Australian Copper Gold 28th Sep 2014

DISCLAIMER This research report is provided in good faith from sources believed to be accurate and reliable. Terra Studio Pty Ltd directors and employees do not accept liability for the results of any action taken on the basis of the information provided or for any errors or omissions contained therein. Readers should seek investment advice from their professional advisors before acting upon information contained herein. Page 1 / 2

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CHINA LOSING ITS APPETITE FOR GOLD Precious an and Base Metals Fundamentals

Global Exchange Stocks of Copper as of 25 Sep 2014

Source: Metal Prices, Reuters, SNL, Terra Studio

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20

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80

Dec/12 Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 Jun/14

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ns

SNL Indices

SNL Base Metals Volume SNL Precious Metals Volume SNL Base Metals Index SNL Precious Metals Index

$2.80

$3.00

$3.20

$3.40

$3.60

$3.80

$4.00

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100

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Jan 13 Apr 13 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Th

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China Copper Imports

Imports Price

$2.80

$2.90

$3.00

$3.10

$3.20

$3.30

$3.40

$3.50

$3.60

$3.70

$3.80

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100

200

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400

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1,000

Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14

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Copper Exchange Inventories

SHFE COMEX LME Price

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

Jan/13 Apr/13 Jul/13 Oct/13 Jan/14 Apr/14 Jul/14

Gold Price

A$ US$

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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Hong Kong Gold Net Imports

2013 2014

Australian Copper Gold 28th Sep 2014

DISCLAIMER This research report is provided in good faith from sources believed to be accurate and reliable. Terra Studio Pty Ltd directors and employees do not accept liability for the results of any action taken on the basis of the information provided or for any errors or omissions contained therein. Readers should seek investment advice from their professional advisors before acting upon information contained herein. Page 2 / 2

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Markets & Majors

Thomson Reuters - Newmont Mining Corp raised its full-year copper production forecast after ending a tax dispute with the Indonesian government that allows it to resume shipments from the country. Newmont halted exports in January after Indonesia imposed a hefty export tax that the US firm said violated its mining contract. It halted production in June. The miner said last Monday it received an export permit from the Indonesian government to resume copper concentrate shipments from the country. Newmont, the second-largest copper producer in Indonesia, said it now expects to produce 120,000-125,000 tonnes on a consolidated basis in 2014, up from its previous forecast of 80,000-95,000 tonnes.

SNL - China may be the world's largest gold market, but because most of it is closed from foreign participation, there is still a long road ahead before Shanghai will be able to challenge the likes of New York and London in the global pricing of the precious metal.

Copper Producers

Source: SNL

Copper Explorers & Emerging Producers

Source: SNL

However, a significant step took place September 18, when the Shanghai Gold Exchange launched a new international gold-trading platform, in Shanghai's free trade zone, with 11 Chinese yuan-denominated physical contracts — including

three specifically formulated to foreign tastes. The exchange has also so far signed up around 40 international banks and financial institutions to trade on the new board, including HSBC, Standard Chartered, Goldman Sachs and UBS AG, in addition to the bourse's existing domestic members

Trading volumes in the first week since the launch has so far been quiet, according to local Chinese-language media reports, but market watchers say the establishment of the international board itself is a good start on the road to the internationalization of gold trading in China. "There is a long way to go before Shanghai can challenge the traditional dominance of London and New York in the global gold market as more policies are needed to liberalize the tightly controlled domestic market of gold," said Zhang Lei, chief gold analyst with Beijing Gold Exchange center, a precious metals brokerage and a member of the exchange.

Gold Producers

Source: SNL

Gold Explorers & Emerging Producers

Source: SNL

Code Company Name Close Price Week r YTD r 52 Week

RangeMarket Cap

(A$m)Cash

(A$m)TEV

(A$m)TEV/

EBITDA

ABY Aditya Birla Minerals 0.26 ▼ (7%) (25%) 80 137 (56) NMAOH Altona Mining 0.22 ▼ (2%) 30% 115 18 99 2.8xDML Discovery Metals 0.030 — 0% (43%) 19 5 139 2.4xHGO Hillgrove Resources 0.58 ▼ (7%) (19%) 86 16 100 2.4xKBL KBL Mining 0.040 ▼ (15%) (9%) 16 7 31 1.9xOZL OZ Minerals 3.83 ▼ (8%) 22% 1,162 364 1,007 5.5xPNA PanAust 1.96 ▼ (4%) 8% 1,243 146 1,460 NASFR Sandfire Resources 5.68 ▼ (5%) (12%) 884 58 987 4.5xSRQ Straits Resources 0.005 ▼ (17%) (38%) 6 13 129 17.5xTGS Tiger Resources 0.28 ▼ (7%) (19%) 294 42 424 NAMWE Mawson West 0.25 ▼ (4%) (59%) 42 54 36 NM

