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Establishing a Mining House in Sweden


Major EU Mining Centre

Potential for major discoveries

Low Sovereign Risk

Why Sweden ? High quality exploration data

VERY large mines

(SGU, MRIO, Mala)

Active exploration

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Sweden – one of the European Unions Major Mining Centres A. Excellent ore potential 1,000 year mining history Largest producer of iron ore in the EU Leading producer of base metals – copper, zinc and lead Leading producer of precious metals – gold and silver B. Under-explored by modern standards C. Political and economic stability Ranked 12th in the 2009 World Risk Survey (WA ranked 12th) D. Excellent infrastructure E. Favourable minerals legislation Initial exploration permit 3 years – maximum 15 years Initial exploitation concessions 25 years – rolling 10 year extensions Government royalty 0.2% of average value of minerals mined F. Low corporate tax Corporate tax rate 28% G. World –class databases SGU Mineral resources Information Office in Mala H. Mining know-how and highly trained personnel Global leaders in supply of mining technology 3


Sweden - very large mines 1.

Kiruna Iron Mine (owned by LKAB) 1. 2Bt iron mine 2. Production in 2007 was 24.7Mt (76% pellets) 3. Production for 1st three quarters of 2008 was 18Mt 4. SEK6 billion concentrator and pelletising plant produced first pellets in May 2008 5. Recent decision to invest SEK12.4 billion into a new main level 6. Town must be moved at cost of SEK12.5 billion 7. Capacity to produce 30Mt/y of pellets 8. Mining in Kiruna secure through to 2035

2.

Aitik Copper Mine (owned by Boliden) 1. one of Europe's largest producers of copper, and also a major producer of gold and silver 2. Aitik has produced almost 430 Mt of ore (to 2007) . 3. 389 Mt of proven ore reserves grading 0.2 g/t gold, 2 g/t silver and 0.29% copper (as at January 2008) 4. 221 Mt of probable ore reserves grading 0.1 g/t gold, 2 g/t silver and 0.28% copper 5. Measured and indicated mineral resources amount to an additional 1048 Mt 6. Increasing copper production from 18Mt/y to 36Mt/y 7. Investment in new concentrator and mining plant is SEK6 billion 8. The mine and its concentrator started operating in 1968. 4


Kiruna 2Bt Iron Mine owned by LKAB (Swedish Government) (Automated & Underground)

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Aitik Copper Mine owned by Boliden

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Sweden – active exploration 1. Only the Swedish State permitted to conduct exploration until 1992 2. Now more than 100 exploration companies now active in Sweden including: Anglo American Phelps Dodge Rio Tinto Teck Cominco 3. Australian listed companies active in Scandinavia include: Dragon Mining Ltd (ASX:DRA) Avalon Minerals Ltd (ASX:AVI) Aura Energy Ltd (ASX:AEE) Northern Iron Ltd (ASX:NFE) Vulcan Limited (ASX:VCN) Golden Rim Resources Ltd (ASX:GMR) 3. US$92 million spent on exploration in 2007 (US$49:2006)

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Sweden – outstanding exploration data Geological Survey of Sweden is the Swedish central government agency responsible for all matters relating to Swedish geology SGU Mineral Resources Information Office serves as a ‘one-stop-shop’ for everyone conducting exploration in Sweden – established 1993 All government data plus data from private exploration has been merged and stored in archives and databases 1. >8,000 exploration reports 2. 100,000 maps of various kinds 3. Drill core and drill hole logs 4. Field notes etc 5. 20,000 mineralised boulders 6. >4,000km of drill core SGU offers explorers: 1. Aerial geophysical data covering al of Sweden (magnetic radiation and electromagnetic) 2. Ground geophysical data (magnetic, electromagnetic, gravity and petrophysical) 3. Geochemical data (soils, stream peat, stream sediment and bedrock) 4. Bedrock data (rock type distribution, age, chemical and mineralogical composition, tectonics and mineral deposits)

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SGU, Mineral Resources Information Office, Mala, Sweden

