alturamining.com ASX : AJM INVESTOR UPDATE Noosa Mining and Exploration Conference 17-18 July 2014 James Brown – Managing Director DISCLAIMER This presentation has been prepared by Altura Mining Limited (“Altura” or the “Company”). It should not be considered as an invitation or offer to subscribe for or purchase any securities in the Company or as an inducement to make an invitation or offer with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation is provided on the basis that none of Altura nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the presentation and nothing contained in the presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The presentation contains forward looking information and prospective financial material which is predictive in nature and may be affected by inaccurate assumptions or by known or unknown risks and uncertainties, and may differ materially from results ultimately achieved. All references to future production, production targets and resource targets and infrastructure access are subject to the completion of all necessary feasibility studies, permitting, construction, financing arrangements and infrastructure-related agreements. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources and Exploration Results, as well as the Competent Persons' Statements. All persons should consider seeking appropriate professional advice in reviewing the presentation and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the presentation nor any information contained in the presentation or subsequently communicated to any person in connection with the presentation is, or should be taken as, constituting the giving of investment advice to any person. 2 A TRANSFORMATIVE 2014: ACHIEVING KEY MILESTONES An emerging mining company providing diversified production entering a new and exciting phase of carefully executed strategy A mining company run by experienced and credentialed mining people Pilbara producer status attained July 2014 - transformational company milestone Altura transitioning to a growth company offering material production volume from a robust financial footing and undemanding investment metrics The management and financial capacities to pursue opportunities presented by compelling broader portfolio 3 PRESENTATION SUMMARY 1 2 3 Altura The Portfolio: Overview Vision Production assets Iron ore - Mt Webber JV Coal - Delta Development assets 4 Lithium - Pilgangoora Outlook for 2014 Coal - Tabalong and beyond 4 1. ALTURA OVERVIEW 5 ALTURA MINING: CAPITAL STRUCTURE As at 15 July 2014 Shares on Issue (AJM) 454,272,181 Share price $0.17 Market capitalisation A$77.2 million Cash balance A$3.0 million Share price – 52 week range $0.10 – $0.245 6 ALTURA: A MINING COMPANY RUN BY MINING PEOPLE An extensively credentialed James Brown (Managing Director) Paul Mantell (Director) board with an impressive track James is a mining engineer with Paul has over 30 years experience record across all areas of more than 25 years experience in the as an accountant in the mining resource development and mining industry, including 22 years at industry, the majority of those spent New Hope Corporation. James was at New Hope Corporation Limited management. involved in the development, including 13 years as Chief Financial commissioning and operation of Officer. Paul has extensive several tier one assets. experience in all aspects of resource finance. Allan Buckler (Director) Dan O’Neill (Director) BT Kuan (Director) Allan has over 35 years experience Dan is a geologist and has over 30 BT is a mechanical engineer with in the mining industry and has taken years experience in executive considerable experience in bulk the lead role in establishing several management positions in the handling and terminal processing substantial mining and port resource industry including being a operations. BT has extensive operations both in Australia and founding director of emerging lithium knowledge and experience in dealing Indonesia. New Hope Coal, PT producer Orocobre Ltd. in key Asian markets. Adaro Indonesia and the PT Indonesia Bulk Terminal were developed under Allan's leadership. 