INDUSTRIAL METALS, MINERALSINDUSTRIAL METALS, MINERALS & MINEABLE ENERGYINVESTMENT SUMMITINVESTMENT SUMMIT

Leading in Peru's uranium districtNick Tintor – Southern Andes Energy

IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 3 NOV 2011www.ObjectiveCapitalConferences.com

Developing Peru’s Untapped Uranium Resources

Objective Capital Conference - London

November 2011

TSX-V:SUR

Cautionary NoteConcerning Forward Looking StatementsThese materials present an overview of Southern Andes

Energy’s projects in southern Peru. Readers are cautioned

Concerning Forward-Looking Statements

that the projects are at an early stage and that all estimates

and information contained herein are based on limited and

incomplete data. Additional work is required before the

mineralization and the economic potential of the projects

Scan be confidently modelled. Statements reflected in this

presentation may contain “forward-looking statements”

including management’s assessments of future plans and

operations including expectations of future production and

Tcapital expenditures. These statements regarding potential

mineralization and resources, estimated or potential future

production, potential ranking of properties and future

plans and objectives of the Company, are forward-looking

stat m nts t at n o a o s no n an n no n s sstatements that involve various known and unknown risks,

uncertainties and factors. Consequently, actual results may

differ materially from those anticipated in the forward-

looking statements. While the work, results, estimates and

projections in the presentation may be considered indicative

TSX-V:SUR

projections in the presentation may be considered indicative

of the nature and quality of the work undertaken, they are

not definitive. Readers are advised that undue reliance

should not be placed on forward-looking statements. 3

Our TeamManagement

Nick Tintor, President & Chief Executive OfficerGeologist, with over 25 years of experience in the mining industry; has been involved with all aspects of junior mining company management finance and project acquisitioncompany management, finance and project acquisition.

Hatem Kawar, Chief Financial OfficerOver 25 years of experience in technical and management aspects of industrial mineral projects in the Middle East. MBA degree (Schulich, York University, Canada).

Arnaldo T. Leon, Country Manager – PeruMr. Leon is a mining engineer with over 32 years of experience as a mining specialist in Peru. Responsible for managing Southern Andes Energy's existing property portfolio.

Al i V h Vi P id E l iAlain Vachon, Vice President Exploration More than 33 years of experience in exploration with the last 13 years in Peru as General Manager and consulting geologist for various junior Canadian companies.

Board of DirectorsRobert Boaz, Independent Chairman

Board of DirectorsJohn CookLaurence Curtis

James GarcelonNick Tintor

TSX-V:SUR 4

Southern Andes Energy A perfectly positioned Peruvian uranium play

Share structure: As at October 17, 2011

Shares Outstanding 74,134,711 Share Price $0.17(Oct. 17, 2011)

Options Outstanding 3,139,998 Market Capitalization $12.6 million

Warrants Outstanding 22,805,000 Cash and Securities (as of March 31, 2011)

$12.6 million

ll l d b lFully Diluted 100,079,709 Debt Nil

TSX-V:SUR 5

Post Japan – Nuclear Showing Recovery

• Despite Japanese nuclear crisis, spot price for U3O8 has rebounded to +$50

Uranium renaissance driven by strategic demand, rising prices

• Nuclear build slowed but continues whilst uranium equities remain ignored

• China committed to nuclear program. Program delayed only one year for additional safety checks

• Currently 441 commercial nuclear reactors are in operation in 30 countries y p 58 units under construction worldwide representing ~60GWE of capacity 152 units and 337 units planned and proposed respectively Build out may be delayed – but remains intact

Catalysts:$80 Uranium Spot Price ($US)Catalysts:

• Continued price volatility but expect U stocks to respond when spot reaches $60

d A i i$40

$50

$60

$70

p ( )

• Increased M&A activity

• News confirming reactor build

(S UXC S b )

$20

$30

TSX-V:SUR

(Source: UXC, September 2010 presentation)(Uranium spot price, Bloomberg. Accessed Oct. 17, 2011)

6

Why Peru?A stable, pro-mining jurisdiction with good infrastructure

• Peru vastly underexplored for uranium

• The country has not previously emphasized uranium deposits, but is receptive to the developmentof these prospects

• Potential for open pit deposits between 5-25 million lbs in size

• Peru supporting export of uranium and is proceeding with preparation and adoption new nuclearand uranium mining and processing guidelines

Excellent government support for uranium mining

TSX-V:SUR

(Source: Peru Ministerio de la Produccion, Adex DataTrade, BCRP and MINEM)

7

Southern Andes EnergyDiscovering & developing Peru’s Uranium resources

Company restructured in 2010 with explicit focus on developing Peruvian uranium assets

Largest landowner of uranium assets in Macusani Plateau

• Controls over 65,000 hectares of concessions

• Identified over 55 uraniferous anomalies on Southern Andes’ land concessionsMacusani Plateau Andes land concessions

• Owns 7% equity interest in Macusani Yellowcake Inc.

