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Penrice Soda Holdings ASX/Press Release

PENRICE SODA HOLDINGS LIMITED ABN 83 109 193 419 1

24 May 2012

Mineral Resource and Ore Reserves Statement - Penrice Limestone Mine

Penrice Soda Holdings Limited (ASX:PSH) (‘Penrice’), Australia’s leading supplier of soda ash and sodium bicarbonate, today provides its maiden Mineral Resource and Ore Reserves Statement (‘Statement’) in relation to its limestone mine at Angaston, South Australia.

A detailed report covering the calculation and modifying factors for the Mineral Resource and Ore Reserves is included in the Appendix to this release.

Summary

The Statement was commissioned to provide certainty as to the life of the mine, the extent of its Mineral Resource, Ore Reserves and ultimately the mine’s value. All of those aspects have been determined and independently verified for the first time. The Statement follows the most extensive drilling campaign ever conducted at the mine, which was carried out over the last year.

The highlights of the Statement are:

• The mine contains a total Mineral Resource of 239 million tonnes (mt) • The Mineral Resource contains 67 mt of total Ore Reserves (economically

recoverable ore) • Ore Reserves include 28 mt of chemical grade limestone for Penrice’s own

needs and to supply long term industrial customers • Ore Reserves include 39 mt of aggregates for concrete manufacture and other

civil & construction markets • Ore Reserves indicate a mine life of over 23 years at current sales • A further 37 mt of Chemical Resource and 47 mt of Aggregate Resource may

later be converted to Reserves, more than doubling current mine life

The Statement proves for the first time what has been generally understood for years, that the mine enjoys long-life Ore Reserves of limestone suitable for making Penrice’s chemical range at its Osborne manufacturing facility. Operational benefits will flow over time from this new mine plan as the certainty it brings will enable better planning and more efficient extraction and processing t. Significantly, on current sales profile, no additional dump space is required in the next twenty years, which will assist cost control and minimise visual amenity impacts.

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PENRICE SODA HOLDINGS LIMITED| ABN 83 109 193 419

What the Statement reveals for the first time is extensive proven Ore Reserves of aggregates suitable for concrete manufacture and other civil and construction materials. The Statement not only increases the value of the mine to Penrice, but also identifies the mine as a significant, long term source of aggregates for civil and construction markets in South Australia. Penrice Chairman Mr David Trebeck said that, “The mine is uniquely placed as an existing, well developed asset, now also revealed to have long term potential as a strategic source of construction aggregates for supply to the growing northern metropolitan Adelaide region.” Mr Trebeck said that, “The Statement provides the board with certainty regarding the mine value and the board now considers the sale of its quarry and mineral business as the most desirable option to reduce debt, especially having regard to the attractiveness of the mine’s Reserves of aggregates.” He said that, “The board recognises that limestone from the mine is a key raw material for Penrice. Any sale will be accompanied by a life of mine limestone purchase agreement whereby Penrice will continue to purchase limestone for the life of the mine, ensuring that Penrice’s chemical business continues to benefit from the long term supply of low cost, high quality limestone as it always has done. The agreement will also give certainty to any purchaser of the quarry and mineral business.” “A sale is being pursued as part of the company’s strategic review, the primary purpose of which is to reduce the company’s debt. Such a transaction is intended to considerably reduce the company’s debt and put the company on a more secure financial footing,” said Mr Trebeck. “It is a board priority to maintain and enhance the competitiveness of Penrice’s business, which the board believes has considerable potential to grow earnings. A suitable debt reduction will enable Penrice’s growth strategy to be more effectively delivered by-

• expanding its $30 million food and consumer chemicals export business in Asia, and • developing its emerging natural soda ash and salt business opportunity based on

extracting natural salts from coal seam gas water in Queensland.”

The company will update the market further as it is appropriate to do and notes that, at this time, there remains no certainty that any transaction will be completed.

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The following table shows the JORC compliant ore reserves for the mine.