Drill core archive, > 4,000km of core

Olof Forslund & Swedish Minister for Resources

9 SGU Data Library


Malå, Sweden is located in Västerbotten county, approximately 950 km to the north of Stockholm • Home of the SGU Mineral Information Office • Home of Olof Forslund

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Olof Forslund (ex-Regional Manager of SGU’s MRIO, Mala)

Searching for Mining Asset (Future)

Damian Hicks (Corporate)

Why Scandinavian Resources Ltd? ASX Capital Raise to Fund Next Phase (2009)

Developed Exploration Portfolio (Since 2007)

Scandinavian Resources Ltd

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Damian Hicks and Olof Forslund signing the MOU in Mala, Sweden on November 2007

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Mr Olof Forslund – highly credentialed Swedish Technical Director • Regional Manager of the SGU’s Mineral Resources Information Office in Mala, Sweden (2003 – 2007); SGU 1999-2007 & 1966 - 1982 • Geophysicist • Extensive international experience in the minerals exploration industry, particularly in the development and application of geophysical instruments and radar technology • Assignments have covered activities in Sweden, Japan, South Korea, Germany, Belgium, Italy, France, Canada and the USA • Founding shareholder and President of MALÅ GeoScience (www.malags.com) (1994 and 1998) - MALÅ is currently the global leader in the design and manufacture of Ground Penetrating Radar (GPR) systems • Extensive network of contacts through Scandinavia geologists, drilling companies, government and industry

covering

geophysicists,

• Responsible for the SGU’s active participation at the Prospectors and Developer’s Conference (otherwise known as PDAC) in Toronto, Canada.

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Olof Forslund Technical Director Scandinavian Resources Ltd

Orjan Einarsson, Principal GeoPartner AB

Kjell Stenmark Well known Prospector

Amanda Arrowsmith Consulting Geologist

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Scandinavian Resources Ltd (SRL) 1. SRL is the 12th largest exploration permit holder by area in Sweden 2. Commodities covered include: • precious metals (gold and silver) • base metals (copper, lead and zinc) • PGE’s (platinum and palladium) • iron; and • manganese 3. All projects owned 100% by SRL (1.02% royalty payable)

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Major Exploration Project’s Location

Kiruna Project • Iron (copper) targets • ~30km SW of the giant LKAB owned Kiruna (2Bt) iron mine Lake Embrace (Famnvatnet) • Gold-copper-lead-zinc targets • Located to the south of the Ørtfjell Fe deposit and the Mofjellet Zn-Cu deposit Swampy Mountain (Våtmyrberget) • Platinum and palladium targets • Iron-copper-gold targets • Located in the Skellefte mining district Exploration Project Pipeline • 13 tenements

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Scandinavian Resources Ltd 17


100Mt@40% Fe

SKU09002

Fe SiO2 Al2O3 P % % % % SKU09006 68.2 1.58 0.6 0.001

SKU09010

Fe % 54

SiO2 Al2O3 P % % % 19.7 0.51 0.036

Fe SiO2 Al2O3 P % % % % SKU09013 64.1 4 0.23 0.007

Au Ag Cu ppm ppm ppm 0.19 3.2 6300

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Luppovare Prospect Fe SiO2 Al2O3 P % % % % SKU09006 68.2 1.58 0.6 0.001

Kjell Stenmark, August 2009

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Kuosatjvare Prospect Fe SiO2 Al2O3 P % % % % SKU09013 64.1 4 0.23 0.007

Olof Forslund & Amanda Arrowsmith, August 2009

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Skuokimjokk Prospect SKU09002

Fe % 54

SiO2 Al2O3 P % % % 19.7 0.51 0.036

Olof Forslund & Amanda Arrowsmith, August 2009

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High Grade Samples Collected by Scandinavian Resources Ltd, August 2009 KIRUNA PROJECT

Fe (XRF) SiO2 (XRF) Al2O3 (XRF) P (XRF) Au (ICP-AES) Ag (ICP-MS) Cu (ICP-MS)

