Altura Mining Ltd

th 27 September 2013 INVESTMENT SUMMARY

ASX Code AJM  Altura Mining Ltd (ASX code: AJM) has a compelling portfolio of projects materially Shares on issue (m) 454.2 undervalued and offering significant long term upside. AJM will achieve pivotal milestones over the next twelve months with an emerging production profile and Share price $0.13 resultant free cash flow, significantly enhancing the AJM proposition. Market Cap (m) $59.1 Cash(m) $3.4  Altura has well-credentialed management and board with extensive experience and Enterprise Value(m) $55.7 well demonstrated capabilities in all aspects of major project development and delivery.

 Minority stake in the Delta Coal Mine in Kalimantan Indonesia, current production of 1.5mtpa of mid ranking low ash thermal coal. AJM is forecasting a run rate of 2mtpa over medium term.

 Final investment decision reached at Mt Webber iron ore project with first shipments scheduled for Q2 2014, elevating AJM to Pilbara Iron ore exporter status via JV Atlas Iron with attributable production 900,000tpa.

 Pilgangoora Lithium emerging world class hard rock lithium project. Existing resource of 25 million tonnes at 1.23% Li2O, encouraging scoping study delivered.

 Established Exploration Services business forecasting FY2013 EBITDA earnings of $US1.875m with history of cash flow generation.

 Tabalong Coal High Energy Low Ash Thermal Coal, low capital intensity, awaiting final 12 month high $0.21 approvals for initial production. 12 month low $0.076  Balline Garnet project, resource/reserve at 8.4% HM assemblage predominantly Daily turnover (m) $0.534 Garnet with Titanium group metals. Recommendation Speculative Buy  Valuation $0.385 Broad portfolio of highly prospective exploration assets with encouraging data to date.

Management James Brown ……………………….Managing Director Paul Mantell………………………….Executive Director VALUATION

Allan Buckler…………………Non-Executive Director Beng Teik Kuan ………….…Non-Executive Director We have updated our valuation on Altura maintaining a speculative buy rating and a Dan O’Neill………………...…Non-Executive Director valuation of $0.385 using applicable asset valuation methodologies for individual assets.

At both Delta and at Mt Webber there is a developing visibility to earnings, for any Peter Wright development company the establishment of earnings is pivotal. We have assumed BCP Equities Pty Ltd enduring subdued pricing in thermal coal and a long term price of $USD120/t cfr for [email protected] Pilbara Fines 62% a discount to prevailing 07 3212 9218 prices along with an $AUD/$USD of $0.90.

We have moderated our valuation post initiation note reflecting several factors BCP Equities Pty Ltd namely more moderate coal prices and the on-going ambiguity regarding forestry ABN 49 145 857 512 permits at Tabalong. Corporate Authorized Representative of Centec Securities Pty Ltd We see several valuation catalysts over the AFS Licence No. 240877 next twelve months. Successful Level 9, Waterfront Place,1 Eagle Street commissioning at Mt Webber is crucial BRISBANE QLD 4000 enabling Altura to be valued on GPO Box 1164 BRISBANE QLD 4001 conventional investment metrics. Email: [email protected]

INVESTMENT VIEW

The breadth, composition and potential for long term value creation of Altura’s portfolio are not reflected at the current market price. At $0.13 AJM is more a reflection of a challenging market for junior resource companies than Altura’s long term potential. With a market capitalisation of circa $59m Altura has several constituent assets that in a more benign broader market could plausibly support the current market cap, chief among them Mt Webber.

Altura is well placed to emerge from a challenging period for junior miners and reach key milestones via the delivery of production and cash flow with the commercialisation of vital components of its portfolio. Within 12 months Altura will be generating significant free cash flow from Mt Webber (Iron Ore) and Delta (Thermal Coal) for a modest capital outlay.

Contrasted against a market cap of $59m we see the potential for considerable valuation uplift, at Mt Webber in particular projected free cash flow will allow the application of conventional investment metrics. At prevailing AUD denominated iron ore prices of circa $135 Altura would trade on very modest multiples from Mt Webber alone.