JORC Compliant Reserves

Tonnes (Mt)

CaCO3 (%)

SiO2 (%)

Al2O3 (%)

Fe2O3 (%)

MgCO3 (%)

Proved 34.00 95.4 2.0 0.7 0.5 1.3 Chemical Stone 17.67 97.1 1.0 0.3 0.3 1.2 Aggregate Stone 16.33 93.6 3.0 1.2 0.8 1.5

Probable 33.00 93.7 3.0 0.9 0.8 1.6 Chemical Stone 10.10 97.0 1.1 0.3 0.3 1.2 Aggregate Stone 22.9 92.3 3.8 1.1 1.0 1.7 Total Ore Reserves 67.00 94.6 2.5 0.8 0.6 1.4

Chemical Stone 27.8 97.1 1.0 0.3 0.3 1.2 Aggregate Stone 39.2 92.8 3.5 1.1 0.9 1.6

The following table shows the JORC compliant mineral resources in the mine.

JORC Compliant Resources

Tonnes(Mt)

CaCO3

(%) SiO2 (%)

Fe2O3 (%)

Al2O3 (%)

MgCO3 (%)

Measured 66.3 94.9 2.4 0.6 0.7 1.4 Chemical Stone 27.6 97.1 1.0 0.3 0.2 1.2 Aggregate Stone 38.7 93.3 3.3 0.8 1.0 1.5

Indicated 84.5 94.1 2.8 0.6 0.8 1.4 Chemical Stone 37.0 97.0 1.1 0.3 0.2 1.3 Aggregate Stone 47.4 91.8 4.2 0.9 1.2 1.5

Inferred 88.7 86.2 8.0 1.3 2.0 2.0 Chemical Stone 19.6 97.0 1.1 0.3 0.2 1.3 Aggregate Stone 69.1 83.1 10.0 1.5 2.5 2.2

Total 239.4 91.4 4.6 0.8 1.2 1.6 Total Chemical Stone 84.2 97.0 1.0 0.3 0.2 1.3 Total Aggregate Stone 155.2 88.3 6.5 1.1 1.7 1.8

The Mineral Resource figures presented in the tables above and elsewhere in the Appendix are to be considered inclusive of Ore Reserves.

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About the Mineral Resource and Ore Reserves Statement

The information in this Release and the Mineral Resource and Ore Reserves Statement that relates to exploration results and Mineral Resources is based on information supplied, compiled, modelled and validated by KRC Mining Consultants, under the review of Rodney Huntley, Principal Resource Consultant of Groundwork Plus.

Mr Huntley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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 Huntley is a Member of the Australian Institute of Geoscientists. Mr Huntley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this Release and the Mineral Resource and Ore Reserves Statement that relates to Ore Reserves on is base information supplied, compiled, modelled and validated by KRC Mining Consultants, under the review of Sandra Collins, Contract Consultant of KRC Mining Consultants. Ms Collins has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she 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". Ms Collins is a Member of the Australasian Institute of Mining and Metallurgy. Ms Collins consents to the inclusion in the report of the matters based on her information in the form and context in which it appears. About Penrice Penrice Soda Holdings Limited (ASX: PSH) is Australia’s only manufacturer of soda ash and sodium bicarbonate and one of the world’s largest sodium bicarbonate marketing companies. It also operates a limestone mine and is a significant supplier of industrial minerals and civil products. The Company is committed to driving shareholder value through the manufacture and supply of a range of world-class products across a variety of industries and countries including packaging, building and construction, mining, detergents, food and personal care, stockfeed and environmental control/water purification. For further information on Penrice Soda Holdings visit the company’s website at www.penrice.com.au For more information, contact Guy Roberts - MD & CEO, Penrice Soda Holdings on +61 8 8402 7239 Disclaimer This document includes forward looking statements. Forward looking statements can be identified by the use of terminology such as 'believe', 'expect', 'anticipate', 'will', 'could', 'would', 'should', 'may', 'plan', 'estimate', 'intend', 'predict', 'potential', 'continue' or similar words. Forward looking statements are not guarantees or predictions of future performance and involve known and unknown risks many of which are beyond the Company's control and differ materially from those expressed in the forward looking statements. Some of the important factors that may cause actual results to differ materially from those of the forward looking statements include, among others, foreign currency or interest rate fluctuations; economic and competitive conditions in Australia and other relevant markets and countries; disruptions in the supply chain; changes in tax rates and laws; consumer and product demand; fluctuations in availability and cost of raw material, labour, energy, electricity and transportation; actions of competitors and customers; unanticipated regulatory expenditure; and, the Company's ability to further develop plans, strategies and objectives of management. Except as required by applicable regulations or by law, the Company does not undertake any obligation to publicly update or review any forward looking statements whether as a result of new information or future events.

