Kskasiaresourcespresentation150314main 140315045019 Phpapp02

KSK ASIA RESOURCES
A presentation prepared for financial service industry professionals and sophisticated investors
Creating Future Resources

Copyright 2014 KSK Asia Resources
KSK ASIA RESOURCES PRESENTATION 2014
DISCLAIMER
The information set out in this presentation (the Presentation) has been produced by KSK Asia Resources (the Company) as of January 15, 2014 and is being made available to recipients for information purposes only. The information set out in this Presentation has not been independently verified and may be subject to updating, completion, revision and amendment. The Presentation does not purport to summarise all the conditions, risks and other attributes of an investment in the Company. The distribution of the Presentation may in certain jurisdictions be restricted by law. Persons into whose possession the Presentation may come are required by the Company to inform themselves about and to comply with all applicable laws and regulations in force in any jurisdiction in or from which they invest or receive or possess the Presentation and must obtain any consent, approval or permission required under the laws and regulations in force in such jurisdiction, and the Company shall not have any responsibility or liability for these obligations. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of its directors, officers or employees accepts any responsibility for the information, statements, matters, facts or opinions stated herein, or any liability whatsoever arising directly or indirectly from the use of or any act or omission undertaken in reliance on the Presentation. Certain of the information contained herein may include forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words believes, expects, predicts, intends, projects, plans, estimates, aims, foresees, anticipates, targets, may, will, should and similar expressions. The forward-looking statements contained in the Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. The forward-looking statements in this Presentation are based on certain assumptions including but not limited to expectations and assumptions concerning prevailing and future commodity prices and exchange rates, applicable royalty and tax rates, future well production rates, the performance of existing and future wells, the sufficiency of budged capital expenditures, the availability and cost of labour, services and equipment, adequate weather and environmental conditions and ability to successfully construct or expand facilities. None of the Company or any of its subsidiary undertakings or any such persons, directors, officers or employees provide any assurance that the assumptions underlying such forwardlooking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in the Presentation or the actual occurrence of the forecasted developments. Neither the Company nor its directors assumes any obligation to update any forward-looking statements or to conform these forward-looking statements to the Companys actual results. AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND THERE ARE A NUMBER OF FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THE PRESENTATION, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANYS BUSINESS OR DEVELOPMENT SUCH AS OPERATIONAL RISKS IN DEVELOPMENT, EXPLORATION AND PRODUCTION, DELAYS OR CHANGES IN PLANS WITH RESPECT TO EXPLORATION OR DEVELOPMENT PROJECTS OR CAPITAL EXPENDITURES, THE UNCERTAINTY OF RESERVE AND RESOURCE ESTIMATES; THE UNCERTAINTY OF ESTIMATES AND PROJECTIONS RELATING TO PRODUCTION, COSTS AND EXPENSES, MARKETING AND TRANSPORTATION OF MINERALS, HEALTH, SAFETY AND ENVIRONMENTAL RISKS, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, POLITICAL RISK AND / OR GOVERNMENTAL INSTABILITY, CHANGES IN DOMESTIC AND FOREIGN LAWS (INCLUDING EXCHANGE CONTROL) AND REGULATIONS, ROYALTY RATES AND TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN COMMODITY PRICES, CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS PRESENTATION.THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THE PRESENTATION. The contents of the Presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax adviser as to legal business, investment and tax advice. By receiving the Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Companys business.
KSK ASIA RESOURCES . ALL RIGHTS RESERVED
This information is subject to the disclaimer on page 2 of this document
We are a leading resources company in Asia. Our purpose is to create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources.
We are among the worlds leading integrated producers of iron sand and have substantial interests in the timber and forestry industry. Our unrivalled portfolio of high quality growth opportunities will ensure we continue to meet the changing needs of our customers and the resources demand of emerging economies at every stage of their growth.
ksk asia resources

KSK ASIA RESOURCES . ALL RIGHTS RESERVED This information is subject to the disclaimer on page 2 of this document
Our Business Operations

Our Group also undertakes iron sand mining, timber production and sawmill activities through our subsidiaries in Malaysia. Our core expertise is in the business of iron sand mining in which we process iron sand concentrates to other processing facilities. We are engaged in iron sand mining operations in Jeli, Kelantan, Malaysia to undertake mining activities. KSK Asia Resources holds the sole and exclusive mining rights with the Government to mine for iron sand in our concession area situated at Kelantan of 207.4 hectares (512.5 acres).
We also engage in timber production from our plant located in Kelantan, Malaysia. In addition, we also operate multiple sawmill factories.
Professionalism. Efficiency. Diversity.

