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RARE EARTHS, SPECIALITY & STRATEGIC METALS INVESTMENT SUMMIT IRONMONGERSHALL, CITY OF LONDON THURSDAY , 17 MAR 2011 www.ObjectiveCapitalConferences.com Re–opening a former Soviet producer Robert Mackay – CEO, Stans Energy

Re–opening a former Soviet producer

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Objective Capital's Rare Earths, Speciality & Strategic Metals Investment Summit 2011Ironmongers' Hall, City of London17 March 2011Speaker: Robert Mackay, Stans Energy

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Page 1: Re–opening a former Soviet producer

RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT

IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 17 MAR 2011www.ObjectiveCapitalConferences.com

Re–opening a former Soviet producerRobert Mackay – CEO, Stans Energy

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MARCH, 2011

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Statements contained in this presentation which are not historical facts are forward-looking statements thatinvolve risks, uncertainties and other factors that could cause actual results to differ materially from thoseexpressed or implied by such forward-looking statements. Factors that could cause such differences, withoutlimiting the generality of the following, include: risks inherent in exploration activities; volatility andsensitivity to market prices for uranium and rare earths; volatility and sensitivity to capital marketfluctuations; the impact of exploration competition; the ability to raise funds through private or publicequity financings; imprecision in resource and reserve estimates; environmental and safety risks includingincreased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration inpolitical support for nuclear energy and rare earth technologies; changes in government regulations andpolicies, including trade laws and policies; demand for nuclear power and rare earth products; failure toobtain necessary permits and approvals from government authorities; weather and other natural phenomena;and other exploration, development, operating, financial market and regulatory risks. Although Stans EnergyCorp. believes that the assumptions inherent in the forward-looking statements are reasonable, unduereliance should not be placed on these statements, which only apply as of the date of this release. StansEnergy 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 thatwhile the term "inferred" resources is recognized and required by Canadian regulations, the SEC does notrecognize that term. Investors are cautioned not to assume that all or any part of mineral deposits in thiscategory will ever be converted into reserves.

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Snapshot - Stans Energy Corp.

100% ownership of former Soviet rare earth (RE) mine - Kutessay II

o Only hard rock open pit mine in the world (outside of China) to ever produce

all 10 heavy rare earth elements (HREEs) in significant quantities

20-year Mining Licence (Dec 2009)

Purchased RE processing complex

o Proven hydrometallurgy

o Previously separated concentrate into 120 different final RE products, including

oxides, metals and alloys

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Snapshot - Stans Energy Corp. continued

Supplied 80% of former Soviet Union’s REs for 30 years

50/50 HREE/LREE ratio (historical)

Historical capacity of 500 mt RE oxides, metals and alloys per year

Extensive infrastructure - e.g. paved roads, power, rail, water, etc.

Supportive new Kyrgyz government

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Snapshot - Stans Energy Corp. continued

Rail terminal included in KCMP purchase

o Access to Russia, China, Korea, Japan (by ferry), Middle East, and

international markets

Consulting agreements with world class RE experts and institutes

Joint collaborations with strategic partners

o VNIIHT (The Russian Leading Research institute of Chemical Technology)

o Jointly exploring potential acquisitions in the Russian Federation.

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The market is now beginning to appreciate . . .

Difference and significance in supply and value of HREEs over LREEs

Complexity of the hydrometallurgy required to process HREEs

Owning REE bearing rocks is just one small piece of the profit picture

Thorium/Uranium separation and storage is needed for almost every

potential RE mine

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By 2015

The demand for REEs is here now – especially for HREEs

278,000 mt Forecasted Worldwide RE required supply

100,000 mt Anticipated Chinese supply

178,000 mt Supply deficit to be met by rest of world

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Investors need answers to two very important questions . . .

Which of the REEs have the tightest supply vs. demand pressure?

Who has the capability to produce them and when?

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Stans Energy’s goal:

Stans Energy is to 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

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Source: US Department of Energy

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Kutessay II

Kutessay III

Element Oxide Historical REEs %

REO$/Kg USDFeb. 2011

Yttrium (Y) 26.69 120.00

Dysprosium (Dy) 6.26 375.00

Terbium (Tb) 1.15 640.00

Europium (Eu) 2.51 646.00

Neodymium (Nd) 8.49 110.00

Erbium (Er) 4.82 105.00

Praseodymium (Pr) 3.20 110.00

Gadolinium (Gd) 2.69 100.00

Samarium (Sm) 3.81 61.00

Holmium (Ho) 1.16 200.00

Thulium (Tm) 0.05 790.00

Ytterbium (Yb) 1.77 155.00

Lutetium (Lu) 0.06 400.00

Cerium (Ce) 25.02 67.00

Lanthanum (La) 9.12 64.00

Aktyuz

Stans Energy’s Kutessay II REE Mine51,500 tonnes TREO, 0.3 grade, 48% HREEs (historical)

Kalesay

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Beryllium deposit with historical reserves of С1+С2category: 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 its close proximity to the Kutessay II REE mine, which is Stans intends to re-open, the Kalesay Beryllium mine could be very well be developed at the same time.