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Appendix

Mineral Resource and Ore Reserves Statement Angaston Limestone Mine

A. Introduction

The Penrice Limestone Mine at Angaston, South Australia has been operating for 72 years, producing high grade chemical limestone for use in the production of soda ash at the Osborne plant. The mine has expanded its sales over recent years to now include supply of high grade chemical limestone to the cement, glass, agricultural, steel and smelting industries. Additionally, lower grade limestone is sold to the construction industry as aggregates, road bases and select fills.

B. Legislation and Social Licence

1. Tenure/Leases

Penrice is the freehold owner of the mine property. It holds two private mining leases, PM 120 & PM 86 over the assessed area. In addition, Penrice holds mining lease ML6322 and miscellaneous purpose leases MPL75 and MPL118 which are used for dumps and stockpiling. Penrice has all necessary regulatory approvals and is currently operating an approved mine within the Mineral Resource area.

2. Legislation

The mine fully complies with all laws and regulations of government and other regulatory authorities.

With regard to the carbon tax, when considered as a standalone operation, the mine is not a liable entity as it is below the current 25,000 tonnes CO2 emission threshold limit.

The current diesel fuel rebate of $0.38 will drop to $0.319 from July 1 2012 with the introduction of carbon tax.

South Australian royalties are prescribed under section 17 of the South Australian Mining Act 1971 at $0.35/t and are unlikely to be changed in the near future.

There is no known native title claim. The site has previously been disturbed by viticulture and grazing and it is unlikely that any aboriginal cultural heritage would be present.

Penrice is engaged with the Penrice Community Consultation Group (PCCG) that meets quarterly to promote effective communication and engagement between the mine and the local community with particular regard to social and environmental issues. Representatives from Department of Manufacturing Industry Trade Resources and Energy (DMITRE), the Environment Protection Authority (EPA), Barossa and Light Council, Penrice staff and local community members comprise the group.

A compliance audit was conducted by DMITRE officials against the MOP/PEPR mine licence requirements in February 2012. The audit reviewed all aspects of mining activities from operations through to environmental control and monitoring. The audit was passed with no significant issues raised. During the last compliance period (January – March 2012), Penrice had no external complaints from neighbours.

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3. Security

A majority of the site boundary is fenced, with most of the balance having a rail line acting as the boundary. Security is actively monitored and offices, buildings, laboratories, main compound and weighbridge are adequately alarmed.

4. Safety

Penrice has an excellent safety record and has achieved 3,086 days since the last Lost Time Injury and 723 days since last Medical Treatment Injury. The safety system is well developed and safety culture is evident.

C. Drilling Results

The 2011 drilling program consisted of six HQ diameter core holes with a combined total length of 823m, and sixty five 4” RC holes with for a total of 4,275m.

2,668 meters drilled were of a chemical quality suitable for production of Soda at the Osborne plant. A further 1,722 meters were of a suitable quality for the production of concrete aggregates and road bases as per South Australian government standards. Details are included in the Schedule.

D. Resource Estimate

1. Geology

Prior to the 2011-2012 drilling campaign, there were seven other campaigns;

• Department of Mines and Energy in 1945-48 (drill holes DDH1 to DDH59)

• Department of Mines and Energy in 1964-66 (drill holes DDH101-DDH110)

• Department of Mines and Energy in 1977-79 (drill holes DDH111-DDH116)

• Techinsearch Inc in 1982 geological mapping, trenching, seismic refraction surveys and drilling (TS1-TS3)

• JLC Exploration Services in 1990 to 1993 (very little information on this campaign)

• Giles for Maptek Pty. Ltd., in 2002 Mapping of the marble contacts and drilling

• Giles for Maptek Pty. Ltd in 2003 Mapping of the marble contacts and drilling (10 RC boreholes from RC168 to RC177)

With the exception of the JLC program, all data is comprehensive and suitable for inclusion in the Mineral Resource estimate with original geological logging sheets, geological maps, sections and original laboratory assay certificates.

