1. AMZ : TSX-V
www.amazonplc.com
Innovative
Potash Fertilizer
for Brazil’s
Growing Market
Edition V
AMZ : TSX-V
2. Disclaimer
This presentation contains certain “forward looking statements”, which include but is not limited to,
statements with respect to the future financial or operating performance of Amazon Mining Holding Plc (the
“Company”), its subsidiaries and its projects, statements regarding use of proceeds, exploration prospects,
identification of mineral reserves, costs of and capital for exploration projects, exploration expenditures,
timing of future exploration and permitting, requirements for additional capital, government regulations of
mining operations, environmental risks, reclamation expenses, title disputes or claims, and limitations of
insurance coverage. Forward looking statements can generally be identified by the use of words such as
“plans”, “expects”, or “does not expect” or “is expected”, “anticipates” or “does not anticipate”, or “believes”,
“intends”, “forecasts”, “budget”, “scheduled”, “estimates” or variations of such words or phrases or state that
certain actions, event, or results “may”, “could”, “would”, “might”, or “will be taken”, “occur” or “be
achieved”. Forward looking statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by said statements. There can be
no assurances that forward-looking statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in said statements. Accordingly, readers should not place
undue reliance on forward-looking statements.
AMZ : TSX-V 2
3. AMZ : TSX-V
• Listed in the Toronto Stock Exchange (AMZ : TSX-V)
• 31,899,304 shares outstanding
• 34,949,990 fully diluted shares
• ~C$18m cash available
• Owns high grade, open pit-able, Potash deposit
• 105.1Mt @ 10.3% K2O of Potash inferred resources
• 15 Bt of geological potential
• Location of Cerrado Verde
• 200 km from Brazil’s largest fertilizer distribution
district
• 300 km radius from 30% of local Potash demand
(approx $1 billion annually)
• Preliminary Economic Assessment results:
• Estimated Capex: US$196.8m
• Estimated Opex: US$41.80/t
• Estimated Potash production: 2013
AMZ : TSX-V 3
5. Management
Cristiano Veloso President, CEO
• 10 years experience; Brazilian entrepreneur and founder of Amazon Mining; ex Banco do Brasil S/A, CEMIG; LL.M
International Business Law (UEA, UK), Law (UFMG, Brazil) & Business Management (ETFG/MG, Brazil)
Maurício Sampaio Vice President Operations
• 30 years experience; ex President of Brazilian Agribusiness Association; Operations and Marketing Director for Bunge
Fertilizantes, largest fertilizer distributor in Brazil; Operations Director for Fertiza (acquired by Mosaic/Cargill); Agribusiness
advisor to Accenture and CJ Company; Marketing Consultant for Tortuga Cia Zootécnica Agrária; MBA in Agribusiness (USP,
Brazil)
Pedro Ladeira Vice President Engineering
• 17 years experience; ex Operations Director at Cementos Minetti; Process and Production Manager for Holcim Brazil;
Manufacturing Engineer at Rhodia-Ster; MBA in Business Administration (Fundação Dom Cabral, BH); B.A.Sc., Chemical
Engineering (UFMG, MG). Completing a Masters in Technical Co-Processing, Chemical Engineering (UFMG, MG)
Jed Richardson Vice President Corporate Development
• 10 years experience; ex Mining Analyst with Sprott/Cormark Securities and RBC Capital Markets, Mining engineer with Alcan
Aluminium; B.A.Sc., Mining Engineering (University of Toronto, Canada)
Ysao Munemassa Exploration Manager
• 41 years experience; ex BP Minerals, VALE, Union Carbide, INCO, Teck Cominco, Newmont Gold; Geologist (USP, Brazil)
Dr Derek Fray Metallurgical Consultant
• 45 years experience; University of Cambridge Professor & Director of Research, Chairman of Royal Society of Chemistry;
Committee member of Royal Academy of Engineering, Institute of Materials, Minerals & Mining; PhD (London University),
M.A. (Cambridge University)
AMZ : TSX-V 5
6. Independent Directors
Peter Gundy Chairman
• MSc Economics (London School of Economics, UK), LL.B. (McGill University, Canada), B.A. (University of Western,
Canada); Former appointments include; Chairman of Neo Materials Technologies Inc. (1992-2008); Vice President of
Brascan Inc; Executive Vice President, Finance of Potash Corporation of Saskatchewan Limited and Chairman of
Renaissance Securities Inc. Currently co-proprietor of Veritprop Ltd. In Toronto.