Adding the operating Delta project, the continued emergence of Pilgangoora and its considerable scope to attract a joint venture partner, along with Tabalong finally navigating the arduous Indonesian permitting process we see several catalysts and minimal downside to the prevailing market price.

Altura will attain the status of Pilbara Iron ore exporter via the development of the Mt Webber with joint venture partner Atlas Iron (ASX Code AGO). We view the announcement of 8th July 2013 as encouraging on several fronts, the modest capital requirement from Altura to develop, reflecting the capacity of management to negotiate a sound outcome with ostensibly a modest hand. The low capital intensity of the project overall is pleasing and reflective of a rapidly moderating cost environment. The short lead time to first product and progress to date is pleasing.

Acknowledging the healthy deferral of capital expenditure into Operation expense, we arrive at an all-inclusive operating cfr cost of $89.71 a tonne at cost at which we see the scope for considerable free cash flow with prevailing AUD received price of over $A150.00. Factoring in deductions for product we can see scope for the project generating free cash flow in the vicinity of $20m annually equating to 40% of the companies market cap.

At Delta Coal; Altura has acquired an Indonesian production profile producing a mid-ranking thermal coal at a reasonable margin. Altura has identified the scope to optimise production for an annual run rate of 2 million tonnes with Altura having a 33% attributable share of production. Whilst Delta delivers on a long held ambition of attaining a production profile the Tabalong asset remains the driver of long term coal strategy for Altura.

Progress at Tabalong has been frustrating with the majority of an involved permitting process to first coal largely completed with only the Pinjam Pakai (forestry approval remaining). Whilst hard to get visibility on successful permitting, any clarity on production timeline would serve as a major catalyst to Altura. Considering Tabalong hosts an existing resource/reserve of ICI-1 category coal, has a low capital intensity a considerable tenement footprint and the scope for growing both resource inventory and attributable production any progress would serve as a significant value catalyst.

At Pilgangoora Altura has an exposure to Lithium with the third largest undeveloped hard rock lithium resource in the world. Altura has tabled a scoping study forecasting a modest capex of $96m and project NPV of $93m. We see considerable potential for Altura to create value with Pilgangoora, be it through a JV agreement with a strategic investor or asset spin off over the coming twelve months.

Altura has within its structure several other valuable components; the exploration services business has consistently delivered free cash flow at reasonable margin. The Balline garnet project in West Australia has a resource and reserve of 65mt at 8.4% HM with an assemblage dominated by Garnet along with Titanium metals and a considerable exploration portfolio.

Altura is a conservatively run company with management and board having a depth of experience in delivering projects and running successful companies primarily through New Hope Coal. Within the next twelve months we see the Altura proposition rapidly derisking with progress to production at Mt Webber.

In summary Altura represents a sound opportunity at current prices which reflect little of the companies’ long term value potential. AJM has all the portents for significant value creation over the longer term with sound assets exposed to commodities with compelling long term fundamentals.

AJM has credentialed management, near term production at Mt Webber, an expanding production base in Indonesia, an emerging lithium asset, broad exploration portfolio and profitable Mining services business. For those willing to look past the immediate market sentiment Altura represents a considerable opportunity with several visible and significant catalysts.

2

MT WEBBER IRON ORE

Altura owns a 30% interest in the strategically placed Mt Webber deposit. Mt Webber hosts a 42mt resource with 34mt of this classified as reserve, the current resource to reserve conversion ratio is running above 97%. Whilst a nominally meagre ore body by Pilbara metrics the key differentiation is the identifiable pathway to market.

Mt Webber needs to be viewed in this context with its relative proximity to port allowing road haul. Mt Webber is located within 220klms from the Port Hedland Port Authorities (PHPA) Utah Point common user facility where JV partner Atlas has an export allocation of 6mtpa moving to 12mtpa by 2015.

TH DECISION TO MINE 8 JULY 2013

July 8th Altura and Atlas Iron (ASX code AGO) announced the decision to mine at Mt Webber. As highlighted in previous reports Mt Webber is of critical strategic importance to Atlas reaching its Horizon 1 goals via road haul and its prized inner harbour capacity at Port Hedland via Utah Point.

