Corporate

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Institutional

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11-15 April 2011

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Disclaimer

Competent Person’s Statement

This report, so far as it pertains to ore and mineralisation, is based on information compiled by and as reported upon by Mr Joe Treacy, Mr Ian Hodkinson, Mr Ian Morrison and Mr Charlie Georgees, all full time employees of

Kagara Ltd; Ms Peta Libby, an employee of Digirock Pty Ltd; Mr Ingvar Kirchner, an employee of Coffey Mining Ltd; who are members of the Australian Institute of Geoscientists or the Australasian Institute of Mining and

Metallurgy and have over five years experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent person as defined in

the 2004 Edition of the ‘Australian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Messrs Treacy, Hodkinson, Anderson, Morrison, Georgees, Kirchner and Libby all consent to the inclusion in

the report of the matters based on their information in the form and context in which it appears.

JORC – Exploration Targets

It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this presentation relating to exploration targets should not be misunderstood or misconstrued as

an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work

completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

Forward-Looking Statements

This presentation has been prepared by Kagara Ltd. This document contains background information about Kagara Ltd current at the date of this presentation. The presentation is in summary form and does not purport to be all

inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained

in this presentation.

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of Kagara Ltd shares

in any jurisdiction.

This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own

jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.

This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and

recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All

securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

To the fullest extent permitted by law, Kagara Ltd, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any

information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.

This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Kagara Ltd. Actual values,

results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking

statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and ASX Listing Rules, Kagara Ltd does not undertake any obligation to update or

revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.

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Agenda

Company Snapshot

Production Overview & Quarterly Results

Copper Business

Overview

Resources, Growth & Exploration

Zinc-Lead Business

Overview

Resources, Growth & Exploration

Nickel Business

Overview

Resources, Growth & Growth

Listed Investments

Mungana Goldmines

Copper Strike

Summary & Outlook

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Company Snapshot

Copper

23,000t production (FY 11) – North Qld

Strong project pipeline and exploration portfolio

Zinc-Lead

42,000t production (FY 11), growing to +70,000tpa – N Qld

Tier One Lead-Zinc-Silver Project in WA (Admiral Bay)

Nickel

1,800t production (FY 11) – WA

Large resource base, excellent growth potential and upside

Listed Investments

Mungana Goldmines Limited (ASX: MUX) – 62.1%:

Market value: ~$80M, Resource inventory: 2.5Moz, 255,000t copper, 32Moz silver

Copper Strike Limited (ASX: CSE) – 17.5%:Market value: ~$2.5M, Resource inventory: 6.7Mt @ 1.1% Cu

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Corporate Overview

Shareholders No. Shares ‘000 % Capital

GGHG Shengtuo Metals Pty Ltd 133,777 18.9

Perennial Value Management 39,608 5.6

JP Morgan Asset Management 35,449 5.0

Strategic Investment Advisors Groups 34,821 4.9

Korea Zinc Co Ltd 29,529 4.2

Kim Robinson (Chairman)

Geoff Day (Managing Director)

Joe Treacy (Executive Director)

Flavio Garofalo (Executive Director)

Mark McConnell (Non Executive Director)

Mark Ashley (Non Executive Director)

Ross Hutton (Non Executive Director)

Shad Linley (Non Executive Director)

Shares on Issue 708.583M

Unlisted options on issue 7.230M ($1.50)

3.0M ($1.40)

3.0M ($1.80)

3.0M ($2.20)

Cash & Receivables: $95.1M*

Market Capitalisation: $450M (@ 63.5c as at 8 April)

Enterprise Value: $450M

Issued Capital

Key Financial Data (as at 31 March 2011)

Major Shareholders (as at 1 March 2011)

Share Price – Past 12 months

Board of Directors

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* Cash on hand of $57.7M and Receivables of $37.4M

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Production Overview

Diversified production base in North Queensland and WA

Strong growth potential across all metals

Secure off-take arrangements in place, providing protection against

current smelter capacity constraints

COPPER ZINC + LEAD NICKEL

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5,000

10,000

15,000

20,000

25,000

30,000

35,000

FY 2011 FY 2014

Growth Potential = 30%

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20,000

40,000

60,000

80,000

100,000

120,000

140,000

FY 2011 FY 2014

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3,000

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5,000

FY 2011 FY 2014

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Growth Potential = 185% Growth Potential = 120%

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Operational Overview

Operational and strategic review underway:

Identify key value drivers and refine business plans

Maximise operating margins

Strong focus on improving safety performance

Focused capital development and exploration program

planned over the next 18-24 months:

to be funded by cash flows from existing operations

All North Queensland assets remain highly prospective

but have had minimal exploration attention since the GFC

Exploration budget increasing to +$20M in FY 2012, more

than double current levels

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Breakdown of Forecast Revenues – FY 2011

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Market Outlook – Copper and Zinc

Commodity Price Forecasts – (USc/lb): Goldman Sachs & Partners, February 2011

Strong demand outlook for

both core commodities

Supported by growing

confidence in global

economic recovery

Copper market deficit of

~380,000t forecast for CY

2012

Improving fundamentals in

zinc market – market

deficit of ~230,000t

forecast for CY 2013

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“...subject to a levelling out in zinc production from China‟s „small mines sector‟, the zinc market could begin to resemble copper in two to three years...”