The Penrice Limestone Mine is a marble deposit is a coarsely crystalline white marble of high chemical purity. The chemistry of the parent rock is that of a Pre-Cambrian limestone, which has been altered to marble by subsequent metamorphic processes.

The Penrice marble deposit dips steeply (sub vertically to vertically) to the west and is oriented in a general north south trend. This orientation is a result of extensive regional folding which overturned the originally flat lying bed. Contemporaneous with this regional deformational event a series of colloquially named “ironstone dykes” were injected into the marble deposit and which cross cut the marble in the southern sector of the pit. Historically this unit has been used as iron corrective for cement manufacturing.

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The western and eastern schist boundaries pinch in the central region of the pit. The drilling completed in 2011 demonstrates that the marble continues to at least a depth of 107RL in the central and southern sectors of the pit while the continuity at depth of the marble deposit is largely untested in the northern and western fold limb. Given the orientation and structural setting of the marble unit, it is interpreted that the main marble deposit will continue below 107m RL. A cross section at 1500N is shown in Figure 1, which is considered typical of the deposit.

Figure 1 - Typical geological cross section (1500N)

The recent geological mapping of the pit refined the understanding of the nature and distribution of the ironstone dykes in the south region of the pit. In addition to the ironstone dykes, a large enclave of schist was recognised in the south western sector of the pit. Along the eastern wall a blue grey linear unit has been confirmed to be marble with a gneissic overprint. This unit sits within the low grade marble. The zone is typified by erratic CaCO3 grades ranging from 35% to 95%. In appearance, the gneiss is darker in colour and slightly less coarse grained.

A geological map of the quarry area is shown in Figure 2. The geological interpretation of the area and the Penrice deposit has remained consistent over the past 75 years.

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Figure 2 - Geological map of Penrice Limestone Mine

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2. Geological Model

The geological model is based on a combination of recent surface geological mapping, completed in 2012 and all available and validated drill hole information. The geological model was then used as the basis for development of a subsequent block model which was populated with validated data from the Penrice drill hole database. Grade tonnage curves for CaCO3 over the Chemical Stone are shown in Figure 3.

Figure 3 - Grade Tonnage curve for CaCO3 on Chemical Stone

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3. JORC Mineral Resources

Confidence levels were assigned to the Resources based on the search radius, number of informing samples and variance. Table 1 summarises the current Mineral Resource estimate.

Tonnes

(Mt) CaCO3

(%) SiO2 (%)

Fe2O3 (%)

Al2O3 (%)

MgCO3 (%)

Measured 66.3 94.9 2.4 0.6 0.7 1.4 Chemical Stone 27.6 97.1 1.0 0.3 0.2 1.2 Aggregate Stone 38.7 93.3 3.3 0.8 1.0 1.5

Indicated 84.5 94.1 2.8 0.6 0.8 1.4 Chemical Stone 37.0 97.0 1.1 0.3 0.2 1.3 Aggregate Stone 47.4 91.8 4.2 0.9 1.2 1.5

Inferred 88.7 86.2 8.0 1.3 2.0 2.0 Chemical Stone 19.6 97.0 1.1 0.3 0.2 1.3 Aggregate Stone 69.1 83.1 10.0 1.5 2.5 2.2

Total 239.4 91.4 4.6 0.8 1.2 1.6 Total Chemical Stone 84.2 97.0 1.0 0.3 0.2 1.3 Total Aggregate Stone 155.2 88.3 6.5 1.1 1.7 1.8

Table 1 - JORC Compliant Resources

The Mineral Resource estimate is presented in Table 1 - JORC Compliant Resources and elsewhere in this report are to be considered inclusive of Ore Reserves.

