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Investor Update
May 2011
Forward Looking Statements
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This presentation contains certain forward-looking statements and forecasts which includewithout limitation, expectations regarding future performance, costs, production levels orrates, reserves and resources, the financial position of Troy Resources NL (the “Company”),industry growth or other trend projections.
Although such forecasts and forward-looking statements reflect current beliefs and arebased on information currently available and assumptions believed to be reasonable there isno assurance that actual results will be consistent with such forecasts and forward-lookingstatements. A number of factors could cause actual results, performance, or achievement todiffer materially from the results expressed or implied in such forecasts and forward-lookingstatements. For a description of such factors please see the section entitled “Risk Factors”in the Company’s amended and restated preliminary prospectus dated 10 January 2008available under the Company’s profile at sedar.com.
Nothing in this presentation should be construed as either an offer to sell or a solicitation ofan offer to buy or sell securities.
Background
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Listed on ASX (TRY) in 1987 as a Gold Explorer Became a producer in Western Australia in 2000 Opened our first mine in South America in 2002 (Sertão) Dual listed on the TSX in 2008 Commissioned the Andorinhas gold mine in Brazil in 2008 Acquired the Casposo gold silver project in Argentina in 2009 Paid 10 consecutive cash dividends First gold pour at Casposo in November 2010 Gold and silver exposure at a compelling valuation No hedging Significant exploration potential
What We Own
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Gold Assets Andorinhas Gold Mine – Brazil Casposo Gold Silver Mine – Argentina Sandstone Gold Mine – Australia (Closed)
BRAZIL
Rio de Janeiro
Belo Horizonte
Brasilia
BelémAndorinhasGold Mine
Buenos Aires
San Juan
Casposo Gold Silver Mine
Sao Paulo
We ste rn Austra l ia
Q ue e nsla nd
N. S. W.
A.C.T.
Vic to ria
So uthAustra l ia
500 km
Daly River
Sydney
Perth
X
SandstoneGold Mine
Performance FY2011 H1 Profit of A$6.05m FY2011 production guidance of 80,000 to
100,000 oz Au_eq
Corporate Snapshot
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Troy Share Price
Board & Senior Management
Non-Executive Directors
David Dix, Non-Executive Chairman
Gordon Chambers, Non-Executive Director
Fred Grimwade, Non-Executive Director
John Jones, Non-Executive Director
Robin Parish, Non-Executive Director
Senior Management Paul Benson, CEO & Managing Director
Peter Doyle, VP Exploration & Bus. Development
Ken Nilsson, Executive Director Operations
David Sadgrove, CFO & Company Secretary
Ordinary Shares: 87.97MOptions: 4.8MShare Price as at May 5, 2011: $3.6352 Week Range: $1.85 - $4.29 Market Cap as at May 5, 2011: ~$320M
Key Statistics (A$)
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4.5Troy Share Price A$
Sandstone – Care and Maintenance
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Closed on September 16, 2010 and moved to care and maintenance
FY2010 - 29,885oz at A$1000/oz
September quarter production –up 2% to 4,945 oz
September quarter costs –down 21% to A$846/oz
Ongoing exposure to nickel exploration JV with Western Areas WSA have the right to earn 51% of
any nickel discovery by spending A$4m over 4 years.
Andorinhas Gold Mine – Brazil
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Small narrow vein underground
supplemented by low grade
open cut stockpiles
FY2010 - 31,568oz at
US$634/oz
March FY11 Qtr production –
11,369oz @ US$582/oz
9 months to March 31, 2011
34,364 oz @ US$584/oz –
Already exceeded FY10
production at a lower cost
Andorinhas, Mamão Underground Mine
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Melechete Lode Drilling and Grade Distribution
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Andorinhas – Summary
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Moving into higher grade areas FY2010: 31koz FY2011: > 40koz Potential at depth and regionally to add Reserves Monetising iron ore
Andorinhas – Monetising Iron Ore Resource
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Colluvial Iron Ore Reserves 2.8 Mt Resources 6.5 Mt LOI with MFA to mine
the iron ore Payments
US$4m over FY11 and FY12
Over US$3m pa (1)
(1) based on production and iron ore market price assumptions
Casposo Project – San Juan Province
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San Juan Province Mineral EndowmentMines and Casposo Project Access
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Mine is 20km from Calingastaat 2,400m AMSL
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Delays in Ramp Up
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Relatively complex circuit Merrill Crowe (due to silver) Dry Tailings (due to seismically active area) Closed circuit for water balance
Initial difficulty with tailings filter performance Clay blinding filter cloth New Flocculent Introduction of antiscalant Introduction of diatomaceous earth and
cellulose Various challenges with:
Merrill Crowe filters Thickeners/clarifiers Commissioning of electronics/plant
monitoring and control systems Training and supervision Expect to reach budget throughput in June
quarter
Tails Filtering January 2011
Tails Filtering March 2011
Casposo Ramp Up
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March Quarter Produced: 4,318 oz Au @ US$974/oz (net of 72koz
silver credits) or 6,118 oz Au_eq @ US$1,153/oz Au_eq
(co-product costing) Averaged 250tpd compared to design of
1100tpd Month of March:
2,465 oz Au @ US$477/oz net of silver credits Averaged 360tpd
Increasing throughput will increase gold production and decrease unit costs In first week of April averaged 570 tpd Achieved over 700tpd in last week of April
Mining comfortably ahead of the plant – stockpile at March 31: 145,877 t @ 7.1g/t Au and 97.7 g/t Ag Approx 5 months stockpile at budget rates!