Increasing the 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 was derived from non NI 43-101 compliant historical Soviet data, and should not be relied on

Kutessay II

Kalesay

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La9.42%

Ce25.85%

Pr3.31%

Nd8.77%Sm

3.94%Eu

2.59%

Gd2.78%

Tb1.19%

Dy6.47%

Ho1.20%

Er4.98%

Tm0.05%

Yb1.83%

Lu0.06%

Y27.57%

HREEs

Kutessay II REE Breakdown (% of Ore)

Kutessay II REE Breakdown by Value(FOB prices in USD March 2011)

Average REO price of $136/kg

La4.47% Ce

12.85%

Pr2.57%

Nd7.42%

Sm1.78%

Eu12.43%

Gd2.06%Tb

5.64%

Dy17.99%

Ho1.78%

Er3.88%

Tm0.30%

Yb2.10%

Lu0.18%

Y24.54%

LREEs

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It is essential to have access to both . . .

Proven Hydrometallurgy & Expertise

Outside of China, very little of either exists

Every REE deposit is different

It can take years to crack geologic codes and develop appropriate processing streams

Extremely costly and time-consuming processes

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PURCHASING RE PROCESSING COMPLEX

Signed exclusive purchase agreement with Kyrgyz Chemical Metallurgical Plant (KCMP) on January 13, 2011

Purchase for 100% of KCMP’s Heavy Rare Earth processing complex, its equipment and a private rail terminal

Purchase price $5.5 million USD in January

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Up to 2010, this complex continued to produce HRE metals from stored concentrates

Inventory includes >700 pieces of complex hydrometallurgical equipment

97% of these assets are in good or satisfactory working condition

KCMP HREE Equipment Inventory List

REE PROCESSING COMPLEX

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REE PROCESSING COMPLEX

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The HREE processing complex purchase also included . . .

Decades of detailed historical documentation from when Kutessay II and KCMP were in full production

RE PROCESSING COMPLEX

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Historical REE Production Flow Sheet

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Improve efficiencies at the milling stage by testing and implementing mechanical separation techniques

• Improve thorium separation stage by implementing proven contained sorption technology

• Reassemble equipment and technology for Plant #2

• Test new solvent extraction methods to eventually eliminate the need for Ion Exchange Columns

• Decide whether it is feasible to reassemble LREE processing capability or sell LREE concentrates

• Decide the optimal scale at which to bring Kutessay II into production

IMPROVING PAST RE PROCESSING

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Addressing the logistics challenge of end product delivery

Stans purchased a private rail terminal that connects to the Asian Rail network

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Proximity to population

Kutessay II and HREE processing facility close to population centres

Kutessay II is located beside Ak-tyuz, and KCMP is located in Orlovka

Mine is 140 km from Kyrgyz capital of Bishkek

Abundance of qualified labour living in area

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Kyrgyz-Russian Slavic University

CSRLVNIIHT

GEOTEP

IGPMG RAS

ARRIMR

Russia Kyrgyzstan

Canada

Honorary Consul of the Kyrgyz Republic

for Canada

Expanding inroads to Kyrgyzstan & Russia

Stans Energy has an agreement with the Leading Russian Research Institute of Chemical Technology to evaluate and pursue rare earth acquisitions.

PARTNERSHIPS

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What we have planned . . .

Confirm the extensive Russian and Kyrgyz

geological and surface data on Kutessay II

Feasibility study on resuming production at

Kutessay II

Implement a new mine plan for Kutessay II

Close the purchase of HREE processing complex and commence program to

optimize design and scale

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What we have planned . . . (continued)

Upgrade past hydro metallurgical techniques at HREE processing complex

Assemble mining, milling, and metallurgical team in Kyrgyzstan

Negotiate deals for off-take agreements on all potential production, up to 4X

the soviet yearly scale

Evaluate additional HREE acquisitions in areas of the former Soviet Union

Become the world’s first Heavy Rare Earth Element producer outside of China

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Stock Exchange RUU (TSX-Venture)

Shares Outstanding 135,135,133

Warrants 617,050

Options 12,310,000

Total (fully diluted) 148,052,183

Market Cap (March 1) C$312 m

Share price (March 1) C$2.11

52 week high/low C$3.40 / C$0.19

Net cash C$2.8 m

Debt Nil

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Chairman of the Board; RODNEY IRWIN, MA , Honorary Consul of Kyrgyz Republic in CanadaFrom 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 MiningRobert 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, PengAfter 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.

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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.In 1972, 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 government relations (strategic planning, negotiation, compliance issues).

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Advisor; DR. MARAT I FAZLULLINLeading 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. HEDRICKMr. 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., ProfessorDr. 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..

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Kutessay III

TSX-V: RUU

STANS ENERGY CORPORATION8 King St. East, Suite 205Toronto, ON, M5C 1B5

Tel: 647 426 1865, Fax 647 426 [email protected]

INVESTOR RELATIONSThe Buick Group

[email protected]