26 November 2010

Marcus FlisMD

Disclaimer

Information presented is not guaranteed to be accurate or complete

Targets are conceptual only. Only if stated are resources JORC compliant

Check veracity of information for yourself

This is resources exploration – things can and do go wrong

Things change with time – keep your eyes on the ball

We are not liable for anything you conclude from this presentation

$0.00

$0.20

$0.40

$0.60

$0.80

$0

$20

$40

$60

$80

09/09 12/09 03/10 06/10 09/10

Share Price $ M

Market Cap

Share Price

Royal SnapshotIssued Securities

- 261,753,735 Fully Paid Shares- 4,006,677 Listed Options (ROYO) - 34,763,356 Listed Options (ROYOA)- 26,770,000 Unlisted Options

Share Price at 19/11/10 $0.17Market Cap $44MCash $13M

Experienced management team:Philip Crabb ChairmanMarcus Flis Managing DirectorFrank DeMarte Executive DirectorBrian Richardson Non-executive DirectorMalcolm Randall Non-executive Director

Directors Shareholdings 12%Top 20 shareholders 44%

Share structure

Retail64%

Directors12%

Sin-Tang13%

ABN Amro8%

Norilsk Nickel

2%

Thundelarra1%

Royal’s Portfolio: two irons in the fire

The Razorback Iron ProjectA high tonnage, outcropping magnetite deposit

with access to infrastructure

Regional Geology

RAZORBACK PROJECT

Located in the Neoproterozoic Adelaide Geosyncline (>c1,500 Ma)

Sandstones, iron rich siltstones and tillites of the basal Adelaidean Series were deposited during the Sturtian Period

Collectively, these units constitute the Braemar Iron Formation and were deposited in a cold, quite, shallow water environment

The area was deformed in the DelamerianOrogeny (ca 500Ma) to form the Nackara Arc

The Braemar Iron Formation is not a banded iron formation, but a bedded magnetite

Local StratigraphyLocally, the Braemar Iron Formation consists of up to seven cycles of glacial and inter-glacial sediments, labelled Members A to G

Each cycle consists of up to three units:

Interbedded magnetite

tillitic magnetite

bedded magnetite

Members B and D are the current focus for resource definition drilling

Member G will be assessed in early 2011(Lottermoser & Ashley, 2000)

Ore types

Interbedded magnetite with alternating layers of iron rich and iron poor shale

tillitic magnetite – a magnetite shale with tillitic dropstones

bedded magnetite – a magnetite rich shale

Extensive Braemar Iron Formation held Aeromagnetic data flown by Royal shows extent of magnetite target (white areas in the image)

Over 110km strike length of virgin target horizon with huge geological resource potential

Razorback Ridge size and quality now supported by drilling data

31% magnetite shell31% Magnetite shell

3D Magnetic Modelling of RazorbackLooking SW Magnetic data is a direct

predictor of magnetite concentrations

Has been used in exploration drilling

Is being used in resource drilling

Will be used in long-term mine planning

27% Magnetite shell26% Magnetite shell25% magnetite shell

Modelled magnetite shell at Razorback Ridge

North-south model cross section showing dip of magnetite horizon

JORC-compliant Maiden Inferred Resource

Over 100m thickness of ore at a moderate dip

Adit dug into hill by the SA government in the 1960s, now refurbished

Razorback Initial JORC Inferred Resource Model

Domain Mt Fe% SiO2% Al2O3% P% LOI%B1 44.9 34.1 32.7 4.9 0.23 4.4B2 108.4 23.9 43.0 7.3 0.19 5.2B3 53.5 25.5 41.6 6.6 0.22 5.0D 70.3 24.2 44.4 7.2 0.20 4.8Total Resource 277.0 25.9 41.4 6.7 0.20 4.8

Access to existing, available, open-user railMine to rail is ~28km

Rail has 10Mtpa capacity availableand expandable through theaddition of passing loops

Services up to three available ports

Cartage cost will be substantiallybelow that of other operationsaccessing third-party rail

Access to this rail and ancillary infrastructure translates to over $750 M savings in CAPEX compared to similar magnetite projects in Australia

Access to existing, available, open user portsPt Pirie (~180km distance)

• Handy ship capable (<40,000t)

• Option to trans-ship to Panamax or Cape sized vessels

Pt Adelaide (~390km distance)

• Sea container operation

Pt Bonython (proposed, ~350km distance)

• Cape-size capable

Option for an alternative port solution (~200km distance)

Occurs in an infrastructure-rich areaHigh voltage transmission lines

Cooper Basin – Adelaide gas pipeline

On the edge of the Murray ArtesianBasin

Dormitory towns

Mining towns

Heavy industries

Within 3 ½ hours drive from Adelaide

Mineralisation is not a banded iron formation:

It is a bedded magnetite (Cold Water Iron)

Host is a clastic rock, not a chemical

precipitate

Ore breaks along grain boundaries, not across

crystal faces

Low crushing cost

low grinding cost: initial tests indicate

8.5kWh/t (cf bifs @ 18 – 22kWh/t)

Very low sulphides and other exotic minerals

Phosphorous, titanium, and vanadium occurs as

detrital minerals

BIF structureBIF structure

Bedded magnetite structureBedded magnetite structure

Easy Liberation

Zero stripping ratio initially, very low for LoM

Geologically and mineralogically simple and consistent

Amenable to continuous surface mining techniques avoiding the need for drill and blast

It is likely to be a low cost producer

Its not all just about head grade!