Open Cut, Underground and ProcessedTonnes
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Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up
Total Gold Equivalent Production
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Aim to avoid the drop in production in Years 3 and 4 through proving up additional higher grade ore –eg Kamila SE Extension
Aim to extend mine life through proving up additional surface and underground Reserves
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up
Unit Costs and Production
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Unit Costs and Production
Life of Mine Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 FY 2017
30‐Jun‐17
Unit Cost: By‐Product Costing (after Silver credits)
Gold Produced Oz 320,841 81,846 90,394 43,741 35,012 49,901 19,946 ‐
Unit Cash Costnet of Silver
USD/Oz (Au)(net Ag credits) 120.49 127.00 151.39 349.36 387.83 (88.18) (495.32) ‐
Total unit Costnet of silver (inc deprn & amort) USD/oz 448.85 455.38 505.01 779.50 681.63 157.85 (238.07) ‐
Unit Cost: Co Product Costing
Equivalent Gold Produced Oz 463,494 96,056 110,705 60,681 64,576 92,520 38,956 ‐
Equivalent Gold unit cash cost
USD/Oz(Au+AuAg) 382.05 270.94 307.08 517.03 645.20 390.05 209.97 ‐
Total Equivalent Gold unit total cost (deprn & amort) USD/oz 609.03 550.74 595.83 827.10 804.49 522.75 341.68 ‐
Based on forecasts given in May 2010 43-101 Report . The table will be updated in 2011 once actual operating costs are established
Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp upNI 43-101 Assumed silver at $17/oz falling to $15/oz
Blue Sky
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South American Low Sulphidation Epithermal DepositsTotal Endowment
Casposo – Low Sulphidation Epithermal Deposit
Lessons Learned from Goldcorp’sCerro Negro Project
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14 years of exploration with the biggest orebody Eureka found after12 years in 2007:
1995: Newcrest Eureka Vein outcrop discovery 1997-2001: Newcrest-Pegasus-MIM: 21 RC holes - Eureka Vein (7,000m drilled) 2003: Andean buys MIM’s 51% of Cerro Negro 2005: Andean explores Vein Zone (0.5Moz Au Res - 115 holes/23,171m drilled) 2008: Andean announces Resource at Eureka (273 holes/72,416m drilled) 2010: Goldcorp takes Andean 3.5Moz Resource
Cerro Negro Project: 215km2 area
Kamila – Mercado Deposit Geology
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The NW- SE Structural Corridor is a Key Driver in Placement of Mineralisation
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Casposo 2010 Mining Reserves
Highest value intercept on the property to date
HOLE: CA082507.2m @ 108.7g/t Au
4,423g/t Ag
Contained metal value over US$10,000 per tonne at US$1500/oz Au and US$35/oz Ag.
Initial 2011 Drilling
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High Grade Intercepts Drilled in April
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Note the quoted gold equivalent grade assumes a conversion of 70:1 for converting silver to gold equivalent.
This is a conservative approach to enable comparisons to the reserve published in 2010. The ratio of 70:1 assumes the differential metallurgical recoveries assumed in the NI43101 Report produced in 2010 and the metal prices assumed at that time.Because silver prices have risen proportionally more than gold prices, this ratio is increasingly conservative for high silver grade intercepts.Using the same assumptions for metallurgical recoveries but current prices of:
Au – US$1500/oz andAg – US$35/oz
Gives a conversion ratio of 50:1 to convert silver to gold.The impact can be seen for hole CA-11-3005.4m @ 8.18 g/t Au and 2,607 g/t Ag
Was reported as 45.43 g/t Au_eq assuming a conversion ratio for silver to gold of 70:1
The grade would be 60.3g/t Au_eq if the conversion ratio of 50:1 was assumed.
We are Currently Undertaking Additional Drilling to Determine if we have a New Underground Mining Block
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Preliminary Cross Section
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Preliminary Cross Section
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Preliminary Cross Section
Julieta SE Drilling
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Julieta is a target on the main North West – South East structural corridor – some 5kms from the Kamila deposit and at approximately 1000m higher altitude.