Dr Getulio Lamartine de Paula Fonseca
• B.Sc., Economy (Uni. Federal de Minas Gerais, Brazil); Brazilian Deputy Minister of Environment (1994); Former
appointments include; General Director National Department of Power & Water Supply; Executive-Secretary (Industrial
Development Council) Industry & Commerce Ministry; Served as a member of the advisory boards of Vallourec &
Mannesmann, Siderbrás, Usiminas Mecânica, CPRM & Ferbasa; Acted as a consultant to Klabin S/A, Abrafe, Bank of
Montreal, Samarco (CVRD/BHP), KLM Aerocarto, Alcoa, Cataguazes-Leopoldina, Odebrecht, Abrace, Acesita & CBCC –
Dow Corning.
Dr Henrique Brandão Cavalcanti
• B.Eng., Civil Engineering (McGill University, Canada); Former appointments include Brazil’s Minister of the Environment
(1994), Deputy Minister of Mines Energy (1967-69), Deputy Minister of Interior (1969-74). Has held senior posts at
Electrobras, Brazilian Steel Corporation, International Environmental Bureau in Geneva and CAEMI. Has Represented
Brazil at the United Nations and World Health Organization.
Dr Renato Gomes
• LL.B., (Faculdade de Direito da Universidade Federal de Minas Gerais, Brazil), LL.M., (London School of Economics, UK),
PhD. Candidate (Georgetown University, USA); Director of the ABCI Institute (Brazilian International Trade Scholars) and
researcher at Georgetown University, where his work focuses on the Brazilian government, its development agenda, and
foreign investment. Lawyer and member of Brazilian and Portuguese Bar Associations.
AMZ : TSX-V 6
7. 1
“Supermarket to the World”
• Brazil has almost 20% of world’s • The great agricultural frontier is
undeveloped potential arable Brazil’s Cerrado, or Savannah
land away from the Amazon forest
Undeveloped Potential Arable Land
600 Amazon
Available
500
Brazil
Millions of Hectares
Planted
400
300
Cerrado
200
100
0 South
Brazil US Russia China India
Source: Food and Agriculture Organization, UN
America
• Brazil has world’s largest • Climate allows for multiple crops
renewable fresh water reserve during the year
NOTE
1
AMZ :Miracle of Cerrado” The Economist , August, 26, 2010
“The TSX-V
7
8. Potash is a Problem
Import vs. Domestic Fertilizer Supply Brazil’s Increasing Agribusiness
100%
25%
7% • Brazil is the world’s fastest
80% 31%
55% growing potash consumer
60%
40% 75%
93% • Brazil’s poor soils and crop mix
69%
20% 45% make potash a very important
0% nutrient
NPK Total Nitrogen Phosphate Potash
Dependency on Imported Potash
Import Domestic
• Potash ranks in the top ten of
Brazil 2008 Total Imports (US$173.2BB)
Brazilian imports by dollar value
(2008 #6, 2009 #10)
Potash, 2% • Brazilian government targets
Rest of Insecticides,
Imports, 1%
NPK, 1% 2020 to be fertilizer-independent
Nitrogen,
92% 2% • Brazil is to be ranked #1 globally
Phosphate, 1%
Sulfur, 1% for potash imports in 2020 at
7.15 million tonnes of K2O*
* Source: FERTECON report (FERTECON, 2009, /15/).
AMZ : TSX-V 8
9. Location of Cerrado Verde
Market
• Approximately 58% of
Brazilian demand for
fertilizer is located
within Minas Gerais
and adjacent states
• Potash is imported
mainly from Canada
and Russia
Infrastructure
• Paved highways
• Rail (Campos Altos)
• Electricity
• Natural Gas
AMZ : TSX-V 9
10. 100km of Potash at surface
Verdete Slate
• Glauconite and Sericite are Potash minerals
occurring at surface
• Potassium rich rock (“Verdete”) is distributed
over an area approximately: 100km x 6km x
20m to 80m thick
• Potentially billions of tons of rock grading
greater than 10% potassium
• Potential Mining Operation: open pit, friable
rock, no overburden
• Initial NI 43-101 Inferred Resource of 105.1
million tonnes grading 10.3% using 7.5% cut-
off (see March 8, 2010 release)
AMZ : TSX-V 10
11. Strong Project Economics
NI 43-101 Preliminary Economic Production Rate 1.1Mtpy 2.2Mtpy
Assessment Completed
NPV (10%) US$455.4m US$858.1m
• PEA studied open pit mining and
pyrometallurgy process to create the NPV (12%) US$339.1m US$652.6m
ThermoPotash product IRR 32.9% 40.2%
• (see October 28, 2010 release) Operational Cost US$41.80/t US$36.36/t
CapEx US$155.3m US$218.4m
Potential Cost Savings Contingency US$23.3m US$32.8m
• Integration of natural gas discovered Pre-construction US$18.2m US$18.2m
Total CapEx US$196.8m US$269.4m
nearby instead of pet coke for heating
