07 11 12_f

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TSX-V: ALR STRATEGIC LOCATION IN AN EMERGING COPPER-GOLD PORPHYRY DISTRICT July 2012

Transcript of 07 11 12_f

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TSX-V: ALR

STRATEGIC LOCATION IN AN

EMERGING COPPER-GOLD

PORPHYRY DISTRICT

July 2012

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This document contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited

to, statements with respect to the development potential and timetable of the Rosita project; the timing and amount of estimated future

development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; government regulation

of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology

such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not

anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”,

“might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the

date such statements are made. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may

cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied

by such forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms;

unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of

government approvals; actual results of exploration and mining activities; changes in project parameters as plans continue to be refined; future

prices of metals; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining

industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from

those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There

can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those

anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not

undertake to update any forward-looking statements except in accordance with applicable securities laws.

The technical and scientific information included herein has been reviewed and approved by Joseph Arengi, M.Sc., P.Geo , President and CEO of

the Company, and a qualified person under National Instrument 43-101 of the Canadian Securities Administrators.

Forward Looking Statements

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Alder Resources

• Experienced team with proven track record

• Right to acquire 65% interest in 33 km2

target-rich property with Copper-Gold-Silver

Porphyry/Skarn potential

• Excellent exploration upside at Rosita, a

past producer

• Solid initial resource base

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The Alder Team - Management

• Joseph Arengi , M. Sc., P. Geo. – President and CEO

35 years of exploration and operational experience throughout Canada, Nicaragua, South

America and Africa. Credited with discovering 4 billion pounds of copper and 60 million

ounces of silver in Botswana.

• John Spurney – VP Exploration

Over 30 years of diversified technical and managerial experience in mineral exploration,

primarily in Latin America, the Western U.S. and Asia.

• Ryan Ptolemy – CFO

Certified General Accountant and CFA charter holder. Mr. Ptolemy is currently also CFO of

Rodinia Lithium Inc. and Belo Sun Mining Corp. and was a Toronto investment dealer.

• Josh van Deurzen – Corporate Secretary

Corporate and securities lawyer, working as a legal consultant to various public and private

companies in the resource-based sector.

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The Alder Team - Board of Directors

• Don Dudek, Chairman

For 28 years, Mr. Dudek held various roles with junior and senior exploration and mining

companies. He is currently Senior VP Exploration for Avion Gold Corp.

• Rene Bharti, Director

Mr. Bharti, a Queen’s University Commerce graduate, has held roles in several public and

private companies including those in the resource and other sectors.

• Dan Bruno, Director

A Chartered Financial Analyst and MBA graduate, Mr. Bruno has over 15 years of investment

experience.

• Honourable Pierre Pettigrew, P.C., Director

Mr. Pettigrew is former Minister of Foreign Affairs and currently Executive Advisor, Deloitte &

Touche LLP. He is an advisor and board member of several publically traded companies.

• Will Randall, Director

A professional Geologist whose experience includes management roles in both mineral

exploration and production.

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Share Structure and Trading

TSX-V: ALR

ALR Share Structure: (July 9, 2012)

Common Shares: 72,579,085

Current share price : $0.09

Warrants: 15,952,019

Average warrant price: $0.21

Options: 7,175,000

FULLY DILUTED SHARES: 95,706,104

Insiders/Institutional Holders: 8%

Share Trading Activity:

52 week High/Low: $0.285/0.065

Market capitalization: $6.5M

Cash Balance: $1.7M

Debt: None 6

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Corporate Objectives

• Discover large porphyry copper-gold-silver deposit

• Delineate Resource in and around past producing open pits

• Expand property portfolio

• Practice diligent cash management

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Rosita Project - Location

•3,356 ha

property

•120 km to the

Puerto Cabezas

seaport

•275 km to

capital city of

Managua

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Nicaragua

• Largest and safest country in Central America

• Stable, supportive and democratically elected government

• Attractive tax regime: 3% NSR, 30% Net Profits Tax

• Long mining history with 3 currently producing gold mines:

• La Libertad, El Limon Mines (B2Gold)

• Bonanza Mine (Hemco)

• Proactive promotion of mining investment (www.nicaragua-pdac.org)

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NE Nicaragua – An Emerging Porphyry District

2.3M ozs Au

production*

3.0M ozs Au production*

B2Gold/Calibre Discovery

*See data in NI43-101 Technical Report

entitled “Technical Report on the Copper-Gold-

Silver Porphyry/Skarn Project at the Rosita D

Concession dated January 5, 2012 which is

filed on SEDAR.

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108M lbs Cu, 118K ozs Au,

2.4M ozs Ag resource (May 9, 2012 Inferred Resource News

Release; page 1)

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Rosita Project - History

• Past producer from two open pits – Santa Rita and R-13

• 245,000,000 lbs Copper

• 160,000 ounces Gold

• 2,610,000 ounces Silver

• Early mining focused on high grade copper with 2%

copper stockpiled

• First gold recovery during last 5 years of production

All of the historical mineral resource estimates and production totals quoted herein are based upon historical data and reports obtained and

prepared by previous operators and consultants (Arengi, 2003; Hendrickson, 1995; Rivera, 1977; Rosario, 1974; Sims, 1998) and the quoted

mineral resource estimates/mineral inventory were prepared prior to the introduction of National Instrument 43-101. These historic resource

estimates/mineral inventory are considered to be relevant to the evaluation of the Rosita D concession. A Qualified Person has not completed

the work necessary to independently verify the classification of the historic mineral resource estimates. Alder is not treating the mineral

resource estimates as National Instrument 43-101 compliant defined resources verified by a Qualified Person. The historical estimates should

not be relied upon.

