MHM Metals Limited

MHM Metals Limited ASX : MHM

‘Non-Deal’ Roadshow - Investor Presentation

Presenter: Ben Mead, Executive Director

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Company Profile

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MHM Metals Limited (ASX:MHM) is an industrial / green-tech company with immense global growth potential.

MHM’s primary focus is the implementation of a technology to recycle waste from the aluminium industry. With operations in

Australia maturing, MHM is embarking on a program of growth into the United States and beyond.

MHM retains some of its original mineral assets involving silicon smelting and high purity silica flour production. MHM is advancing

opportunities for spin-off and/or divestment of this division, expected to conclude by mid-2012.

C O M P A N Y P R O F I L E 3

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INTRODUCTION

C O M P A N Y P R O F I L E

Exchange ASX Share Price $0.80MHM / MHMO / Emp Opts 105m / 24m / 6mFully Diluted Market Cap ~$110m

Cash (at 31 December 2011) $5.9mNo debt

12 Month High / Low $1.50 - $0.525

Basil Conti Non-Executive Chairman

Frank Rogers Managing Director

Ben Mead Executive Director

Simon Wells Executive Director

Dr Neil Allen Non-Executive Director

Corporate Snapshot Directors & Management

Shareholder profile

Top 20 33% Directors (inc. Top 20) 13% UBS (inc. Top 20) 13% Other 67%

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Aluminium Waste Recycling Operations

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ALUMINIUM WASTE RECYCLING

A L U M I N I U M O P E R A T I O N S

MHM owns exclusive global rights to a proprietary technology for the recycling of aluminium waste - salt cake and black dross.

Aluminium salt cake and black dross are produced by the secondary aluminium industry when metal is re-melted. Traditionally sent to landfill, though it is becoming increasingly problematic to do so.

Salt cake and black dross are very similar wastes, that are produced by different furnace types. They are recycled in the same manner by MHM.

MHM process is ‘closed-loop’ – salt cake is processed in a way that nothing is landfilled.

The Alreco TechnologySalt cake is produced when a salt/potash flux in introduced into the furnaces, along with scrap aluminium. The flux floats on the surface of the molten metal to provide a barrier to prevent the metal from oxidising, increasing process efficiencies. Once the molten metal has been poured out of the furnace the aluminium salt cake must be disposed.

Traditionally landfilled, MHM’s technology provides a viable alternative. The technology recovers aluminium metal concentrate (10-25%), salt/potash (30-50%) and aluminium oxide / AL80 (balance), all valuable commodities. The recovery will vary depending on the original feedstock material. After processing, nothing is sent to landfill.

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COMPETITION & IP PROTECTION


CompetitionMHM has conducted extensive patent review /analysis of competing salt cake processing technologies.

Alternate processes fundamentally different, MHM’s technology has significant capital & operating expense advantages.

This view supported by aluminium companies familiar with competing technologies.

IP ProtectionMHM has perpetual, exclusive global rights to salt cake processing technology.

Technology providers opted not to apply for patent, instead adopted ‘black box’ trade secret approach. Issues surrounding ability to administer patent rights in every jurisdiction, perceived difficulties in protecting processing patents & unwillingness to advertise to the world how the process operates.

MHM has procedures in place to protect technology, and is comfortable with IP protection position.

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AUSTRALIAN OPERATIONS: STRUCTURE


Alreco Pty Ltd is 100% owned Australian operating subsidiary.

Owns perpetual, exclusive global rights to proprietary technology to process aluminium salt cake from secondary aluminium industry.

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AUSTRALIAN OPERATIONS: IMAGES


Recovered aluminium Aluminium salt cake

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AUSTRALIAN OPERATIONS: BACKGROUND


Salt cake traditionally placed in landfill, Aust EPA no longer permits. Aust industry cannot continue with present secondary smelters without solution. Waste is hazardous in Aust & Europe as can leach ammonia & heavy metals.

Frank Rogers working with aluminium industry since 1998; developing technology, building pilot plant, testing landfill, progressing relationship with Alcoa.

MHM started life as an exploration company but acquired the aluminium business in January 2010. MHM directors appointed financial/technical experts to assess technology, acquisition of Sims business which was to be upgraded to the Alreco technology. Financial/technical due diligence was satisfied & transaction settled 15 Jan 2010.