Mt Webber will produce 3 mtpa of a fines product at a target head grade of 57.0%. The project comes with a forecast capex of $145m materially below estimates and reflective of a major slowdown in the West Australian Mining sector and an emerging competitiveness in tendering.

Altura has a modest capital expenditure at Mt Webber of $5m with Atlas recouping a proportion of its capex via a management fee and an infrastructure access fee of $17/t of production.

The governing parameters of the project have improved post the announcement of the deal with a previously rigidly strong AUD retreating from a $1.04 average throughout 2012 to be currently trading circa $0.93, weaker exchange rates have a material effect on project NPV. The other consideration is price with the iron ore price for Pilbara Fines spending the majority of 2013 above the perceived Chinese marginal cost of supply of $US120/t. Current received AUD denominated prices of $140/t contrast well against even the harshest assessment of cost.

MT WEBBER VALUATION

We arrive at an unrisked NPV for the Mt Webber project of $A101m or $0.223 per share, given the relative short time to commercialisation the straightforward financing requirement from Altura and the quality of counterparty we have applied a 15% discount. Reflecting the commissioning process and inherent volatility of key input factors, in delivering $0.167 per share we assume a long term Pilbara fines price of $US120/t CFR 62.5% Fe and adjusted for lower head grade and slightly off specification silica content.

Reflecting both the minimal capital contribution but the deferral capital expenditure into operational expenditure we have arrived at an all-inclusive cost of $89.71. The cost of $89.71 on a peer comparison is high although does reflect favourably against an AUD received price for Mt Webber product of in excess of $A140/t. At $US120/t and an exchange rate of $0.90 Mt Webber generates considerable free cash flow, at prevailing governing parameters of AUD 0.90 and $137 the unrisked NPV of Mt Webber is $0.29 per share.

From an Enterprise value perspective the relevant transaction occurred on March 6th 2012 with Atlas purchasing Haoma Mining’s (ASX code HAO) minority stake in the Dalton’s iron ore JV, the Daltons deposit is part of the broader Mt Webber area. Haoma received consideration of $A33million comprised of cash and shares which correlated to an effective $5.50/t of reserve. Applied to Alturas’s stake at Mt Webber delivers a valuation on an EV basis of $A66.33m or $0.146 per share.

3

DELTA COAL

AJM settled the purchase of a 33.3% stake of the Delta Coal Mine on January 1st 2013, Delta located in East Kalimantan delivers AJM producer status. AJM paid $US25m for the 1/3 stake with $US12.5m paid upfront out of existing cash reserves with incremental payments of $4m paid out of cash flow owing at 12 month intervals.

With the on-going delays and lack of clarity to first coal at Tabalong we see the merit in the purchase of Delta.

Delta currently produces 1.5mtpa of a mid-ranking thermal coal and is the owner of the PT Binamitra Sumberarta mining operations.

AJM is assuming operational responsibility for the asset with the intention to materially expand the resource base of 61.4mt and reserve of 12.5mt. Concurrently AJM are targeting an annual production of 1.75 mtpa rate (attributable coal 582,500) by end of cy 2013 and a run rate of 2mtpa by the end of cy 2014.

SPECIFICATION

Delta Coal is a low cost operation selling a mid-ranking ROM (run of mine) product with the following specifications.

– Energy 4800-5000 cv/kg (gar) – Energy 5500-5700 cv/kg (adb) – Total Moisture 26-28% – Ash 4-8% – Total Sulphur 0.5-1.0%

PRODUCTION

Strip ratio of 10.75 bcm (bank cubic metres) coal is crushed on site for haul 5klm to site with an on vessel cost of $US 44.70/t.

We have modelled the unwashed product of a mid-ranking Indonesian Coal currently receiving a price of circa $US55/t delivering a margin of circa $10/t.

VALUATION

We have arrived at NPV for Delta Coal of $A27.8m OR $0.061 per share assuming the 3 x $US4m increments are paid for via debt, we have also allowed for no cost reductions with increased volume with Altura forecasting increasing annual volume to 2mtpa. We have assumed an AUD of 0.90, a product price of $USD55 and on vessel costs of $44.35 inclusive of royalty. Any recovery in subdued Thermal Coal markets delivers considerable valuation upside.

