Growth by discovery, acquisition and development. Gary Stafford, Managing Director Sydney Mining Club 7 November 2013

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1 Growth by discovery, acquisition and development Gary Stafford, Managing Director Sydney Mining Club 7 November 2013

2 From junior explorer to mid-tier miner PanAust formed in 1995 as a minerals explorer Late 1990 s cyclical commodity downturn led to a strategy shift to acquire a predevelopment stage mining asset 2001 agreement to acquire Lao registered Phu Bia Mining Limited Heap Leach Gold Operation commenced in 2005 but the real opportunity lay in the larger Phu Kham Copper-Gold Operation which was brought into production in 2008 Phu Kham production to steadily increase to a peak of around 90,000tpa

3 PanAust timeline 2005: First gold pour at the Phu Kham Heap Leach Gold Operation 2006: Completion of equity and debt package for funding of development of Phu Kham 2008: First sales of copper-gold concentrate from Phu Kham Late 2008: Phu Kham was cash flow positive despite the slump in copper prices due to the GFC 2009: Recapitalised after the GFC 2010: Decision to build Ban Houayxai for average annual production of 100,000oz gold and 700,000oz silver

4 PanAust timeline continued 2010: Phu Kham production rose to 67,800t copper and 58,000oz gold Acquired a majority interest in the Inca de Oro Project in Chile 2012: First gold-silver bar poured at Ban Houayxai. Completed the US$95m Phu Kham expansion 2013: Completed the US$30m Phu Kham Increased Recovery Project Announced the acquisition of Frieda River

5 Contribution to the Lao economy Good operating environment, stable government GoL owns 10% of Phu Bia Mining Ltd, PanAust s Lao-registered entity To date, PanAust has invested approximately US$1.2 billion in Laos In 2012, PanAust s economic contributions accounted for: More than 7% of the nation s GDP; and Over 30% of total Lao exports

6 Production and growth Phu Kham and Ban Houayxai providing strong cash flow to support dividends and growth Phu Kham process plant upgrade; Increased Recovery Project 2013 Production to progressively lift to annual output to peak levels of 90,000 tonnes per annum in 2018 and 2019 Production outlook for 2013 to 2015 unchanged: 62,000t to 65,000t copper for 2013; rising to between 65,000t and 70,000t in 2014 and more than 70,000t in 2015

7 Pre-development opportunities in Laos Mineral Exploration and Production Agreement covers an area of over 2600km² Phu Kham region: trend of coppergold and gold-silver mineralisation extending from Phu Kham for a distance of over 13km Potential to augment Phu Kham mill feed and extend mine life Phonsavan Copper-Gold Project: stand alone project or low capital trucking option for processing at Phu Kham

8 Phonsavan Copper-Gold Project, Laos Pre-feasibility study nearing completion Development options: Stand-alone open-pit and flotation processing operation Alternative low capital cost development scenario to transport highgrade open-pit mineralisation for processing at Phu Kham Data shown on a 100% equity basis.

9 Inca de Oro Copper-Gold Project, Chile Joint Venture with Codelco (PanAust 60.45%) Feasibility Study underway: scheduled for completion in mid Potential to establish a second business stream in Chile Carmen copper-gold deposit (PanAust 100%): potential satellite open-pit to augment Inca de Oro feed

10 Frieda River Project, PNG PanAust has entered into a share sale and purchase agreement with Glencore Xstrata plc to acquire its shares in Xstrata Frieda River Ltd (XFRL) Initial Frieda River Project ownership will be PanAust 80%, Highlands 20%; the PNG Government has an option to acquire up to 30% of Frieda River Initial cash consideration of US$75M in two tranches: US$25 million upon transaction close; and US$50 million on 31 December 2015 On successful completion of a project development a 2% NSR royalty becomes payable that will not exceed US$50 million in aggregate The acquisition fits well with PanAust s corporate strategy; entry into a world class copper-gold deposit that provides the basis for long-term sustainable growth of the business

11 Project location Source: Glencore Xstrata

12 About Frieda River To date, four copper-gold deposits and several prospects have been identified along a approximately 10 km trend Project focused on the large Horse-Ivaal-Tukai (HIT) copper-gold deposit Project terrain similar to that at PanAust s Phu Kham operation in Laos Previous feasibility study work by XFRL focused on a large scale development PanAust will evaluate a mid-sized development option that utilises existing logistical routes and minimises infrastructure requirements; expected to result in a competitive capital intensity and manageable risk profile Feasibility study based on the HIT copper-gold deposit is expected to be complete by mid-2015