– Goldman Sachs Investment Research, February 2011

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March 2011 Quarterly Highlights

29% increase in group total copper production to 6,767t

cash cost of US$1.85 per pound of payable copper (for

copper production through the Mt Garnet copper plant)

Group total zinc production of 7,119t

cash cost of US$0.81 per pound of payable zinc

Record cash operating margin for copper of US$2.24/lb

Increased cash operating margin for zinc of US$0.21/lb

16,329t of concentrate stockpiles at quarter-end (value: A$25-

30M)

Consolidated cash on hand of $57.7M plus receivables of

A$37.4M

Substantial earnings rebound expected in second half due to:

drawdown of concentrate stockpiles

ramp-up of production at Vomacka

increased nickel production at Lounge Lizard9

March Quarter Cash Cost

6,767t

US$1.85/lb

March Quarter Cash Cost

7,119t

US$0.81/lb

COPPER

ZINC + LEAD

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Copper Business – Overview

Forecast 23,000t production in FY 2011:

~15,000t from Mt Garnet copper plant

~8,000t from Mt Garnet, Thalanga polymetallic plants

Targeting increase to ~30,000tpa by FY 2015

C1 cash operating costs for primary copper production

(500,000tpa Mt Garnet plant) of US$1.85/lb (March Qtr)

Growth pipeline includes near-mine extensions at Balcooma,

Maitland and new high-grade discovery at Griffiths Hill

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FY 2011 FY 2012 FY 2013 FY 2014

COPPER

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Copper Business – Resources

Global North Queensland resource inventory: 210,000t

of contained copper metal, comprising*:

Copper reserves and resources for processing through

Mt Garnet copper plant:

Reserves: 519,000t @ 3.4% Cu (17,000t Cu)

Resources: 2.768Mt @ 2.0% Cu (55,000t Cu)

Copper reserves and resources for processing through

the Mt Garnet and Mungana polymetallic plants:

Reserves: 3.664Mt @ 1.1% Cu (40,000t Cu)

Resources: 11.296Mt @ 0.9% Cu (100,000t Cu)

Additional Exploration Target1 established for new

Griffiths Hill discovery near Red Dome:

0.8-1.5Mt @ 3-4% Cu (24,000-60,000t Cu)

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1 JORC – Exploration TargetsIt is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

* Note: see full resource tables attached to the end of this presentation

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Copper Business – Growth & Exploration

Near-term development opportunities:

Balcooma near-mine extensions

Maitland (Indicated Resource of 1.45Mt @ 1.5% Cu)

Griffiths Hill (to be accessed from Mungana decline)

$12M exploration budget for FY 2012, with key priorities

including:

Balcooma resource extension drilling and resource/reserve

conversion

Maitland resource extension drilling

Griffiths Hill and Red Dome mine corridor

Chillagoe region exploration targets (Victoria, Harpers,

Shannon-Zillmanton)

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1 JORC – Exploration TargetsIt is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

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Copper Business – Balcooma

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Copper Business – Balcooma

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BALCOOMA PIT – North Plan

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BALCOOMA PIT – South

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Copper Business – The Red Dome Corridor

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Initial JORC resource for Griffiths Hill by Q2 2011

Potential exploration decline to access Griffiths Hill

Drilling to target high-grade copper potential at Lady Jane

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Copper Business – Griffiths Hill High-Grade Discovery

Significant new high-grade zone

discovered beneath Red Dome

open pit – intersections include:

17m @ 4.33% Cu, 0.6g/t Au, 113.7g/t Ag

8.4m @ 7.41% Cu, 0.93g/t Au, 192g/t Ag

12.9m @ 7.79% Cu, 0.99g/t Au, 55.8g/t Ag

8.4m @ 2.95% Cu, 0.14g/t Au, 46.4g/t Ag

100% ownership by KZL under

Gold Rights Agreement with

Mungana Goldmines

Drilling continuing targeting initial

JORC resource by Q2 of 2012

Exploration Target1 of 0.8-1.5Mt @

3-4% Cu for 24,000-60,000t

contained copper

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ZINC

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Zinc Business – Overview

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FY 2011 FY 2012 FY 2013 FY 2014

Forecast 42,000t zinc-lead production in FY 2011

Targeting increase to 71,000tpa by FY 2014

C1 cash operating costs of US$0.81/lb (March Qtr)

Strong focus on driving down the cost curve

Current ore sources Mungana (u-g), Mt Garnet (u-g) and

Vomacka (o-p) treated through polymetallic facilities at Mt Garnet

(500ktpa) and Thalanga (750ktpa)

Mothballed 700ktpa facility at Mungana provides optionality for

future growth

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Zinc Business – Resources & Growth

Zinc reserves: 3.664Mt @ 8.7% Zn, 1.1% Cu,

0.9% Pb (318,000t Zn)

Zinc resources: 11.296Mt @ 8.3% Zn, 0.9% Cu,

1.3% Pb (937,000t Zn)

