KYLYLAHTI DEFINITIVE FEASIBILITY STUDY PRESENTATION

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1 ABN Ground Floor, 1 Altona Street, West Perth WA 6005 Telephone: NEWS RELEASE 14 April 2008 KYLYLAHTI DEFINITIVE FEASIBILITY STUDY PRESENTATION Vulcan Resources Limited today announced that it is proceeding with the Kylylahti Mine in Finland. A presentation describing the Project is attached and is also available on the Company s website Please direct enquiries to: - ENDS - Alistair Cowden Managing Director Tel: admin@vulcanresources.com.au Sven Olsson AXINO AG Germany Tel: Charlotte Knudsen Crux Communications Norway Tel: +47 (97) Ann Nahajski Porter Novelli Tel: Mobile: About Vulcan Vulcan Resources Limited is a base and precious metals development and exploration company in Finland. The Company s primary focus is the completion of a definitive feasibility study on its 100% owned Kylylahti copper-cobalt project located in eastern Finland which has a Resource of 7.85 million tonnes grading 1.17% copper, 0.24% cobalt, 0.22% nickel, 0.49% zinc and 0.70 g/t gold. For a detailed breakdown of the Measured, Indicated and Inferred Resources, see ASX release dated 26/06/07. A Definitive Feasibility study managed by SNC-Lavalin Australia is examining the construction of a 13 year underground mine, concentrator and nickel-cobalt-zinc concentrate processing plant. The Kuhmo Nickel Project is 95% owned by Vulcan and has a Resource containing 38,000 tonnes of nickel metal and over 80,000 ounces of platinum and palladium. For a detailed breakdown of Resources see ASX release dated 13/11/07. Vulcan also has extensive iron-vanadium-titanium and nickel-copper projects in northern Finland. Vulcan is listed on the Australian Stock Exchange (VCN), the Frankfurt Stock Exchange (VUA) and the Norwegian OTC (VCNR). Australian Securities Exchange: VCN, Frankfurt Stock Exchange: VUA (WKN: A0HHEF), Norwegian OTC: VCNR VRL1583D-EH

3 Ready to Go! Fully permitted project Straightforward underground mine & concentrator Low sovereign risk, government & community support Robust economics, rapid payback Leverage to copper, cobalt & nickel, metal mix is a natural hedge Close to smelters & refineries, advanced negotiations for sale of copper-gold & cobalt-nickel-zinc concentrates 10 year mine life, potential for 15 years Vulcan controls a major historic mineral province 2 Copyright 2008 Vulcan Resources Limited April 2008

4 Why we are Base Metal Bulls! Supply: constrained by aging mines, falling grades, power & infrastructure constraints; Costs: escalating & compounded by financial markets & growing sovereign risk Demand: China, India, etc relentless growth in intensity of metal usage 3 Copyright 2008 Vulcan Resources Limited April 2008

Copper Markets Copper market in deficit, record high prices Concentrate shortage reflected in low smelter charges Global failure to deliver supply response;

5 Copper Markets Copper market in deficit, record high prices Concentrate shortage reflected in low smelter charges Global failure to deliver supply response; power, labour, sovereign risk, costs Consensus & forward curves have price remaining strong (+US$3/lb) to Copyright 2008 Vulcan Resources Limited April 2008

6 Copper Price Demand growth requires new annual production from an Escondida every 2 years Analyst forecasts range from US$3.00-$3.40/lb to year average US$3.20/lb (US$7,000/t) 5 Copyright 2008 Vulcan Resources Limited April 2008

Cobalt Markets Cobalt market in deficit, record high prices Exceptional demand growth driven by batteries in devices & hybrid vehicles & high tech alloys; new supply needed Congo projects struggling

7 Cobalt Markets Cobalt market in deficit, record high prices Exceptional demand growth driven by batteries in devices & hybrid vehicles & high tech alloys; new supply needed Congo projects struggling with security, power supply, costs, title risk, complexity of producing cobalt intermediate products, non government organisation opposition to artisan mining, etc New supply from nickel laterites challenged by spiralling acid & other costs CRU has price remaining strong to Copyright 2008 Vulcan Resources Limited April 2008

8 Cobalt Price $60 Cobalt Price (US$/lb) Demand growth requires new production from 3-4 Ravensthorpe s each year! Currently US$114,000/t ($3.25/oz) CRU forecast a long run price of US$14-18/lb 20 year average US$17/lb (US$37,470/t) $50 $40 $30 $20 20 year average $10 $ Copyright 2008 Vulcan Resources Limited April 2008

