David Tyler, Vice President, Project Development

85th Annual Meeting of the SME Minnesota Section

April 18, 2012

Who is Twin Metals Minnesota?

Twin Metals Minnesota is pursuing the development and operation of an underground copper, nickel, platinum, palladium and gold (strategic metals) mining project in NE Minnesota.

Twin Metals Minnesota has offices in St. Paul, Ely and Babbitt, Minn.

Twin Metals Minnesota Management Team

The Rest of the Management Team

• Andres Morel, CEO

• David Ponczoch, Chief Financial Officer

• Dan Colton, VP, Regulatory Affairs & General Counsel

• Anne Williamson, VP, Environment and Sustainability

• Bob McFarlin, VP, Public and Government Affairs

• David Ulrich, VP, Human Resources

• David Oliver, Mgr Special Projects, Ely

• Renan Argandona, Dir Geology, Ely

• Alejandro Berenguela, Dir Mining

• Glenn Barr, Dir Metallurgy

Why Minnesota; Why Now?

• Minnesota has the potential to be a global epicenter for strategic metals mining.

• 4 Billion tons of estimated strategic metal “ore” resources. Likely to grow.

• Strong market conditions globally and domestically.

• Global economic growth; “Green Energy” economy; national security interests.

• MN Jobs for Generations.

• Copper: wire, pipe & tubing, electrical generation & transmission, electrical components, telecommunications, wind turbines.

• Nickel: stainless steel, specialty-alloys & super-alloys, combustion turbines, aircraft & aerospace, and military applications.

• Palladium/Platinum Group Metals: petroleum cracking & refining, chemical catalysts, air quality catalysts, environmental control and jewelry.

Strategic Metals Uses

• There are 4.7 tons of copper in a single wind turbine.

• In a hybrid car:

� 9 pounds of nickel

� Cobalt in Lithium batteries

� 75 pounds of copper (150-180 lbs. if fully electric)

• Your cell phone:

� copper

� palladium

� platinum

� Gold

� nickel

Did You Know?

Twin Metals Minnesota

Project Location and Prefeasibility Study

Activities

Twin Metals Minnesota

Part of Northern Minnesota’s Mining Range

Twin Metals

Property

Location

Twin Metals Minnesota – Mineral Deposits

• Approx. 32,000 acres of property interests – leased, permitted or owned.

• Babbitt is roughly 10 miles to the west and Ely is roughly 15 miles to the northwest.

• Four mineral deposits: Nokomis, Maturi, Spruce Road and Birch Lake.

10

Deposit Characteristics

Nokomis - Maturi

Dip: 25° - 30°

Thickness: 100 – 350 ft

Depth: 0 – 4,500 ft

Maturi

Nokomis

Birch Lake

Dip: 0° - 25°

Thickness: 120 – 350 ft

Depth: 2,000 – 2,700 ft

Excellent Rock Quality

RQD : 95-100

RMR: 90

UCS : 24-26,000 psi

Twin Metals Minnesota – Project Development

October 2011, Twin Metals launched the project’s Prefeasibility Study (PFS).

PFS - Critical project details form foundation for rigorous and thorough environmental review by multiple state and federal agencies.

– Environmental impacts and controls

– Mine design and processing rates

– Type of ore processing

– Facility locations

– Transportation methods and routes

– Power sources and transmission routes

– Economics: jobs, revenues, taxes, royalties

Twin Metals Minnesota – Project Development

Prefeasibility Study (PFS) Consultants

Bechtel Mining and Metals - Lead PFS consultant

- AMEC – Resource Modeling

- Stantec – Mine Engineering

- Bateman – Processing

- Golder – Tailing & Residue

- Barr & Krech/Ojard – Surface

Infrastructure & Utilities

- Itasca & FracFlow – Geotechnical &

Mine Hydrogeology

Twin Metals Minnesota – Current PFS Activities

• “In-Fill” Definition Drilling of Targeted Deposits

• Metallurgical Testing

• Facility Siting Examination

• Rigorous and Robust Environmental Baseline Data Collection

• Early Community/Stakeholder Engagement

• Building State and Federal Regulatory Agency Relationships

2011 2012 2013

H1 H2 H1 H2

14

Project Development Roadmap

Prefeasibility Period

Prefeasibility Study

Bankable Feasibility Study

Draft EIS / EIS

Record of

Decision

Environmental work, EIS prep. and Base Line

Prelim. Project

Description

Permits

Scoping EAW

MPO / Project

Description

Conceptual

Study

Twin Metals Minnesota

Environmental Responsibility,

Commitment and Protection

Twin Metals Minnesota - Environmental Commitment

• Protect Minnesota’s Pristine Wilderness and

Recreational Resources

• Exceed State and Federal Environmental Protection

Standards:

– Project will face rigorous, thorough and lengthy environmental review by multiple state and federal agencies

– Environmental permits protecting water and air will include stringent standards

– Project MUST exceed those standards, or it will not be approved

Twin Metals Minnesota – State of the Art Environmental

Protection

• Underground design limits surface impacts

• Water treatment technologies promote water

recirculation, minimize water use and exceed water

quality standards

• Waste treatment allows for safe “backfilling” of up

to 50% of mine tailings

• Safe storage and treatment of remaining tailings in

monitored surface facilities

• Advanced metal processing technologies

significantly reduce air emissions

• Drill sites “reclaimed” to natural state

Twin Metals Minnesota

Jobs for Generations

Twin Metals Minnesota “Jobs for Generations”

• Hundreds – possibly thousands – of Minnesota jobs

for both construction and long-term operations.

• 2009 UMD Study: More than 12,000 Minnesota

construction jobs will be created when all strategic metal mining projects move forward.

• 2009 UMD Study: More than 5,000 long-term

Minnesota mining jobs will be created when all projects become operational.

Twin Metals Minnesota “Jobs for Generations”

Annual Mining Wages 2010

Source: U.S. Bureau of Labor Statistics

Minnesota

• Mining = $72,365

• All Industries Avg. = $46,985

• Minnesota Mining Jobs + 54%

U.S. Average

• Mining = $67,719

• All Industries Avg. = $46,451

• National Mining Jobs + 47%

Twin Metals’ “Jobs for Generations”

• Twin Metals will employ a variety of skilled Minnesotans: geologists

engineers carpenters, safety inspectors, mine designers, mapping

experts, mechanics, electricians, miners, truck drivers, drillers, IT

professionals, business administration.

• Twin Metals job openings can be followed on our website:

http://www.Twin-Metals.com/careers/

Twin Metals Minnesota

Current and Future Economic Impact

Spurring Economic Development in Minnesota

• The Twin Metals Minnesota project will boost the regional economy and generate millions of dollars in state

and local taxes.

• The Twin Metals Minnesota capital investment – all from private sources –could exceed $2 billion prior to mine operation.

• Twin Metals Minnesota is currently investing significant resources into the local economy – construction, drilling, environmental study, etc.

Twin Metals Minnesota - Supporting Schools

Royalties from the Twin Metals Minnesota project will contribute significant revenues to Minnesota’s local schools:

• According to the MN DNR, in 2008, Minnesota’s mining industry provided nearly $57 million to MN school

districts and universities.

• The State of Minnesota’s “Permanent School Fund” will collect $2.5 billion in royalties in the coming decades from strategic metals mining projects – with Twin Metals Minnesota being the largest.

Twin Metals Minnesota

Operations & Employment (Feb. 2012)

To date, more than $150 million has been invested in exploration and project development activities, supporting more than 160 direct and consultant/contractor jobs.

Ely & Babbitt, Minn.

Employees 20

Drillers/Contractors 100~

St. Paul, Minn.

Employees 20

Contractors/Consultants 20~

Twin Metals Minnesota – Investments = Jobs

• January and February 2012 drilling

investment = $5 million; supported

100-120 full time drilling jobs

Twin Metals Minnesota

Ely Operational Headquarters

Twin Metals invested $1.5 Million on the new 9,000 square foot facility

in Ely. Opened August 2011.

Twin Metals Minnesota

Supporting Minnesota Businesses

81%

13%

5%

1%

2011 VENDOR SPEND = $44 million

MINNESOTA

UNITED STATES

CANADA

Twin Metals Minnesota

In Conclusion

A Long-Term Commitment to Minnesota

The Twin Metals Minnesota project has the potential to be operational for decades.

Twin Metals Minnesota has made a significant long-term commitment and investment in northern Minnesota, and is becoming actively involved in Iron Range communities, offering support for:

• Local area athletics• Community parks and recreation• Area food banks• Cultural organizations• Education initiatives

Federal, State and Local Coordination

Twin Metals Minnesota is working in collaboration with:

Thank You.

Project information is frequently updated on the

Twin Metals Minnesota website:

www.Twin-Metals.com

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