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TELLUS HOLDINGS LTD

Chandler Project UpdateCentral Australia Regional Mining SeminarAlice Springs

Duncan van der Merwe, MD

14 March 2016

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Agenda

Tellus’ strategy

Project overview

Project timeline

Contractor Opportunities and Potential Employment

What do you need to do to work with Tellus?

Examples of Local contracts already awarded

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Tellus’ Strategy – Health and SafetyTellus always puts safety first

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Tellus SummaryVision: Developing a globally proven, dual revenue business model – first in Australia

Company Public unlisted company (2009)

Strategy Project infrastructure developer

Mine underground rock salt and kaolin clay and export commoditiesFill the space left from mining with wastes from resources, oil/gas, industrial, chemical, agricultural and government sectors

Projects Darwin Business Park, Chandler, Sandy Ridge and ClayVault WA JV

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Summary - Locations

ClayVault JV – Mt Walton

Sandy Ridge Facility

Alice – Core Shed/ Office

Chandler –Field Camp

Darwin S&T Facility

Perth Office & Pilot

Brewer S&T Facility

Darwin S&T Facility

Socially responsible infrastructure close to customers and existing rail and roads

Chandler Facility

Tellus’ Strategy

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Ex Shell, NSW Minerals CouncilVIC Haz Waste Consult. Committee

Ex Head-AMP Capital Investors, CEO Tenix Infrast. & Lend Lease Capital

Philip GarlingNon Executive Chairman

Duncan van der MerweGroup MD

Ron Sifton NED

Dr Nikki WilliamsNED

EX CFO Newalta, Canada’s biggest salt storage operator

Experienced Board and management team with key individuals retaining a proven global track record developing salt and kaolin mines, infrastructure projects, and heavily regulated storage facilities

Noel DavisMD ClayVault WA

Ex WA Environmental Regulator, Managed only Class V waste facility

Strategy - Experienced Project Team

Tellus founder, Ex Gencor (Billiton)Bank of Scotland & Nobles Group

Ex SLR, KMH Environmental and WYG

Ex BD Coffey Environmental, IBM

Robert CharterRegional BD Manager

Richard McAreeGM Sales & Marketing

Maurice SauzierRegional BD Manager

Ex. Coffey Int. Wesfarmers Ltd (CSBP), International SOS, Falck, Sonic Health

Jaime LiveseyProject Admin./ Snr Geologist

Ex EPMS, Project Manager at WA Kaolin

Mike IngramSandy Ridge Project Manager

Ex Wiltshire Geological, Schlumberger, TerraSearch

Steve ReeceTechnical Services Manager

Ex Compass Minerals -Managed UK salt & MinosusUnderground waste facility for 14 yrs

Richie PhillipsEnvironmental Approvals Mgr

Senior Environmental Scientist, Ex GHD, URS, and WS

Jonathan FisherCFO & Company Secretary

Project Finance expertise, ex Rothschild Infrastructure, Atlas Iron

Steve HoskingChandler Project Manager

Experienced BFS Study Leader, Ex Atlas Iron, BHP

Katriina TahkaHuman Resources

Co-CEO of A Human Agency & provides HR advice & strategy

Henriette RossouwOccupational Hygienist

12 years exper. Occup. Hygienist & Rad. Safety Specialist in waste, infrastr. & mining

Joe LuxfordUnderground Advisor

40 years of experience in mining ops & project development

20 years of experience in office admin. & accounting

Claudia KnightsOffice Manager

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Tellus Strategy - Proven International Model

150 projects includes <500 caverns and mines

Rock salt is globally recognized to be a suitable host rock for permanent storage.”

Source: Prognos 2012, GRS report for UNEP

Europe a leader in UG salt storage – Germany 20 mines

Tellus dual revenue business model and technology is proven international best practice

German salt mine

German salt mine

N. American salt mine UK salt mine UK salt mineN. American salt

mine

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Tellus’ Strategy – Commodity

309 M t JORC Measured1 Resource

NT Chandler Project

Halite salt (25 + year project)

Volu

me:

salt

sale

s

WA Sandy Ridge Project

Kaolin clay(25 + year project)

1 Refer to Sandy Ridge JORC media release (20 June ’14) and Chandler JORC media release (1 July 14)

41 M t JORC Inferred1 Resource

Resources Our Industrial Minerals End Market UsesOur Strategy

Dual

reve

nue:

com

mod

ity/s

tora

ge

Dom

estic

and

exp

ort s

ales

Volu

me:

kao

lin sa

les

Dual

reve

nue:

com

mod

ity /

stor

e

Chlor-alkali, soda ash, food processing, animal feed, water

treatment

Ceramics (tableware and glazes), paint, continuous filament glass-

fibre and other uses

Dom

estic

and

exp

ort s

ales

Long term (25 + year), reliable supplier of high grade industrial minerals

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Tellus’ Strategy – Waste Resources

