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AGM PRESENTATION - Stans Energy Corp.

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<strong>AGM</strong> <strong>PRESENTATION</strong><br />

June 2011


Statements contained in this presentation which are not historical facts are forward-looking statements that<br />

involve risks, uncertainties and other factors that could cause actual results to differ materially from those<br />

expressed or implied by such forward-looking statements. Factors that could cause such differences, without<br />

limiting the generality of the following, include: risks inherent in exploration activities; volatility and<br />

sensitivity to market prices for uranium and rare earths; volatility and sensitivity to capital market<br />

fluctuations; the impact of exploration competition; the ability to raise funds through private or public<br />

equity financings; imprecision in resource and reserve estimates; environmental and safety risks including<br />

increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in<br />

political support for nuclear energy and rare earth technologies; changes in government regulations and<br />

policies, including trade laws and policies; demand for nuclear power and rare earth products; failure to<br />

obtain necessary permits and approvals from government authorities; weather and other natural phenomena;<br />

and other exploration, development, operating, financial market and regulatory risks. Although <strong>Stans</strong> <strong>Energy</strong><br />

<strong>Corp</strong>. believes that the assumptions inherent in the forward-looking statements are reasonable, undue<br />

reliance should not be placed on these statements, which only apply as of the date of this release. <strong>Stans</strong><br />

<strong>Energy</strong> <strong>Corp</strong>. disclaims any intention or obligation to update or revise any forward-looking statement,<br />

whether as a result of new information, future events or otherwise. United States investors are advised that<br />

while the term "inferred" resources is recognized and required by Canadian regulations, the SEC does not<br />

recognize that term. Investors are cautioned not to assume that all or any part of mineral deposits in this<br />

category will ever be converted into reserves.


IMMEDIATE GOAL:<br />

‘<strong>Stans</strong> <strong>Energy</strong> will become the first Heavy Rare Earth Elements (HREEs) producer<br />

outside of China by revitalizing its 100% owned, former REEs mine, Kutessay II.<br />

Long Term, <strong>Stans</strong> will become a world leader in HREE development.’<br />

AGENDA:<br />

1. Optimize scale and design of <strong>Stans</strong>’ newly acquired RE Processing<br />

Complex.<br />

2. Establish relationships with the end-users of REEs and evaluate<br />

partnership opportunities.<br />

3. Create a new mine plan for Kutessay II following consultation with <strong>Stans</strong>’<br />

geology, mining engineering and science partners.<br />

4. Complete feasibility study for Kutessay II, KRP, and the Kalesay Beryllium<br />

Deposit by the end of Q4 2011<br />

5. Further team building in Kyrgyzstan to implement the new mine plan<br />

6. Evaluate additional HREE acquisitions


Element Oxide REEs % REO$/Kg USD<br />

July 7, 2011<br />

Yttrium (Y) 26.73 177.00<br />

Dysprosium (Dy) 6.14 2520.00<br />

Terbium (Tb) 1.55 4200.00<br />

Neodymium (Nd) 8.18 330.00<br />

Europium (Eu) 0.23 5880.00<br />

Erbium (Er) 3.25 295.00<br />

Praseodymium (Pr) 3.78 25.00<br />

Gadolinium (Gd) 3.59 255.00<br />

Samarium (Sm) 4.10 136.00<br />

Holmium (Ho) 0.57 200.00<br />

Thulium (Tm) 0.25 790.00<br />

Ytterbium (Yb) 3.29 155.00<br />

Lutetium (Lu) 0.50 1000.00<br />

Cerium (Ce) 19.68 159.00<br />

Lanthanum (La) 16.55 153.00<br />

Kutessay II REE Mine<br />

JORC Estimate - 46,540 tonnes TREO, 0.264 grade, 48% HREEs<br />

(Note: Resource estimate does not include stockpiled ore in the pit, the resource is open to depth, and higher grades<br />

HREEs are present at higher elevations)<br />

Aktyuz<br />

Kalesay<br />

Kutessay II<br />

Kutessay III


• <strong>Stans</strong> <strong>Energy</strong> finalized the acquisition of the<br />

RE processing complex ‘KRP’, and rail<br />

terminal on May 26 th , 2011<br />

• KRP was designed to separate REEs from<br />

Kutessay II RE concentrate<br />

• Almost all equipment remains on site, 97% of<br />

which is in good or satisfactory working<br />

condition<br />

• Produced 120 different oxides, metals, and<br />

alloys up to 99.99%<br />

• Under care and maintenance since 1991,<br />

continued to produce HRE metals from<br />

stored concentrates until 2010<br />

• Rail terminal connects to Russia, China,<br />

Korea, by ferry to Japan, and to the Middle<br />

East


DHPr007<br />

DHPr007<br />

II II II II<br />

II II<br />

Ore Ore zone zone at at the the level level level level level of of of 2213 2213 m<br />

m<br />

Section Section Section line line I-I<br />

I-I<br />

Designed Designed drill drill drill drill hole hole and and its its number<br />

number<br />

Open Open pit pit outline outline<br />

outline outline<br />

2293м 2293м 2293м<br />

2293м Deep Deep Deep exploratory exploratory levels levels of of<br />

of<br />

2263м 2263м<br />

2263м<br />

2213м 2213м the the Kutessai Kutessai Kutessai II II II II II deposit deposit<br />

