Introduction

1.0 Overview

Since listing in August 1996, focus has been maintained on Nickel and nickel laterite; this strong focus resulted in the Kalgoorlie Nickel Project (KNP) ground position supporting a JORC combined resource of 908mt @ 0.74% nickel for 6.6 million tonnes of contained nickel.

Heron has developed through to scoping study the significant Yerilla Nickel Cobalt Project.

2.0 Business Plan

• To commission the Kalgoorlie Nickel Project.
• To develop the Yerilla Nickel Cobalt Project, in association with a partner.
• Exploration budget $1.5–2.5 million per annum since 1996, targeted on world-class metal deposits only.
• Focus on the Eastern Goldfields of Western Australia served by good infrastructure, low sovereign risk and environment conducive to development.

3.0 Assets

• Kalgoorlie Nickel Project, world-class nickel laterite assets, production potential 50,000 tpa nickel metal.
• Yerilla Nickel Cobalt Project targeting production of 20,000 tpa nickel in intermediate product to be developed in partnership.
• Extensive land holdings of komatiite belts, nickel sulphide and laterite targets.
• Heron has the strongest single company tenement holding in the world's most intensely mineralised Ni-Au province, the Kalgoorlie Goldfields.

4.0 Development Strategy

• Advance the Kalgoorlie Nickel Project through optimisation of the PFS.
• Develop the Yerilla Nickel Cobalt Project as a low cost and medium scale Nickel Cobalt project in partnership with Shanshan leveraging off their technology and Heron's previous studies.
• Acquire a portfolio of operating assets.

5.0 Strengths of Heron Resources Limited

• Technical skills excellent, with complete in-house technical capability.
• Strong element of risk management in operations, but still "adventurous" in counter-cyclical acquisitions.
• Quality assets secured through exploration success, and hence low acquisition cost and 100% ownership.