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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
TSX–V: RUU.V
Corporate Presentation
      March 2010
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.
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.
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
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
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
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
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
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
Element Oxide             % of Historical          *Price/Kg          Weighted AVG P/Kg of
                                        REEs                  USD                REEs contained
      Lanthanum (La)                             %9.12               $5.10                                   0.47

      Cerium (Ce)                                 25.02               4.20                                   1.05

      Praseodymium (Pr)                             3.2              20.00                                   0.64

      Neodymium (Nd)                               8.49              21.00                                   1.78

      Samarium (Sm)                                3.81               3.40                                   0.13

      Europium (Eu)                                2.51            480.00                                  12.05

      Gadolinium (Gd)                              2.69               7.86                                   0.21

      Terbium (Tb)                                 1.15            350.33                                    4.03

      Dysprosium (Dy)                              6.26            118.00                                    7.39

      Holmium (Ho)                                 1.16              25.38                                   0.29

      Erbium (Er)                                  4.82              25.50                                   1.23

      Thulium (Tm)                                 0.05            790.00                                    0.40

      Ytterbium (Yb)                               1.77            155.30                                    2.75

      Lutetium (Lu)                                0.06            238.09                                    0.14

      Yttrium (Y)                                 26.69              10.01                                   2.67

      Totals                                  **%96.8                                                      35.23
*Prices taken from asianmetal.com FOB & are subject to change.   **Stans is currently confirming historical percentages.
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%
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
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.
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
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.
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
Share Type       Number
Common        108,647,183
Warrants       23,025,000
Options         9,490,000
Total        141,162,183
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
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.
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.

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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
  • 12. Element Oxide % of Historical *Price/Kg Weighted AVG P/Kg of REEs USD REEs contained Lanthanum (La) %9.12 $5.10 0.47 Cerium (Ce) 25.02 4.20 1.05 Praseodymium (Pr) 3.2 20.00 0.64 Neodymium (Nd) 8.49 21.00 1.78 Samarium (Sm) 3.81 3.40 0.13 Europium (Eu) 2.51 480.00 12.05 Gadolinium (Gd) 2.69 7.86 0.21 Terbium (Tb) 1.15 350.33 4.03 Dysprosium (Dy) 6.26 118.00 7.39 Holmium (Ho) 1.16 25.38 0.29 Erbium (Er) 4.82 25.50 1.23 Thulium (Tm) 0.05 790.00 0.40 Ytterbium (Yb) 1.77 155.30 2.75 Lutetium (Lu) 0.06 238.09 0.14 Yttrium (Y) 26.69 10.01 2.67 Totals **%96.8 35.23 *Prices taken from asianmetal.com FOB & are subject to change. **Stans is currently confirming historical percentages.
  • 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.