2213м<br />

2213м<br />

deposit<br />

I<br />

DHPr007 DHPr007 DHPr007 DHPr007<br />

DHPr007 DHPr007<br />

DHPr008 DHPr008<br />

DHPr008<br />

I<br />

Northern<br />

Northern<br />

ore ore body<br />

body<br />

Central Central Central<br />

Central Central<br />

ore ore body<br />

body<br />

I<br />

II<br />

II<br />

Schematic layout of designed drill holes<br />

for estimation of rare earth resources<br />

at deep levels of the Kutessay II Deposit


Section Along I-I


Section Along II-II


Exploration Licence Area<br />

40 Km 2 , 50+ mineralized targets<br />

While mining the Aktyuz deposit for lead<br />

in the 1950s, the Soviets found<br />

significant levels of all 15 REEs, plus Ag,<br />

Th, Zr, Zn, Sn, Mo, Nb, Ta, Hf and Be in<br />

the process. Once they discovered<br />

Kutessay II, the entire empire’s RE needs<br />

were scheduled to derive from Kutessay<br />

II for the next 80 years at historical<br />

production rates. Soviet surface drilling<br />

and trenching identified a total of six<br />

main zones of mineralization, but no<br />

further exploration work was completed<br />

to identify reserves in each area. <strong>Stans</strong><br />

<strong>Energy</strong> <strong>Corp</strong>. hopes to expand its<br />

identified historical RE resources by<br />

continuing a modern exploration<br />

program on the Aktyuz Ore Field in 2011.


Layout of designed drill holes<br />

on the deep levels of the<br />

Aktyuz Deposit


Kalesay<br />

Kutessay II<br />

� Beryllium deposit with historical reserves of С 1+С 2 category:<br />

ore – 9,245,000 t., containing 11,701 t of Beryllium oxide at<br />

an average grade of 0.128%*… Beryllium’s price is<br />

>$700,000.00/t USD<br />

� Due to their close proximity, the Kalesay Beryllium deposit<br />

could be developed in conjunction with Kutessay II. <strong>Stans</strong> is<br />

in the process of completing a JORC resource estimate for<br />

Kalesay.<br />

� Increasing Beryllium reserves is possible through exploration<br />

of deposit pit flanks and to the depth.<br />

� More than 70% of total reserves of the deposit can be mined<br />

by open pit<br />

*Reserve estimate from historical Soviet data, not NI 43-101 compliant and should<br />

not be relied on


Kalesay<br />

Kutessay II<br />

Classification of beryllium<br />

deposits by grade and reserves<br />

(McLemore, 2010)


Northern Ore Zone<br />

Kalesay<br />

Kutessay II<br />

Southern Ore Zone<br />

Wireframe of ore bodies of the<br />

Northern and Southern zones


Kalesay<br />

Northern Ore Zone<br />

Southern Ore Zone<br />

Kutessay II<br />

Open Pit Kutisay-II<br />

View of Kutesay II open pit<br />

and Kalesay ore zones


Kalessay Ber


� Confirm the extensive Russian and Kyrgyz<br />

geological data on Kalesay by producing a JORC<br />

resource estimate and complete a new mine<br />

design<br />

� Test the depth potential of the known REE<br />

mineralization under Kutessay II<br />

� Test the depth potential of historic Yttrium rich<br />

REE mineralization under the Aktyuz mine<br />

� Complete geophysical survey of the entire<br />

Aktyuz Ore Field to locate additional drill<br />

targets<br />

� Continuation of the program to refurbish and<br />

redesign the KRP to optimize production and<br />

to maximize efficiency using the latest<br />

technological innovations.<br />

What’s Next?<br />

� Establish relationships with end users of REEs<br />

and evaluate partnership opportunities<br />

� Upgrade the past metallurgical process<br />

(specifically at the concentrate stage) to<br />

implement new technologies, chemicals, and<br />

solvents<br />

� Complete a feasibility study on resuming<br />

production at Kutessay II by end of Q4 2011<br />

� Continue to assemble mining, milling, and<br />

metallurgical experts to restart Kutessay II, and<br />

KRP<br />

� Evaluate additional HRE acquisitions in areas of<br />

the former Soviet Union


TSX-V: HRE<br />

OTCQX: HREEF<br />

Kutessay III<br />

STANS ENERGY CORPORATION<br />

8 King St. East, Suite 205<br />

Toronto, ON, M5C 1B5<br />

Tel: 647 426 1865, Fax 647 426 1869<br />

info@stansenergy.com<br />

www.stansenergy.com<br />

INVESTOR RELATIONS<br />

David Vinokurov<br />

Manager of Investor Relations<br />

David@stansenergy.com

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