985 CST Mining 0.007 ▼ (2%) (31%) 183 146 28 NM1208 MMG 0.43 ▼ (2%) 77% 2,260 154 4,159 4.6x

Code Company Name Close Price Week r YTD r 52 Week

RangeMarket Cap

(A$m)Cash

(A$m)TEV

(A$m)AQR Aeon Metals 0.14 ▼ (13%) 8% 43 1 43 ARE Argonaut Resources 0.020 ▼ (13%) (15%) 9 2 6 AVB Avanco Resources 0.095 ▼ (10%) 34% 158 32 126 AVI Avalon Minerals 0.006 ▼ (25%) (40%) 9 1 6 AZS Azure Minerals 0.028 ▼ (3%) (6%) 22 1 21 BMB Balamara Resources 0.065 ▲ 7% (32%) 23 0 23 BTR Blackthorn Resources 0.26 — 0% 0% 43 12 30 CDU CuDeco 1.60 ▼ (5%) (11%) 376 46 328 ENR Encounter Resources 0.25 — 0% 32% 33 4 29 ERM Emmerson Resources 0.039 ▲ 3% 1% 15 2 13 FND Finders Resources 0.165 ▼ (3%) (21%) 111 8 96 GCR Golden Cross Resources 0.095 ▲ 8% (5%) 9 2 7 HAV Havilah Resources 0.115 — 0% (52%) 17 6 14 HCH Hot Chili 0.22 ▲ 5% (49%) 75 13 73 IRN Indophil Resources 0.29 ▲ 38% 76% 349 215 140 KDR Kidman Resources 0.086 ▲ 1% (54%) 10 2 6 KGL KGL Resources 0.24 ▼ (14%) 129% 34 7 20 MEP Minotaur Exploration 0.17 ▲ 6% 17% 26 5 22 MNC Metminco 0.017 — 0% (45%) 30 8 27 PEX Peel Mining 0.085 — 0% (67%) 11 3 8 RDM Red Metal 0.14 — 0% (7%) 24 2 23 RXM Rex Minerals 0.27 ▼ (2%) (45%) 58 25 43 SMD Syndicated Metals 0.042 — 0% 24% 12 2 9 SUH Southern Hemisphere 0.066 — 0% 33% 16 2 16 TLM Talisman Mining 0.14 — 0% 33% 18 16 2 VXR Venturex Resources 0.007 ▼ (13%) (30%) 11 3 7 XAM Xanadu Mines 0.13 — 0% 160% 31 6 29

