Lennard Shelf Zinc Lead Project Project Overview

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Lennard Shelf Zinc Lead ProjectProject Overview

• 25 May 2009

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Summary Lennard Shelf Zinc-Lead Project

• Premier Mississippi Valley Type (MVT) Zinc-Lead
  provinces
• Initial resource base of 41Mt _at_ 7.9 Zn 3.2 Pb
• Remaining resources 8.2 Mt _at_ 7.4 Zn 4.6 Pb
• Update Feasibility Study into viability of
  reopening the Kapok Mine and accessing Kapok West
• Existing resources being assessed as to their
  economic viability
• Excellent potential to expand existing resources
  and define new resources via a two year drilling
  program
• Clean, very high grade, premium concentrate
• Positive Zn price forecasts
• Zinc and lead parity (lead was 1/3 of zinc)
• Three potential processing options

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Capital Structure
23 of shares held in escrow until Dec 2009
Top 20 80 (post project acquisition)
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Project Location
400km to the coast
Deep Water Port
Tenements 435sq. km
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Project Purchase Arrangement

• Meridian to acquire the mining leases and
  exploration licences comprising the project from
  Lennard Shelf Pty Ltd (50 Teck, 50 Xstrata) for
  25,000,000 Meridian Shares
• 25,000,000 purchase shares will be subject to a
  voluntary minimum 12 month escrow period
• Lennard Shelf Pty Ltd will have the ability to
  claw back to a 51 interest in any newly defined
  mineral resource by funding a bankable
  feasibility study or spending 20M whichever
  comes first
• MOU Meridian Minerals has until 19 June to raise
  a minimum of 5M
• Immediately upon Meridian raising a minimum of
  5M the MOU will become unconditional

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Regular Discovery History

• 1974 Exploration Commenced by BHP
• 1978 Pillara discovery 23.2 Mt
• 1984 Cadjebut discovery 5.2 Mt
• 1985 Goongewa discovery 2.6 Mt
• 1990 Kapok discovery 4.6 Mt
• 1997 Kutarta discovery 2.3 Mt
• 2002 Fossil Downs resource defined 2.1 Mt
• 2003 Teck buys project
• 2004 Falconbridge joins Teck in JV
• 2005 Palijippa discovery 2.5 M

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Project Development History

• 1974 Exploration Commenced by BHP
• 1994 Western Metals buys out BHP
• Project too small to make an impact on BHPs
  bottom line
• 2003 Western Metals goes in to administration
• Debt load and currency hedging the main issues
• 2003 Teck buys project for 26M
• 2004 Falconbridge joins Teck in JV
• 2007 Pillara Mine reopens
• Strategic use of concentrate by Teck
• 2008 Pillara Mine closes
• Amongst the lowest grade on the Lennard Shelf, 9
  Zn Eq.
• Softening zinc price
• Oil at US145/b, AUUS0.92, high labour costs
  from 3 locations
• 2009 Project acquired by Meridian Minerals for
  0.5M
• Focus on smaller higher grade resources, 13 -15
  Zn Eq.
• Recovering zinc price, lead price 3X above
  previous level
• Oil at US52/b, AUUS0.70, labour costs down
  20-35

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Impact of Zinc Price on Project
Pillara Shuts Down
Pillara Recommences production 800,000 tpa
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Impact of Zinc Price on Project
Pillara Shuts Down 9 Zn Eq.
Kapok 15 Zn Eq.
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Australian Zinc Project Comparisons

