Statements contained in this presentation which are not historical facts are forward-looking statements that
involve risks, uncertainties and other factors that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. Factors that could cause such differences, without
limiting the generality of the following, include: risks inherent in exploration activities; volatility and
sensitivity to market prices for uranium and rare earths; volatility and sensitivity to capital market
fluctuations; the impact of exploration competition; the ability to raise funds through private or public
equity financings; imprecision in resource and reserve estimates; environmental and safety risks including
increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in
political support for nuclear energy and rare earth technologies; changes in government regulations and
policies, including trade laws and policies; demand for nuclear power and rare earth products; failure to
obtain necessary permits and approvals from government authorities; weather and other natural phenomena;
and other exploration, development, operating, financial market and regulatory risks. Although Stans Energy
Corp. believes that the assumptions inherent in the forward-looking statements are reasonable, undue
reliance should not be placed on these statements, which only apply as of the date of this release. Stans
Energy Corp. disclaims any intention or obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise. United States investors are advised that
while the term "inferred" resources is recognized and required by Canadian regulations, the SEC does not
recognize that term. Investors are cautioned not to assume that all or any part of mineral deposits in this
category will ever be converted into reserves.
IMMEDIATE GOAL:
‘Stans Energy will become the first Heavy Rare Earth Elements (HREEs) producer
outside of China by revitalizing its 100% owned, former REEs mine, Kutessay II.
Long Term, Stans will become a world leader in HREE development.’
AGENDA
:
1.
Optimize scale and design of Stans’ newly acquired RE Processing
Complex.
2.
Establish relationships with the end-users of REEs and evaluate
partnership opportunities.
3.
Create a new mine plan for Kutessay II following consultation with Stans’
geology, mining engineering and science partners.
4.
Complete feasibility study for Kutessay II, KCRP, and the Kalesay Beryllium
Deposit
5.
Further team building in Kyrgyzstan to implement the new mine plan
6.
Evaluate additional HREE acquisitions
Bayan Obo
• Iron Ore Mine with Light Rare Earth Elements (LREEs) produced as byproducts
• World’s largest source of LREEs – La, Ce, Pr, Nd, Sm • Estimated 50+ years of mine life remaining
• Costs of production are very low (<$4.00/kg REO AVG)
• Capacity for LREE production is well above current production rates
• International shortage of Ce and La is imposed and not structural
• Production is subject to Chinese production and export quotas
Ionic Clays
• World’s only HREE mines currently in operation
• World’s main source of all Eu, Gd, Dy, Tb, Ho, Er, Lu, Tm, Yb, Y products
• Multiple deposits scattered throughout the region • AVG RE grades range between .05-.20
• RE properties are soluble, meaning the costs of extraction are very low, and recoveries of HREEs are high.
• Currently, Ionic Clays are the world’s only proven soluble HREE resources
• Expected HREE production from Ionic Clays expected to be 13,000 mt in 2011.
• Unofficial production estimates range from20-40% higher than production quotas (additional production from illegal mining)
• At current production rates, China’s ministry of commerce have stated that there are 15-20 years of mine life remaining.
•Current rates of production are not satisfying world demand.
• China has nationalized and consolidated many of the small HREE mines to try to control production
• Environmental costs are increasing as Chinese mining methods are improving
• Representatives of China have publicly stated that China will soon become a net importer of HREEs.