Skuokimjokk Prospect

%

%

%

%

ppm

ppm

ppm

SKU09001

49.5

21.1

0.89

0.045

0.559

0.56

125.5

SKU09002

54

19.65

0.51

0.036

0.012

0.18

40.8

SKU09003

34.1

47.1

0.41

0.023

<0.001

0.12

12.7

SKU09004

41.5

36.8

1.18

0.034

<0.001

0.18

8

SKU09005

51.7

17.7

1.51

0.003

0.005

0.09

5.2

SKU09006

68.2

1.58

0.6

0.001

<0.001

0.11

5.3

SKU09007

49.8

17.8

4.21

0.007

<0.001

0.14

13.4

SKU09008

34.1

36.8

6.56

0.193

0.002

0.1

29.3

SKU09009

33.8

33.2

8.14

0.102

<0.001

0.06

8

SKU09013

64.1

4

0.23

0.007

<0.001

0.1

8.4

9.18

44.8

15.2

0.427

0.188

3.2

6300

4.43

68.4

12.3

0.027

0.011

0.47

3670

Luppovare Prospect

Kuosatjvare Prospect

Riekko Prospect SKU09010 Piedjasjt책kka Prospect SKU09012

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Scandinavian Resources Ltd

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Famnvatnet Prospect Au (ICP-AES) Ag (ICP-AES) Cu (ICP-AES) Pb (ICP-AES) Zn (ICP-AES) ppm ppm Ore Grade % Ore Grade % Ore Grade % Ore Grade 0.023 2.93 29.70 0.013 1.32* 13.00* 0.791 114 2.13 3.63 10.35 0.621 105* 1.87* 3.00* 8.05*

FAM09007 JS010 FAM09008 JS011^ *Ore Grade (AAS) ^ Boulder FAM09007 (collected August 2009) & JS010 (collected August 2008) are from similar location FAM09008 (collected August 2009) & JS011 (collected August 2008) are from similar location

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Famnvatnet

Massive, banded pyrite-galena-sphalerite ore at Famnvatnet, Norway. Grid reference 469798E 7300161N at an elevation of 628m; Sample JS011.

Cu 1.87% Pb 3.00% Zn 8.05% Ag 105ppm Au 0.621g/t

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Kilvassaksla Prospect August 2009

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Samples collected by Scandinavian Resources Ltd Au (ICPAES)

Ag (ICPMS)

Cu (ICP- Pb (ICPMS) MS) S (ICP-MS) Zn (ICP-MS)

Jofellet Prospect

ppm

ppm

ppm

ppm

%

ppm

FAM09001

0.001

0.16

68.8

4.3

0.73

33

FAM09002 Kilvassaksla Prospect

0.01

0.71

27.5

95.5

0.05

22

FAM09003

<0.001

0.44

279

14.7

2.77

44

FAM09004

0.103

0.34

2650

3.8

6.24

20

FAM09005

0.002

0.21

457

3.9

5.03

36

FAM09006

0.008

0.45

3210

6.9

>10.0

27

JS008

0.013

0.3

427

4

1.44

141

JS009^ Famnvatnet Prospect

0.025

0.5

3080

<2

7.69

15

FAM09007

0.023

31.1

71.8

>10000

>10.0

>10000

FAM09008

0.791

>100

>10000

>10000

>10.0

>10000

JS010

0.013

14.6

26

>10000

>10.0

>10000

JS011^ *Ore Grade (AAS)

0.621

>100

>10000

>10000

>10.0

>10000

^ Boulder FAM09007 (collected August 2009) & JS010 (collected August 2008) are from similar location FAM09008 (collected August 2009) & JS011 (collected August 2008) are from similar location

Ag (ICPAES) ppm Ore Grade

114

105*

Cu (ICP- Pb (ICPAES) AES) % Ore % Ore Grade Grade

2.13

1.87*

Zn (ICPAES) % Ore Grade

2.93

29.70

3.63

10.35

1.32*

13.00*

3.00*

8.05*

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Geophysical survey (VTEM) over Lake Embrace Project completed in September 2009