E. Ore Reserves The information below relates to the calculation and reporting of Ore Reserves.

1. Costing and Sales

All costs and revenues for the economic assessment were based on the actual cash costs and sales for 2011 calendar year. Upon review of the last 5 years accounts, the 2011 calendar year is considered an accurate representation of costs moving forward for the quarry. Costs were varied for depth and distance from the main primary crusher PC1 and for increasing dewatering costs with depth. The cost of moving infrastructure was also considered and all these factors were used within the Whittle modelling process. Costs for mining and processing were all considered as a variable cost per tonne. An allowance for sustaining capital was included in the variable costs. A final fixed annual overhead was included as a selling cost.

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2. Pit design

The pit design is based on two Whittle runs. The first was used to establish maximum Chemical Stone, the second run was to determine maximum Aggregate Stone reserves. Two stage designs were created and a final Life of Mine pit designed. The proposed final Life of Mine pit is shown in Figure 4.

Figure 4 - Final Life of Mine design

3. Schedule

The mine schedule for 20 years is shown in Figure 5. The schedule continues to supply all current Penrice customers at the current demand rates out to 2032. The 20 year schedule does not require any additional dump space. The capital cost estimates have been included in the schedule.

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Figure 5 - 20 year mine schedule

4. JORC Compliant Ore Reserves

The ore reserves are shown in Table 2. The Ore Reserves provide for a mine life of 23 years of Chemical Stone at a production rate of 1.2 million tonnes pa and 26 years of Aggregate Stone at a production rate of 1.5 million tonnes pa.

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Tonnes

(Mt) CaCO3 (%)

SiO2 (%)

Al2O3 (%)

Fe2O3 (%)

MgCO3 (%)

Proved 34.00 95.4 2.0 0.7 0.5 1.3 Chemical Stone 17.67 97.1 1.0 0.3 0.3 1.2 Aggregate Stone 16.33 93.6 3.0 1.2 0.8 1.5

Probable 33.00 93.7 3.0 0.9 0.8 1.6 Chemical Stone 10.10 97.0 1.1 0.3 0.3 1.2 Aggregate Stone 22.9 92.3 3.8 1.1 1.0 1.7 Total Ore Reserves 67.00 94.6 2.5 0.8 0.6 1.4

Chemical Stone 27.8 97.1 1.0 0.3 0.3 1.2 Aggregate Stone 39.2 92.8 3.5 1.1 0.9 1.6

Table 2 - JORC Compliant Reserves

The Ore Reserves listed in Table 2 and elsewhere in this report are always included in the Mineral Resources figures.

There remains an additional 37 million tonnes of Chemical Stone and 46 million tonnes of Aggregate Stone Resource at a confidence level of measured or indicated that may be converted into a Reserve at a later point or under alternative economic conditions.

F. JORC Compliance

1. Competent Persons The information in this announcement that relates to exploration results and Mineral Resources is based on information supplied, compiled, modelled and validated by KRC Mining Consultants, under the review of Rodney Huntley, Principal Resource Consultant of Groundwork Plus.

Mr Huntley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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 Huntley is a Member of the Australian Institute of Geoscientists. Mr Huntley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this announcement that relates to Ore Reserves on is base information supplied, compiled, modelled and validated by KRC Mining Consultants, under the review of Sandra Collins, Contract Consultant of KRC Mining Consultants.

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Ms Collins has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she 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". Ms Collins is a Member of the Australasian Institute of Mining and Metallurgy. Ms Collins consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

2. Check list and reporting criteria

i. Drilling Technique

The 2011 drilling program consisted of six HQ core diameter holes with a combined total length of 823m, and sixty five 4” Reverse Circulation, (RC) holes with a combined length of 4,275m.

ii. Drill Sample Recovery

Recovery of greater than 99% was achieved for core drilling.

Recovery of an average of 95% recovery was achieved for RC drilling.

A reverse circulation crossover sub was used during RC drilling.

No relationship between recovery and grade was identified.

iii. Logging

Diamond core and reverse circulation holes were logged using standard Penrice logging codes to a level of detail suitable for the type of mineralisation.

Photographs were taken of the cut diamond core and of the RC chip trays.

iv. Sub-sampling Techniques and Sample Preparation

Half core samples were taken at nominal 1.0m intervals or at lithological boundaries of all diamond core holes. The exception was eleven 0.3m samples taken for compressive strength testing requiring whole core.

