4 September 2009 ASX Code: DMM Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Via e lodgement CORPORATE PRESENTATION Enclosed is the corporate presentation David Sumich delivered at the Africa Down Under conference in Perth this week. Yours faithfully Fiona Taylor Company Secretary For further information: David Sumich: Managing Director, +61 8 9486 1909
DMC Mining Limited Company Update September 2009 Africa Down Under Conference Page 1
Disclaimer Any forward looking statements in this presentation have been prepared on the basis of a number of assumptions which may prove incorrect and the current intentions, plans, expectations and beliefs about future events are subject to risks, uncertainties and other factors, many of which are outside DMC Mining Limited s ( DMC ) control. Important factors that could cause actual results to differ materially from the assumptions or expectations expressed or implied in this presentation include known and unknown risks. Because actual results could differ materially to the assumptions made and DMC s current intentions, plans, expectations and beliefs about the future, you are urged to view all forward looking statements contained in this presentation with caution. This presentation should not be relied upon as a recommendation or forecast by DMC. Nothing in this presentation should be construed as either an offer to sell of a solicitation of an offer to buy or sell securities in any jurisdiction. This Presentation is not intended to provide the sole basis of any investment decision or other evaluation. Each recipient hereof contemplating an investment in the securities of DMC shall make, or shall be deemed to have made, their own independent investigation of DMC and related documentation and their own appraisals of the prospects and merits or the Company and its assets described herein. All forecasts, facts, information, estimates and other statements of opinion contained in this Presentation have been prepared solely by, or on the basis of, information supplied to DMC. While the information contained herein is believed to be true and accurate, we expressly disclaim any and all liability for representations or warranties, expressed or implied, contained herein, or in any other written or oral communications transmitted or made available to any prospective investor. No representation or warranty is made by DMC that forecasts, projections, business goals or estimates contained herein will be achieved. This Presentation speaks as of the date hereof. Neither the delivery of the Presentation nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof. Page 2
Company Overview Based in Perth. Listed on the ASX in July 2007 80% interest in the Mayoko Iron Ore Project Exploration Target size 0.7 1.0 Billion tonnes of predominantly hematite itabirite iron mineralisation at Mayoko Iron Ore Project. Strike length ~7km. Drilling scheduled to commence 4 th quarter 2009 Within 2.2km of railway that connects to deep water port of Pointe. 68.9 Million shares on issue. Current share price $0.30. (Market Cap. ~A$20.7 million) Cape Lambert Iron Ore (ASX: CFE), via Dempsey Resources Pty Ltd, 36.3% shareholding. Page 3
Capital Structure & Directors Capital Structure ASX Code: Listed: July 2007 DMM A$2.2M IPO Shares (DMM): 68.9M Options (unlisted June 2010 $0.15) 2.9M Options (unlisted June 2010 $0.65) 1.25M Options (unlisted June 2010 $0.40) 2.0M Shareholdings Top 20 78% Major Shareholders Cape Lambert (via Dempsey P/L) 36.3% Project Vendors 10.9% Directors & Management 8.9% Share Price: Mkt. Cap: (undiluted) Cash at Bank (03/08/09): A$0.30 A$20.7 million ~A$1.0 mill Directors & Management Managing Director Non Executive Director Non Executive Director David Sumich Joe Ariti Kim Bischoff Director (Congo) Henri Okemba Chart 1: DMC 1 year price and volume graph. Source:ASX Page 4
Regional Overview Central West Africa the next major global iron ore province? The Mayoko Iron Ore Project is the only project within the region with existing, operational rail & port infrastructure. Figure 1: Regional Map Page 5
Regional Overview Page 6
Regional Overview Page 7
Exploration Target High resolution airborne geophysical survey covering 220km 2 located in the central portion of the 1,000km 2 Mayoko exploration licence completed. The Mt Lekoumou and Mt Mipoundi prospects are defined by a prominent 7km long magnetic anomaly. Exploration target size of 0.7 1.0 Billion tonnes of predominantly itabirite (35% - 45% Fe) iron mineralisation at Mt Lekoumou, Mt Lekoumou South, and Mt Mipoundi Geophysical survey has identified 3 new magnetic anomalies (not included in the estimate exploration target size) Figure 2 Mayoko Project 2009 airborne survey area and anomalies. Page 8
Exploration Target Recent trenching and historic shallow diamond drilling (38 holes) has confirmed the occurrence of supergene hematite mineralisation (Fe grades 50 65%) extending from surface to depths of 10-40m. The supergene hematite mineralisation overlies banded itabirite with grades in the range 35 45% Fe. JORC Inferred Mineral Resource of 33Mt @ 56% Fe in the south west region of the anomaly. Diamond drill programme to commence 4 th quarter 2009. Figure 3: Mt Lekoumou Mt Mipoundi prospects with magnetic anomalies Page 9