100%
100%
100%
100%
100%
KSK MINING SDN. BHD.
KSK CEMERLANG GROUP SDN. BHD.
KSK PLANTATION SDN. BHD.
KSK SAWMILL SDN. BHD.
KSK TIMBER ENTERPRISE
In every cycle, there are always opportunities. We believe that KSK Asia Resources has an abundance of opportunities.
MISSION: To create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources. VISION: To be a low-cost producer with geographic diversification and low political risk To exploit these opportunities with a balance of innovation and discipline To build a diversified portfolio of exploration and development successes
GROWING PEOPLE
Providing opportunities for personal and professional growth; develop people to their fullest potential
GROWING MARGINS
Strong margins KSK Asia Resources remains the lowest-cost iron sand producer and will allow us to deliver our commitment to shareholders
GROWING SAFETY
Enhance abilities to recognize the complexity of the task and deal with risk
GROWING RESERVES
By replacing the iron sand we produce, we provide the resource for future development which is fundamental for the long-term viability of our business
GROWING
PARTNERSHIPS
GROWING
PRODUCTION
Facilitates the teamwork and application of everybodys collective expertise
Enhance quality and increase output of glass products with technological improvements
Schedule for 2013-2014
2012 2009-2011
INCORPORATED KSK ASIA RESOURCES CONSISTENT Y-O-Y GROWTH IN THE SAWMILL BUSINESS ACQUIRE 4 SAWMILL FACTORIES IN JELI DIVERSIFY INTO IRON SAND MINING INDUSTRY COMPLETED MINING SCHEME REPORT FOR JELI IRON SAND PROJECT AQUIRES PRIVATE MINING LICENSE TO JELI IRON SAND PROJECT COMPLETED CLEARING OF OVERBURDEN FINISHED CONSTRUCTION OF MINING SITE
APPLICATION TO SEEK LISTING IN SINGAPORE.

ADMISSION OF KSK ON SGX-ST (CATALIST). COMMISSION OF SECOND WASH PLANT FIRST POUR FROM SECOND WASH PLANT CONSTRUCTION OF THIRD WASH PLANT ENTRY INTO NEW GEOGRAPHIC AREAS. ADDITION OF MORE LICENSES AND GEOGRAPHIC AREAS TO THE PORTFOLIO. INCREASE PRODUCTION TARGET 850,000 TONNES PER ANNUM
TRIAL RUN ON THE FIRST WASH PLANT

TRIAL RUN ON THE SECOND WASH PLANT
JELI IRON SAND PROJECT

KSK Asia Resources wholly owns the mining concession of Jeli Iron Sand Project in Jeli, Kelantan, Malaysia. The Jeli Iron Sand Project is located on the North Eastern border of the Malaysian state of Kelantan, close to the Thailand border and runs along the Kelantan and Perak state border. The site is some 125km from the state capital of Kota Bahru and 35km from the local centre of Jeli which has a population of approximately 47,500.
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STAGE 1
Materials are washed down from the run of mill (ROM) stockpile into a slurry mixture which will be transported onto a slurry pump pickup and then pumped to trundle.
STAGE 2
Oversized materials are removed using a trommel separator.
STAGE 3
Miners moss mats are used to capture fine iron as well as gold particles.
STAGE 4
Fine and dense materials fall through the screen whilst lighter materials will get washed over.
STAGE 5
A slurry pump is used to transfer products into a surge tank.
STAGE 6
STAGE 7
A jig separator is used to further screen out the materials.
Magnetic Separator is used to collect the iron fines which are pumped to the product storage pad. 11
12
13

100% owned by KSK Asia Resources Production commenced in Q4 2013 Finished product trucked to port in Tok Bali (in Kota Bahru) or Kuantan Port
IRON CONCENTRATE Using dry opencast method for mining Target production of 850,000 tonnes per annum concentrate at minimum 67.7% Fe Full scale concentrate production targeted for Q3 2014 Estimate current reserves of 7 million tonnes of iron concentrate
Excavation Estimate Total mine area Percentage extraction area Estimated Workable area Mine Depth Total volume of extraction Mineral Estimate Estimated iron ore percentage Iron ore volume Density of iron ore
= 207.4 ha = 40% = 0.4 x 207.4 = 82.96 ha = 35.6 m = 82.96 x 35.6 x 10,000 = 29, 533, 760 m3 = 10% = 29, 533, 760 x 0.1 m3 = 2,953,376 m3 = 3.5 tonne / m3 = 2,953,376 x 3.5 = 10,366,816 tonnes = 67.7% = 10,366,816 x 0.677 = 6,998,024 tonnes 7,000,000 tonnes
Fe content Tonnage of Fe
Jeli Iron Sand Project

