JV DRILLING METRES - PERU & BANFORA COPPER 12-18 months (planned) (Peru expected start mid 2015) 46,000 metres GOLD 48 months (possible) +110,000 metres UP TO A$34M FUNDED BY PERU JV PARTNERS NICKEL MAJOR LANDHOLDER IN THE FRASER RANGE Planning to drill this year close to Sirius (SIR) & Mount Ridley Mines MRD) LADU Presentation by Graeme Drew Peru DISCLAIMERS Forward-Looking Statements This presentation contains forward looking statements concerning the projects owned by AusQuest Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on management’s beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Data and amounts shown in this presentation relating to capital costs, operating costs and project timelines are internally generated best estimates only. All such information and data is currently under review as part of AusQuest Limited’s ongoing development and feasibility studies. Accordingly, AusQuest Limited cannot guarantee the accuracy and/or completeness of the figures or data included in the presentation until the feasibility studies are completed. Competent Person’s Statement The details contained in this report that pertain to exploration results are based upon information compiled by Mr Graeme Drew, a full-time employee of AusQuest Limited. Mr Drew is a Fellow of the Australasian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Drew consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears. JORC – Exploration Targets It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this presentation relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource. Currency All dollar amounts shown in this presentation are in Australian dollars unless otherwise stated. 2 C A P I TA L S T R U C T U R E AusQuest Limited ASX Code Significant Shareholder AQD Shares on Issue 494.9 million Options on Issue 157.6 million Market Cap. (at 2.0 cents) ~$9.9 million Cash (end March + Funds raised) ~$3.5M Enterprise Value 16.7% Directors (Incl C.E.) 22.5% Acorn Capital 5.6% Top 20 ~43.1% Directors Greg Hancock Non Exec. Chairman Graeme Drew Managing Director John Ashley Non Exec. Director Chris Ellis Non Exec. Director $0.025 70,000,000 60,000,000 50,000,000 $0.020 $0.015 40,000,000 30,000,000 20,000,000 $0.010 AQD Share Price Volume (shares traded per day) 80,000,000 $6.4 million Chris Ellis (NED) $0.005 10,000,000 0 $0.000 3 MASSIVE 12 MONTHS AQD IN PERU • Landmark Peru JVs worth up to A$34M - includes cash to AQD up to A$13M • 4 large Cu-Au targets to be drilled – expected start mid 2015 • 20,000m drilling or expenditure of US$3.5M –committed within next 12-18 months • 70,000m drilling + US$10M cash over 4 years to earn 70% in 4 prospects (See ASX announcements February 23rd, 24th) 4 PERU – EXCELLENT CU-AU PEDIGREE • Giant Cu (Au) deposits • Major Cu producer • >U$3.5B Cu – southern Peru • Mine Expansions • Covered areas • Secure Mining Title 5 CERRO VERDE MINE – SOUTHERN PERU 6 CERRO VERDE TO DOUBLE PRODUCTION 7 P E R U – P R O J E C T L O C AT I O N S 3 JV Projects 10 Projects 100% owned 8 UNDERCOVER – A NEW OPPORTUNITY • Covered areas restricted historic exploration • More Cu deposits to be found under cover • Aeromagnetics used for area selection • Mapping & sampling used to prioritise prospects • Geological / geophysical targets for drilling 9 D R I L L I N G C U - A U TA R G E T S - I L O J V s • 2 JVs signed with Zahena to drill large-scale porphyry Cu-Au targets near ILO • 50,000m drilling & US$7 million cash (est. value US$17.5M) earns 70% in both • Commitment - 5,000m Cardonal (US$1M) – 10,000m Puite-Colorada (US$1.5M) 10 CARDO NAL & P UITE JV DRIL L TARG ETS CARDONAL PROSPECT • 13 drill sites approved for Puite & 10 sites for Cardonal • Large porphyry Cu (Au) and/or IOCG targets defined by anomalous Cu, alteration & geophysical anomalies 2km PUITE PROSPECT 1.2km 11 C H O L O L O ( 1 0 0 %) D R I L L TA R G E T - 472m @ 0.11%Cu 2015 472m @ 0.11%Cu • Next to Ilo Este Porphyry Cu prospect (Latin Resources JV with Zahena) • Anomalous Cu-Mo & sericite /alunite alteration - new Porphyry Cu system • Prospect ~250m vertically above Ilo Este - enhances chance of preservation • Drill permitting in 2015 12 D R I L L I N G C U - A U TA R G E T S – L A N A J V LANA • JV with Southern Copper to drill large Cu-Au target – 5,000m DDH commitment • Drill targets at Cerro de Fierro (100% AQD) – permitting in 2015 13 C E R R O D E F I E R R O ( 1 0 0 % ) TA R G E T - 2 0 1 5 Geology Cu Priority Target 2km Cu>100ppm Au>40ppb Ground Magnetic Image Aeromagnetic Contour Magnetic Anomaly beneath Volcanics? Potential Porphyry Cu or IOCG Target? E S C O N D I D A M A G N E T I C S I G N AT U R E • Escondida – very large Porphyry Cu deposit in Chile • Recognised in aeromagnetic data (detailed) • Magnetic nodes reflect potassic alteration (magnetite) • Potassic alteration associated with Cu mineralisation • Discrete magnetic targets infer focussed alteration • Alignment of nodes implies structural control 15 NEW 1 0 0 % CU -AU TARG ETS IN PERU Target 1 Target 2 Target 3 • Magnetic targets similar to Escondida under cover in southern Peru – located using proprietary aeromagnetic data • Targets held 100% by Questdor (wholly owned subsidiary of AQD) • Ground evaluation in 2015 - advance to drill status 16 F R A S E R R A N G E N I - C U D R I L L TA R G E T S Drill Targets Drill Targets Fraser Range (100% AQD) Mt Ridley Mt Ridley Mt Ridley Drill Targets 17 BANFORA GOLD JV – A$7M BUDGET 2015 7,000m Mouro Gold Trend 4,000m 20,000m • RC drilling at 5 gold projects in Burkina Faso has commenced • Up to 39,000m RC drilling & 150,000m of auger in 2015 • 30Km gold auger anomaly (>50ppb Au) reported at Mouro 4,000m • Drilling funded by Burkinor (a wholly owned subsidiary of SEMAFO) 4,000m • Burkinor expected to spend up to US$5.6M (~A$7M) in 2015 2015 – Planned RC Drilling 18 UPCOMING ACTION FOR AUSQUEST COPPER Peru JVs - Four large Cu-Au targets drilled (20,000m) 100% Cu-Au targets outside JV – added value GOLD Banfora Gold JV - Targets drilled in 5 areas (26,000m) NICKEL New Ni-Cu opportunities in Fraser Range (WA) VALUE Market Cap: ~$10 million - cash back to AQD (Peru JV) Drill Targets defined – potential for more to follow Metres drilled = activity = News flow Multiple Opportunities for success and share price appreciation C O N TA C T Graeme Drew Managing Director 8 Kearns Cres, Ardross, WA, 6153 Tel: +61 (8) 9364 3866 Email: graeme@ausquest.com.au www.ausquest.com.au 20