Government Mayoko Iron Ore Project Date Project Acquisition November 2007 Initial JORC Resource Estimate May 2008 Scoping Study June 2008 Exploration Convention July 2008 Conditional Export Approval January 2009 Rail Access Agreement March 2009 Port MOU Agreement June 2009 Environmental Approval Hon. Pierre Oba, Minister of Mines & Geology with DMC Managing Director, David Sumich, at the signing of the Mining Prospecting Convention. Mining Convention We are pleased that DMC Iron Congo will accompany us on this venture designed to give a practical dimension to the aspirations of the President, so as to give strong mines of Congo, like Mayoko, their rightful place in the economy of our country and their true place in the workings of the world Mr Pierre Oba, Minister for Mines Page 10
Rail Agreement completed between DMC s subsidiary, and the Chemin de Fer Congo-Ocean ( CFCO ), whereby immediate access has been granted to DMC for the usage of the Mayoko to Pointe Noire bulk haulage rail line. The Mayoko to Point Noire Rail Line was built by COMILOG to haul manganese. 1986 was the best year of production with 3.1Mt railed. Bulk haulage ended in 1991. The initial evaluation indicates the line is capable of carrying 11 Mtpa. (GRD Minproc Scoping Study June 2008) The rail line is currently under utilized. CFCO presently operate weekly passenger and general freight trains. Figure 4: Project Location Page 11
Rail The rail line is approximately 2.2 km from DMC s Mt Lekoumou prospect and runs to the wharf of the established deep water port of Pointe Noire. Narrow gauge (1067mm) with a distance of 439km to the port of Pointe Noire. The elevation of the rail line at Mayoko is approximately 620m. The general downhill grade is advantageous for the loaded trains. Image 1: Diesel Storage at Mossendjo station Image 3: Locomotive using the Mayoko to Pointe Noire Rail Line (Locomotive not the property of DMC) Image 2: Louesse River bridge Page 12
Rail The Mayoko to Pointe Noire rail line undergoes regular maintenance by the CFCO. Images 4-7 Mayoko to Pointe Noire Rail Line. (Subject to the agreement between DMC and CFCO) Page 13
Port DMC has completed an MOU with the Port Authority of Pointe Noire ( PAPN ) in relation to studying the feasibility of options for export of iron ore by DMC through the Port of Pointe Noire. The Mayoko to Pointe Noire rail line connects directly to the wharf at the Port of Pointe Noire. The port and harbor of Pointe Noire is capable of berthing Panamax size vessels and DMC intends to use the port during the early stages of production. Image 8: Port of Pointe Noire Page 14
Strategic Negotiations & Objectives DMC has conducted numerous negotiations with interested parties in relation to the potential Joint Venture, strategic long term funding and/or off-take partnerships in relation the Mayoko Iron Ore Project. DMC can leverage off Cape Lambert industry relationships. DMC s immediate corporate objective is to increase the resource. Page 15
Work Plan and Objectives 2009; Define resource potential and ore types Approx 3,000 metres of diamond drilling on 1km traverses Commence preliminary metallurgical test work Capital raise 2010; Resource definition Delineation drilling to define Inferred and Indicated Mineral Resource Complete metallurgical test work Commence pre-feasibility studies Page 16
Market Capitalisation Comparison 1400.0 1200.0 Upside as project matures Market Cap ($A million) 1000.0 800.0 600.0 400.0 DMC Mining Limited ASX Companies with non- Australian projects 399.4 200.0 109.2 177.4 0.0 20.7 Page 17 Source : Morningstar. 12 th August 09
Summary Existing Transport Infrastructure. Significant CAPEX savings compared to many peers. Reduces development lead time by an estimated 10 years. Exploration Upside Target size of 0.7 1.0 Billion tonnes New targets to the north Drilling scheduled to commence 4th quarter 2009 New cornerstone shareholder Cape Lambert Increases market profile Financial backing to complete exploration programmes Technical assistance Current Market capitalisation A$20.7 million. Represents a lower risk, early stage, leveraged entry valuation Page 18
End DMC Mining Limited www.dmcmining.com.au Contacts: David Sumich (Managing Director) The contents of this report relating to exploration and mineral resources are based on information compiled by Kim Bischoff, a Member of the Australasian Institute of Mining and Metallurgy. Mr Bischoff is a Non-executive Director of DMC Mining and has sufficient experience relevant to the styles of mineralisation and the deposit under consideration and to the activity he is undertaking to qualify as a Competent Person, as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bischoff consents to the inclusion in this report of the matters compiled by him in the form and context in which they appear. The estimates of exploration target sizes mentioned in this release should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there has been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource. Page 19