AssumptionsRazorback grade: JORC Inferred ResourceBIF grade: Assumed global averageMining costs: $5/t assumedOre hardness: Initial testing, Razorback

Fe Tech 2010 for WA bifsPower costs: 22.54c/kWh (WA)

13.2c/kWh (SA)Rail costs: Mid West average (WA)

Quote (SA)

Razorback Iron Project

Typical Australian

BIF

Cost benefit to Razorback

Head Grade, Fe 26% 35%

Weight Recovery 20% 40%

Strip Ratio 0:1 2:1

ROM mined to produce 1t of product 5t 7.5t $12.50

Ore hardness (kWh/t) 8.5kWh/t 20kWh/t

Ore to crush & grind (t) 5 2.5

Power cost/t $5.61 $11.20 $5.59

Infrastructure Railing cost/t $10.00 $22.00 $12.00

$30.09

Grade

Mining

Crushing & grinding

Razorback Advantage/t

Will produce a clean concentrateConcentrate size Fe% SiO2% P% Al2O3% MgO% Na2O% TiO2% S%

Head grade 28.15 39.20 0.22 6.14 2.56 1.01 0.41 0.012

150μm 59.22 13.47 0.04 1.26 0.52 0.26 0.13 0.006

106μm 62.98 9.72 0.03 0.81 0.35 0.18 0.07 0.005

75μm 68.10 4.28 0.01 0.29 0.16 0.11 0.03 0.003

45μm 70.48 1.73 0.005 0.08 0.07 0.05 0.02 0.004

Note low phosphorous, alumina, magnesium, sodium, titanium, and sulphur in the concentrates

55

60

65

70

75

150μm 106μm 75μm 45μm

Fe%

Grind Size

55

60

65

70

75

150μm 106μm 75μm 45μm

Fe%

Grind Size

Low Native Title, environmental & social risks

“....no areas that need to be avoided for mining activities because of the presence of significant vegetation, fauna or habitat”

Rural Solutions SA, July 2010

Razorback

No Native Title

High local community support

Large tonnageRazorback Ridge outcropping iron Iron Peak outcropping iron

Blue sky potentialCollectively, the area contains in excess of 110km strike of the target lithology

Only 3km of a possible 35km strike has been drilled to define the initial Inferred Resource on Red Dragon

The SA Govt. has awarded Royal a drilling co-funding grant, recognising the prospectivity of this area for iron ore industry development

10 km

Magnetite is attracting a price premium

Source: Platts, May 2010

US$/dmt

% Fe

Magnetite is currently attracting a $5/%Fe/t premium. If a 68% product is produced, that premium totals US$30/t, or over half the beneficiation, mining, and port cost.

2010: A Watershed for Razorback Completed high resolution aeromagnetic survey and geological mapping

Signed an MOU with Flinders Ports Pty Ltd for export facilities

Completed Fauna and Flora baseline surveys

Signed an MOU with Genessee & Wyoming Australia on rail access

Phase I drill-out of Razorback Ridge completed (>12,000m)

Maiden Inferred Resource of 277Mt announced in August 2010

Initial drilling at Interzone and Iron Peak prospects to extend the mineralisation

Metallurgical testing

Start the Pre Feasibility Study

Full Disclaimer and Competent Person’s StatementThis presentation has been prepared by Royal Resources Limited (ABN 34 108 102 432) (“Royal”) based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Royal, its related bodies corporate, its or their directors, employees or agents, advisers, nor any other person accepts any liability for any loss arising from the use of or reliance on this presentation or anything contained in, omitted from or otherwise arising in connection with it, including, without limitation, any liability arising from fault or negligence on the part of Royal, its related bodies corporate or its or their directors, employees or agents.

Royal Resources acknowledges exploration targets set out in this presentation are not to be interpreted as Mineral Resources or Ore Reserves unless specifically stated as being JORC compliant. Quoted targets are based on the interpretation of host rock prospectivity, volume of rock, and assumed densities. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in determination of a mineral resource.

The details contained in this report that pertain to ore and mineralisation is based upon information compiled by Mr Marcus Flis, a full-time employee of the Company. Mr Flis is a Fellow of the Australasian Institute of Mining and Metallurgy (AUSIMM) and 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 qualify as a Competent Person as defined in the December 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Flis consents to the inclusion in this report of the matters based upon his information in the form and context in which it appears.

The distribution of this document in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions.

This presentation is not an offer, invitation, solicitation or recommendation to invest in Royal and neither this document nor anything in it shall form the basis of any contract or commitment. The information in this presentation does not take into account the investment objectives, financial situation and particular needs of investors and does not constitute investment, legal, tax or other advice. Before making an investment in Royal an investor should consider whether such an investment is appropriate to their particular investment objectives , financial situation and particular needs and consult a financial adviser if necessary. This presentation does not purport to constitute all of the information that a potential investor may require in making an investment decision. Investments are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Royal does not guarantee the performance of the investment referred to in this presentation, the repayment of any capital invested or any particular rate of return.

Nothing in this presentation is a promise or representation as to the future. Statements or assumptions in this presentation as to future matters may prove to be incorrect and differences may be material. Royal does not make any representation or warranty as to the accuracy of such statements or assumptions.

You acknowledge that circumstances may change and the contents of this presentation may become outdated as a result. Royal accepts no obligation to correct or update the information or opinions in this presentation. Opinions expressed are subject to change without notice.

By accepting this document, you agree to be bound by the above limitations.

ContactRegistered OfficeLevel 3, IBM Building PO Box 7525 1060 Hay Street Cloisters Square WEST PERTH WA 6005 PERTH WA 6850

Telephone: +61 8 9322 8542Facsimile: +61 8 9322 6577

Australian Securities Exchange Code: ROY

For further information:MD & CEO Marcus FlisChairman Phil Crabb

info@royalresources.com.au www.royalresources.com.au