18 Jan 2010: recommenced processing using some of the Sims equipment while upgrading the technology concurrently to ongoing operations. This permitted MHM to generate income during the upgrade, but also enabled Alcoa and Sims to continue operating using the highly efficient salt cake producing re-melting technology.

10,000 tonnes of partly-processed salt cake has been stockpiled, to be reprocessed once the technology upgrade is complete.

24 hour steady state operations are now underway, with the stockpile of partly-processed salt cake expected to take approximately three months to process.

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Jan 2010: Aluminium salt cake business & underlying land purchased from Sims for $3m, immediately commenced operations and cashflow positive since this time. Capital cost has been approximately $6m, for construction of the salt cake plant, dross plant and AL80 plant.

3-year contract with Alcoa to process 11,000-13,000t aluminium salt cake pa for $300 per tonne. Alcoa retains ownership of recovered metal & salt, Alreco retains aluminium oxide. $250 per tonne paid during plant upgrade, extra $50 per tonne once salt/potash returned to Alcoa.

1-year contract with Sims to process aluminium salt cake, aluminium non-salt cake & aluminium dross, details of contract confidential. Contract expired though Alreco still processing material for Sims under contract terms. New contract being negotiated.

Access to Alcoa-owned landfill to process 160,000t material. Landfill contains ~32,000t metal, ~80,000t salt & ~48,000t aluminium oxide. Alcoa relinquished ownership of all reclaimed material.

Business has been profitable since day one of operations.

A$8m EBITDA pa at full capacity, once landfill processing commences (anticipated Q2 2012).

AUSTRALIAN OPERATIONS: DETAIL

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AUSTRALIAN OPERATIONS: AUSTRALIAN RIGHTS


Interests of Frank Rogers & and others as owners of Alcoa processing & Alcoa landfill contracts yet to be acquired by MHM. Structured as profit-sharing initially, to allow operation prior to acquisition (vend for MHM equity) to allow most accurate valuation rather than upfront pricing & acquisition.

Alreco earns 60% of profits from Alcoa contract & Alcoa landfill processing until acquisition of remaining rights. Profit share only for these two contracts & only for Aust operations. Alreco owns 100% of Sims contract, plant, equipment, land & any overseas expansion (royalty payable to technology providers for overseas technology use).

Acquisition of remaining interests once steady-state operations.

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US OPERATIONS


Alcoa publicly stated desire for no landfill by 2020, discussions to be global partner to achieve this goal.

Advanced contract discussions with Alcoa US.

MHM anticipates that Alcoa may require their service providers to use MHM’s solution.

Alcoa, Inc. Salt cake supply

Executed Supply Contracts

Total US volume in excess of 1m tpa

Engaged with a number of parties showing interest to supply an additional facility in northeastern US / southeastern Canada

Believed the North American industry can justify 2-4 plants

Landfilled material also provides opportunity for revenue - a number of sites have been identified

Three US supply contracts have been executed, for both salt cake and black dross recycling.

Identity of most contract counterparties will likely remain confidential during construction to avoid short-term negative business impacts.

Anticipated that additional supply contracts will continue to be added during the construction and commissioning stages, and once operational.

MHM Metals Corp is 100%-owned operating subsidiary for US operations. Exec director Ben Mead relocated to the US Jan 2011 to drive expansion.

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FIRST US FACILITY - RUSSELLVILLE, KENTUCKY


Purchased 115-acre site in February 2012 for US$838,000.

Site also contains 90,000sf of buildings and offices, which is expected to reduce timeframe and cost for construction.

Site is also zoned correctly for its intended purpose.

Plant layout and design has been finalised, working to confirm capex and timeframe for completion. Conservative capex estimate of US$25 million though management believes this figure can be reduced below US$20 million due to existing infrastructure and potential availability of second hand equipment.

Environmental permitting applications being prepared and preliminary civil works, renovation of the office facilities and expedited construction of the rail spur is underway.

Targeted earnings for the facility for salt cake and black dross processing, aluminium oxide sales and ancillary activities is US$25 million per annum when operating at full capacity. MHM expects the plant will operate at full capacity at 250,000 tpa within 12 months of commissioning.