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ECONOMIC BENEFITS
KSK Asia Resources proven and cost-effective production when applied to reserves can deliver significant economic benefits
ESTIMATED IRON SAND RESERVES
Estimated Revenue From Reserve = 7,000,000t x RM 315 = RM 2,205,000,000 Estimated Cost to recover Iron Sand in reserve = 7,000,000t x RM 80 = RM 560,000,000 NET PROFIT = RM 2,205,000,000 RM560,000,000 = RM 1,645,000,000 NET PROFIT PER YEAR = RM 1,645,000,000 / 8 years = RM 205,625,000
7 Million Tonnes (t)

Based on Cloonmore International Report
PRICE OF ONE TONNE OF IRON SAND
RM 315
COST OF RECOVERY OF ONE TONNE OF IRON SAND
RM 80
S$ 78,297,540/year
Exchange rate: S$ 1 = RM 2.6262 (as at 8/2/2014)
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FUTURE DEMAND
16
Motorisation
Urbanisation
Industrialisation
Increase in vehicles manufactured

Increase in housing construction
Increase in products made with steel

17
ASEAN has experienced rapid growth in economic activity and steel demand. Steel consumption: 44mt (2006)63mt (2011). In 2005, Malaysia consumed 6.5million tonnes (mt) of finished steel products. In 2011, this had risen to 7.9mt, and in 2016 steel consumption is forecasted to hit 10.0mt Malaysian government has also outlined RM106billion worth of projects to roll out this year (2014) such as the 316km West Coast Expressway from Banting to Taiping, the construction of additional blocks in Hospital Queen Elizabeth in Kota Kinabalu, and the RM578million Programme Perumahan Rakyat that involves the construction of 16,473 housing units. The government has estimated a 9.6% growth for the construction sector( a major driver of steel consumption). Next major market for steel products China, India, Indonesia, Thailand
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China has only just reached levels of consumption of a developed country
Source: Macquarie Research

19
Top Steel Importers Worldwide
Source: International Steel Statistic Bureau
Combined steel import from Asia (China, India, South Korea, Thailand and Indonesia) in 2012 is about 69.3 million tonnes, far exceeding the total import quantity from USA, Canada, Mexico, Turkey and Europe.
20
TIMBER PRODUCTION
21
LOG-SORTING
.
DE-BARKING
LOG-SAWING AND BREAKDOWN
SORTING AND GRADING
DRYING
.
REGRADING AND SURFACING
22

Long-term demand for logs driven by affordable housing shortage Wood timber deficit in China KSK Asia Resources is well-positioned to serve Chinas growing need for timber
Housing consumes 80% of softwood logs and lumber Current urban housing shortage of 60 70 million units Urban households expected to grow 5 million per year for 20+ years
- New immigration 5 million - Teardowns 2 million - To close gap 2 4 million
Annual Housing 10 12 million

Source: GaveKal Data
Affordable housing is a top priority
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China
Leveraging Chinas growth and manufacturing capability
Speed
Speed of delivery time is money
Planning
Planning for scale today and efficiency into the future
Relationships
Direct relationships with sub contractors and local suppliers
Culture
KSK Asia Resources unique culture is the key
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One of Asias leading resources companies Strategically located to meet demand for iron sand in Asia Deep understanding and knowledge of iron mining processes Integrated iron mining capabilities Established and diversified customer base Professional and experienced management
25
Consolidate market share in Malaysia and expand into new market territories through licensing and distribution
Licensing & distribution into international markets

Expand footprint in international markets Grow operations in South East Asia
Acquire more mineral reserves in Malaysia
Proven & cost effective production
26
Our Mining Strategy
IRON
TIMBER
MINERALS
Identify complimentary revenue streams and growth opportunities
To be the worlds No 1 producer of iron sand concentrate and associated products Actions: Develop the Jeli iron sand deposit to its full potential Secure additional iron sand and iron ore resources Secure customer offtake agreements for 60- 80% of capacity Implement zero waste methodology
Secure long-term contracts to supply timber and wood to other wood-related businesses in the industry Actions: Identify suitable reliable timber plantations Develop reliable cost effective processes and machinery Secure cost effective logistics solutions
Actions: Evaluate new business opportunities and partnerships Evaluate additional iron sand mineral opportunities ie. Ilmenite and zircon Establish a Vanadium byproduct business
ENABLING STRATEGIES
Develop human resource capability Enhance business system capability Rigorous capital management Rigorous cost control
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Enhance communication systems and public relations Enhance commercial capability