4

TABALONG COAL

Tabalong Coal is located in the prolific South Kalimantan province Indonesia; a known province for high energy thermal, PCI and Coking products.

Situated approximately 100klm east of the Barito River, Tabalong’s proposed pathway to market is via a 120 km haul road to a barge loading facility on the Barito River.

Tabalong has for some time been a source of considerable potential and frustration for AJM. Tabalong hosts a 13mt resource of ICI 1 category Thermal Coal (CV > 6500/kg gar) with initial production of 500ktpa and a growing tenement footprint. Tabalong has very low capital intensity to first coal.

Tabalong was intended pre Delta to be the foundation asset and operational fulcrum for AJM in Indonesia. AJM’s strategy at Tabalong was post first coal to add to resource inventory via a recently expanded tenement footprint and move to an ultimate production of 2mtpa.

At time of last update Altura had been targeting initial production from Q4 2012 with a modest $US10m to spend to first coal. Frustratingly Tabalong despite obtaining several crucial approvals including operating and production licenses still waits the granting of its Pinjam Pakai (forestry approval) post the redrawing of previously understood boundaries.

The strategy at Tabalong has been to target an initial production profile of 500ktpa of high energy low ash thermal coal with an interim target of 750ktpa from the existing 13mt resource. AJM has an interim exploration target of 20-25mt from the two initial granted IUP’s and an overall exploration target of circa 60 - 100mt from the broader tenement package.

Concurrently AJM has expanded its presence in the immediate vicinity to Tabalong materially expanding its tenement footprint with a view to delineating a coal inventory of up to 60mt capable of supporting a 2mtpa production profile.

Initially Tabalong had two tenements permitted for operation and production operating constituting the Tabalong project (PT SPK) and (PT SCC) covering 1,993 and 4,315 hectares respectively which host the existing 13mt.

Tenement Expansion

AJM’s strategy in the Kalimantan province is to move beyond the stage 1 production profile at Tabalong of 500ktpa towards an interim production goal of 1mtpa from the two initial tenements and exploration target of 20-25mt.

AJM has a longer term strategy to become a mid-sized producer and has increased its tenement footprint in the broader Kalimantan province to now cover over 17,000 hectares. The 5 IUPS in the Tabalong area cover 20klms of coal strike prospective for high grade Thermal, PCI and Coking products. AJM intends to establish an expanded resource of up to 60mt capable of supporting a production profile of 2mtpa within 5 years, whilst maintaining an overall 70% equity stake in the (Tabalong Coal JV).

5

INDONESIAN THERMAL COAL

Indonesia is the world’s largest exporter of thermal coal by nominal tonnes with 2011 and 2012 exports exceeding 300mt having grown robustly over the past decade. Whilst typically low in Ash and Sulphur requiring little if any washing Indonesian coals have higher volatility and moisture content.

The Tabalong project and associated tenement footprint is located in Kalimantan on the island of Borneo where the bulk of Indonesia’s export coal is extracted. The Tabalong product with a gross energy content of 6300kcal/kg and ash content of less than 5% is at the premium end of a very broad Indonesian product spectrum.

Whilst Thermal and Metallurgical Coal prices have moderated over the last twelve months, over the longer term the governing parameters of coal markets are compelling. China and India have emerged as key demand components over the last decade with China and India in particular still at an extremely low energy and steel consumption per capita quotient demand set to grow over the coming decades. The Indonesian Coal market with its lower cost structure and relative proximity to end markets has not been as affected by a subdued coal prices as other high cost destinations.

OPERATION AND VALUATION

The proposed Tabalong project is a straightforward open pit operation of low capital intensity targeting thick seams of up to 18 metres thickness. The Tabalong ROM product is low Ash requiring crushing only prior to haulage to barge point along an already constructed haul road, with work undertaken to date Tabalong has a remaining modest forecast capital expenditure of $US10m.

In arriving at an all-inclusive forecast free on board cost per tonne of $US62.94 per tonne we have assumed a life of mine strip ratio of 10:1, crush, haul, stockpile and barge load cost of $US25/t and royalties of 7%.We have not sought to reflect the likelihood that an expanded product would likely include metallurgical coals.