• HREE metallurgical knowledge is scarce outside of China
Magnets 24% Fluid Catalytic Cracking 16% Polishing 15% Battery Alloys 12% Other Metal Uses 9% Glass 8% Auto Catalysts 6% Phosphors 6% Ceramics 1% Other 3% Magnets, 24% Fluid Catalytic Cracking, 15% Polishing, 15% Battery Alloys, 15% Other Metal Uses, 8% Glass, 6% Auto Catalysts, 7% Phosphors, 6% Ceramics, 1% Other, 3% 2% 5% 6% 8% 8% 8% 8% 10% 10% 12% Glass Other Metal Uses Fluid Catalytic Cracking Other Polishing Magnets Auto Catalysts Phosphors Ceramics Battery Alloys
2011E REO Demand by Application
2015E REO Demand by Application
2011E-2015E End Product Demand CAGR
Source: IMCOA 0 50,000 100,000 150,000 200,000 250,000 2005 2006 2007 2008 2009 2010 2011f 2012f 2013f 2014f 2015f
ROW Supply China Supply China Demand Adjusted Global Demand
(T
onn
es
of
R
EO
)
Kutessay II
Kutessay III
Element Oxide
REEs %
REO$/Kg USD
May 1, 2011
Yttrium (Y)
26.73
165.00
Dysprosium (Dy)
6.14
700.00
Terbium (Tb)
1.55
1200.00
Neodymium (Nd)
8.18
230.00
Europium (Eu)
0.23
1180.00
Erbium (Er)
3.25
145.00
Praseodymium (Pr)
3.78
215.00
Gadolinium (Gd)
3.59
160.00
Samarium (Sm)
4.10
120.60
Holmium (Ho)
0.57
200.00
Thulium (Tm)
0.25
790.00
Ytterbium (Yb)
3.29
155.00
Lutetium (Lu)
0.50
800.00
Cerium (Ce)
19.68
130.60
Lanthanum (La)
16.55
133.10
Aktyuz
Kutessay II REE Mine
JORC Estimate - 46,540 tonnes TREO, 0.264 grade, 46% HREEs
(Note: Resource estimate does not include stockpiled ore in the pit, the resource is open to depth, and higher grades
HREEs are present at higher elevations)
Stans Energy Corp owns 100% of a
20-year Mining Licence
for Kutessay II,
signed on December 29, 2009
On May 26, 2011 Stans finalized the
purchase of the processing complex
that previously separated concentrate
from Kutessay II into 120 different final
RE products, including oxides, metals
and alloys
The mine and processing facility
previously produced 80% of the Former
Soviet Union’s REEs for 30 years
Known and proven metallurgical process
Historical recovery rate of 64%
Infrastructure of paved roads, power,
rail, water in place
Majority of potential revenues derive
from Dy, Y, Tb, and Nd production (all
in short supply)
Weighted average international price
of $214/kg USD TREO (April 29, 2011)
The new government of Kyrgyzstan is
fully supportive of bringing Kutessay II
back into production
•
Stans Energy finalized the acquisition
of the RE processing complex ‘KRP’,
and rail terminal on May 26
th, 2011
•
KRP was designed to separate REEs
from Kutessay II RE concentrate
•
Almost all equipment remains on site,
97% of which is in good or satisfactory
working condition
•
Produced 120 different oxides, metals,
and alloys up to 99.99%
•
Under care and maintenance since
1991, continued to produce HRE metals
from stored concentrates until 2010
•
Rail terminal connects to Russia,
China, Korea, by ferry to Japan, and to
the Middle East
Beryllium deposit with historical reserves of С
1+С
2category: ore – 9,245,000 t., containing 11,701 t
of Beryllium oxide at an average grade of
0.128%*… Beryllium’s price is >$700,000.00/t USD
Due to their close proximity, the Kalesay
Beryllium deposit could be developed in
conjunction with Kutessay II. Stans is in the
process of completing a JORC resource estimate
for Kalesay.
Increasing Beryllium reserves is possible through
exploration of deposit pit flanks and to the
depth.
More than 70% of total reserves of the deposit
can be mined by open pit
*Reserve estimate from historical Soviet data, not NI 43-101
compliant and should not be relied on
Kutessay II
Kalesay
Exploration Licence Area
40 Km
2
, 50+ mineralized targets
While mining the
Aktyuz
deposit for lead
in the 1950s, the Soviets found
significant levels of all 15 REEs, plus Ag,
Th, Zr, Zn, Sn, Mo, Nb, Ta, Hf and Be in
the process. Once they discovered
Kutessay II, the entire empire’s RE needs
were scheduled to derive from Kutessay
II for the next 80 years at historical
production rates. Soviet surface drilling
and trenching identified a total of seven
main zones of mineralization, but no
further exploration work was completed
to identify reserves in each area. Stans
Energy Corp. hopes to expand its
identified historical RE resources by
pursuing a modern exploration program
on the Aktyuz Ore Field in 2011.
Kyrgyz-Russian
Slavic University
CSRL
VNIIHT
GEOTEP
IGPMG RAS
ARRIMR
Russia
Kyrgyzstan
Canada
Honorary Consul of
the Kyrgyz Republic
for Canada
September 13, 2010 :
Stans Energy Corp. signed an agreement with Leading Russian
Research Institute of Chemical Technology to evaluate and pursue rare
earth acquisitions in the Russian Federation.
What’s Next?