9 DFS Metal Prices Current (US$) Forecast Range (US$)* Copper (lb) Cobalt (lb) Nickel (lb) Zinc (lb) Gold (oz) Euro:US$ * Forecasts for production period of except Euro:US$ which is for Copyright 2008 Vulcan Resources Limited April 2008

Kylylahti Copper-Cobalt-Nickel Project 9 Copyright 2008 Vulcan

12 Definitive Feasibility Study SNC-Lavalin Australia managing engineer Subcontractors SRK Mining, Golder Associates, Outotec, Ammtec, Quantitative Group, etc 18 month study including review & optimisation 15km Vulcan drilling, 45km Outokumpu Oy historic drilling (JORC Resource) Peer reviews; AMC, Minproc, Ahma Engineering, etc Post DFS value engineering complete 11 Copyright 2008 Vulcan Resources Limited April 2008

13 Key DFS Financials After tax real NPV (8%) US$149m After tax IRR 29.5% Average EBITDA (yrs 1-5) US$84mpa Copper Equivalent Cash Operating Cost US$1.05/lb Cu eq Operating Cost US$46/t Capital Cost US$170m Payback from 1 st production In year 3 Life of Mine Revenues US$1,286m Financials are pre-financing costs See appendix for copper equivalent calculation 12 Copyright 2008 Vulcan Resources Limited April 2008

14 Mineral Resources & Reserves Resource Classification Tonnes Cu (%) Co (%) Ni (%) Zn (%) Au (g/t) Measured 686, Indicated 6,973, Inferred 195, Total 7,854, Reserve Classification Tonnes Cu (%) Co (%) Ni (%) Zn (%) Au (g/t) Proven 603, Probable 6,342, Total 6,945, Reserves are a subset of Resources 13 Copyright 2008 Vulcan Resources Limited April 2008

Organic Growth Potential to extend mine life to 15 years 2 billion lbs Cu, 1m oz Au produced (1914-1995) from Outokumpu field Active mining & processing

15 Organic Growth Potential to extend mine life to 15 years 2 billion lbs Cu, 1m oz Au produced ( ) from Outokumpu field Active mining & processing of talc at Vuonos Two satellite deposits Numerous prospects & targets Commanding tenement portfolio 14 Copyright 2008 Vulcan Resources Limited April 2008

Mine Design 800,000 tpa steady state production 10 year mine life, potential for additional life from extensions & satellite Resources Mining from 110

16 Mine Design 800,000 tpa steady state production 10 year mine life, potential for additional life from extensions & satellite Resources Mining from 110 to 700m below surface Paste & waste rock fill Contract mining to year 3, thereafter owner operator 15 Copyright 2008 Vulcan Resources Limited April 2008

Low impact site, excellent infrastructure Old Talc Pits Old Talc Waste Dump Logged

19 Capital Costs US$ (m) Box cut, decline to 1 st production & mine infrastructure 40.0 Concentrator, infrastructure, utilities, etc 69.3 Paste Plant & Tailings 11.2 Owners Costs 14.6 EPCM 16.5 Contingency 18.5 Total (Costs estimated in Euro. Euro:US$ of 1.40 assumed for construction period) 18 Copyright 2008 Vulcan Resources Limited April 2008

20 Operating Costs US$/tonne Mining 22.9 Processing 13.9 Administration & Overhead 2.5 Concentrate transport, sale costs, etc 6.2 Total 45.5 (Costs estimated in Euro, average Euro:US$ of 1.2 assumed for production period) (Costs do not include offsite charges & deduction s made by customers against metal revenues, eg TC/RC) 19 Copyright 2008 Vulcan Resources Limited April 2008

21 Annual Metal Production (Years 1-5) Copper-gold Concentrate: Copper 8,800 tonnes (19.4m lbs) Gold 11,900 ounces Bulk Concentrate: Cobalt 1,900 tonnes ( 4.2m lbs) Nickel 1,350 tonnes ( 3.0m lbs) Zinc 3,800 tonnes ( 8.4m lbs) Copper 1,700 tonnes ( 3.8m lbs) 20 Copyright 2008 Vulcan Resources Limited April 2008

23 Project Sensitivities (+/-10%) NPV (US$ millions) Base Case NPV 149 Copper price 36 Cobalt price 46 Capital costs 13 Operating costs 21 Euro:US$ exchange rate 34 3 month delay 3 Reserves Copyright 2008 Vulcan Resources Limited April 2008

25 Financing Plan Determine availability of Government support Complete Independent Technical Experts Report Conclude off-take arrangements International roadshows Oslo IPO Mandate lead managers for debt & equity financing Target 60% debt financing, remainder through cash on hand, equity capital markets, mezzanine or partnering 24 Copyright 2008 Vulcan Resources Limited April 2008