Troy established a small low-grade Resource in 2010 based on relatively shallow drilling.
268,700t grading 3.21g/t gold and15.44g/t silver (3.43g/t Au_eq) for 29,700 Au_eq ounces at a cut-off grade of 1g/t Au_eq.
In 2011 we have commenced a program of deeper drilling attempting to find zones of higher grade.
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Julieta SE Drilling
2011 Drilling Results
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These higher grade results are strategically important because:
Although at depth, the topography is such that underground access could be gained by a short aditfrom the side of the hill thus lowering the hurdle in terms of size to justify development.
Only 7km haul distance to the Casposo plant.
We now have ore grade intercepts 5kms apart on the NW-SE structural corridor and ~4kms of this is covered by a thin layer of volcaniclastics.
Commenced planning airborne and ground geophysics with the aim of defining drill targets below the cover.
2011 Drilling Results
Exploration Potential Brownfields Targets
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Cerro Norte ZoneLooking East
Maya Vein
Mercado NW Vein
Casposo Norte – Anomalous Gold In and Near SurfaceA Target for Follow Up Deeper Diamond Drilling
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Castaño Nuevo Target, Argentina
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Extended Our Ground Positionwith the Signing of the Don David JV
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Castaño Multiple Outcropping Veins Systems
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An Inflection Point?
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Casposo ramping up to budget production.
Casposo will be a very low cost mine.
Andorinhas performing well.
Significant exploration results at Casposo with potential, dependent on
further exploration success, to:
Extend mine life (additional ounces) Avoid drop in production in years 3 and 4 (access to higher grade) Lower unit costs (access to higher grade)
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Troy is a dividend paying junior gold producer focused on growth with a
track record of low cost mine development
Becoming a profitable Mid Tier Producer
Thank You
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Resource and Reserves Statement
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TROY RESOURCES NL ‐MINERAL RESOURCES AND RESERVES GOLD MINERAL RESERVES
Country Project Deposit Category TonnesGold
grade g/t Gold ouncesArgentina Casposo Kamila pit Probable 1,251,000 6.1 246,600
Kamila underground Probable 687,000 4.0 87,300Mercado pit Probable 95,000 2.5 7,500Total Casposo 2,033,000 5.2 341,400
Brazil Andorinhas Mamao underground Probable 715,000 8.7 199,800 Lagoa Seca stockpiles Proven 215,000 2.2 15,300 Coruja NE Probable 64,200 4.8 9,800 Total Andorinhas 994,200 7.0 224,900
Australia Sandstone Lord Nelson pit Probable 293,000 2.7 25,600 Lord Nelson stockpiles Proven 33,000 1.5 1,600 Lord Henry stockpiles Proven 334,000 0.9 9,500 Total Sandstone 660,000 1.7 36,700
Total Proven 582,000 1.4 26,400 Total Probable 3,105,200 3.9 576,600
TOTAL MINERAL RESERVES GOLD 3,687,200 3.5 603,000
SILVER MINERAL RESERVES
Country Project Deposit Category TonnesSilver
grade g/t Silver ouncesArgentina Casposo Kamila pit Probable 1,251,000 128 5,139,700
Kamila underground Probable 687,000 256 5,663,600Mercado pit Probable 95,000 128 391,000
TOTAL MINERAL RESERVES SILVER 2,033,000 171 11,194,300
Resource and Reserves Statement
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GOLD MINERAL RESOURCES (inclusive of Mineral Reserves) Country Project Deposit Category Tonnes Gold grade g/t Gold ounces
Argentina Casposo Aztec Indicated 761,000 7.2 176,100 Inca Indicated 744,000 6.3 149,800 B vein Indicated 568,000 4.1 74,200
Mercado Indicated 296,000 1.5 14,500 Aztec Inferred 3,000 1.4 100 Inca Inferred 87,000 7.8 21,900 B vein Inferred 6,000 1.2 300
Mercado Inferred 14,000 1.8 800 SEXT Inferred 151,000 1.4 6,900 Total Indicated 2,369,000 5.4 414,600
Inferred 261,000 3.6 30,000 Brazil Andorinhas Mamao Indicated 783,000 9.9 249,700
Inferred 82,000 6.4 16,700 Lagoa Seca Measured 215,000 2.2 15,300
Lagoa Seca West Indicated 577,000 2.2 40,400 Inferred 171,000 1.3 7,000
Luiza Inferred 258,000 2.5 20,300 Coruja NE Indicated 166,700 3.7 19,600 Total Measured 215,000 2.2 15,300
Indicated 1,526,700 6.3 309,700 Inferred 511,000 2.7 44,000
Australia Sandstone Lord Nelson Measured 33,000 1.5 1,600 Indicated 1,019,000 2.2 72,700 Inferred 84,000 1.8 4,900
Lord Henry Measured 334,000 0.9 9,500 Indicated 987,000 1.9 58,700 Inferred 39,000 1.7 2,100