7 2. THE VISION 8 ALTURA: THE VISION An emerging mining company offering growth from a sound financial platform Focused on developing straightforward operations with strong cash flows Growing production profile with cash flows from Iron Ore and Coal Focused on sustainable mining operations with low capital intensity – strong return on equity Production operations 30% interest in Mt Webber DSO project (North Pilbara, Western Australia)1 ⅓ interest in Delta operating coal mine (East Kalimantan, Indonesia) Development assets Lithium – Pilgangoora (North Pilbara, Western Australia) Tabalong high value coal targets (South Kalimantan, Indonesia) 9 (1): Mt Webber subject to joint venture interests 30% Altura / 70% Atlas Iron 3. PORTFOLIO PRODUCTION ASSETS 10 MT WEBBER: A PATHWAY TO MARKET Courtesy Atlas Iron 11 MT WEBBER: AUSTRALIA’S NEWEST MINE • Mine opened 15 July 2014 - Joint Venture 30% Altura, 70% Atlas Iron (AGO) • Mt Webber delivered by AGO on time and budget with sector leading capital efficiency • Commencing at 3Mtpa (Altura 900Ktpa) - first ore sales Q3 2014 • Stage 2 expansion to 6Mtpa (Altura 1.8Mtpa) approved for development - first haulage expected from Q4 2014 12 MT WEBBER: AUSTRALIA’S NEWEST MINE • Landmark cooperative agreements provide Altura access to Atlas’ infrastructure and pathway to market via road haul to Utah Point - Port Hedland • Agreements cover mining, processing, transport and ore sales • Low risk entry into iron ore market for Altura – strong partnership with AGO • Modest CAPEX servicing requirement from Altura – consistent with strategy • Funding package in place from AGO – option to replace without penalty 13 MT WEBBER: ROBUST ECONOMICS FROM SEPTEMBER QUARTER 2014 • Low strip ratio mine – Life of Mine strip ratio ~0.3 to 1 • 7 years + mine life – long term positive returns • Project expected to generate strong cash flows – Target LOM cash cost: A$49-51/tonne1 – Target all-in cash cost: A$72-74/tonne2 – Material EBITDA margin and earnings to Altura contrasted with market cap – Altura now able to be valued on conventional investment metrics • Potential resource extension: considerable surrounding tenement footprint (1): 2014 Stage 2 Final investment decision. (2): Includes Atlas management fee, infrastructure charge, government royalty (3): Assuming QTD 62% Fe price adjusted to 57% Fe , freight US$11/tonne 14 and AUD/USD exchange rate of 0.90 DELTA COAL Samarinda Delta Coal Balikpapan 15 DELTA COAL: IN FULL PRODUCTION • Fully infrastructure integrated coal mine located in East Kalimantan, Indonesia – commenced production in 2004 • Altura ⅓ interest and plays lead role in technical management of the operation • Currently producing at 1.5Mtpa rate of highly marketable thermal coal – 5,600 kcal – air dried basis – potential to increase to 2.0Mtpa 16 DELTA COAL: IN FULL PRODUCTION • JORC Coal Resources estimate of 61.4 million tonnes# • JORC Coal Reserves estimate of 12.5 million tonnes# with upside potential via further drilling • Competitive Average Life of Mine (LOM) operating cash cost of US$36.92/tonne FOB barge • Challenging thermal coal market • Cost reduction measures implemented 17 # Refer to Appendix for Reserve and Resource Tables # See Altura’s ASX release of 5 June 2013 DELTA COAL: MINE TO MARKET 18 3. PORTFOLIO DEVELOPMENT ASSETS 19 PILGANGOORA LITHIUM 20 ALTURA LITHIUM • Pilgangoora, Western Australia (100% Altura) • Globally significant hard rock Lithium (Spodumene) deposit • Shallow, thick and high grade Lithium intercepts with consistent Li20 grade • JORC Mineral Resource estimate of 25.2 million tonnes @ 1.23% Li20* • Resource extendable • Sufficient resource for 20yr plus mine life • Contained Lithium 310,000 tonnes • 17.3 Mt Indicated / 7.9 Mt Inferred with potential to add to resource • 12 Spodumene-rich pegmatite dykes identified * See Altura’s ASX release of 3 October 2012 21 * Refer to Appendix for Resource Table and Competent Persons Statement ALTURA LITHIUM • Progressing to Pre-feasibility in H2 2014 • Potential high grading optimality's being reviewed with potential to mine at Circa 1.8% Li2O first 7 years of production • Altura pursuing low capital option for convention dig, crush, grind, flotation circuit producing Chemical grade >6.5% Li Lithium concentrate for export to third party processing • Consolidation in sector with Talison transacting at circa 16x EBITDA earnings • Strengthening concentrate prices highlight strategic value of Pilgangoora and compelling fundamentals of underlying Lithium market • Altura conducting process to attract offtake / strategic investment partner for project 22 TABALONG COAL 1 Ownership 70% Altura and 30% PT UJI to form the Tabalong JV 23 2 Ownership 80% Tabalong JV and 20% Local partner TABALONG COAL • Five (5) IUPs