We have arrived at an unrisked NPV valuation for the Tabalong asset of $A70.3m equating to $0.15 per share, considering the on- going ambiguity and vagaries associated of a drawn out permitting process we have risked the valuation with a 70% discount to deliver a valuation of $0.045 per share.

Any clarity on permitting and subsequent timeline to first coal would present a considerable catalyst to existing share price.

6

PILANGOORA LITHIUM PROJECT

The Pilgangoora Lithium asset provides AJM with an emerging exposure to the highly specialised metal which is characterised by strong long term fundamentals.

Pilgangoora located in West Australia’s Pilbara region hosts an existing JORC compliant resource of 25mt at a grade of 1.23% Li2O. AJM have successfully reconciled to exploration target over the last 12 months. At 25mt @ 1.23% Lithium, Pilgangoora hosts an ore body directly comparable to those underpinning producing assets.

Pilgangoora outcrops and extends down to a moderate depth of 60 metres along a 3klm strike length presenting ostensibly an uncomplicated production scenario.

West Australia has two Lithium Mines with Galaxy’s Mt Caitlin operation and Talison Greenbushes’ deposit the latter hosting the largest and highest grade deposit in the world.

STATUS

Having established the resource of circa 25mt Altura are in initial stages of assessing the commercial prospects of the resource.

19th November 2012

AJM tabled the results of an independent scoping study for the Pilgangoora project.

Assuming mining of 830,000 tonnes of Pegmatite’s for 150,000 tpa of Spodumene concentrate grading 6.0% Lithium Oxide the study forecast. NPV of $A93.2m (discount rate of 12%) IRR of 52% Cash operating costs $A16/t of ore and $90/t Spodumene concentrate. Capital cost of $A96.3m inclusive of a 35% contingency. In addition Metallurgical test work confirmed Pilgangoora lithium ore amenable to conventional processing. 

7

LITHIUM MARKET, POTENTIAL STRENGTHS & POTENTIAL THREATS

Lithium historically had been confined to a narrow band of applications centred around glass and ceramics. The use of Lithium to long life batteries has increased the range of applications given the commodity an improved outlook and market price.

Lithium Batteries lightweight long life properties open up a range of applications in consumer electronics such as phones, iPods, laptops, computers and other electronics and hybrid vehicle technology. Current global demand of 130kt p.a lithium demand to 2025 is forecast to rise as high as 500ktpa.

With all altered demand outlooks previously unfeasible processes are brought into feasibility and Source: signumBOX Lithium is no different tempering the outlook for hard rock Lithium producers is the potential for considerable supply from commercial extraction of Lithium in brines rich in Lithium salts.

Whilst yet to be commercialised on any material scale there are several projects located in South America predominantly in Argentina approaching commercial stages of development.

With forecast production costs materially below the cost structure of hard rock producers this potential for low cost supply does temper the outlook for hard rock lithium assets.

Source: Roskill Forecast 3 VALUATION

Whilst acknowledging the robust scoping study presented for Pilgangoora and appreciating the potential of the asset with prevailing prices for Lithium concentrates at $US310/t versus our all-inclusive,(sustaining capital, freight, port, transport F.O.B cost for Pilgangoora of $A205.83/t) we have deferred given the early stage of asset to an enterprise per tonne valuation for Pilgangoora.

The current enterprise value of TSX/ASX listed lithium developers is $A109.44/t contained Lithium covering both Brine and Hard rock producers.

The existing resource at Pilgangoora stands at 25mt @ 1.23% Li2O for 302,500 tonnes contained lithium. Given the early stage of the projects development compared to peers we have applied a 50% discount to arrive at $A54.72 per tonne a valuation in proximity to that of closest peer Nemaska Lithium.

$A54.72 per tonne delivers a valuation of $16.55m or $0.036 per share.

Lithium Comparable Multiples

Company Project Deposit Lithium (mt) EV ($M) EV aud EV/t Orocobre Olaroz Brine 1.21 258 216 213 Lithium Americas Cauchari Brine 1.50 25.7 27.20 18 Canada Lithium Quebec Hardrock 0.56 147 151.83 272 Nemaska Quebec Hardrock 0.29 13.56 14.01 48 Galaxy Lithium One Mt Caitlin Hardrock/Brine 2.26 205 228 101 5.82 649.26 637.02927 109.44

8

EXPLORATION PORTFOLIO

EXPLORATION PORTFOLIO

Complimenting Altura’s development assets are considerable portfolio of prospective tenements in the Northern Territory and Western Australia delivering a tenement footprint of 2,300 sq kms and 700sq kms respectively.