Code Company Name Close Price Week r YTD r 52 Week

RangeMarket Cap

(A$m)Cash

(A$m)TEV

(A$m)TEV/

EBITDA

AGD Austral Gold 0.13 — 0% 8% 22 NA 75 NAALK Alkane Resources 0.21 ▲ 2% (38%) 87 80 43 NAAMI Aurelia Metals 0.35 ▼ (3%) 50% 113 22 198 NMBDR Beadell Resources 0.42 ▼ (12%) (47%) 335 10 397 3.2xDRM Doray Minerals 0.50 ▼ (6%) (11%) 83 26 109 4.9xEVN Evolution Mining 0.75 ▼ (2%) 21% 531 32 661 3.2xIGO Independence Group 4.01 ▼ (5%) 29% 939 57 911 6.5xKCN Kingsgate Consolidated 0.76 ▼ (2%) (14%) 170 54 270 NMKRM Kingsrose Mining 0.39 ▼ (11%) 16% 140 7 145 NMLSA Lachlan Star 0.077 — 0% (62%) 11 2 29 10.6xMIZ Minera Gold 0.006 ▼ (14%) (14%) 15 0 20 NMMLX Metals X 0.24 ▼ (6%) 41% 397 57 340 4.9xMML Medusa Mining 0.89 ▼ (6%) (56%) 185 14 181 3.3xMOY Millennium Minerals 0.080 ▼ (7%) (58%) 17 2 56 5.7xNCM Newcrest Mining 10.54 ▲ 5% 35% 8,075 141 12,136 NMNGF Norton Gold Fields 0.15 ▼ (3%) 11% 140 38 240 NANST Northern Star Resources 1.34 ▲ 6% 71% 787 82 710 8.5xOGC OceanaGold Corp. 2.35 ▲ 11% 40% 708 28 833 3.7xPGI PanTerra Gold 0.042 ▼ (5%) 2% 35 6 100 5.0xPRU Perseus Mining 0.36 — 0% 45% 187 37 157 28.3xRMS Ramelius Resources 0.05 ▲ 4% (46%) 24 12 14 NMRRL Regis Resources 1.62 ▼ (5%) (45%) 810 7 843 NMRSG Resolute Mining 0.45 ▼ (7%) (20%) 285 19 317 3.0xSAR Saracen Mineral Holdings 0.38 ▲ 3% 111% 301 36 279 6.7xSLR Silver Lake Resources 0.42 ▲ 1% (21%) 211 24 200 NMSBM St Barbara 0.16 ▲ 3% (38%) 78 79 338 NMTBR Tribune Resources 3.15 ▼ (3%) 35% 158 9 176 3.5xTRY Troy Resources 0.80 ▼ (3%) 2% 156 43 153 NMUML Unity Mining 0.011 ▲ 38% (73%) 12 7 6 NM

Code Company Name Close Price Week r YTD r 52 Week

RangeMarket Cap

(A$m)Cash

(A$m)TEV

(A$m)

ABU ABM Resources 0.33 ▼ (3%) 0% 90 10 80 AZM Azumah Resources 0.038 ▲ 9% 36% 15 4 11 BAB Bullabulling Gold 0.078 — 0% 73% 27 4 25 BLK Blackham Resources 0.15 ▲ 3% (12%) 18 1 17 BSR Bassari Resources 0.018 ▲ 13% 125% 21 - 21 CHN Chalice Gold Mines 0.13 ▼ (4%) (7%) 36 56 (19)DCN Dacian Gold 0.35 ▼ (3%) 46% 25 11 14 EXG Excelsior Gold 0.070 ▼ (1%) 1% 29 5 27 FML Focus Minerals 0.013 ▲ 18% 8% 119 81 119 GCY Gascoyne Resources 0.18 ▲ 9% 29% 29 1 28 GMR Golden Rim Resources 0.010 ▼ (9%) (9%) 11 1 12 GOR Gold Road Resources 0.30 ▼ (8%) 203% 155 10 145 GRY Gryphon Minerals 0.13 ▼ (10%) (24%) 52 52 10 KGD Kula Gold 0.080 — 0% (24%) 12 3 12 MSR Manas Resources 0.027 ▼ (13%) (16%) 12 6 10 MUX Mungana Goldmines 0.130 ▼ (21%) 381% 21 5 16 MYG Mutiny Gold 0.034 ▼ (8%) 8% 23 2 21 OBS Orbis Gold 0.37 ▲ 9% 46% 91 9 86 OGX Orinoco Gold 0.097 ▼ (8%) (25%) 12 4 11 PIR Papillon Resources 1.49 ▼ (7%) 52% 525 53 484 PXG Phoenix Gold 0.12 ▲ 20% (26%) 43 9 33 RED Red 5 0.082 ▼ (5%) (7%) 62 8 25 RNI Resource & Investment 0.16 ▼ (14%) 192% 66 2 78 RNS Renaissance Minerals 0.070 ▲ 4% 17% 28 2 26 SIH Sihayo Gold 0.013 — 0% (56%) 13 3 9 SXG Southern Cross Goldfields 0.009 ▼ (10%) (31%) 9 2 9 TAM Tanami Gold 0.018 ▼ (5%) (18%) 21 1 28 WPG WPG Resources 0.048 ▲ 7% 66% 13 5 7