O ns 65% interest in Caracara Sil er Controls portfolioStrategic equity interests

• Owns 65% interest in Caracara Silver. Controls portfolio of advanced-stage silver-zinc-lead projects in Peru

Obj ti I t i t t i l d k d

TSX-V:SUR

Objective: Invest in strategic land package and create shareholder value advancing U and Ag projects

8

Macusani PlateauSouthern Andes controls the Macusani Uranium District

All properties are 100% owned by Southern Andes

Property Size (Hectares) Commodity

Macusani East 47,419 Uranium

Macusani West 16,600 Uranium

Picotani 1,906 Uranium

TSX-V:SUR 9

Macusani Uranium District

M i E tM i W t

Southern Andes dominates the play

More than 65,000 hectares Macusani EastMacusani West ,

Under explored yet in three years produced strong results

New highway provides excellent all weather access

Proximity to hydro powery y p

Access to services and supplies

TSX-V:SUR 10

Significant Near Surface Uranium Resources

• More than 60 million lbs U3O8 outlined in past 3 years

• Open pit deposits

• Clusters support concept of one central plant

• Extension potential lies on pSUR ground

• District potential +100 million lbs.

TSX-V:SUR

Tupuramani Radiometric Extension f C lib i II III D iof Colibri II-III Deposit

• Colibri deposit hosts20 million lbs. U3O8(1)

• Tupuramani claim hasTupuramani claim has large radiometric anomaly on strike with radiometrics at Colibri

TSX-V:SUR 12

(1)As published by Macusani Yellowcake and not verified by SUR

Tupuramani Radiometrics

327200 327400 327600 327800 328000 328200 328400 328600 328800 329000 329200 329400 329600 329800 330000 330200 330400 330600 330800 331000 331200 331400 331600 331800 332000

845

6400

845

6400

845

6600

845

6600¨

0 0

845

5800

845

5800

845

6000

845

6000

845

6200

845

6200

TUPURAMANI CONCESSION

5000

5000

845

5200

845

5200

845

5400

845

5400

845

5600

845

5600

RADIOMETRY ANOMALY

45

4400

45

4400

845

4600

845

4600

845

4800

845

4800

845

5

845

5

327200 327400 327600 327800 328000 328200 328400 328600 328800 329000 329200 329400 329600 329800 330000 330200 330400 330600 330800 331000 331200 331400 331600 331800 332000

845

4000

845

4000

845

4200

845

4200

84

84

0 400 800

Meters

TSX-V:SUR 13

New Discovery at Tupuramani

• 3,214 ppm U3O8/20 m

• 3 590 pp U3O8/12• 3,590 ppm U3O8/12 m

• +1,500 m of strike

• Possible extension of Colibri uranium deposit

• Prospecting has indentified new targets on MichaMichane claims to southMichane claims to south

TSX-V:SUR 14

Excellent Grades at TupuramaniA Priority Drill Target in 2012A Priority Drill Target in 2012

Widespread uranium on surface T-1: 878 ppm U3O8 (1 76 lbs/t) across 33 5 mWidespread uranium on surface T-1: 878 ppm U3O8 (1.76 lbs/t) across 33.5 m

TSX-V:SUR 15

Tupuramani Potential Expanded

• Subparallel radiomtericzones host mineralization

Hi h f d i i

0.59%/1 m

• High surface grades in pits and trenches

• Possible offsets from the main Tupuramani

0.43%/2.6 m

main Tupuramanidiscovery and Colibriextension

• More then 3 km of

0.31% in pit

prospective strike identified

0.065%/2.85m

TSX-V:SUR 16

Kihitian High Grade DiscoverySouthern Andes surrounds the play

• High grade discovery by YEL

• 7 m/1.8% U3O8 in new deeper zone

Pl f l dRecently discovered trenches

• Platforms planned less than 200 m from SUR boundary

SUR th• SUR covers three sides with similar geology

TSX-V:SUR 17

Mineralized Trenches Extend Kihitian Potential

Southern Andes prospecting highlights in these trenches include:• 0.3% U3O8/3.9 m• 0.058% U3O8/14 m• 1.24% U3O8/0.9 m

TSX-V:SUR 18

Surface Uranium Exposed in Trenches

TSX-V:SUR 19

Extensive Mineralization at Tantamaco• Tantamaco surrounds Macusani Yellowcake’s

new Kihitian high grade discovery on three sides

• Recent reconnaissance field exploration has identified five new targets through trenching, sampling and pitting

• Hi hli ht i l d 0 15% U3O8 (3 0 lb• Highlights include 0.15% U3O8 (3.0 lbs U3O8/ton) across 17.4 m and including 1.74% U3O8 (34.8 lbs/ton) across 1.2 m

• Over 25% of all samples greater than 0.1% % p g %U3O8

TSX-V:SUR 20

Accocucho Sur – Mineralized Zones• Zone 1 and Zone 2 +400 m apart with shallow

soil cover.

