How to Achieve Investment Success in the Indonesian Mining Sector

Presentation to the Indonesian Coal Investment Forum 1 November 2011, Jakarta

James Brown Managing Director

www.alturamining.com ASX: AJM

DISCLAIMER
This presentation has been prepared by Altura Mining Limited (Altura or the Company). It should not be considered as an invitation or offer to subscribe for or purchase any securities in the Company or as an inducement to make an invitation or offer with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation is provided on the basis that none of Altura nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the presentation and nothing contained in the presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The presentation contains forward looking information and prospective financial material which is predictive in nature and may be affected by inaccurate assumptions or by known or unknown risks and uncertainties, and may differ materially from results ultimately achieved. All references to future production, production targets and resource targets and infrastructure access re subject to the completion of all necessary feasibility studies, permitting, construction, financing arrangements and infrastructurerelated agreements. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources and Exploration Results, as well as the Competent Persons' Statements. All persons should consider seeking appropriate professional advice in reviewing the presentation and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the presentation nor any information contained in the presentation or subsequently communicated to any person in connection with the presentation is, or should be taken as, constituting the giving of investment advice to any person.

Altura Mining - Overview

Listed on the Australian Securities Exchange (ASX : AJM) Emerging producer of coal, iron ore and lithium

Three Major Projects

Coal Tabalong (South Kalimantan, Indonesia) Iron ore Mt Webber (North Pilbara, Western Australia) Lithium Pilgangoora (North Pilbara, Western Australia)

Capital Structure (28 October 2011) Shares on Issue (AJM) Cash Market Capital 449,872,181 A$28 million A$81 million

TABALONG COAL
Coal Deposit High calorie thermal coal (+6,400 kcal GAR) Low ash (4%) and sulphur (<1%) History Acquired and explored by Altura Indonesia Mining Approvals process commenced in 2009 Operation Production approval October 2011 Forestry Permit (Pinjam Pakai) in process Development Plan Simple mine, crush, haul and barge load Option to share infrastructure Target coal production 2012 Initial target of 400,000 tpa Increase resource base through acquisition
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Investment in the Indonesian Mining Sector

Locating the asset

Abundance of coal assets available in Indonesia
Target coal specifications and resource size Potential target project locations

Greenfields vs Brownfields
Local knowledge is distinct advantage

Timeframes
Extended and not definitive Exclusivity is sometimes difficult to negotiate

Vendor expectations
Increased along with coal pricing Joint venture or outright sale
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Investment in the Indonesian Mining Sector

Strategy and structures

Partnerships and Joint Ventures
Finding a compatible local partner part of the strategy Compatibility of development strategies with partner

Agreements and legals

Variety of good legal counsels many with foreign affiliation Compliance to ownership regulations Shareholder and capital structures

Managing and funding

Appointment of a manager for partnership Playing to each partners strengths Cash calls and carried interests
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Investment in the Indonesian Mining Sector

Mining and exploration processes

Introduction of the new mining law
Provides a more robust framework Complexities are now generally understood Backlog or permits remains a challenge

Exploration
Forestry Permit required for exploration (unless exempt) Local and landowner approvals compensation may be required Lead times of at least 3 months Stakeholder involvement advised to reduce possible conflicts Contractor selection for exploration activities

Investment in the Indonesian Mining Sector

Mining and exploration processes

Mining Permits
Process has been very much publicised Environmental documentation (AMDAL) Government Feasibility Study (GFS) Stakeholder meetings essential and many Mine closure planning Operation Production approval Forestry Permits (Pinjam Pakai) Export, Transport and other permits Local and Central Government mixture Land compensation

Investment in the Indonesian Mining Sector

Security of investment
Key is in partnership and compliance
Foreign companies and local participation Capitalising on each partners strengths Establish local presence (not FIFO)

Support for operations

Community development and contribution Transparency for all stakeholders Compliance to environmental and statutory regulations Meet customers expectations

Corporately
Deliver shareholder value by achieving or exceeding expectations
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Thank you Questions?

ASX:AJM James Brown Managing Director www.alturamining.com

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