FINANCIAL STATEMENT
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KSK Asia Resources' financial performance As At 31 December 2013

Net Profit After Tax Gross Profit RM Millions 35 30 25 20 15 10 5 0 FY2010 (A) FY2011 (A) FY2012 (A) FY2013 (F) FY2014 (F) Net Profit Before Tax Revenue Profit From Operations
FORECAST:
With proven record and costeffective operations, KSK Asia Resources expects strong organic growth to continue
Significant opportunities for companies in iron and timber industry with proven track record EG: KSK Asia Resources
Companies and state-owned enterprises in China increasing spending on timber and iron
Graph shows continued profit growth since 2010 Global resources demand growing
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REVENUE
RM Millions 30
GROSS PROFIT
RM Millions Revenue 3.5 3 2.5 2 1.5 1 0.5 0
25
20 15 10 5 0 FY2010 FY2011 FY2012 FY2013
FY2010
FY2011
FY2012
FY2013
RM Millions
0.8 0.7 0.6 0.5 0.4
NET PROFIT
0.3
0.2 0.1
Net Profit After Tax
0
FY2010 FY2011 FY2012 FY2013
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Profit Forecast
Net Profit After Tax RM Millions 90 80 70 60 50 40 30 20 Revenue
10
0 FY2014 (F) FY2015 (F) FY2016 (F) FY2017 (F) FY2018 (F)
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WORLD CLASS RESOURCE POTENTIAL

Mining Concession in Jeli, Kelantan with plans to invest and expand production facilities to Indonesia, China and other Asian countries.
INVESTMENT SUMMARY
TECHNOLOGY ADVANTAGE
Access to a high-technology suite through an exclusive agreement. The technology suite reduces processing costs and transport costs significantly and enables shorter time for processing.
PRODUCTION OPPORTUNITY
Iron Sand production commenced in Q4 2013 with immediate cash-flow. An estimate of 850 thousand tons of iron sand will be treated annually with the adoption of technological advancements and increment of treatment facilities.
STRATEGY FOCUSED ON VALUE CREATION FOR SHAREHOLDERS

Understanding the value creation significance. High grade assets in portfolio, upon maturation, spin-off in separate ventures and issue new shares to existing shareholders.
WELL FUNDED VENTURE

Mining and resource assets of more than SGD 10 million. Ore reserve with estimated 8 million tonnes of Iron concentrate. Estimated value of SGD 800 million.
COMPELLING VALUATION
Attractive pricing in relation to local peers to provide favourable post-IPO share price pressure.
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Wholly owned, freehold mining asset in Asia
Track record of consistent and growing profitability

Earnings Certainty Proven and cost-effective production Experienced Board & Management, with strong connections with Malaysias federal and local state government
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CREATING SHAREHOLDER VALUE

Fund existing operations and expansions
Invest in high return organic growth assets
Flexibility for selective M&A
Regular Dividend growth

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SHAREHOLDER AFTER PUBLIC PLACEMENT (IPO) OF USD 50 MILLION Chairman Lenders Pre-IPO investors 20% discount to IPO Public Shareholder
69.70% 10.60% 7.72% 11.97%
RATIONALE FOR CHOOSING SGX-ST 1) Offers great liquidity 2) Huge demand for Steel companies Targeting minimum raise of SGD 40 million 200 million shares at $0.20/share One attaching option/two shares issued (no additional consideration) Exercise price of $0.12, expiring three years from listing date
Total
100%
AFTER PLACEMENT
CHAIRMAN LENDERS PRE-IPO INVESTORS PUBLIC SHAREHOLD.
69.70%
10.60%
7.72%
11.97%
Use of funds IPO Outgoing Acquisition of equipment Placement fees Business Development Working Capital
SGD Million 40.00 5.00 1.75 18.07 5.18
KSK ASIA RESOURCES
Surplus
10.00
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COMPANY ADDRESS
(Singapore) KSK ASIA RESOURCES
33 Ubi Avenue 3 Vertex Tower B, #07-17 Singapore 408868
(Malaysia) KSK MINING SDN. BHD. KSK CEMERLANG GROUP SDN. BHD. KSK SAWMILL SDN. BHD. KSK PLANTATION SDN. BHD. KSK TIMBER ENTERPRISE
Lot 7. Kawasan Industri Jeli, 17600 Jeli, Kelantan Darul Naim, Malaysia
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KSK ASIA RESOURCES

Creating Future Resources

KSK ASIA RESOURCES PRESENTATION 2014

KSK ASIA RESOURCES . ALL RIGHTS RESERVED

This information is subject to the disclaimer on page 2 of this document

KSK ASIA RESOURCES PRESENTATION 2014