• Widespread uranium mineralization in• Widespread uranium mineralization in numerous trenches and channels.

Highlights include:246 8 U3O8 (0 49 lb /t) 48 95o 246.8 ppm U3O8 (0.49 lbs/t) across 48.95 m

o 1,114.7 ppm U3O8 (2.24 lbs/t) across 8.31 mo 702.5 ppm U3O8 (1.4 lbs/t) across 6.45 m

TSX-V:SUR 21

Chacaconiza – Widespread U Anomalies

• Accocucho Sur hosts widespread autuniteuranium mineralization in area of high radiometrics

• Zones of +25,000 cps radiometrics

• Alpi-2 Zone radiometric anomaly strikes for more than 6 000 mmore than 6,000 m.

• Alpi-1 is the second uranium discovery Southern Andes has made in the ChacaconizaProject.Project.

o 1,031 ppm U3O8 (2 lbs/t) across 8.9 mo 657 ppm U3O8 (1.3 lbs/t) across 14.1 mo 430 ppm U3O8 (0.86 lbs/t) across 17.15 m

TSX-V:SUR 22

Preliminary Test WorkPositive metallurgical results

Positive results were obtained from all samples submitted to the leaching test

U O i Pi h l l 1 2 3 4 A 88 3%• U3O8 extraction; Pich sample; columns 1,2,3,4: Average 88.3%;

• U3O8 extraction; Viz sample; columns 5,6,7,8: Average 99.5%;

• U3O8 extraction; Cha sample; columns 9,10,11,12: 98.2%;

• Total acid consumption of columns 1 to 4 ranges between 13 and 14.5 kg/t;

• Total acid consumption of columns 5 to 8 ranges between 12 and 14.1 kg/t ;

T l id i f l 9 12 b 13 8 d 16 4 k /• Total acid consumption of columns 9 to 12 ranges between 13.8 and 16.4 kg/t.

TSX-V:SUR 23

Macusani Uranium – Low Cost ProductionPositive mining attributes

The mineralization found in the Macusani Uranium District is characterized by significant miningattributes:

• Near-surface mineralization

• Low blast factor in friable rocksDistrict characteristics suggest

low operating costs per lb. <$30/lb• Possible ripping at start

• Low work index means low crushing costs

• Very low reagent consumption in preliminary metallurgical testwork

<$30/lb

y g p p y g

• Excellent leach recoveries due to high porosity in host rock: +90%

• Ore in grades ranging from 200 ppm to 300 ppm

TSX-V:SUR 24

Disconnect between NAV and Market CapMarket values uranium projects at zero

As at October 17, 2011

Cash $4,350,000

35%

$0.17 $0.17

$0.12

$0.14

$0.16

$0.18

r sh

are

pri

ce

35%

M i

Caracara Silver

$7,000,000 55%

$0 04

$0.06

$0.08

$0.10

$

Pri

ce v

s. N

AV

per

Macusani Yellowcake $1,280,000

10%

Total cash and securities: $12 6 million

$-

$0.02

$0.04

Share Price NAV per share

Shar

e P

Total cash and securities: $12.6 millionCash/securities per share: $0.17

TSX-V:SUR 25

(Source: Bloomberg. Accessed Oct. 17, 2011)

Summary and 2012 Plans

• Uranium and nuclear renaissance slowed but remains intact post Japanese crisis

S h A d E l h M i U i Di i i P i h• Southern Andes Energy controls the new Macusani Uranium District in Peru with more than 65,000 hectares

• Plan to drill new surface discoveries and known mineralized zones in January, 2012

• Initial 2,000 m drill campaign will test Tupuramani discoveries

• Identified significant targets surrounding new Kihitian discovery area

• Exposure to exploration results from 65%-controlled Caracara Silver in 2012

• Disconnect between net asset value and market capitalization

TSX-V:SUR 26

ContactHead Office (Toronto, Ontario, Canada)Nick Tintor, President & CEOOffice Tel: +1-416-987-0855Mobile Tel: +1 416 953 4244Mobile Tel: +1-416-953-4244Email: ntintor@southernandes.ca

Investor Relations (Toronto, Ontario, Canada)( )Greg DiTomaso, Investor RelationsOffice Tel: +1-647-436-2592Email: greg@thecapitallab.com

TSX-V:SUR 27