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Preliminary interpretation of VTEM data generated many targets requiring follow up

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Scandinavian Resources Ltd

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Vatmyrberget Project prospective for IOCG mineralisation

Vatmyrberget Project

Ag ppm KS08204 8.7 KS08105 32.5 KS08106 29.8

Cu % 0.9 4.56 2.47

W ppm 2,470 1,540 370

Au ppm 0.1 0.1 0.39

Fe %

32.3

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COMMODITY Major Projects Fe-Cu-Au Fe-Cu-Au Fe-Cu-Au Fe-Cu-Au Fe-Cu-Au Fe-Cu-Au Cu-Pb-Zn Cu-Pb-Zn Cu-Pb-Zn Zn

PROJECT

PROSPECT

COUNTRY

AUNIT CURAREA

Kiruna Project

Luppovare 1 Luppovare 2 Luppovare 3 Piedastjokko 1 Piedastjokko 4 Piedastjokko 5

Sweden Sweden Sweden Sweden Sweden Sweden

ha ha ha ha ha ha

Lake Embrace

Farmvattnet 1 - 95 Farmvattnet 96 - 348 Farmvattnet 349 - 564 Ă&#x2013;vre Elsvatnet

Norway Norway Norway Norway

ha

874 11,755 10,391 2,168 4,258 1,255 30,701 2,275 6,048 5,160

TSTATUS

APPDATE

Granted Granted Pending Granted Granted Granted

8/07/2008 17/08/2008 17/08/2008 8/07/2008 18/08/2008 18/08/2008

Granted Pending Pending Pending

3/10/2008 9/09/2009 9/09/2009 9/09/2009

13,483 Au-Ag-Cu-Pb-Zn-Ni Au-Ag-Cu-Pt-Pd Au-Ag-Cu-Pb-Zn-Ni Exploration Pipeline Cu-Au Zn-Pb Cu-Au Au Zn-Pb Zn-Pb Mn-Fe Mn-Fe Mn-Fe Mn-Fe Mn-Fe Fe-Cu-Au Fe-Cu-Au Au Pb-Zn Cu

Swampy Mountain

Vatmyrberget 1 Vatmyrberget 2 Vatmyrberget 3

Sweden Sweden Sweden

ha ha ha

2,028 2,158 414 4,600

Granted Granted Granted

29/11/2007 8/04/2008 8/04/2008

Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden

ha ha ha ha ha ha ha ha ha ha ha ha ha

229 315 214 470 100 100 321 1,006 281 268 324 1200 1,387 400 400 2,293 9,308

Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Pending Pending Pending

7/04/2008 26/10/2007 26/10/2007 28/11/2007 28/11/2007 28/11/2007 9/07/2008 8/07/2008 8/07/2008 8/07/2008 8/07/2008 11/01/2008 8/07/2008 24/09/2009 24/09/2009 24/09/2009

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Strategy includes acquisition of a development/mining asset in 2010

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Corporate Structure Scandinavian Resources Ltd ACN 132035842 (ASX Listed December 2009)

100%

Hannans Scandinavia AB * Reg No. 556737-6263

100%

Exploration permits and applications in Sweden and Norway

* Audited by KPMG, Sweden

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$6.5 million IPO December 2009 (ASX) 20 cents per share (ASX listed) PLUS 1:1 free attaching option (ASX listed) exercisable at 25 cents on or before 31/10/11