Whilst nominally exploring the projects Altura has conducted in some cases considerable work on the tenements. In the case of the Balline project AJM has established a material resource at good grade along with a feasibility study.

As demonstrated with the rapid establishment of resource at Pilgangoora, Altura retains in house drilling capability.

Balline Garnet project in West Australia is the most advanced in the portfolio with an existing reserve of 65mt @ 5.7% Heavy metal with the assemblage dominated by Garnet (73%) along with recoverable titanium group metals Ilmenite, Rutile and Zircon.

Balline Garnet has received its mining approvals; AJM views the asset as non-core to its bulk metal strategy leaving open the possibility of monetising the asset either via a trade sale or potential spin out of this and other assets within the portfolio.

Shoobridge located in the Northern Territory Shoobridge is highly prospective for Uranium and other base metals, limited but encouraging drilling results have been logged to date with some impressive intersections returned among them in the Northern Territory has previously returned some compelling uranium intersections with 3m @ 6.05% uranium or 60000 ppm along with 19m at 0.12% and 1m @18% uranium.

Smithfield located 260klms South of Perth, Smithfield is in direct proximity to the world class producing Greenbushes Lithium project operated by TSX listed Talison Lithium. Altura have commenced initial exploration at Smithfield targeting identified pegmatite’s with the potential to host Lithium, Tin and Tantalum as mined at Greenbushes. Altura are planning to drill an initial 10- 12 hole RC drill hole program.

SOUTH EAST ASIAN COAL

Targeting a growing domestic market Altura have broadened their focus to the Philippines with the successful tender of an initial Coal operating contract covering some 7,000 hectares. The awarding of the concession known as Area 3 is the first of three concessions Altura has bid for targeting sub bituminous rank coal to service a growing domestic supply requirement for a growing base load power requirement.

Coal consumption in the Philippines as per several of its South East Asian neighbours is forecast to rise over the coming decade with a current domestic consumption of 14mt servicing 8 existing coal fired power stations with 11mt imported predominantly from Indonesia.

To satisfy the rapidly expanding base load power requirement in Philippines coal fired powered generation is expanding with plans to build another 7 power stations.

9

EXPLORATION SERVICES

A key differential for Altura is the material free cash flow generated from its established mining services businesses falling under the Altura Exploration Services banner. Altura Exploration Services is constituted by two Indonesian based businesses, the 100% owned PT Asiadrill Bara Utama operation and a 50% stake in the smaller PT Velseis Indonesia.

PT ASIADRILL BARA UTAMA

Established in 1997 PT Asiadrill provides multi-purpose drilling services to the Indonesian mining and exploration sector. Established with one drill rig Asiadrill now has a broad equipment fleet consisting of 11 large drill rigs, 16 portable rigs including track mounted drills and associated support vehicles.

PT Asiadrill is achieving equipment utilisation rates of circa 70% and has provided Altura with a valuable cash flow and source of funding for developing the broader portfolio.

Broadening the service offering has been the establishment of PT Velseis a joint venture business providing geophysical logging services predominantly in the coal sector as well as seismic data services.

FINANCIAL PERFORMANCE

Exploration Services has provided material cash flow to Altura with EBITDA margins of circa 25% , Rig utilisation rates of 70% with Revenue of $US7.95m for FY 2011 and $US9.4 for 2012 corresponding to EBITDA results of $1.97m at 24% margin for FY2011 and 2.75m at 29% margin for FY 2012.

VALUATION

Reflective of the slowdown in the Australian mining sector Altura has given guidance of softer revenues for FY 2013 for the exploration services portfolio with revenue softening to $US7.5m we have applied a 25% EBITDA margin to revenue to arrive at a forecast EBITDA result of $US1.875m applying an EBITDA multiple of 4x and an exchange rate of $AUD 0.90 we arrive at a valuation of $A 8.3m equating to 1.85cps.