250m thick salt bed, 18km W, 500 MYO

NT Chandler Project

Class V storage equip’t and waste

Volu

me:

stor

age

sale

s

WA Sandy Ridge Project

Class IV and V storage & isolation

30m thick clay bed, 40 km W, 60 MYO

Dual

reve

nue:

com

mod

ity

Stor

e “l

ike

with

like

” –

futu

re re

cove

ry

Volu

me:

stor

age

sale

s

Dual

reve

nue:

com

mod

ity

Stor

e “l

ike

with

like

”

Long term (25 + year), reliable supplier of Best Practice Storage and isolation services

Safety Case - Geology Our Storage Services Storage and Isolation UsersOur Strategy

Oil and gas

Mining

Heavy industry and power generation

Manufacturing

Agricultural

Government and SES

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Engineered Barriers and Operational Controls Geological barrier

• Based on strict acceptance criteria

• Combination of engineered & natural barriers

• Multi-barrier system (Russian doll concept)

• Tellus plans to store like with like materials for safety and to create opportunities for the future long term, temporary storage, treatment and recovery of valuable materials

• Waste that can not be recycled can then be permanently isolated

Safety case uses best practice examples developed around the world

Tellus’ Strategy – Safety Case

Transport Design and Construct Operations Closure &

Control PeriodPackagingDry thick clay bed / deep thick salt bed

Safety Case

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Waste Acceptance - Included & Excluded

Sectors serviced

Oil & Gas

Mining

Heavy Industry / Power Generation

Manufacturing

Agricultural

Government/SES

Excluded Wastes

1 Nuclear wastes (enriched uranium & plutonium)

2 Infectious Waste (Medical Pathogens)

3 Uncertified wastes - any materials that are not safely containerised or classified

4 Putrescible wastes (plant and animal)

Included Wastes

NEPM* 75 wastes, State Emergency Services

Tellus is bringing “world’s best practice” solutions to a difficult to manage problem

Tellus’ certifications

* National Environment Protection (Movement of Controlled Waste between States and Territories) Measure. NEPM categorises hazardous wastes into 75 different waste types.

Asset and Project Summaries

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Chandler Project NT

Chandler – surface & underground layout for dual revenue salt mine and storage facility

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Chandler Project NT

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Darwin Storage and Transfer Facility

The Darwin facility will operate as a consolidation and temporary storage location and providing a logistics hub for the Chandler Facility

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Brewer Storage and Transfer Facility

The Brewer facility will operate as a consolidation and temporary storage location and providing a logistics hub for the Chandler Facility

The proposed Brewer Facility is located 20km south of Alice Springs in the Brewer Industrial Estate.

The site is zoned 'Specific Uses -Brewer Estate'.

The purpose is to facilitate the use and development of land primarily for industrial purposes that need to be isolated from other urban uses

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Chandler ProjectAs part of the Project’s EIS process, Tellus will be hosting a number of community information sessions

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Chandler - InfrastructureGreen energy – potentially the largest solar mine project in Central Australia

Chandler – hybrid – solar (PV) diesel power station

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Chandler – Storage BusinessStrict multi barrier safety case comprises man made and natural geology barriers

Conventional room and pillar mining Archive and equipment storage Stacking bags and barrels

Snow blower backfilling bags with salt Bags backfilled with salt Simple hydraulic backfill dam

North American salt mine UK salt & storage mine German salt & storage mine

German salt & storage mine German salt & storage mineGerman salt & storage mine

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ClayVault WA

Project Management Contract with WA Government extended for extra two years

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Sandy Ridge Project WA

Sandy Ridge – surface & open cut layout

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Sandy Ridge Project WA

Contractor Opportunities and Potential Employment

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Opportunities for Northern TerritoryTellus has a commitment to local employment, training and supply of equipment and services

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Contractor Opportunities & Potential Employment

Darwin Brewer Sandy Ridge Chandler Total

Current approvals status

Lodged application

Lodgement - imminent

Lodgement2016 H1

Lodgement2016 H2

Build start 2016 H2 2017 H1 2017 H1 2017 H2

Jobs - Build 90 90 40-90 350 620

Jobs- Ops (Direct) 10 25 18 180 233

Jobs – Ops (Indirect) 30 75 54 540 700

Tellus has a commitment to local employment, training and supply of equipment and services

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What do you need to do to work with Tellus?

Initial engagement is via registration with: Industry Capability Network (ICN) www.chandlersaltmine.icn.org.au or contact ICN NT 08 8922 9422ICN matches projects with potential suppliers

Tier I Primary contract – overarching contract and Tier II Secondary/ sub contracts

Category Business must demonstrate Evidence

Service Track record “deliver on spec, on time, within budget & value add”

Capacity Human resources (experience , A team vs B team, availability) /equipment /supplies

Qualifications (certificates, licences & tickets- current and appropriate)

Financial viability

Insurances -Public Liability, PI, Vehicle, Workers Comp., Damage to Property

Policies (Environ., Quality, OH&S, local content, supporting local people)

Safety management plan and systems

Price Competitive in market comparison, value for money

Terms Contractual terms are acceptable (risk management)

Companies need to demonstrate track record, capacity, price competitive and risk management

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Bankable contracts: Tier I Primary contract (overarching contract) and Tier II Secondary contract (sub contracts)

A bankable contract is a contract with a risk allocation between the Contractor and the Project Company that satisfies the Lenders.