Consideration of project-financing options is underway, and will be finalised once plant capex and drawdown schedule is confirmed. Non-dilutionary financing mechanisms will be strongly favoured.

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RUSSELLVILLE, KENTUCKY PLANT SITE

A L U M I N I U M O P E R A T I O N S 15

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PROJECT TIMELINE


Jan 2012

Feb 2012

Mar 2012

Apr2012

May2012

Jun2012

Jul2012

Aug2012

Sep2012

Oct2012

Nov2012

Dec2012

Jan2013

Feb2013

Mar 2013

Apr2013

May2013

Complete land acquisition

Finalise plant design, cost, schedule

Permitting submission and approval

Procurement:

Commence construction

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GRANTS AND INCENTIVES


$825,000 cash rebate, paid over ten years

Committment made on the basis of creation of at least 10 jobs and a minimum of US$100,000 investment

Kentucky Department of Economic Development

Russellville Industrial Development Authority

Tennessee Valley Authority

$250,000 cash incentive to be used for infrastructural development eg rail spur

Extremely “pro-business” environment

Potential for significant energy cost credits, paid monthly against utility bill

Low interest financing available, 3% pa

The economic and political climate in the United States is positive for business developers

Rail CompanyPossible interest-free finance on balance of rail spur costs

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INTERNATIONAL GROWTH


European market

Salt cake landfill not permitted in Europe. Competing European salt cake processing technology, Alreco’s technology has considerable capex and opex advantages.

Enquiries from several European aluminium companies to conduct feasibility.

US market – primary focus after Australia

In excess of 1 million tpa of salt cake / black dross produced in US.

Leveraging relationship with Alcoa.

Salt cake / black dross can still be landfilled, but increasingly difficult. Industry invested large sums without solution. Increasing awareness of value of landfilled materials, environmental benefits of salt cake treatment & salt cake landfill reclamation.

Canadian market

Limited salt cake landfill permitted. Enquiries from Canadian aluminium companies received.

Opportunities exist in any jurisdiction where salt cake is produced – any country with active secondary aluminium industry.

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Silica Business Spin-Off

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SILICA SPIN-OFF

S I L I C A S P I N - O F F

Silicon SmeltingAdvanced feasibility on construction of Tasmanian silicon smelter, very positive outlook

MHM has taken primary role in smelter development, seeking project partners and offtake

Significant support from Tasmanian State and Federal Governments

Some potential synergies with large silicon consumers in the US aluminium industry

Silica FlourAdvanced opportunity to acquire silica flour deposit, negotiations ongoing

Conditional on offtake which we expect to be forthcoming

Fast-tracked development and production

Mineral IPO Considerations

Management believes the timing is right for IPO of mineral assets, market conditions will play a role in this timeframe

Spin-off expected to conclude by mid-2012

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CONTACTS

C O N T A C T S

Phone (Aust) +61 3 6229 9955Phone (USA) (Cell phone number withheld from ASX release)Email [email protected]

Ben Mead

MHM Metals Limited 52 Channel Highway, Kingston TAS 7050, Australia

Alreco Pty Ltd80 Buckley Grove, Moolap VIC 3221, Australia

MHM Metals Corporation1500 W9th Street, Russellville KY 42276

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DISCLAIMER

D I S C L A I M E R

This document has been prepared by MHM Metals Limited (“MHM” or the “Company”). It should not be considered as an offer or invitation to subscribe for, or purchase any, securities in the Company or an as inducement to make an offer or invitation 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 contains forecasts, projections and forward looking information. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are out of MHM’s control. Actual results and developments may differ materially from those expressed or implied. To the maximum extent permitted by applicable law, MHM makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for (1) the authenticity, validity, accuracy, suitability or completeness of, or any errors or omissions from, and information, statement or opinion contained in this presentation and (2) without prejudice to the generality of the foregoing, the achievement or accuracy of any forecasts, projections or other forward looking information contained within this presentation.

Throughout this presentation all figures are quoted in A$ unless otherwise stated. You should not act in reliance on this presentation material. This overview of the Company does not purport to be inclusive or contain all information that recipients may require in order to make an informed assessment of MHM’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of this information, statements and opinions contained in this presentation before making any investment decision.

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Documents

MHM Metals Limited