World-scale Laterite Nickel Producer Growth Cashflow ...

1 Minara Resources LimitedWorld-scale Laterite Nickel ProducerGrowth Cashflow Nickel LeverageMAY 2011 Slide 2 ImportantNoticeThispresentationcontainsc ertainstatementswhichmayconstitute"forwa rd-lookingstatements".Suchstatementsareo nlypredictionsandaresubjecttoinherentris ksanduncertaintieswhichcouldcauseactualv alues,results,performanceorachievementst odiffermateriallyfromthoseexpressed, ,expressorimplied, ,eachofMinara,itsofficers,employeesandad visersexpresslydisclaimsanyresponsibilit yfortheaccuracyorcompletenessofthemateri alcontainedinthispresentationandexcludes allliabilitywhatsoever(includinginneglig ence) , Resources is .. A leading listed Australian Nickel price leverage investment Operator and 60% owner of the murrin murrin Nickel facility Financially strong -A$199 million at bank at 31 March 2011 Committed to shareholder returns: A$110 million capital return paid September 2010 A$58 million 2010 final dividend paid March 2011 71% owned by Glencore, one of the world s largest commodity traders Actively pursuing Growth opportunitiesSlide 3 Slide 4 murrin murrin Nickel FacilityMurrin murrin is.

2 One of the world s largest LME grade Nickel facilities Australia s 2ndlargest Nickel Reserve: 196 million tonnes at Nickel and ( million tonnes contained Nickel , million tonnes contained cobalt)* Australia s longest life Nickel Producer Over 30 years mine life based on current Reserves The world s only single-site Laterite Nickel Producer ; producing high purity LME grade Nickel The only commercially successful Laterite Nickel heap leach Producer A world top 10 cobalt producerSlide 5* As at 31 December 2010. Refer to Statements related to Resources and Reservesat the end of this presentationCorporate SnapshotSlide 6 ASX: MREUnitValueSharesmillions1,169 Management performance rightsmillions13 Total securities -fully dilutedmillions1,182 Market capitalisation (@ A$ )A$ million912 Cash @ 31 March 2011A$ million199 DebtA$ millionNilEnterprise valueA$ million713 BoardMalcolm MacphersonNon-Executive Acting ChairmanPeter JohnstonManaging DirectorIvan GlasenbergNon-Executive DirectorWilly StrothotteNon-Executive DirectorJohn MorrisonNon-Executive Share Price (AUD$/share) Nickel Price (AUD$/tonne Ni)A$ Ni/tonneMRE Share PriceValue murrin murrin replacement value estimated A$3-4 billion Current enterprise value of approximately A$713 million.

3 Enterprise value per tonne of Reserves significantly below ASX peers*Slide 7 CompanyASX Code2011 Production E( 000 tonnes)Enterprise Value(EV)(A$M)EV per Tonne of Nickel Reserves (A$ 000)EV per Tonne of Nickel Resources (A$ 000)MinaraMRE21(1) , , , * Non-Minara values in table sourced from RBC Capital Markets; 29 April 2011 (1)Based on mid point of 2011 murrin murrin Production guidance of 33,000 to 37,000 tonnes of Nickel packagedDeveloping a Leading Nickel Business1993 Company andFunding1997 murrin Murrinconstruction 81999 Production ,514tonnes Nickel produced at murrin ,529tonnes Nickel produced at murrin upgrade of acid plant, other capital works, in statutory shut and Process Improvement200932,977tonnes Nickel produced at murrin , In-pit tails, 6thNickel Reduction autoclave projects, statutory 2010 Average 30,195 tonnes Nickel produced per annumAverage C1 costs* of US$ per for GrowthDate EventPhase2011 Guidance of 33,000 37,000 tonnes nickelproduced at murrin Production and Cashflow * Brook Hunt direct cash costs (C1)

4 After by-product credits, marketing costs and state royalties Plant Upgrade and Investment Slide 92000-2003 Design RemediationSustainingBuild in RedundancyEnhance Screen upgrade and paste thickener Slurry storage agitation HPAL flash system Nickel solution storage de-couples ore leach from refinery Split mixed sulphide trainPlant Upgrade and Investment Slide 102004-2006 Reliability FocusSustainingBuild in RedundancyEnhanceMMS HV power system upgrade HPAL acid supply system Additional HPAL feed pumps Borefield development Secondary feed mill murrin South ore-body developmentPlant Upgrade and Investment Slide 112007-2008 Utilities Upgrade andHeap LeachSustainingBuild in RedundancyEnhanceMMSHeap Leach Major acid plant upgrade Gas plant upgrades New hydrogen sulphide reactors Heap leach commences In-pit tailings commencesPlant

5 Upgrade and Investment Slide 122009-2010 Throughput Enhancement and RedundancySustainingBuild in RedundancyEnhanceMMSHeap LeachMME HDS process debottlenecking 6thnickel reduction autoclave, 2ndflash vessel murrin East ore-body development In-pit tailings continuesPlant Upgrade and Investment Slide 13 Starting point: world s first integrated HPAL plant Addressed design flaws Built-in redundancy, reserve capacity, parallel processing Today: robust, long-term facilitySustainingBuild in RedundancyEnhanceMMSHeap LeachMME10 Years of InvestmentSuperior Nickel Price Leverage Minara produces Nickel metal (not concentrate) and is unhedged Minara also produces cobalt metal (by-product credits) RBC Capital Markets: Looking at our six ASX Nickel companies under coverage in the exhibit below, Minara has the strongest leverage to the Nickel price for both near-term earnings and cash flow, and is also a standout on an NAV basis.