Lenders focus on the ability (or more particularly the lack thereof) of the Contractor to claim additional costs and/or extensions of time as well as the security provided by the Contractor for its performance.

The less comfortable the Lenders are with these provisions, the greater amount of equity support the Sponsors will have to provide.

In addition, Lenders will have to be satisfied as to the technical risk of the technology proposed and the delivery track record of the contractors.

Price is also a consideration, but that is usually considered separately to the bankability of the contract because the contract price (or more accurately the capital cost of the facility) goes more directly to the bankability of the project as a whole.

What do you need to do to work with Tellus?

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Single point of responsibility (if any problems occur ProjectCo need only look to one party – The Contractor – To both fix the problem and provide compensation)

Fixed completion date

Fixed completion price

No or limited technology risk

Output guarantees

Liquidated damages for both delay and performance (15% -25% of contract value)

Security from the Contractor and/or its parent (bank guarantee 5-10% of contract value, Retention, i.e. withholding a percentage (usually 5%–10%), Advance payment guarantees)

Large caps on liability

Restrictions on the ability of Contractor to claim extensions of time and additional costs.

What do you need to do to work with Tellus?In assessing bankability, Lenders will look at a range of factors like:

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Examples of Local Community Support

Support local communities (Titjikala Tidy Town) Create local jobs for TO’s Support local sports teams

Support education programs - CDUSupported Tellus shareholders raising funds for

international charitiesSupport environmental program -30 rangers

Tellus supports training, local jobs and business, investment and regional development

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Examples of Local contracts already awarded

Category Service / equipment provided Local

Industrial real estate Shed/ office rental & utilities

Studies - environmental contractors & TO’s Field surveys

Station / Landholders Earthworks machinery, accommodation

Mining service providers Camp and equipment supply

Wholesale fuel distributors Diesel supply

Vehicle rental suppliers Vehicle rental

Freight providers Freight service

Geotechnical contractors Personnel

Camping & safety equipment suppliers Field equipment supply

Helicopter charter service providers Charter flights

Accommodation & food and beverage Hotels, taxis, catering, room hire

Tellus has a commitment to local employment, training and supply of equipment and services

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Signed $120M Equipment Supply MOUSigning ceremony with CCTEG, Tellus and witnessed by NT Government

Beijing signing ceremony

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Signed Salt Offtake AgreementSigning ceremony with PT Damarcio, Tellus and witnessed by Indonesian Government

Questions and feedback

35Darwin Port and Marine Supply Base

Contact Details

Duncan van der Merwe

Group Managing DirectorE: info@tellusholdings.com.au

A: Suite 2, Level 10, 151 Castlereagh Street, Sydney, NSW, 2000

T: +61 2 8257 3395 F: +61 2 8233 6199

www.tellusholdings.com.au

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DisclaimerSummary information This presentation (Presentation) has been prepared by Tellus Holdings Ltd (ABN 97 138 119 829) (‘Tellus’) and is for information purposes only. This Presentation contains summary information about Tellus and its subsidiaries and their activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete. It should be read in conjunction with other periodic announcements on www.tellusholdings.com.au. The key information on detailed exploration target statements, mineral resource estimates, and feasibility results can be found in Tellus’ publically released media announcements. Exploration target statements and mineral resources estimations are appended to comply with ASX guidelines but investors are urged to read supporting information in full available on the company’s website, and available in their data room.

Future performance This Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, “should”, “could ”, “may”, “plan”, “will”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions, and independent third party expertise. Such forward-looking statements, opinions, and estimates are not guarantees of future performance.

Not an offer This presentation does not constitute an offer, invitation, or recommendation to subscribe for or purchase any security and neither this presentation nor anything contained in it shall form the basis of any contract or commitment.

Competent Person Statements – Chandler ProjectAny references to reserve and resources estimations should be read in conjunction with Tellus’ Ore Reserves and Mineral Resources statement for its projects as loaded onto Tellus’ web site. The information in this presentation that relates to Mineral Resources - Chandler Project - is based on information compiled by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH (‘ERCOSPLAN’). Jana Neubert is a senior geologist and employee of ERCOSPLAN and a member in good standing of the European Federation of Geologists registered as “European Geologist” (Registration Number 1033).

Competent Person Statement – Sandy Ridge ProjectThe information in this presentation that relates to Mineral Resources - Sandy Ridge Project - is based on information compiled by Terra Search Pty Ltd. Mr Jenkins is Principal Geologist of Terra Search and a Member of the Australian Institute of Geoscientists. Mr Jenkins has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.