Developing a top ten unexploited tungsten deposit

RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT

IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY, 13-14 MARCH 2012

www.ObjectiveCapitalConferences.com

Developing a top ten unexploited tungsten depositMark Strizek – CEO, Vital Metals

ASX:VML www.vitalmetals.com.au

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VITAL METALS LIMITED

Tungsten DeveloperGold Explorer

http://www.vitalmetals.com.au/


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Developing and Exploring

Watershed Tungsten Project, Queensland JOGMEC joined as JV partner in August 2011. Funding DFS study to earn a

30% interest in the project DFS study expected to be completed in Q4 2012 Tungsten prices at all time high as Chinese demand overtakes ROW Tungsten has been noticed by globally significant investment house Gold Exploration, Burkina Faso 18,000 metre drilling programme completed at Kollo, notable gold assay

results include1: 44m at 6.39 g/t gold from 8m including (4m at 58.03 g/t gold from 24m)

60% Farm in milestone reached with Ampella Mining Limited over Doulnia and Kampala tenements (Vital earning 80%).

Tenement portfolio grows to 850 sq km with two new exploration tenements granted (100% interest).

1 Reported previously 3/8/2011



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Corporate Overview

Capital StructureASX: VML Shares on Issue

228.40 million shares4.7 million unlisted options

Market Capitalisation$11.42 million At share price of $0.050 (09 Mar 2012)

Cash at 31 December 2011, $1.60 million

Major ShareholdersCiticorp Nominees – 9.16%Rex Harbour – 7.66%JP Morgan Nominees – 6.01%Consolidated Minerals – 5.5%HSBC Custody Nominees – 4.73%National Nominees Ltd – 4.11%

Directors – 1.73%Top 40 – 61.85%



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Vital’s Vision

“To develop high quality, low cost projects that can be brought into production quickly, creating value for our shareholders.Achieving this via a project portfolio diversified by commodity, country and development stage to minimise risk and provide maximum opportunities for growth.”



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Tungsten – One of the Best Performing Commodities in 2011

A step change in prices during 2010 – 2011 A repeat of what occurred to prices during 2005 Support has been found for the new price regime



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Tungsten – Demand driven by the Dragon

Global demand for tungsten is forecast to continue growing strongly, particularly in hard metal and cutting tool utilization. Global deep well drilling is also increasing demand.

Global supply of tungsten is forecast to grow at 6% per annum. However this is subject to confirmation on a number of new projects outside China.

Primarily due to declining grades in traditional mining areas and increasing wage costs, the cost of production in China continues to increase strongly.

By 2012 China's demand is forecast to significantly exceed its domestic supply. Despite its strong domestic production program, China is already the world's largest importer of tungsten concentrates.

Over the past decade, recycling has filled the shortfall in mined supply, however recycling programs has now reached maximum efficiency and will not continue to be an increased supply source.

The indicated new price regime will encourage new projects coming to market. However, this potential increased supply is not expected to match forecast demand in the short to medium term, particularly as the lead time for developing new mines is increasing.



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Tungsten – Supply Shortfall Forecast

Reliability of future supplies of tungsten minerals is of concern to many nations.

Demand outstripping supply with the difference primarily being supplemented by material released from government stock piles, especially in the USA and Russia.

Roskill forecasts the world tungsten market to be in deficit by 2013 as government stock piles are depleted.

Source: ITIA

Source: Roskill



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Definitive Feasibility Study (DFS)

scheduled for completion H2 2012 –

Targeting production in 2014

Indicated JORC Code Compliant

Resource - 15.1mt @ 0.46% WO3 (0.1%

WO3 cut-off undiluted) open at

depth and along strike

Finalising project Environmental

Approval -expected to be

completed in 2012

Native Title ILUA progressing to

registration in 2012

Mining Lease applications

already on foot

Watershed – Targeting Production in 2014



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Completed diamond drill program designed to close off mineralisation. New data will be used to update resource model which will feed into pit optimisation studies

Confirmatory metallurgical test-work testing variability and floatation recovery underway

Work on finalising design of TSF/ WRD has commenced

Working with Western Yalanji to register ILUA with NNTT

All work being funded by JOGMEC

Watershed – DFS Current Work Program



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Vein Swarms Coarse scheelite in veins Disseminated mineralisation

Watershed – Scheelite hosted in…



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Watershed deposit is part of a large structural system that is largely unexplored. Vital’s exploration package now covers 600 sq km.

Walk up exploration prospects at the Watershed South, Desailly and Desailly North.

Drill spacing over the main resource area is good with the grid spacing approaching 50m by 50m.

Resource comprises 997 mineralised intercepts (Av Length is 5.4m): – 304 of intercepts exceed 5m @

0.5% WO3 – 160 of these exceed 5m @ 1.0%

WO3

Watershed – Geology and Resources



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Recent review of historic data shows multiple veins of tungsten in the Desailly prospect just 5km from the proposed Watershed tungsten mine.

Desailly has an exploration potential of between 2-3 million tonnes of mineralisation with grade expected to be between 0.2 and 0.4% WO3.

Desailly could add to the life of operations at Watershed by providing feed to the Watershed processing plant.

Watershed – Potential for Satellite Operation



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Vital geological team confident in significant scope for extending mineralisation at depth.

Trend observed for mineralisation to increase with depth as in hole MWD119 - intersected 20m @ 1.27 % WO3 from 302m

Vital developed the Watershed Vein Swarm Model (right) which exhibits a good correlation with drilling

Model suggests potential for mineralisation to have significant grade and thickness at depth

Potential for underground operation in the future

Watershed – Potential Exists at Depth



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Simple flowsheet – exploits scheelite fluorescence and density: – Ore crushed from ore stockpiles

fed to – X-Ray ore sorter which removes

around ~50% of waste. – Retained feed will be split in

spirals and then cleaned using tables, magnetic separation, cyclones and floatation.