26 Finnish Business Environment Excellent first world infrastructure & commercial environment, EU member & Euro zone, top ranked global economy Financial assistance potentially available from Government No royalties, 26% corporate tax Mining, processing & technology skills, high productivity mines but shortage of mining professionals Local equipment & suppliers; Outotec, Metso, Sandvik, Larox, Tamrock, etc Mining Licence & Mining Licence Extension granted 25 Copyright 2008 Vulcan Resources Limited April 2008

27 Finland s Mining Industry Mine Owner Production start Pyhäsalmi Cu-Zn-pyrite Inmet 1962 Kemi Chromite Outokumpu 1967 Hitura Nickel Belvedere 1970 Siilinjärvi Phosphorus Yara 1979 Orivesi Gold Dragon 1994 & 2007 Kittilä Gold Agnico Eagle mid 2008 Talvivaara Nickel Talvivaara late 2008 Kylylahti Copper-Cobalt-Nickel Vulcan 2010/ Copyright 2008 Vulcan Resources Limited April 2008

28 Community & Environment Environmental & building permits granted, environmental monitoring ongoing Supportive local government & community, 17% local unemployment Approximately 130 jobs during construction Approximately 200 permanent jobs 27 Copyright 2008 Vulcan Resources Limited April 2008

29 Kylylahti Solid Fundamentals Robust Economics - Project has good rate of return & rapid payback, natural hedge through copper, cobalt & nickel revenue Technical Risk - Simple mine & concentrator in a country with long history of underground base metal mining & processing Engineering & Design - SNC-Lavalin DFS, value engineering completed, execution via experienced local engineering firms Capital & Operating Costs - DFS assumptions tested in value engineering, local audits & reviews, estimates to -5/+10% 28 Copyright 2008 Vulcan Resources Limited April 2008

30 Kylylahti Low Risk Proposition Permits & Environment - The project is fully permitted Community Support - Strong support from municipality, Finnish Industry Investment a shareholder, Government assistance available Political & Sovereign Risk - Low risk first world country with a mining culture People - Vulcan has an experienced core team & is actively recruiting in Finland Access to Capital - Strong cash position allows rapid start up, significant interest from banks, equity providers, offtakers & providers of mezzanine finance 29 Copyright 2008 Vulcan Resources Limited April 2008

31 Vulcan: Building a Base Metal Mining House in Finland Kylylahti copper-cobalt-nickel project in development, first ore in late 2010 Kuhmo nickel project, defining shallow open pit Resources & exploring a 150km nickel belt Seeking partners for extensive & shallow iron-vanadium deposits US$42m cash, 225m shares on issue at 31 December 2007 Listed ASX, Frankfurt, Oslo OTC 30 Copyright 2008 Vulcan Resources Limited April 2008

32 Newsflow for 2008 Nickel projects drilling, Resource estimates, metallurgy, scoping studies & exploration Finalisation of Kylylahti offtake agreements Finalisation of finance Commencement of decline Commencement of construction Drilling results & Resource upgrade for Kylylahti Oslo listing 31 Copyright 2008 Vulcan Resources Limited April 2008

For more information and 3D Kylylahti movie go to our

au Alistair Cowden Managing Director 1 Altona Street, West

36 Copper Equivalence Copper equivalence is a useful measure of the combined value of the five metals (Cu, Co, Ni, Zn, Au) that to contribute to the revenue for the Kylylahti Project. It permits the comparison of Kylylahti with other copper dominant base metal projects. In order to account for the varying degree to which different metals contribute to revenue, costs are adjusted by a revenue factor. Revenue is calculated after accounting for metallurgical recovery, smelter & refinery deductions & charges & concentrate transport charges etc. Metal prices assumed & metallurgical recoveries are detailed in the presentation. The revenue factor adjusts for the relative contribution of all metals to revenue expressed as if the revenue was contributed by copper. The calculation is: Cu eq cost = cost/(copper in concentrate x Revenue factor Revenue factor = Revenue attributable to all metals Revenue attributable to copper only 35 Copyright 2008 Vulcan Resources Limited April 2008

37 History of Outokumpu Region Discovery of Kivisalmi ore boulder 1908 Discovery of Outokumpu (Keretti) orebody 1910 First mining at Outokumpu 1913 Outokumpu invents flash furnace 1947 Open Luikonlahti & Vuonos 1958/1973 Kylylahti discovery 1984 Close Luikonlahti, Vuonos, Keretti Outokumpu withdraws from mining business 2003 Vulcan acquisition Copyright 2008 Vulcan Resources Limited April 2008