Two Mile Hill Inferred 10,541,000 1.3 452,100 Sandstone other Indicated 515,000 1.9 30,900 Sandstone other Inferred 1,922,000 1.9 115,300
Total Measured 367,000 0.9 11,100 Indicated 2,521,000 2.0 162,300 Inferred 12,586,000 1.4 574,400
TOTAL MINERAL RESOURCES GOLD Measured 582,000 1.4 26,400
Indicated 6,416,700 4.3 886,600
Inferred 13,358,000 1.5 648,400
Resource and Reserves Statement
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SILVER MINERAL RESOURCES (inclusive of Mineral Reserves)
Country Project Deposit Category Tonnes Silver
grade g/t Silver ounces Argentina Casposo Aztec Indicated 761,000 166.3 4,070,000
Inca Indicated 744,000 366.7 8,770,500 B vein Indicated 568,000 81.8 1,493,300
Mercado Indicated 296,000 108.5 1,032,200 Total Indicated 2,369,000 201.7 15,366,000 Aztec Inferred 3,000 438.2 42,300 Inca Inferred 87,000 517.7 1,448,100 B vein Inferred 6,000 150.2 29,000
Mercado Inferred 14,000 108.1 48,600 SEXT Inferred 151,000 118.0 572,900
Total Inferred 261,000 255.1 2,141,000 TOTAL MINERAL RESOURCES SILVER Indicated 2,369,000 201.7 17,507,000
Inferred 261,000 255.1 2,141,000
Qualifying Statements
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1. Au_eq grade calculated using a gold to silver ratio of 1:70. As per May 2010 Current Casposo NI-43101 Technical ReportThe gold equivalent cut-off was determined according to the parameters below:
• Au/Ag ratio 1:70.00• Au Price US$933.33/oz• Ag Price US$15.50/oz• Au processing recovery 93.7%• Ag processing recovery 80.6%
Gold equivalency is determined by metal price and recovery factors. Metal prices were the average prices assumed in the Casposo life of mine plan. Processingrecoveries were determined by metallurgical testwork carried out by independent consultants on diamond drill core from Casposo.The equivalency is calculated by the formula - Gold: Silver ratio:
= (gold price ÷ silver price) x (gold recovery ÷ silver recovery)= (933.33 ÷ 15.5) x (.937 ÷ .806)= 70.00
Gold equivalency is calculated by the formula: Au_eq g/t = Au g/t + (Ag g/t ÷ 70.00)
2. NSR – No Significant Results All samples were prepared and assayed by Alex Stewart (Assayers) Argentina Laboratory in Mendoza Argentina.3. Gold by FA and either a gravimetric or AAS finish, using method gold 4-50 or gold 4A 50 for samples with gold>10g/t4. Silver by three techniques: four-acid digestion followed by AAS reading for check samples up to February 2006, aqua regia digestion followed by inductively
coupled plasma with optical emission spectroscopy (ICP-OES) reading for all samples in mineralised intersections after February 2006. Method numbers wereGMA, ICP-AR-39 and silver 4A-50.
Geological information in this Report has been compiled by Troy’s Vice President Exploration & Business Development, Peter Doyle, who:
• Is a full time employee of Troy Resources NL• Has sufficient experience which is relevant to the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent
Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’• Is a member of the Australasian Institute of Mining and Metallurgy• Has consented in writing to the inclusion of this data
Information of a scientific or technical nature in this report was prepared under the supervision of Peter J. Doyle, Vice President Exploration and Business Development ofTroy, a “qualified person” under National Instrument 43-101 – “Standards of Disclosure for Mineral Projects”, a Fellow of the Australasian Institute of Mining and Metallurgy.Mr. Doyle has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualifyas a “qualified person” as defined in “National Instrument 43-101 – Standards of Disclosure for Mineral Projects”. Mr Doyle has reviewed and approved the informationcontained in this report. For further information regarding the Company’s projects in Brazil, Australia and Argentina, including a description of Troy’s quality assuranceprogram, quality control measures, the geology, samples collection and testing procedures please refer to the technical reports filed which are available under theCompany’s profile at www.sedar.com or on the Company’s website.
This report contains forward-looking statements. These forward-looking statements reflect management’s current beliefs based on information currently available tomanagement and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, performance, or achievementsto differ materially from the results expressed or implied in the forward-looking statements. Such factors include, among others, future prices of gold, the actual results ofcurrent production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in ore grade or recovery rates, plantand/or equipment failure, delays in obtaining governmental approvals or in the commencement of operations.