6 * Slide 14*RBC Capital Markets Report: Laterite Processing & Superior Nickel Leverage; 16 August 20102011 Op EBITDA (A$m)Change from RBC case (%) Nickel price (US$/lb) Areas1432502011 Earnings (A$m)Change from RBC case (%)Nickelprice (US$/lb) : RBC Capital Markets estimatesFinancial PerformanceSlide 15 UnitYear Ended31 December 2010 Year Ended 31 December 2009 Nickel Productiontonnes28,37832,977 Cobalt Productiontonnes1,9762,350 Minara s share is 60%RevenueA$ of ProductionA$ ProfitA$ ProfitA$ and DepositsA$ Cash from OperationsA$ Return to Shareholders A$ Final Dividend ($ , fully franked)A$ 2011 7,468 tonnes Nickel packaged Flooding 900 tonnes lost Nickel production murrin East development completed higher grade ore feed from H2 2011 Slide 16 US$ per pound Nickel C1 Costs*, includes.

7 US$ per pound Nickel due to higher A$ (averaged parity) US$ per pound Nickel impact of floods* Brook Hunt direct cash costs (C1) after by-product credits, marketing costs and state royalties Slide 17 murrin murrin MineResources and ReservesMineral ResourcesResource CategoryTonnage (million tonnes) Nickel Grade %Cobalt Grade %Cut-off Grade (Measured) ReservesReserve CategoryTonnage (million tonnes) Nickel Grade %Cobalt Grade % murrin Resources and Reserves as at 31 December 2010: (Minara 60%)(Refer to Statements related to Resources and Reservesat the end of this presentation)Sulphur Price Protection Sulphur represents 15% -20% of total production costs Current spot prices of US$200 -$220 per tonne FOB Vancouver Sulphur market spiked in 2008 to over US$800 per tonne Price protection in place with long-term suppliers.

8 Secures sulphur volumes Protects against future price spikes These arrangements are currently delivering savings to the business Slide 192010 Capital InvestmentsProjectObjectiveCostStatusHig h-density slurry (HDS)5 10% increased throughput at front-end of plant+$90 M Commissioning in progress Delivering increased throughputMurrin murrin East mine developmentImprove medium term grade profile$13 M Development on schedule, on budget Set to boost grade from H2 20116thnickel reduction autoclave (plus second Nickel reduction flash vessel)5 10% increased throughput capacity at back end of plant$11 M Commissioning on budgetIn-pit tailings disposalReduce operating costs & environmental footprint by depositing tailings to mined out ore pits$13 -15 M Commissioned on time, on budget Delivers significant ongoing operating and capital cost reductionsSlide 20 Offtake renewal Slide 21 Minara s share of murrin murrin Nickel production is currently sold to Glencore for the LME price, less a discount, pursuant to an offtake agreement expiring 1 December 2011 A five year extension has been negotiated to this agreement, with provision to go to 10 years The key change is a reduction of the discount payable to Glencore on Nickel sales from to (cobalt discount to remain at ) This is estimated to save approx.

9 $2 million pa Ernst & Young have reviewed the extension and concluded it is at arms length and is fair and reasonable to the non-Glencore shareholders Approval of the extension will be put to a vote of the non-Glencore shareholders at Minara s AGM on 13 May 2011**Shareholders should read the Notice of Annual General meeting in full, including the explanatory memorandum and Ernst & Young report before voting on the subject shareholders resolutionSlide 22 GrowthGrowth -Overview Minara s strong operating performance and financial position allows a Growth focus The benefits of successive past capital investment will be realised through increased plant throughput and production in the future The murrin murrin East ore will improve the medium-term grade profile from the second half of 2011 Other internal Growth projects are being studied/advanced, each with the capacity to deliver increased production Beyond realising the latent value of murrin murrin , Minara is actively seeking second mine acquisition opportunitiesSlide 23 Growth -Internal Further opportunities for increased production.

10 Slide 24 InitiativeObjectiveStatusSecondary feedProcess higher grade ore/concentrates from other mines Treated Western Areas NL Spotted Quoll ore since mid-2010 Negotiating other sources of feedNear mine explorationIdentify high grade areasAccess these to lift medium term grade profile First near mine exploration since 2000 Initial success, additional personnel and resources committed for the remainder of 2011. Marshall Pool Identify attractive areas within this large known resource, for beneficiation and treatment at murrin to lift medium term grade profile Feasibility study underwayAcquire sulphide depositAcquire new sulphide Nickel resource -can cope with high arsenic, non-smeltable material SearchingGrowth -External Actively seeking second mine opportunities to leverage from strong corporate and financial position and core capabilities in.