Objective Capital Rare Earths, Speciality and Minor Metals Investment Summit
Focus on rare earths projects around the world
Reopening a former soviet producer
18 March 2010
by Robert Mackay, Stans Energy
Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay
1. Investment Conferences
RARE EARTHS, SPECIALITY
& MINOR METALS
INVESTMENT SUMMIT
2.55 – 3.20
Focus on rare earths projects around the world
Reopening a former soviet producer
Robert Mackay –CEO, Stans Energy
THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 18 MARCH 2010
www.ObjectiveCapitalConferences.com
3. Statements contained in this presentation which are not historical facts are forward-looking
statements that involve risks, uncertainties and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements. Factors that could
cause such differences, without limiting the generality of the following, include: risks inherent in
exploration activities; volatility and sensitivity to market prices for uranium and rare earths;
volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the
ability to raise funds through private or public equity financings; imprecision in resource and reserve
estimates; environmental and safety risks including increased regulatory burdens; unexpected
geological or hydrological conditions; a possible deterioration in political support for nuclear energy
and rare earth technologies; changes in government regulations and policies, including trade laws and
policies; demand for nuclear power and rare earth products; failure to obtain necessary permits and
approvals from government authorities; weather and other natural phenomena; and other
exploration, development, operating, financial market and regulatory risks. Although Stans Energy
Corp. believes that the assumptions inherent in the forward-looking statements are reasonable,
undue reliance should not be placed on these statements, which only apply as of the date of this
release. Stans Energy 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 that while the term "inferred" resources is recognized and required by Canadian
regulations, the SEC does not recognize that term. Investors are cautioned not to assume that all or
any part of mineral deposits in this category will ever be converted into reserves.
4. IMMEDIATE GOAL:
‘Stans Energy will become the first Heavy Rare Earth Elements (HREEs)
producer outside of China by revitalizing its 100% owned, former REEs mine,
Kutessay II’
2010 AGENDA:
1. Commence feasibility study on restarting production at Kutessay II.
2. Confirm the extensive Russian and Kyrgyz data on Kutessay II by
producing a JORC Resource Estimate.
3. Commence economic evaluation of KCMP REE Processing Facilities.
4. Begin establishing relationships with the end-users of REEs and evaluate
partnership opportunities.
5. Consult Stans Energy’s world-class partners in geology, mining
engineering and science to create a new mine plan for Kutessay II.
6. Assemble a motivated team in Kyrgyzstan to implement the new mine
plan.
5. SAMPLE REE PRODUCTS
Compact Fluorescent Lights
Carbon lighting systems
LEDs and OLEDs
Solar panels
Thermal resistance alloys
Aircraft engines
Super magnets
Fibre optic cables
Industrial motors
Microphones
Computer hard drives
Hybrid vehicle batteries
Catalytic converters
Electric car motors
Permanent magnets
Wind and tidal turbines
Hydrogen fuel storage cells
6. 2009 WORLD REEs SUPPLY 2009 WORLD REEs DEMAND
(95% from China’s Mining Monopoly) (1.2 billion USD world-wide)
• Strategic planning nation, China, recognizes • World REEs demand constantly increased
its Heavy Rare Earths (HREEs) deposit has <10 prior to 2009
years of mine life remaining at projected
extraction rates • REEs demand forecasted to increase at over
10% per year until 2014
•China implements export quotas & tariffs on
REEs • Mining companies scramble to advance REEs
properties, with no clear-cut resource deposit
•China actively attempts to acquire new REE to fill the future supply gap
resources, to ensure a future supply
7. 140,000
130,000
120,000
Production, metric tons
110,000
100,000
90,000
80,000
China USA Other
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
1956 1965 1985 2002 2008
Monazite-placer │ Mountain Pass │ Chinese era →?
era era
8.
9. Past-producing Rare Earth Elements
(REEs) open-pit mine
Produced 80% of total REEs for the
former USSR for 30 years
MINING LICENCE for Kutessay II and
surrounding properties signed on
December 29, 2009, and is 100% owned
by Stans Energy Corp.
