Harbour Seam (original $100+ mln) We Love What we Have

12 12 We Love What we Have  Engineering Groundwork Complete − Development plan supports 3.5 to 5 Mtpa ROM  Low Operating Cost − $58/tonne  Strategic Location − 30 km from deep water port  World Class Port − Deepened Sydney Harbor capable of receiving 160,000 dwt vessels  Receptive Local Market − Two coal-fired generating facilities located 31 km and 65 km away. − NSPI currently importing ~1.8Mtpa thermal coal

13 13 Five Superior Attributes... USA CAD

14 14 Positioned to Proceed  2007Access tunnels dewatered, partially refurbished  Q4 2008Environmental Assessment approval to mine 2,000 tonnes/day of “development coal” by way of a single continuous miner operation  Q2 2011Positive Pre-Feasibility Study completed  Q2 2012Xstrata announces intent to sell its 75% interest in Donkin  Q2 2013Full environmental permit expected  Q3 2013Tunnel remediation to be initiated  2014 First ‘exploration’ coal production expected

15 15  Xstrata announced intent to sell 75% in Donkin in April 2012  Project timelines maintained during sale process  Erdene has a 60-day Right of First Refusal to acquire Xstrata’s 75% by matching any offer  Sale process expected to be complete 1Q 2013 Xstrata Sale Process

16 16 Superior Coal Quality Pre-Production PeersProducing CompanyCarderoCarabellaClineBathurstConsolCorsaGloucester Project DonkinC. CreekGrosv. WestNew ElkBullerBaileyWilson CreekDuralie CountryCanada AusUSANZUSA Aus BTU 14,500 13,70014,00013,77812,95014,20014,360 Ash FSI Sulphur 2.25* Moisture Volatiles Fixed Carbon Fluidity >20,000<10004,00029,00010,00015,000<1,0005,000 * Average based on the following data; boreholes, 1985 channel sample & bulk sample, 1986 pilot plant scale study, 2006 museum sample, & 2007 strip sample Washed, ad basis

17 17 Markets for Donkin Product BuyerTypeComment AmericasCoking Collective growth, coking coal demand in Brazil set to double in 4-5 yrs adding >20 Mtpa demand GermanyCoking/SteamWorlds 4 th largest coal consumer. Nuclear phase out W. EuropeCoking/SteamSteady imports of ~120 Mtpa E. EuropeCoking/Steam US 2011 exported 5.6 Mt. Growing demand from Poland & Ukraine. Supply from Russia diminishing AsiaCoking/Steam Import demand steadily increasing for top consumers; China, India, and Japan UKSteamNo.2 importer at >50 Mtpa (85% steam coal) Nova Scotia Power Inc Steam Current demand of 1.8 Mtpa. Demand forecast to remain steady for next 20 years New Brunswick Power Inc SteamCurrent demand of Mtpa Sources: BHP Billiton (April 2012) and internal research

18 18 Project Benefits  Creates one of eastern Canada’s larger construction projects  $1.24 bln in Provincial taxes over 30 years ($42 mln annually)  $1.15 bln in Federal taxes over 30 years ($38 mln annually)  Brings industry and jobs back to industrial Cape Breton  382 direct jobs and 428 indirect jobs over 30 years  Cape Breton is expected to capture 63% of the employment (505 jobs) & annual GDP ($42 mln) from Donkin

19 19 Key Take-Aways  Inherited capital expenditures eliminate preparatory mining – revenue generating from day one  Massive resource of competitive, high quality coal  Low quartile extraction and transport-to-tidewater costs, attractive royalties, no related burdens  Capesize capable harbour facilitates easy access to global seaborne markets  Prospective off-take, long term, "base production" with local utilities  Likely first to production amongst "development" comps  Carried interest and "leg-in" capital program provide for capital efficiency  Permitted for early production, full permit expected Q  Ability to expand mining plan and incorporate longwall production

20 Management & Board 20 John P.A. Budreski President & CEO & Director Over 25 years experience in the resource & resource financing industries. Former Vice Chairman of Cormark Securities, and prior to that President & CEO of Orion Securities. Director of Sandstorm Gold, Metals & Energy, and Alaris Royalty Corp. Ken MacDonald CFO Over 25 years in finance for corporations in the resource sector. CFO and Director of Erdene Resource Development Corp since 2003 Mike MacDonald, P.Geo VP Technical & Government Affairs Geologist with over 35 years experience in the resource sector. Former Executive Director of the Mineral Resources Branch for the Province of Nova Scotia MANAGEMENT Peter Akerley Chairman CEO & President of Erdene Resource Development Corp. Over 25 years of exploration & mining industry Charles Pitcher President & COO of Wilson Creek Coal LLP, wholly owned subsidiary of Corsa Coal. Former CEO of Western Coal Ltd. John Byrne President of Petroleum Corporation of Canada Exploration Ltd. Brings more than 30 years of investment banking and corporate finance experience to Morien Philip Webster Montreal based investor and businessman. President of Imperial Windsor Group Inc & Emster Holdings Inc. BOARD OF DIRECTORS

21 21 Who Are We?  Newly formed Morien Resources Corp.  Spin-out company from Erdene Resource Development Corp.  Inherited Assets; − 25% interest in the Donkin Coal Project − Black Point Marine Aggregates Project  November 2012 listing on TSX-V under symbol MOX  Expected trading by November 2012  Shares Outstanding mln  Market Capitalization - ~$10-15 mln (to be determined by market post split)  Cash - approx. $1.6 mln

22 22 TSX-V: MOX Morien Resources Corp.


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