$8-10M exploration budget for FY 2012, with key

priorities including:

King Vol resource extension and reserve drilling

Mt Garnet near-mine resource extension opportunities

Thalanga regional exploration

Other advanced regional targets in Chillagoe region

including Victoria (3.44Mt @ 5.1% Zn, 1.0% Cu),

Montevideo (720kt @ 7.7% Zn, 0.5% Cu), Red Cap,

Nolans, Belgravia

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Zinc Business – King Vol

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Probable Ore Reserve: 1.3Mt @ 11.2% Zn & 0.7%

Cu (145,000t Zn, 91,000t Cu)

Additional Inferred Resource: 2.0Mt @ 14.0% Zn

and 0.8% Cu (280,000t Zn, 160,000t Cu)

Significant potential for extensions down-plunge

and along strike

Major in-fill and extensional drilling

Development commencing Q2 2012

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Zinc Business – Mount Garnet Near-Mine Exploration

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Area of newly discovered zinc/copper

mineralization

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Zinc Business – Thalanga Region

750,000tpa polymetallic concentrator at Thalanga with extensive near-mine exploration portfolio

Current ore production from Vomacka open pit, with near-term development opportunities including West 45

Regional exploration to be ramped up

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Zinc Business – Thalanga Project Pipeline

Deposit Mt Zn% Cu% Pb% Ag g/t Au g/t

Vomacka 0.88 4.7 1.7 1.4 45 0.46

West 45 0.59 8.3 0.6 3.5 69 0.3

Orient 0.27 13.1 0.95 3.0 59 0.2

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Zinc Business – Admiral Bay

Option to participate in evaluation and development

of world-class, Tier One Project in WA

18km strike length of Zn-Pb-Ag-BaSO4

mineralisation with just ~2.1km drill tested, outlining:

72Mt @ 3.1% Zn, 2.9% Pb, 18g/t Ag

Pre-Feasibility Study (PFS) completed

Proceeding towards externally funded Bankable

Feasibility Study (BFS) work program, including:

Sinking a 6.7m diameter shaft to 1,428m

Drilling out approx 10Mt over a 1.2km section

of the Admiral Bay deposit to reserve status to

support financial modelling

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NICKEL

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Nickel Business – Overview

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High-grade underground nickel sulphide mine at

Lounge Lizard (Forrestania region, WA)

Low-cost entry to strategic regional position under

innovative mine development agreement with WSA

Forecast 1,800t production of nickel-in-concentrate

in FY 2011, potential to increase to 4,000tpa by FY

2014

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Nickel Business – Resources and Growth

Nickel Resources: 7.55Mt @ 1.3% Ni (103,000t Ni),

including 1.15Mt @ 4.6% Ni

Development and reserve definition continuing

$3-4M exploration budget for FY 2012, with key priorities

including:

Immediate strike extensions of Lounge Lizard deposit

Systematic testing of down-dip projection of Western Ultramafic

unit which hosts Lounge Lizard, Flying Fox, New Morning,

Beautiful Sunday and Spotted Quoll

Regional targets within 300km2 tenement holdings within

Forrestania Greenstone Belt, including Eastern Ultramafic Belt

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Resources sufficient to support 10 years of

production at current production rate of

50,000tpa

Outstanding exploration upside

Deposit remains open down-plunge

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Nickel Business – Lounge LizardF

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Listed Investments

Mungana Goldmines (ASX: MUX) – 62.1%

JORC compliant Resource of 2.5Moz Au, 255kt Cu and

32Moz Ag ~ open at depth and along strike

Rights to gold exploration, development and mining over

814km2 in the highly prospective Chillagoe region

Positive Scoping Study completed – BFS underway and due for

delivery in March 2012

Targeting production of 120,000z of gold and 20,000t of copper per

annum with long mine life

Strong cash balance A$37M

Copper Strike (ASX: CSE) – 17.5%

• Einasleigh Copper Project, strategic location near KZL operations

• Resource base of 16.7Mt @ 1.1% copper, 0.13g/t gold, 8g/t silver

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Kagara: Summary & Outlook

High-quality asset base in copper, zinc-lead, nickel

Focus on increasing margins, operational enhancements

Rejuvenated exploration programs: +$20M exploration

budget (FY 2012)

Copper:

Griffiths Hill JORC resource (Q2 2011), Balcooma

Red Dome Mine Corridor exploration, Maitland

Zinc-Lead:

Aiming to drive production to +70,000tpa

Outstanding growth potential through development of King

Vol, re-commissioning Mungana concentrator

World-class opportunity at Admiral Bay

Nickel:

Reviewing production growth opportunities

Major drilling programs commencing April 2011

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Corporate

Presentation

Institutional

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11-15 April 2011

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Supporting JORC Reserves and Resources TablesF

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Supporting JORC Reserves and Resources TablesF

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Supporting JORC Reserves and Resources TablesF

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Note:

This Mungana Goldmines Ltd

Resources Table is included for

reference only and is not to be

added to the Kagara Ltd

Reserves and Resources tables.

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Supporting JORC Reserves and Resources TablesF

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