Intention is that plant will be modular and scalable

Further work on floatation circuit remains to be completed

Watershed – Simple Flowsheet



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Watershed – DFS Schedule

2012 2013 2014

Met Testing

Environmental/ Permitting

Design & Engineering

Procurement

Earthworks & Plant Construction

1st Concentrate



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Burkina Faso – Open for Business

Presidential Democracy since 1990 Rule of Law, rising standard of

living. Transparent mining code based on

WA Mines Act 70,000 sq km of Birimian Greenstone

Belts Significant potential for growth in gold resources support services available

Country

Birimian Area

(%)

Gold Resource

(M oz)*

Birimian Gold

Resources (%)

Ghana 19 110 61Mali 10 33 19Burkina Faso 22 15 7Guinea 11 12 7Ivory Coast 35 8 4Senegal 3 3 2TOTAL 100 +181 100

*Deposit >1Moz



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Burkina Faso – Located on a Proven Gold System

Vital selected the tenements in Burkina Faso due to their location in favourable geotectonic settings at, or near to, the intersection of the Markoye Fault Corridor and the Bole shear zone

These systems host the Essakane, Bombore, Kiaka and Youga gold deposits for a combined total of >16 Moz gold resources



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Strategic tenement package with potential for further gold discoveries

Early exploration success including exciting gold intersections:– 44m at 6.39 g/t gold from 8m 1; and– 32m at 2.44 g/t gold from 36m 2

18,000m of RC drilling completed confirms gold potential - provides foundation to build ongoing exploration strategy. Widespread gold-in-soil anomalism is providing a pipeline of targets

60% ownership attained on JV ground – in partnership with Ampella Mining. Vital to earn 80% on funding a PFS

Mediga and Zeko tenement recently granted (Vital 100%) giving 850 km2 of contiguous tenements including JV lease areas.

Burkina Faso – Impressive Gold Results

1 Reported previously 3/8/20112 Reported previously 24/3/2011



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Burkina Faso – Vital Metals Tenements

Joint Venture Tenements (Vital 60%, Ampella 40%, earning 80%) Doulnia (247 km2)

– Kollo Gold Prospect– Boungou South Gold

Prospect– Nabenia Zinc

Prospect– Loubel Zinc Prospect– Koubongo Zinc

Prospect Kampala (216 km2)

– AVV Zinc Prospect

Vital Tenements– Mediga (219 km2)– Zeko (170 km2)



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Burkina Faso – Kollo Gold Prospect

Over 3km of strike length at Kollo, active artisanal mining along trend

18,000m RC drilling completed, project best intercept of 4m at 58.03 g/t gold from 24m (KRC210)

Significant areas remain untested along strike – more drilling planned

All results reported previously 25/5/2010, 24/3/2011, 9/6/2011, 3/8/2011, 30/1/2012, 20/2/2012



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Burkina Faso – Kollo Gold Prospect

All results reported previously 25/5/2010, 24/3/2011, 9/6/2011, 3/8/2011, 30/1/2012, 20/2/2012

Mineralisation from surface, should be suitable for open pit mining

Indications of high grade shoots plunging to the north-west

Open along strike and at depth, further work needed to test the limits



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Burkina Faso – Boungou South Gold Prospect

Boungou South located around 6km to the south east of Kollo Prospect

Encouraging first pass RC drill results include:

4m @ 4.93 g/t gold from 65m (KRC229);

3m @ 1.8 g/t gold from surface (KRC233);

5m @ 5.59 g/t gold from 31m (inc 1m @ 24.97 g/t gold from 35m, KRC233).

Open along strike, further work planned.



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Fully funded DFS (JOGMEC) is due for completion in 2012 Fast tracking to tungsten concentrate production by 2014 Access to off-take partner and project finance via JOGMEC farm-in Robust project metrics and low capital cost from previous Feasibility Study Watershed JORC tungsten resource is open ended which combined with large

tenement package at Watershed provides a tremendous opportunity to increase resources via further exploration

Planning follow up exploration program, plenty of time to complete next round of drilling in Burkina Faso before the wet season.

Aiming to define a maiden JORC gold resource at Kollo in 2012 Secured 60% milestone in Burkina Faso on JV tenements (earning 80%). Further

gold discoveries possible within 850 km2 of contiguous tenements

Vital Metals – The Investment Case



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Forward-looking & Competent Person Statement

Disclaimer: Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding targets, estimates and assumptions in respect of tungsten, gold or other metal production and prices, operating costs and results, capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates. Forward-looking statements are necessarily based upon a number of estimates and assumptions related to future business, economic, market, political, social and other conditions that, while considered reasonable by the Company, are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include, but are not limited to: competition; mineral prices; ability to meet additional funding requirements; exploration, development and operating risks; uninsurable risks; uncertainties inherent in ore reserve and resource estimates; dependence on third party smelting facilities; factors associated with foreign operations and related regulatory risks; environmental regulation and liability; currency risks; effects of inflation on results of operations; factors relating to title to properties; native title and aboriginal heritage issues; dependence on key personnel; and share price volatility and also include unanticipated and unusual events, many of which are beyond the Company's ability to control or predict. For further information, please see the Company's most recent annual financial statement, a copy of which can be obtained from the Company on request or at the Company's website: www.vitalmetals.com.au. The Company disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, not to put undue reliance on such statements.

Competent Person: The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Mark Strizek (MD), an employee of the Company. Mr Strizek is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.


Developing a top ten unexploited tungsten deposit

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