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Rosita Project - Geology and Prospects

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Rosita Project - Target-Rich

FOCUSED ON THREE MAIN TARGETS:

• Stockpiles

• In Situ Mineralization at Santa Rita and R-13 Pits

• Bambana Porphyry

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Santa Rita Stockpiles – Compliant Inferred Resource

(See Alder News Release of May 9, 2012, page 1) 14

STOCKPILE TONNES

(106) Cu (%)

Au (g/t)

Ag (g/t)

CuEq (%)

Cu (lb X 106)

Au (oz)

Ag (oz)

NORTH 3.33 0.78 0.58 10.3 1.25 56.99 62,100 1,100,900

SOUTH 2.20 0.33 0.49 5.1 0.69 16.16 34,700 360,000

NE 0.55 0.50 0.22 9.6 0.75 6.06 3,800 168,300

EAST 1.88 0.71 0.30 12.0 1.03 29.33 17,900 725,100

TOTALS 7.95 0.62 0.46 9.2 1.01 108.54 118,500 2,354,300

Notes on Mineral Resource Estimation

1.The mineral resource estimate base case is reported at a 0.15% copper equivalent cut-off grade; this cut-off incorporates consideration of mining and processing cost, recoveries, commodity prices and selling cost.

2.The mineral resource estimate is reported on an undiluted basis.

3.The mineral resource estimate assumes a long term copper price of US$2.90/lb, a gold price of US$1,200/oz and a silver price of US$24/oz.

4.Rounding as required by NI 43-101 reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.

5.Tonnage and grade measurements are in metric units. Contained gold and silver ounces are reported as troy ounces, contained copper pounds as imperial pounds.

6.Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant

issues.

7.The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred mineral resources as indicated or measured mineral resources and it is uncertain if

further exploration will result in upgrading them to indicated or measured mineral resources.

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Santa Rita Stockpiles – Compliant Inferred Resource

(See Alder News Release of May 9, 2012, page 1) 15

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Discovery Costs

Total Corporate Expenditures = $1,680,000

Total Exploration Expenditures = $ 900,000

Equates to:

Total Expend. Explor. Expend.

Cu/lb $0.02 $0.01

Au/oz $14.20 $7.60

Ag/oz $0.71 $0.38

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Tailings Assessment

• Initial sampling

averaged 0.21%

Cu, 0.43 g/t Au

and 14.9 g/t Ag

• Grid sampling

at 100m spacing

• Resource

estimate to

follow if

warranted

(See Alder News Release of April 25, 2012) 17

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Santa Rita Stockpiles – Diamond Drill Holes

18 DDH’s, 4 areas

warrant follow-up

• D910 = 0.20Cu,1.28Au/65m

• D902,904 = multiple Cu, Au,

Ag targets

• D906, 911 = narrow high

grade skarn

• D907 = strong porphyry

textures, highly anomalous

Cu, Au

(See Alder News Release of May 31, 2012) 18

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Santa Rita – Cross Section

Alder has not yet verified the historic drill results

reported herein and does not intend to use this

information for purposes other than planning and

prioritizing exploration targets.

Continuity in host rock

Stacked lenses

Good grades and widths

Significant Au and Ag

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Santa Rita- Longitudinal Section

Alder has not yet verified the historic drill results reported herein and does not intend to use this

information for purposes other than planning and prioritizing exploration targets.

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Santa Rita/ R-13 Potential – South Corridor

21 Alder has not yet verified the historic drill results reported herein and does not intend to use this information for

purposes other than planning and prioritizing exploration targets. See Alder News Release of May 31, 2012

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Santa Rita- D910 Cross Section

Op

en

22 (See Alder News Release of May 31, 2012)

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Santa Rita/ R-13 Potential – North Corridor

23 Alder has not yet verified the historic drill results reported herein and does not intend to use this information for

purposes other than planning and prioritizing exploration targets. See Alder News Release of May 31, 2012

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Bambana T3 Zone - Cu-Au-Ag Porphyry

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IP Chargeability

Anomalies -100m

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Bambana – T3 Zone Bench Sample

(See Alder News Release of June 13, 2012) 25

3.07% Cu, 0.14 g/t Au, 14.4 g/t Ag/1 m

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Bambana – T3 Zone IP Signature

Line 5

Line 7

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Rosita Project - 2012 Exploration Objectives

• Complete 8,000m of core drilling by Q4

• IP Geophysical Survey in Q1 and Q2

• Initial Resource for stockpiles and tailings material

Q2

• Preliminary Mineralogical Study of stockpiles in Q2

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Rosita Project - Exploration Timeline

Milestone Qtr 1/12 Qtr 2/12 Qtr 3/12 Qtr 4/12

Trenching

IP Geophysics

RC Drilling Stockpiles

Initial Resource Estimate - Stockpiles

Diamond Drilling – Geology/Historic Targets (3,000m)

Diamond Drilling – Other (5,000m)

Resource Estimate – In Situ

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Summary

• Current exploration has identified high quality targets

• Solid resource base

• Highly experienced team with Central America focus

• Significant porphyry discovery by B2Gold/Calibre 8 km

south of Rosita D Concession

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Addendum

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Santa Rita Pit And Stockpiles

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Santa Rita Pit And Stockpiles

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