KEY STAFF

Altura is well served both at an operational and board level with key staff possessing a wealth of experience and demonstrated aptitudes for all aspects of the discovery and commercialisation of ore bodies gained primarily at New Hope Coal, where large scale coal projects were commissioned in both Australia and Indonesia.

Of particular relevance this experience has been gained both domestically and in Indonesian Coal where New Hope commercialised the tier one Adaro coal mine located in South Kalimantan in the same region as the Tabalong project.

MANAGING DIRECTOR - JAMES BROWN

Mr Brown was appointed as Managing director of Altura in September 2010, following a career as a mining engineer the bulk of that spent at New Hope Corporation which included operational and development experience at New Acland and Jeebropilly. Mr Brown was also involved in the operation and development of PT Adaro mine.

CHIEF FINANCIAL OFFICER - PAUL MANTELL

Mr Mantell was appointed in March 2009 and brings with him to Altura a wealth of commercial experience gained as CFO at New Hope Corporation (mkt cap $5bil) . Mr Mantell brings experience in project finance of major coal projects and their associated infrastructure as well as asset level transactions including the $2.5bil sale of New Saraji to BHP in 2005.

NON-EXECUTIVE DIRECTOR - ALLAN BUCKLER

Mr Buckler is a qualified mine manager and mine surveyor with over 40 years’ experience in both Australia and Indonesia. Mr Buckler joined the board in December 2008 and is also a major shareholder owning 18% of issued capital. Mr Buckler also has a wealth of experience in discovery and commercialisation of projects.

10

APPENDIX

ASX SMALL RESOURCES

The emerging resources sector as represented at left by the XSR (small resources index) has endured a challenging 24 months to move through GFC lows.

Whilst not forecasting a trajectory similar to that post GFC with an Index move from a low of 2265 to a high of 6985 over 18 months. We do see minimal downside in the sector at current prices

It is our view that the 2.5 year deterioration in the XSR reached its nadir in June exacerbated by tax loss selling and reaching 1935.

A stabilisation of the index or indeed continued improvement would set an encouraging broader context for Altura and other companies in the sector.

Disclaimer

Whilst BCP Equities Pty Ltd ABN 49 145 857 512, its related entities and each of their respective directors, officers and agents (together the ‘BCP Group’) believes the information contained in this communication is based on reliable information, no warranty is given as to its accuracy and persons relying on this information do so at their own risk. To the extent permitted by law the BCP Group disclaims all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage) however caused, which may be suffered or arise directly or indirectly in respect of such information. Any projections contained in this communication are estimates only. Such projections are subject to market influences and contingent upon matters outside the control of the BCP Group and therefore may not be realised in the future.

Any advice contained in this document is general advice. It has been prepared without taking account of any person’s objectives, financial situation or needs and because of that, any person should, before acting on the advice, consider the appropriateness of the advice, having regard to the client’s objectives, financial situation and needs. This report does not constitute an offer or invitation to purchase any securities and should not be relied upon in connection with any contract or commitment whatsoever.

Before making an investment decision an individual should assess whether it meets their own needs and consult a financial advisor, the product disclosure statement and prospectus in respect of the financial product.

Disclosure of interest

BCP Group, advise that at the date of this report, both BCP Group hold interests in Altura Mining Limited. BCP Group advises that it may earn brokerage, commission, fees or other benefits and advantages, direct or indirect, in connection with the making of a recommendation or dealing by a client in these securities. Some or all of our Authorised Representatives of BCP Groups may be partly or wholly remunerated by way of commission.

Analyst certification and disclosure of interest

The analyst certifies that the views expressed in this research accurately reflect their personal views about the subject securities. The analyst holds a relevant interest in Altura Mining Ltd.

BCP Equities Pty Ltd ABN 49 145 857 512 Corporate Authorised Representative of Centec Securities Pty Ltd AFS Licence No. 240877 Level 9, Waterfront Place, 1 Eagle Street BRISBANE QLD 4000 Postal Address: GPO Box 1164 BRISBANE QLD 4001 Phone: (07) 3212 9200 Email: [email protected] 11