38 Kylylahti History Discovered by Outokumpu 1984 Never developed prices & change in corporate focus Acquired by Vulcan Dec 2004 Pre-Feasibility Study Nov 2005 Definitive Feasibility Study April Copyright 2008 Vulcan Resources Limited April 2008

World class mining conditions 38 Copyright 2008

Schematic Cross Section Complex polyphase deformation Upper Amphibolite

Metal Intensity Long section showing copper equivalent multiplied

46 Large & Growing Resource Base Nickel & gold not always assayed 250m lbs contained copper Tonnes Cu Co Ni Zn Au (Mt) (%) (%) (%) (%) (g/t) Kylylahti Saramaki Vuonos TOTAL Copyright 2008 Vulcan Resources Limited April 2008

Kuhmo Nickel Project Peura-aho deposit Outcropping 2.

50 Project Outline 37,000t of nickel metal in 5 shallow Resources 12 drilled komatiite hosted nickel sulphide occurrences Concept of central processing plant, multiple open pits 49 Copyright 2008 Vulcan Resources Limited April 2008

51 Analogous to Australia 150km long greenstone belt similar to Cosmos, Kambalda & Forrestania camps Abundant targets, under-explored, well understood geological model Australian experience reinforces that sulphides lead to mine discoveries 50 Copyright 2008 Vulcan Resources Limited April 2008

Recent Drilling Peura-aho high grade shallow massive sulphides (58m @ 1.

52 Recent Drilling Peura-aho high grade shallow massive sulphides 1.3% Ni) Hietaharju massive sulphides & high PGE 6.4g/t Pt + Pd) Vaara thick low grade intercepts 0.43% Ni) 51 Copyright 2008 Vulcan Resources Limited April 2008

53 Next Steps Drill out shallow open pits Metallurgical testwork Environmental baseline studies Resource estimates & pit optimisations Brownfield & regional exploration Winter drilling at Hietaharju 52 Copyright 2008 Vulcan Resources Limited April 2008

55 Top 10 Shareholders AGD Mining Pty Ltd UK 13,108, Board & Management Australia/Finland 11,273, Dresdner Bank AG Norway 10,802, Pareto Growth AS Norway 10,801, Finnish Industry Investment Ltd Finland 10,700, Sempra Metals USA 10,695, Skagenf Vekst Norway 7,661, Verdipapirfondet KLP Norway 7,595, LinQ Resources Australia 6,783, Bjørgvin AS Norway 6,565, Top 10 hold 42%, Top 40 68% Country No. of Shares % Issued Capital 54 Copyright 2008 Vulcan Resources Limited April 2008

56 Barry Eldridge Chairman Mining Engineer, director Cleveland Cliffs, ex CEO Portman, ex Norths Ltd Experienced Mining Board Alistair Cowden Managing Director Geologist, ex WMC, Delta, Archaean Gold Heikki Solin Non-Executive Director, Chairman of Finnish Subsidiaries Lawyer, ex Business Development Manager Outokumpu Michael Blakiston Non-Executive Director Lawyer, director Platinum Australia Fiona Harris Non-Executive Director Accountant, ex director Alinta, Portman 55 Copyright 2008 Vulcan Resources Limited April 2008

Internationally Experienced Management Eric Hughes Chief Financial Officer Accountant, ex BHPB, Amity, Roebuck, Ironclad Campbell Baird General Manager, Operations Mining Engineer, ex WMC, Norths,

57 Internationally Experienced Management Eric Hughes Chief Financial Officer Accountant, ex BHPB, Amity, Roebuck, Ironclad Campbell Baird General Manager, Operations Mining Engineer, ex WMC, Norths, SRK John Brodziak Project Manager, Kylylahti Engineer, ex Rio Tinto, Portman Jarmo Vesanto Manager, Finland Ex Outokumpu Nick Walker Exploration Manager Geologist, Ex Outokumpu Seppo Tuovinen Mining Manager, Finland Mining Engineer, ex Outokumpu 56 Copyright 2008 Vulcan Resources Limited April 2008

VULCAN RESOURCES PRESENTS TO THE FENNOSCANDIAN EXPLORATION AND MINING CONFERENCE

ABN 60 100 072 624 Ground Floor, 1 Altona Street, West Perth WA 6005 Telephone: +61 8 9485 2929 www.vulcanresources.com.au NEWS RELEASE 4 December 2009 VULCAN RESOURCES PRESENTS TO THE FENNOSCANDIAN EXPLORATION