Confirm the extensive Russian and
Kyrgyz geological data on Kalesay by
producing a JORC resource estimate
and complete a new mine design
Test the depth potential of Kutessay
II with deep underground drilling
Complete geophysical survey of the
entire Aktyuz Ore Field to locate
additional drill targets
Commence a program to refurbish
and redesign the KRP to optimize
production and to maximize
efficiency using the latest
technological innovations.
Establish relationships with end users
of REEs and evaluate partnership
opportunities
Upgrade the past metallurgical
process (specifically at the
concentrate stage) to implement new
technologies, chemicals, and solvents
Commence a feasibility study on
resuming production at Kutessay II
Assemble mining, milling, and
metallurgical team to restart
Kutessay II, and KRP
Evaluate additional HRE acquisitions
in areas of the former Soviet Union
•
100% ownership of the former Soviet mine,
Kutessay II, the only hard rock mine in the world outside
of China to ever produce all 10 Heavy Rare Earth Elements (HREEs) in significant quantities
•
Long term demand for HREEs supported by growth in key end use products
•
100% ownership of KCMP – full capacity REE processing plant previously used by Soviet Union
•
Differentiation from other “REE” players as the Heavy Rare Earth Element
producer. One of a small
handful REE players that can help satisfy World’s heavy rare earth needs in the near future
•
Mine – Kutessay II has infrastructure in place which gives a significant time, cost and resource
allocation advantage over others
•
46,540,000 kg of REO contained with 0.265% grade. Historical production rate of about 500 mt RE
oxides, metals and alloys per year. Stans will conduct a feasibility study in 2011 to determine the
new optimal rate of production
•
30 years of proven metallurgy, with approximately 64% historical recovery rate
•
Collaboration with VNIIHT (The Russian Leading Research institute of Chemical Technology ) to jointly
Kutessay III
TSX-V: RUU
STANS ENERGY CORPORATION
8 King St. East, Suite 205
Toronto, ON, M5C 1B5
Tel: 647 426 1865, Fax 647 426 1869
info@stansenergy.com
www.stansenergy.com
INVESTOR RELATIONS
The Buick Group
Stock Exchange RUU (TSX-Venture)
Shares Outstanding 152,303,186
Warrants 8,646,476
Options 10,713,333
Total (fully diluted) 171,662.995
Market Cap C$312 m
Share price (April 29) C$1.91
52 week high/low C$3.40 / C$0.19
Net cash C$28.5 m
Chairman of the Board; RODNEY IRWIN, MA , Honorary Consul of Kyrgyz Republic in Canada
From 1972 to 1974, Rodney joined the Department of External Affairs, in Ottawa, then in 1978 through to 1980, he served abroad in New-Delhi, Moscow & Port of Spain. From 1988 to 1990 Rodney served as High Commissioner, then in 1992, was named Ambassador to Yugoslavia. Due to the war with Croatia, he served as Ambassador to Albania, Bulgaria, Slovenia & Croatia. From 1993 to 1996, he was Ambassador to Hungary while retaining his Balkan country accreditations. From 1999 to 2003, he served as Ambassador to the Russian Federation with concurrent
accreditation to the Republics of Armenia & Uzbekistan.
President, CEO & Director, Stans Energy Corp; ROBERT MACKAY, BSc Mining
Robert worked in various facets of Mineral Exploration from 1969 to 1975 including diamond drilling, geophysics, geological mapping and prospecting. In 1975, Robert graduated from the Haileybury School of Mines. From 1975 to 1980, he gained extensive experience in mining, including mine planning, surveying, grade control, industrial engineering, open pit and underground production. Robert graduated from The South Dakota School of Mines Technology in 1980 with a Mining Engineering Degree and over the next twenty years he worked in the investment business and was a Vice President of two national investment firms. In 2000 Robert started a consulting business and over the next 5 years he worked as a Project Engineer on projects in Canada, United States, China and Africa.
Chief Operating Officer & Director; BORIS ARYEV, MSc, Peng
After migrating to Canada in 1983, he worked as a software development consultant with NCR Canada Limited & OPTIMOD Inc. until 1986 and then with Verifact Inc. until 1996. In 1990, Boris became and still is President of Marhope Systems Inc., providing management and consulting services to both public and private sectors. Boris is the founding Director of the Canada-Eurasia-Russia Business Association, founder and chairman of its Mining & Northern Development Committees and co-founder of IEC Minerals Working Group.