Capital Structure Minimum Raising($6.5m) - Shares Round

Shares

Price

Funds Raised

Vendor

20,000,000

Seed

8,666,667

0.075

650,000

IPO

32,500,000

0.2

6,500,000

61,166,667

Minimum Raising ($6.5m) - Options Round

Options

Ex Price

Expiry

Vendor

20,000,000

0.2

31/10/2012

Seed

8,666,667

0.2

31/10/2012

Directors

2,250,000

0.2

31/08/2011

IPO

32,500,000

0.25

31/10/2011

63,416,667

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Use of Funds Year 1

Year 2

$

$

Kiruna Project

1,250,000

1,250,000

Lake Embrace

650,000

650,000

Swampy Mountain

250,000

250,000

2,150,000

2,150,000

$ Seed raise

650,000

Total funds raised in IPO

6,500,000

Total funds available

7,150,000

Exploration expenditure

4,435,000

Total Exploration Expenses of the Offers

715,000

Financial repayments

500,000

General working capital

1,500,000

Total funds applied

7,150,000

* Indicative only and subject to change ** Exploration expenditure from 1 July 2009

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Future Exploration Activities 1. Complete final VTEM interpretation from Famnvatnet Project, Norway (November / December 2009) 2. Review potential development/mining assets (In progress) 3. Review potential exploration projects to add to ‘Exploration Pipeline’ 4. ‘Work up’ current gold projects in Exploration Pipeline to ‘Major Project’ status (In progress) 5. Complete detailed gravity survey over Kiruna Project, Sweden (Next field season, March 2010) 6. Drill test Kiruna Project, Sweden to identify source and strike length of high grade iron identified at surface (Next field season, March 2010) 7. Drill Test Famnvatnet Project, Norway to establish source of VTEM anomalies (Next field season, March 2010)

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Acknowledgements Scandinavian Resources Ltd acknowledges the excellent assistance provided to it by the staff at:

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Swedish Brands â&#x20AC;&#x201C; Entrepreneurial, Global & Successful

Global

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Contact Details Mr. Damian Hicks Chairman +61 8 9324 1153 (Office Telephone) +61 8 9324 3366 (Office Facsimile) +61 419930087 (Mobile) Street Address: Ground Floor, 28 Ord Street, West Perth, Western Australia Postal Address: PO Box 1668, West Perth, Western Australia, 6872 damianh@scandinavianresources.com (E-mail) www.scandinavianresources.com (Web)

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Disclaimer This Document and the information contained herein and any presentation (collectively referred to as “Information”) is proprietary to Scandinavian Resources Limited (“the Company”). This Document is not intended for and should not be distributed to any other person than as permitted herein. By receipt of the Document, the Recipient agrees that it will not transmit, reproduce or make available the Document (or any Information contained herein) to anyone other than its professional advisers without the prior written consent of the Company. At the request of the Company, the Recipient will return, as soon as practicable, this Document together with any reproductions of it and any other Information which the Recipient may have received from the Parties. This Document is being provided exclusively to investors that qualify pursuant to Section 708 of the Corporations Act for the sole purpose of providing background information to enable the recipient to review the potential for the provision of equity funding to the Company. It is not intended as an offer, invitation, solicitation or recommendation with respect to any potential transaction. Potential investors must make their own independent assessment and investigation of the opportunity and should not rely on any statement or the adequacy or accuracy of the information provided. Securities of micro cap exploration companies, typically involve a high degree of risk and as such, any investment in the Company must be considered as speculative. The Information provided does not purport to cover all relevant information about any potential investment in the Company. Accordingly potential investors are advised to seek appropriate independent advice, if necessary, to determine the suitability of this investment. The Document contains reference to certain intentions, expectations and plans of the Company. Those intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. The performance and operations of the Company may be influenced by a number of factors, many of which are outside the control of the Company. No representation or warranty, express or implied, is made by the Company or any of their respective directors, employees, agents, advisers and consultants that any intentions, expectations or plans will be achieved either totally or partially or within a prescribed timeframe or that any particular rate of return will be achieved. The Information disclosed relates to the proposed business of the Company at the date of this Document. Material information may have changed since the date the Document was compiled. No responsibility is accepted to advise any person of any change or update any of the Information. Neither the provision of this Document nor any information contained in this Document or subsequently communicated to any person in connection with this Document is, or should be taken as, constituting the giving of investment advice to any person. By accepting this Document you acknowledge and agree to be bound by each of the foregoing statements.

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Scandinavian Resources Project Update