Reverse circulation drill cuttings were split by a drill rig cone splitter into approximately a 2kg sample. Field duplicate samples were taken at nominal 25m intervals.

Statistical analysis and comparison was completed on the duplicates samples and blanks.

v. Quality of Assay Data and Laboratory Tests

Half core and RC chip samples were sent the Genalysis in Adelaide for sample preparation. Chemical assay was conducted by fused glass bead XRF at Genalysis in Perth. The following elements were analysed: CaO, Al2O3, Fe2O3, MgO, SiO2, Cr2O3, K2O, MnO, Na2O, P2O5 and SO3. CaO was converted to CaCO3 at factor of 0.56:1 MgO was converted to MgCO3 at a factor of 0.478:1.

Both Laboratories are NATA certified.

Field duplicate samples were taken at nominal 25m intervals. Laboratory replicates were conducted nominally every 20 samples. Regression equations and R2 values showed a 97% correlation between duplicates

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vi. Verification of Sampling and assaying

Verification of grade sets within the model was completed by cross validating exploration results which were analysed by an independent laboratory versus the blast holes1. No formal verification of sampling and assaying has been completed however given the relatively good geological and visual control, the general homogeneity of the deposit and the lack of a high grading effect and associated grade smearing within the deposit, detailed verification is not required. No twinned holes were drilled.

vii. Location of Data Points

All drill holes were initially surveyed with alignment pegs. All drill holes had final collars surveyed in by an independent and registered surveyor. One angled diamond drill hole was surveyed using down hole camera survey equipment and this survey used to estimate deviation for all other holes over sixty metres depth.

viii. Data Spacing and Distribution

Exploration drill holes (2011) were spaced on an 80m grid along the strike of the ore body.

RC samples were composited in the laboratory to a maximum of 5m at the direction of the KRC geologists when they did not cross identifiable, lithological boundaries.

ix. Orientation of Data in Relation to Geological Structure

Drill holes were in general drilled across the strike of the deposit however access constraints to the deeper deposit areas required sub vertical core holes to be drilled from the current base of the pit.

x. Mineral Tenements and Land Tenure Status

Penrice owns the land over which the Resources and Reserves are calculated. Penrice also holds the private mine leases over the drilled area.

xi. Data Aggregation Methods

Two data sources were used in for grade estimation, exploration drilling and blast hole grade control drilling. Exploration drilling was statistically composited to 6m and blast hole data was composited to 12m. The two data sources were not mixed and were used independently during estimation.

xii. Database Integrity

The database was validated using Maptek Vulcan database validation tools and checked against original drill hole logs.

xiii. Geological Interpretation

The geological interpretation of the area and specifically the Penrice deposit has been comprehensively mapped and studied on seven occasions and remained relatively consistent over the past 75 years.

1 Analysed by the on site non-NATA accredited laboratory

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xiv. Estimation and Modelling Techniques

The marble/schist contact is a sharp geological contact and was modelled as a single geological domain. The resulting geological wireframe was verified with drill assay data to ensure acceptable statistical distribution.

Top cutting was assessed and applied. 11 samples were removed from the data set.

Grades were estimated within determined domains by inverse distance with a power of 3. Ellipsoid search distances as per the Table below.

X(m) Y(m) Z(m) First Search volume 45 55 24 Second Search volume 90 110 48 Third Search volume 135 165 72

xv. Moisture

All tonnages reported are inclusive of natural moisture.

xvi. Bulk density

Bulk density for the marble was determined by stone initiatives using test method ASTM C97-09 "Standard Test Methods for Absorption and Bulk Specific Gravity of Dimension Stone” for twenty samples. The standard deviation is less than 1% of the mean.

xvii. Mineral Resource Classification

Measured: Each block has at least 4 samples (for estimation) falling within the first search volume and IPD2 estimation variance less than 30.

Indicated: Each block has at least 4 samples (for estimation) falling within the first search volumes and IPD estimation variance less than 80 or; each block has at least 4 samples (for estimation) falling within the second search volumes and IPD estimation variance less than 60.

