Carbine Tungsten Limited

1. Tailings re-treatment

2. Process low grade stockpiles

3. Hard rock mining

4. Total project life ~20 years

Imminent Tungsten production from Mount Carbine 3 - stage development plan:

Deposit open at depth and along strike

Board and Capital Structure

Executive Chairman: Dr Leon Pretorius Managing Director / CEO: Jim Morgan (designate, 2 April) Non-executive Director: Dr Andrew White Company Secretary: Rob Waring Share capital after Rights Issue: 258,962,579 Options: 4,560,870

3-Stage Development Plan

Non-Renounceable Rights Issue

1 for 5 at 9 cps to raise $3.88 million

Working capital required for:

Commissioning tailings re-treatment plant : $1,110,000

Completion of feasibility study Stage 2 – process low grade stockpiles $1,240,000

Exploration drilling Tara (NSW) silver-tin prospect $500,000

Corporate costs and working capital: $884,439

Expenses of issue: $150,000

Rights Issue Dates

Event Date Initial announcement of Rights Issue, lodgement of Appendix 3B

13 Feb

Despatch of Rights Issue Offer Letter to shareholders

15 Feb

Shares quoted on an 'ex' entitlement basis 16 Feb Record Date for determining rights 22 Feb Despatch of Rights Issue Offer Document and Entitlement and Acceptance Form

27 Feb

Offer Closing Date 13 Mar Company notifies ASX of Shortfall 16 Mar Allotment of New Shares, despatch of holding statements

21 Mar

Trading on ASX of New Shares on a normal settlement basis

22 Mar

Tailings re-treatment plant: Close to production

• Tailings re-treatment plant >90% complete

• CNQ staff finishing construction and commenced commissioning

• Off-take with Mitsubishi to be signed end March for product

• Production commencing March 2012

Tungsten Price History: – History Repeating Itself

Tungsten uses

• Tungsten is a specialty metal – hardest metal, highest melting point

• Annual trade ~80,000 to 100,000 tonnes metal equivalent

• 50% used to make tungsten carbide for cutting hard substances

• 25% used for hardening steel (for tool steel, cutting steel)

• 25% used for myriad of high tech applications, mostly with no substitutes.

Tungsten pricing

• Tungsten prices are quoted for Ammonium Para Tungstate (APT) or Ferro Tungsten alloy in Metric Tonne Units (mtu)

• 1 mtu is 1% of tungsten metal in a tonne of something (concentrate, chemical or final product)

• Price received for concentrate is at a discount to APT price, discount depends on quality of concentrate (and demand for tungsten)

• To make it easier CNQ forecasts production in mtu’s and uses a sale price reflecting anticipated current discount.

Stage Estimated gross revenue/year at current prices

1. Tailings $10,000,000 2. Low grade stockpiles $50,000,000 3. Hard rock mining $100,000,000

Forecast Gross Revenues