fuel source Payback 2.38 years 1.87 years
• Utilization of Amazon’s limestone
deposits in lieu of purchasing at market
price
• Removal of ICMS1 value-added taxes
NOTE
1 Tax on the Circulation of Goods, Interstate and intercity Transportation
and Communication Services
Pilot plant rotary kiln at Phoster Tecnologia de Aglomerações
AMZ : TSX-V 11
12. Process and Operating Costs
ThermoPotash Production Process Estimated Operating Cost (1.1mtpy)
1. Mining
•Energy
• Verdete Slate comes from open pit and the $18.45 •petroleum coke, electricity
limestone comes from suppliers in the
•Raw Materials
surrounding area or Amazon quarry $2.35 •limestone
2. Grinding
• Verdete slate and limestone are ground by $8.91
•Labour
upright rod mill
3. Mixing $1.80
•Maintenance
• The ground verdete and limestone are mixed
and 4% moisture is added $5.50
•Equipment Operation
4. Pelletization and Drying
• Material is rolled into pellets by disc $1.76
•Marketing
pelletizers, and dried by exhaust gas from the
•Non-Operating Expenses
rotary kiln
$4.79 •administration, marketing
5. Rotary Kiln and Quenching
• After drying, pellets go into the rotary kiln to
be heated to 1250oC and rapidly cooled
US$41.80/tonne
6. Packaging of ready ThermoPotash product
AMZ : TSX-V 12
13. Pricing Estimates
Bahia
Mato Grosso
325,181t/y
895,043t/y
$141.61
$189.85
$93.98
$130.13
Goias
495,687t/y Marketing Study
$142.64
Cerrado Verde $112.98 Minas Gerais
896,051t/y • Agroconsult conducted an
$182.31
$160.04 independent market study to
understand potential sale price and
Mato Grosso do Sul
246,621t/y market size of ThermoPotash
$179.47
$122.20
Parana
778,171t/y Sao Paulo
• The prices were derived exclusively on
$131.01
$63.68
722,513t/y
$131.77
how blenders can optimize NPK
$90.92
formulas using ThermoPotash and
keep raw material costs equal
• Delivery-adjusted price (in blue)
Highlighted Market adjusts for delivery costs to the
Annual Market Potential: 4,359,267 tonnes
Potential Sale Price: US$179.47/t1
blenders in the state and inter-state
Delivery-adjusted Price: US$122.20/t1 taxes
NOTE
1 Weighted-average
(See October 26, 2010 release)
AMZ : TSX-V of the highlighted market 13
14. Incorporated into NPK
ThermoPotash part of Existing Blends Benefits to farmers
• Potential to replace 581,236 tonnes • Provides potash in a slow release
of imported KCl in the region form
• With no change to final fertilizer • Provides substantial doses of other
application quantities or techniques macronutrients
• Reduces limestone use for pH
correction
Benefits to blenders
• Overseas imports price is set 2
months before it arrives at facility,
plus possible port delays
• 60% of fertilizer consumption
occurs in 4 month window
• Long haul transport creates fine
powder out of granules unsuitable
Porto de Santos for application
AMZ : TSX-V 14
15. Benefits of ThermoPotash
Nutrient Availability Tests (See August 11, 2010 release) Measured K2O levels in sandy soil as a
function of potassium source
• Tests showed that ThermoPotash provided
Kg/ha of K2O KCl ThermoPotash
statistically equivalent nutrients to plants as
0 0.04 0.04
KCl
• Calcium and magnesium were available to 200 0.25 0.24
plants, two key macronutrients not available 400 0.41 0.38
in KCl
Limestone Replacement Tests (See October 14, 2010 Brazil Fertilizer vs. Limestone
release) Consumption 2009
• Brazilian farmers used 21 million tonnes of Limestone 21.0
limestone to correct soil pH levels
• Salt-based fertilizer such as KCl makes soil Fertilizer 3.2 3.4 2.6
more acidic
• Every tonne of ThermoPotash used reduces 0.0 5.0 10.0 15.0 20.0 25.0
MM tonnes
limestone required by 490 kg
K2O P2O5 N -
AMZ : TSX-V 15
16. Benefits of ThermoPotash
Slow and Controlled Release (See October 15, 2010 release)
• High rainfall in Brazil makes slow release fertilizers more useful, as the slow
release fertilizers are not easily dissolved and washed away by water
• Resin tests confirmed the slow release properties of ThermoPotash
• 25% of the available potash released in the sandy soil
• 40% of the available potash released in the clayey soil
• The market for slow release
Average Annual Rainfall
fertilizers is established and growing
worldwide Minas Gerais, Brazil 1416
• Producers enjoy a 30-70%
Iowa, USA 882
premium on the slow release
products over the price of the Shandong, China 614