13 Terrain is similar to Laos N Main camp HIT Deposit Drill camp

14 Frieda River Development Concept Scoping study completed on a smaller circa 24 million tonne per annum conventional open pit and flotation operation Assumed mill feed of 430 million tonnes grading 0.54% copper and 0.3g/t gold; average annual production (100% basis) of over 100,000 tonnes of copper and 160,000 ounces of gold in concentrate at competitive cash cost of approx. $US1.25/lb (after gold credits) over an 18 year mine life. Low strip ratio - less than 0.6:1 including pre-strip Sepik River will the main artery for the supply of materials and export of copper-gold concentrate Development capital estimated in range of US$1.5 billion to US$1.8 billion (100% basis, 2013 dollars) which would equate to a competitive capital intensity of less than US$13,00/t of annual copper equivalent production.

15 Industry positioning 800 Independent and listed copper companies (below Freeport) ranked by 2013 forecast attributable copper equivalent production Copper Equivalent Production (kt) Southern Copper Antofagasta First Quantum Kazakhmys PanAust Five-year plan Lundin Capstone (incl Pinto Valley annualised) PanAust OZ Minerals Hudbay Sandfire Status Quo Source: Company guidance, PanAust estimates. Copper equivalent calculation based on 25/10/2013 close prices: US$3.23/lb Cu, US$1,350/oz Au, US$23/oz Ag, US$9/lb Mo, US$0.86/lb Zn, US$6.52/lb Ni, and US$0.97/lb Pb.

16 Strong commitment to sustainable development PanAust s commitment to sustainable development is a key consideration in the way the Company undertakes its business activities Performance has been recognised internationally Strong emphasis on delivering sustainable benefits to the communities within the vicinity of its operations Around 50% of food requirements for the Phu Kham camp are sourced locally Further information on PanAust s sustainability programs and credentials, including the latest Sustainability Report, can be viewed at the Company s website PanAust s community development programs have a strong focus on education

17 Community Development Fund CDF comprises 67 small-scale projects in 30 rural communities directly and indirectly affected by PanAust s activities Local ownership of development priorities Funding and support for education, healthcare, agriculture, infrastructure and small business development Villagers rank development priorities during a community development workshop Aim to build long-term capacity in communities through economic development, rather than economic dependency Asian Development Bank partnership will see 11 towns throughout Laos be supplied with potable water and sanitation Community members doing a show of hands during a workshop to choose community development projects

18 Values Respect & Integrity Commitment to our employees health and safety Zero Harm safety objectives Promote an internal culture of environmental and social awareness Treating employees with consistency and fairness Environmental performance that reflects the expectations of the communities and international standards Integrity in all of our dealings with employees, communities, government, suppliers and shareholders Excellence in communication necessitates transparency

19 PanAust: the story so far.. Competitive copper and gold producer with strong cash flow to support growth initiatives Organic growth provided by capital efficient brownfield opportunities and pre-development opportunities in Laos, Chile and PNG Proven track record of discovery and resource growth Proven track record as a successful developer of operations

20 Important notice This presentation has been prepared by PanAust Limited (the 'Company') for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person. The information is based on publicly available information, internally developed data and other sources. No independent verification of those sources has been undertaken and where any opinion is expressed in this document it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. The Company disclaims and excludes all liability (to the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where the Company expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future projects, such expectation or belief is based on management s current predictions, assumptions and projections. However, such forecasts are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forecasts. Such risks include, but are not limited to, exploration success, gold and copper price volatility, changes to the current mineral resource estimates, changes to assumptions for capital and operating costs as well as political and operational risks and governmental regulation outcomes. For more detail of risks and other factors, refer to the Company's other Australian Securities Exchange announcements and filings. The Company does not have any obligation to advise any person if it becomes aware of any inaccuracy in, or omission from, any forecast or to update such forecast. Forward-Looking Statements This presentation includes certain Forward-Looking Statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding forecast cash operating costs and financial performance, potential mineralisation, resources, exploration results and future expansion plans and development objectives of PanAust Limited are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Canadian investors are advised that this presentation has not been prepared in accordance with Canadian securities law relating to forward looking statements and that the forward looking statements included herein may not be accompanied by the disclosure and explanations that would be required of a Canadian issuer under Ontario Securities Laws.