Inferred: Blocks that are within the marble domain and have estimated grade but do not meet the above variance and search criteria.

xviii. Cut-off Parameters

Chemical quality material is required to meet current mine chemical cut off (CaCO3>96%, SiO2<1.8%, Fe2O3<0.8, Al2O3<0.6% MgCO3<2.2%).

All marble not meeting chemical cut off is suitable for concrete aggregate and civil work supply as defined by the South Australian Department of Planning Transport and Infrastructure.

Material not inside the marble domain with a CaCO3 grade of less than 60% is considered schist waste.

2 Inverse power distance

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xix. Study Status

The study status has an accuracy level suitable for an operating budget over the next 5 years. The accuracy level post 5 years is suitable for final feasibility.

A Whittle pit optimisation was undertaken to determine final economic mining limits using current mining and operational costs and revenues. The Whittle shell was re-engineered in Vulcan into a Life of Mine pit to include ramps, defined benches and berms. The contained mining blocks within the Life of Mine pit were then scheduled using XPAC software based on current and predicated sales and grade requirements as provided by Penrice.

xx. Mining factors or assumptions

Penrice Limestone Mine is an open cut mine and all mining assumptions and design are based on current operating practice at Penrice Limestone Mine.

xxi. Metallurgical Factors or Assumptions

Chemical quality stone has a yield of 45% to Osborne and 55% to glass and other chemical customers.

Aggregate stone has a 40% yield to concrete sized aggregates and a 60% yield to road base and civil type products. These factors are assumed to persist for the life of the mine.

xxii. Cost and Revenue Factors

Costs and revenues are based on actual cash account inputs for the calendar year 2011 provided by Penrice. 2011 was considered an accurate representation of the cost structure and forecasted costs for the mine after comparison with previous years. Mining and processing costs include a sustaining capital provision.

xxiii. Market Assessment

The extraction and sales schedule is based on current Penrice Limestone Mine customer demand and chemical specification requirements.

Forecast sale volumes were based on current market conditions and estimates of demand from major infrastructure projects currently in planning provided by Penrice Soda Holdings.

xxiv. Other

Additional regulatory approval is likely to be required for additional waste dump space for extraction past the twenty (20) year extraction schedule.

xxv. Ore Reserve Classification

Proved Ore Reserves meet all the following conditions: of a Measured Mineral Resource category, within the non-optimised Life of Mine economic pit design, within the mine schedule and meeting the current approved dump limits.

Probable Ore Reserves meet all the following conditions: of an Indicated Mineral Resource category; within the non-optimised, life of mine, economic pit design; within the mine schedule and meeting the waste dump limits or; of a Measured Mineral Resource category; within the non optimised, life of mine, economic pit design.

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xxvi. Audits or Reviews

An internal audit of the drill hole database and block model was completed. Reconciliation between the previous geological models was completed and areas of variation reviewed for accuracy.

xxvii. Further Work

Grade control drilling using blast hole sampling will continue and is used to continue to cross validate exploration drill hole results.

Selected pulp samples from the 2011 drilling campaign may be selectively analysed for cross validation purposes.

Additional hydrology work is currently being undertaken to confirm that groundwater will not substantially affect the Mineral Resources and Ore Reserves reported.

Further analysis is required to determine the optimum time for capital infrastructure movement. This study is currently not required for 10 years. Additional operational cost benefits are likely to result from replacing the crushing infrastructure with new fit-for-purpose equipment.

Deeper drilling should also be completed across strike to improve the confidence classification in the northern and western fold areas of the marble unit.