Managing Director of STANS ENERGY KG; DR. GENNADY SAVCHENKO, CGeol, FGS, Qualified Person (QP)
Dr. Savchenko graduated from Frunze Polytechnical Institute with a Mining Engineer-Geologist Diploma and Ph. D in Geology & Mineralogy in 1971, then worked till 1981 in exploration & mining enterprises for Uranium in Kazakhstan, East Germany and China. From 2000 to 2002, Dr. Savchenko was Deputy Chief in the Department of Geology & Investment for the Kyrgyz State Geology & Mineral Resources Agency.
Director; DR. DOUGLAS H UNDERHILL, CPG, PhD, MSc, BA (Geology), MBA, Qualified Person (QP)
From 1993 to 2002, Doug was a Uranium Resource & Production Specialist for International Atomic Energy Agency in Vienna. He has over 40 years of minerals industry experience with nearly 30 of those years dedicated to uranium
(including experience in Kazakhstan & Uzbekistan). As Senior Consultant with Nuclear Assurance Corporation (USA), he is responsible for consulting on Uranium supply strategy and maintaining a worldwide uranium production projects database. Doug represented IAEA in Joint IAEA-NEA Uranium Group. Has an MBA in Strategic Planning & Finance.
Chief Financial Officer; LENA MASTERS, CGA, B. Law, BA (finance)
Masters has over 12 years of financial and operational experience in the investment industry, overseeing financial functions of public companies in Canada and companies with capitalization of over EUR 100 million internationally (US, Jersey, Cyprus, Eastern Europe). Masters served as CFO of Sino Vanadium Inc. TSX: SVX and JJR Capital Corp. (including its predecessor JJR Capital Partners), a private equity merchant bank based in Toronto.
Vice - Chairman of the Board; Gordon R Baker, Q.C.
In1972, Gordon was called to the Bar of Ontario, then in 1983, he was appointed to the Queens Counsel. A highly regarded corporate law specialist, Gordon holds extensive experience in business law (mergers, acquisitions, joint ventures, financing & structuring) and has acted as counsel (including as a registered lobbyist) advising on
Advisor; DR. MARAT I FAZLULLIN
Leading Russian expert on uranium, gold, and rare earths. Dr. Fazlullin is a renowned Professor, Doctor of (engineering) Science, member of the Mineral Resources International Academy and an Honorable Geologist of the Russian Federation. He has written over 300 publications on Uranium and gold-ore deposits including treatment by the heap and
underground leaching methods. He also lead prospecting teams and expeditions for poly-metallic, mercury deposits, oil and gas fields located in Kyrgyzstan, Tajikistan & Algeria as a Chief Engineer.
Advisor; MR. JAMES ALLAN BASc (Geological Engineering) MSc (Geology, Engineering)
Mr. Allan is a Registered Professional Engineer with the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA). James has over 45 years of experience working with several major mining and petroleum companies and as an independent consultant in mining exploration and exploration management, mineral property evaluation and mining geology. James has been involved in the exploration for, and evaluation of, rare earth deposits both as manager of exploration in Canada for a large rare earth company from 1982 to 1990 and as an independent consultant.
Advisor; MR. JAMES B. HEDRICK
Mr. Hedrick is a rare-earth elements, scandium, yttrium, thorium, zirconium, hafnium, and the mica group of minerals expert. James possesses a wealth of knowledge with over 31 year of experience in Mineral commodities. Mr. Hedrick served as Chairman and Executive secretary of the U.S. Government’s Minerals, Metals, and Materials Advisory Board from 1981 to 1995, and chaired two sessions on the rare-earth elements and one on strategic and critical minerals for The Society for Mining, Metallurgy, and Exploration (SME).
Advisor; DR. VALERY KOSYNKIN; Ph.D., Professor
Dr. Kosynkin graduated with degree in Chemistry at Moscow State University in 1958. From 1959 until the present, Dr. Kosynkin has been employed by Russia's State Institute of Chemical Technologies (VNIIHT). Since 1973, he has been in charge of VNIIHT's research and development of REEs chemistry and technology. Dr. Kosynkin was twice a recipient of USSR and Russian government awards for his work in the REEs industry. Through his time with VNIIHT, Dr. Kosynkin held the following positions - Chief of Laboratory, Head of the REEs Department, and at present, he presides as an Advisor..