• Lennard Shelf Zinc-Lead Project (50 Teck, 50
  Xstrata)
• Multiple resources (8.2Mt _at_ 7.4 Zn 4.6 Pb)
• Potential to re-use existing Pillara
  plant/infrastructure (requires additional deal
  with Lennard Shelf Pty Ltd)
• Angas Zinc-Copper Project (Terramin Australia
  Limited)
• Feasibility completed on single resource
• Pre mining 2.41Mt _at_ 7 Zn, 2.7 Pb, 0.24 Cu,
  31g/t Ag 0.48g/t Au
• Greenfields Site
• Jaguar Zinc-Copper Project (Jabiru Metals
  Limited)
• Feasibility completed on single resource
• Pre mining 1.7Mt _at_ 3 Cu, 11.3 Zn, 0.7 Pb
  115g/t Ag
• Reused old Teutonic Bore Mine infrastructure/broug
  ht second-hand Cadjebut Plant/Kapok underground
  crusher/conveyor

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Jabiru Metals Ltd Developer to Miner
First CONCS delivered
First ORE mined
Decline intersects ORE

• Base share price 0.20
• Commencement of
• Mining Ore 1.50
• Commencement of
• Conc Production 1.60
• Maximum 7 X Base Share Price
• Market Cap 140M

Commence decline
GFC
Feasibility Significant Upgrade, Project Funding
(Consmin), Off-take agreement
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Terramin Australia Ltd Developer to Miner
Angas First Production

• First intersection into Angas 0.10
• Commencement of Mining ore 3
• Maximum 8 X Base Share
• Market Cap 96M

Mining Approvals
Resource Upgrade
Resource Def.
GFC
First drill hits
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Zinc Resources Comparison
Resources figures taken from Western Metals
Limited Report to the ASX 1st July 2003
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Diverse Range of Mineralisation Styles
CDR 259
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Mining and Production Overview

• Total pre-mining resources 41Mt _at_ 7.9 Zn 3.2
  Pb
• Four mines previously developed
• Cadjebut, Goongewa, Kapok, Pillara
• Cadjebut and Goongewa had highest rates of return
• Milling rate
• 3Mtpa was peak rate by Western Metals
• Producing 170,000t Zn and 80,000t Pb in
  concentrate
• Meridian Minerals targeted production rate -
  800,000 tpa
• Producing 64,000t Zn and 26,000t Pb in
  concentrate
• Simple mineralogy
• Cheap processing
• High value clean concentrates sought after by
  smelters
• Interest already expressed by metal traders in
  obtaining concentrates

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Remaining Resources (as of Feb 2009)
Resources figures taken from Western Metals
Limited Report to the ASX 1st July 2003
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High Grade Zinc-Lead Mineralisation
Sphalerite mineralisation gt20 Zn
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Mines and Resources at the Emanuel Range
Kapok West 1.2Mt _at_ 4.3 Zn, 9.0 Pb
Kurtarta 2.34Mt _at_ 7.2 Zn, 0.5 Pb
Cadjebut Splay 0.39Mt _at_ 1.4 Zn, 14.4 Pb
Kapok Central 0.891M _at_ 8.6 Zn, 5.6 Pb
Kapok East 0.619M _at_ 7.6 Zn, 9.3 Pb
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Kapok Kapok West Longitudinal Section
0.39Mt _at_ 1.4 Zn 14.4 Pb
0.619Mt _at_ 7.6 Zn 9.3 Pb
Central
0.891Mt _at_ 8.6 Zn 5.6 Pb
1.2Mt _at_ 4.3 Zn 9 Pb
Feasibility study in to reopening Kapok and
accessing Kapok West from Kapok decline
Decision Date Dec 09
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Kapok Mine Area and Portal
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Kutarta Resource

• 2.3Mt _at_ 7.2 Zn, 0.5 Pb
• Feasibility study completed (Western Metals)
• Mine plan developed
• Awaiting review of order of magnitude economics
• Drilling planned

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Palijippa Prospect High Grade Intersections
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Fossil Downs Location Plan
Fossil Downs
Pillara Resource and Processing Plant
Cadjebut Splay and Kapok Resources
10km
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Fossil Downs Resource