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Schedule

Diamond Drilling Campaign

Hole ID Easting Northing RL Length Bearing Dip Length Chemical Quality

DDH001 1099 924 267.0 156 0 -90 60m DDH002 1184 1135 267.7 160 0 -90 157m DDH003 1170 1500 279.0 168 0 -90 154m DDH004 1217 1700 289.5 152 0 -90 114m DDH006 1197 1660 291.4 36 0 -90 35m DDH012 1155 1300 268.0 155 270 -65 134m

Table 3 - Diamond hole locations (local grid)

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Reverse Circulation Drilling Campaign


RC201101 1145 770 318.5 67 270 -65 54 RC201102 1033 806 324.8 85 90 -65 4 RC201104 1190 800 314.5 42 90 -65 33 RC201106 1176 901 275.0 56 0 -90 39 RC201107 989 900 333.5 106 90 -65 59 RC201109 1247 900 306.2 104 90 -65 10 RC201110 1092 967 279.6 57 0 -90 26 RC201113 1268 940 303.6 61 90 -70 4 RC201114 997 980 337.0 105 90 -65 0 RC201115 1187 980 288.6 52 0 -90 50 RC201116 1242 980 291.5 52 90 -70 18 RC201118 1157 1020 271.0 42 0 -90 42 RC201120 1126 1040 279.7 46 270 -65 24 RC201121 1029 1122 339.3 106 90 -65 51 RC201122 1204 1060 291.0 45 0 -90 41 RC201123 1142 1067 279.6 60 90 -75 54 RC201125 1227 1100 293.9 71 0 -90 7 RC201126 1145 1093 279.4 48 90 -65 37 RC201127 1252 1140 303.3 30 90 -65 0 RC201128 1227 1140 293.9 32 90 -90 18 RC201130 1200 1154 279.1 50 270 -65 45 RC201134 1005 1172 334.3 118 90 -65 5 RC201135 1204 1215 279.6 43 90 -65 31 RC201136 1162 1221 267.1 50 270 -65 49 RC201138 1246 1220 303.6 42 90 -65 6 RC201144 1015 1300 354.8 105 90 -65 0 RC201145 1246 1300 305.5 45 90 -65 1 RC201146 1202 1300 278.8 50 90 -70 48 RC201149 1223 1340 292.5 46 90 -65 10 RC201152 1244 1365 303.6 43 0 -90 0 RC201153 1216 1380 291.5 48 90 -90 29 RC201157 1202 1438 279.1 37 90 -75 28 RC201160 1255 1460 304.0 40 90 -65 6 RC201161 1232 1460 292.0 48 0 -90 0 RC201162 1201 1460 282.0 40 0 -90 40 RC201163 1176 1460 280.0 50 270 -65 50 RC201164 1069 1419 354.3 110 90 -80 3 RC201165 1040 1500 363.0 130 90 -65 0 RC201167 1258 1500 280.0 58 90 -65 7 RC201169 1196 1540 282.0 50 0 -90 39 RC201170 1250 1540 304.0 63 90 -65 19 RC201172 1180 1600 281.0 50 0 -90 50 RC201173 1259 1580 304.0 78 90 -70 23

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RC201174 1075 1652 350.2 110 90 -80 70 RC201175 1256 1620 291.3 16 0 -90 0 RC201177 1196 1660 292.0 55 0 -90 51 RC201178 1218 1660 292.0 60 90 -65 50 RC201179 1169 1661 296.2 50 270 -65 7 RC201182 1257 1740 291.0 76 90 -65 47 RC201183 1235 1740 290.0 55 270 -65 51 RC201185 1055 1740 331.0 115 90 -65 64 RC201186 1218 1820 291.6 60 270 -65 37 RC201187 1254 1820 304.0 55 90 -65 22 RC201188 1226 1820 292.0 61 90 -65 43 RC201189 1068 1837 320.8 100 90 -65 67 RC201190 1223 1860 290.6 121 270 -65 111 RC201191 1270 1900 317.0 40 90 -65 0 RC201192 1077 1900 315.0 115 90 -65 80 RC201193 1277 1940 329.9 75 90 -78 0 RC201194 1000 1940 341.0 74 90 -65 0 RC201195 1180 1975 292.2 58 90 -65 52 RC201196 1090 1985 302.7 85 0 -90 44 RC201198 1067 2030 314.0 83 90 -65 35 RC201199 1243 2030 342.3 114 270 -65 86 RC201200 1047 2080 328.0 98 90 -65 34

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For personal use onlyMay 24, 2012 · For further information on Penrice Soda Holdings visit the...

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Transcript of For personal use onlyMay 24, 2012 · For further information on Penrice Soda Holdings visit the...