The Kyrgyz government is supportive in
bringing Kutessay II back into production
10. Estimated remaining REE Reserves
A+B+C1+C2+r/b = 63,300,000 Kilograms*
Conservative average REE oxide price of
$35.23 per Kg
LREEs/HREEs ratio of approximately 50/50
Located 150 km from Bishkek, with
existing infrastructure of paved roads and
power
*Reserve estimate is historical, not NI 43-101 compliant
and should not be relied on
11. Deposit has quantities of all 15 REE, plus
thorium, silver, molybdenum, lead, zinc,
tantalum, niobium, hafnium and bismuth
with KNOWN METALLURGY
Historical REEs recovery rate of 65%
120 REE products were produced,
including oxides, metals and alloys from
Kutessay II concentrate
Abundant amount of qualified labour
available in the area
13. La
9.42%
Y
27.57%
Ce
25.85%
Lu
0.06%
Yb
1.83%
Tm
0.05%
Er
4.98%
Ho
1.20% Pr
Dy 3.31%
6.47%
Tb
1.19%
Gd
2.78%
Eu Sm
Nd
8.77% LREEs
2.59%
HREEs
3.94%
14. Lu Y La Ce Pr Nd
Yb 0.41% 7.58% 1.32% 2.98% 1.82% 5.06%
7.80% Sm
Er 0.37%
Tm
3.49% 1.12%
Ho
0.84%
Eu
34.20%
Dy
20.97%
Tb
Gd LREEs
0.60%
11.44%
HREEs
15.
16. KCMP was designed to separate
REEs from concentrate derived
from Kutessay II
Almost all equipment remains
on site
Produced Oxides, Metals, and
Alloys up to 99.99%
Under care and maintenance
since 1990
Stans Energy owns an exclusive
option to purchase KCMP for 1
year.
17. Canada
Honorary Consul of the
Russia Kyrgyz Republic for
Canada Kyrgyzstan
ARRICT
IGPMG RAS CSRL
ARRIMR
GEOTEP Kyrgyz-Russian
Slavic University
UranGeo
Legend
Signed Partnership
Negotiations in Progress
18. Kutessay II will require a limited amount of capital to bring back
into production compared to other REE properties because of
the following value drivers:
i) Mining license
ii) 30 years of known metallurgy and recoveries
iii) Existing infrastructure and processing facilities
iv) 50/50 LREEs to HREEs
v) Scientific & Geological partners with REEs expertise
vi) Qualified local labour force
Surrounding REE properties signal further exploration. Kalesay
and Kyzyluraanskaya could be economic in the future. Alabuga
and Koshdube require drilling to determine the potential of the
properties.
19. DR. DOUGLAS H. UNDERHILL;
Ph D, M Sc, QP
BA (Geology), MBA
Retired Uranium
Specialist with the IAEA
DR. MARAT FAZLULLIN;
Leading world expert on
acid ISL technologies
20. Share Type Number
Common 108,647,183
Warrants 23,025,000
Options 9,490,000
Total 141,162,183
21. RODNEY IRWIN, MA
Chairman of the Board
Retired Canadian
Ambassador to Russia
Honorary Consul of Kyrgyz
Republic in Canada
GORDON BAKER, QC
Vice Chairman of the Board
Corporate Law Specialist
ROBERT MACKAY;
BSc. Mining
President, CEO
& Director
20 years experience in
the capital markets
22. DR. GENNADY SAVCHENKO, BORIS ARYEV;
CGeol FGS, QP MSc., PEng
Managing Director of COO & Director
STANS ENERGY KG Founding Director of the
Canadian-Eurasia-Russia
Association; Founder &
Chairman of its Mining &
Northern Development
Committees
DR. DOUGLAS H. UNDERHILL;
Ph D, M Sc, QP
BA (Geology), MBA
Director LENA MASTERS; CGA, B.
Retired Uranium Law, BA (Finance)
Specialist with the IAEA CFO
12 years of financial and
operational experience in
Investment Industry.
23. DR. MARAT FAZLULLIN;
Leading Russian expert on
uranium, gold, and rare metals
MR. JAMES ALLAN; P.Eng,
BASc, MSc.
Rare earths exploration and
deposit evaluation expert
MR. JAMES B. HEDRICK;
Retired mineral commodities
expert for the USGS for rare earth
elements, thorium, zirconium,
hafnium, and the mica group
minerals.