nutrients in the regular Uttar Pradesh(plains), India 896
products
0 250 500 750 1000 1250 1500
Rainfall (mm/yr)
AMZ : TSX-V 16
17. Benefits of ThermoPotash
Potassium Leaching Tests (See December 16, 2010 release)
• Tests established that ThermoPotash (TK) suffers minimal nutrient loss as a
result of leaching, whereas KCl loses 26% under the same conditions
• The superior behaviour of TK over KCl can be explained by its low solubility in
water, which still effectively delivers nutrients to plants
Source of K – Doses of 300 kg/ha
Soil Type KCl ThermoPotash ThermoPotash Control
(granular) (Powdered) (granular) (without K)
------------------- K leached, grams per column ----- ----------------
Sandy 2.31 (26.2%) 0.28 (0.3%) 0.26 (0.0%) 0.26
(15% loamy)
Clay 2.09 (26.0%) 0.08 (0.3%) 0.07 (0.1%) 0.06
(40% loamy)
Note: Figures in parentheses represent the percentage of K from the fertilizer applied that was
lost through leaching
AMZ : TSX-V 17
18. Time for Something Different
Verdete Carnallite Sylvinite
0m 500 - 1000m 1000 - 1500m
Depth Open Pit Mining Solution Mining Conventional Underground
Grade 10-13% K2O 10-14% K2O 20-25% K2O
Time 2 yrs 5-7 years 7-10 years
Cap-Ex $200 million $1-2 billion $2-3 billion
Energy Costs Fluid and Boreholes Conventional Mining
Op Cost Low mining costs Solution Separation Flotation Separation
Product ThermoPotash KCl KCl
18
AMZ : TSX-V
19. Apatita Phosphate Project
• Promising drilling results on 2 of 3 prospects identified mineralized
phosphate between 0.01% and 9.57% P2O5 with widths of between 1m
and 22m (see release dated November 22, 2010)
• Additional drilling to be completed on 5 additional prospects with a plan
to establish 43-101 compliant resource estimates on the two prospects
that have already shown promising results
AMZ : TSX-V 19
21. Recent Developments
Conventional Potash from Verdete (see December 2, 2010 release)
• A patent application has been
filed in the UK for the production
of conventional potash fertilizers,
muriate of potash (KCl) and
sulphate of potash (SOP) from
verdete slate
• The technology was developed
by Dr. Derek Fray , Professor and
Director of Research at the
University of Cambridge, UK
AMZ : TSX-V 21
22. Brazilian Government
Support
Special Tax Treatment for Cerrado Verde Project (see December 22, 2010 release)
• Secretary of Finance from Minas Gerais State Government has approved a
special tax treatment for the Cerrado Verde potash project
• This benefit will reduce capital and operational expenditures for the
Company’s proposed ThermoPotash production. In addition, it will reduce
sales tax on ThermoPotash itself
• The special tax treatment is defined as:
• Suspension of “ICMS” tax payable on
imports of foreign goods (currently 18%),
on imports of foreign raw materials and
purchases of domestic raw materials
• effective tax load of 4% payable on
sales of ThermoPotash, SOP and KCl
AMZ : TSX-V 22
23. Development Partnerships
ArcelorMittal to Fund Agronomic Trials (See Sept. 22, 2009 release)
•Agreement represents a first step in developing corporate demand for ThermoPotash.
ArcelorMittal has 170,000ha of cultivated eucalyptus forests for charcoal production.
Agrifirma to Undertake Agronomic Trials (See Nov. 24 & Dec. 9, 2009 release)
•Agreement secures real world field trials of ThermoPotash for use in corn and soy
plantation, also as part of process for conversion of Cerrado scrubland for commercial
cultivation. Agrifirma is a Jersey-based land fund with 42,000ha of farmland in Brazil.
Sekita to Fund Agronomic Trials (See March 22, 2010 release)
•Agreement establishes a relationship with one of the largest Brazilian vegetable
producers. ThermoPotash to be tested in real world conditions for use with various
vegetables. Its farms are located less than 10km from the Cerrado Verde Project.
Included in Sugarcane Fertilizer Taskforce (See August 4, 2009 release)
•ROCKAPL (‘Rock’ Arranjo Produtivo Local) is a collaborative effort between government
and private enterprise focused on developing fertilizer alternatives for sugarcane destined
for ethanol production.
Brazil to Fund Metallurgical tests on Verdete (See May 4, 2009 release)
•Brazil’s Centre for Mineral Technology (“CETEM”) agreed to fund and conduct
metallurgical tests on Verdete.
AMZ : TSX-V 23