Successful Japan Trade and Investment Trip

• Tellus Chandler project presented by NT Government trade delegation in Japan
• Tellus Salt received expressions of interest for salt and fertilisers
• Tellus Salt enters into commercial negotiations with Japanese salt buyers, supply chain companies and potential investors
• Japan is the largest importer of salt worldwide
• Japanese salt market is 8-9 million tonnes per annum and stable.

Tellus executives completed a trip to Tokyo in October and have just completed a follow up trip in November 2012. Tellus executives, Duncan van der Merwe, Group MD, Bob Emery, Chairman Tellus Salt and Mike Carter, Sales and Marketing Executive attracted expressions of interest from potential salt customers, supply chain companies and potential investors.

Tellus has commenced commercial negotiations and looks forward to developing long-term relationships for its proposed Chandler multi-mineral salt mine in central Australia. Tellus would like to thank the Northern Territory Government for its support through the Northern Territory Government’s Trade Support Scheme and facilitating discussions with Japanese buyers, potential investors and key stakeholders.

“We plan to export approximately one million tonnes per annum (1 Mtpa) of salt and associated minerals (fertilisers) to the Asian market,” Tellus Managing Director Duncan van der Merwe said. “The Japanese salt market is 8-9 Mtpa and stable. The Japanese are particularly interested in the project’s salt quality, reliability of underground rock salt mine supply (versus solar evaporative pond supply that can be severely affected by wet weather events) and the ability to scale the project up to meet rising demand in Asia,” Mr van der Merwe said.

Japanese domestic production of salt meets just 10-15 percent1 of domestic demand. Salt consumption in the chemicals sector is high, but there are no indigenous rock salt or salt lake deposits and solar salt production is not viable because of the lack of available coastline and unsuitable climatic conditions (heavy rainfall and high humidity). As a result, Japan is the largest importer of salt worldwide.

The chemicals industry accounts for 80 per cent of Japanese salt consumption. Table salt and salt for food processing account for 20 per cent.

According to statements by senior Northern Territory Government officials during the trade delegation the NT Government:

• has identified mining and energy as one element of its three hub-economic development strategy
• securing investment for local projects is a critical element of growing the mining and exploration sector in the Territory
• Japan remains a very important investor in the Territory’s resources industry
• is proud of its strong links with Japan, including relationships with key government organisations and trading houses
• has a dedicated strategy to proactively seek Japanese investment, including undertaking regular trade delegations to Japan
• will continue to welcome Japanese investment and do what it can to support Japanese investors.

¹ Roskill 2011, Salt: Global Industry Markets and Outlook 13^th edition

Tellus Holdings Pty Ltd (“Tellus”) is an Australian-owned mining company adding value to underground rock salt. Tellus is the parent of a group of companies involved in the mining, processing and sale of industrial and edible salts, fertilisers and minerals. Potential complementary businesses include storage in voids created by mining.

Visit: www.tellusholdings.com.au or contact:
Duncan van der Merwe, Managing Director Tel: +61 (0)2 9241-7678
Jane Munday, Michels Warren Munday on +61 0427 880 083