• Inferred Resource of 2.15Mt _at_ 9.5 Zn, 2.1 Pb
  and 50g/t Ag
• Fossil Downs has the greatest potential to
  significantly expand the existing resource on the
  Lennard Shelf
• Intersections at Fossil Downs are amongst the
  highest grades on the Lennard Shelf
• FD062 4m _at_ 30.27 Zn, 10.48Pb and 183g/t Ag
  from 450.6m
• FD070 12m _at_ 16.22 Zn, 3.27Pb and 178g/t Ag
  from 494m
• FD080 13.3m _at_ 12.7 Zn, 1.78Pb and 73g/t Ag
  from 547.7m
• Significant potential to expand resource

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Pillara Processing Plant
Pillara Resource And 1.5Mtpa Processing
Plant (not part of project purchase)
Cadjebut and Kapok Resources
10km
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Processing Options

• Toll treat through existing Pillara mill (subject
  to concluding arrangement with Lennard Shelf Pty
  Ltd)
• Purchase Pillara mill (dependent upon finding
  partner acceptable to Lennard Shelf Pty Ltd)
• Purchase second hand plant and locate at Kapok
• Trade off study needs to be completed to find
  optimum position of plant.

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Investment Proposal

• Subject to securing 5M Meridian Minerals has an
  opportunity to acquire 100 of the Lennard Shelf
  Zinc-Lead Project
• Funding of 7M is required to be raised in
  May-June 09 via an equity raising
• Participation in the capital raising provides the
  investor with the following
• Access to a low risk world-class MVT Zinc-Lead
  project
• Current resource base of 8.2Mt _at_ 7.4 Zn 4.6
  Pb
• Excellent potential to significantly expand
  current resources
• Exposure to rising zinc and lead prices
• Abundant news flow from feasibility study and two
  year drill program
• Experienced management team with a track record
  of shareholder value creation
• Significant potential to grow market cap and
  share price

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Use of Funds
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Project Development Plan and News Flow

• April 09 Secure Project via MOU (subject to
  raising finance)
• May 09 Complete Due Diligence on assets
• June 09 Complete 7M fund raising
• June 09 MOU becomes unconditional
• July 09 Commence update of study in to
  viability of Kapok Central and Kapok West mineral
  reserves
• July 09 Commence resource extension drilling
  and exploration
• Dec 09 Decision Point on viability of Kapok
  Central and Kapok West
• Jan 10 Commence development work at Kapok if
  feasibility study is positive
• Dec 10 Complete resource extension and
  exploration drilling and move resources towards
  production if viable at prevailing zinc price

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Conclusions

• Meridian Minerals has the opportunity to secure a
  100 interest in the world-class Lennard Shelf
  Zinc-Lead MVT Project
• Existing resources comprise 8.2Mt _at_ 7.4 Zn
  4.6 Pb
• Premium highly sought after concentrate
• Operating and owners costs significantly lower
  and zinc price rising
• Significant potential to grow market cap and
  increase share price
• Update of feasibility study in to re-opening the
  Kapok Mine and accessing Kapok West
• Excellent potential to create value by growing
  the resource base at Kutarta, Palijippa, Kapok
  and Fossil Downs
• High level of existing infrastructure including
  1.5Mtpa processing plant in the region (access
  to be negotiated)
• On-going news flow over two year program

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Attribution

• The information in this report that relates to
  Exploration Results, Mineral Resources or Ore
  Reserves is based on information compiled by Mr
  Jeremy Read, who is a member of The Australasian
  Institute of Mining and Metallurgy.
•  
• Mr Read is a full-time employee of Meridian
  Minerals Limited. He has sufficient experience
  which is relevant to the style of mineralisation
  and type of deposit under consideration and to
  the activity which he is undertaking to quality
  as a Competent Person as defined in the 2004
  Edition of the Australasian Code for Reporting
  of Exploration Results, Mineral Resources and Ore
  Reserves. Mr Read consents to the inclusion in
  this announcement of the matters based upon his
  information in the form and context in which it
  appears.

Resources figures relating to the Lennard Shelf
Project have been taken from Western Metals
Limited Report to the ASX 1st July 2003