2. Disclaimer:
The contents are not to be reproduced or distributed to any third party, including the public or press. The
information contained herein, while obtained from sources which we believe are reliable, is not guaranteed
as to its accuracy or completeness. The company is a development stage mineral resource exploration
company and many of its mineral projects have yet to be proven to be economic. Certain information set
out herein in relation to the Company’s advanced projects is based on technical reports that are in
compliance with NI 43-101 that are not yet final. The reader is cautioned that such information is subject to
change, although management does not anticipate any material deviations.
The contents of this presentation is for informational purposes only and does not constitute an offer to sell
or a solicitation to purchase any securities referred to herein.
Forward looking statements
This presentation includes certain forward-looking statements about future events and/or financial results
which are forward looking in nature and subject to risks and uncertainties. Forward-looking statements
include without limitation, statements regarding the company’s plans, goals or objectives and future
completion of mine feasibility studies, mine development programs, capital and operating costs,
production, potential mineralization, resources and reserves, exploration results and future plans and
objectives of MBAC. Forward-looking statements can generally be identified by the use of forward-looking
terminology such as "may," will," "expect," "intend," "estimate," "anticipate," "believe," or "continue" or the
negative thereof or variations thereon or similar terminology. There can be no assurance that such
statements will prove to be accurate and actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause actual results to differ materially from
expectations include risks associated with mining generally and pre-development stage projects in
particular. Potential investors should conduct their own investigations as to the suitability of investing in
securities of MBAC Fertilizer Corp.
2
3. To be a significant integrated producer of phosphate and potash
fertilizers and related products in the Brazilian and Latin American
markets
SANTANA
PHOSPHATE
ITAFÓS
AM PA MA High grade phosphate deposit
PHOSPHATE strategically located: near the
PI
Itafόs Arraias SSP Project is a border of Para and Mato Grosso
TO
unique, low capex project located in MT states. Meeting animal feed
BA
the centre of Brazil’s largest Brasilia
phosphate and fertilizer demand in
GO the Center-West Brazil.
agricultural region that will provide
near-term cash flow, with start-up MG
PFS completed
expected in Q4 2012, producing 500 SP Rio de Janeiro
ktpa of SSP. São Paulo ARAXÁ
Excellent logistic advantage. PHOSPHATE /REE/Nb
The project is funded and currently High grade Phosphate and Rare
under construction Earth Elements/Niobium deposit.
PEA completed
BRAZIL
New Agricultural Frontier
3
4. Current Capital Structure Directors & Management
Symbol/Exchange TSX: MBC
Shares Outstanding 118.4M Peter Marrone Chairman and Director
Options 9.2M
Fully Diluted 127.5M Denis Arsenault, CA Director
Management & Directors ~14% Alexander Davidson Director
Current Share Price $3.25
52 wk High/Low $3.75-$2.50 Brian Hayward Director
Market Capitalization ($ millions) $382.4
Ralph Judah Director
Stock Chart 52 Week (MBC.TO)
3.3 Hon. David Peterson Director
2.8
Leonardo Marques da Silva Director
2.3
1.8
Antenor Silva CEO and Vice-Chairman
Roberto Busato Belger President and Chief Operating Officer
Research Coverage
Canaccord Genuity Keith Carpenter Carlos Braga VP, Technical Services
Paradigm Capital Spencer Churchill
Rodrigo Pinto, CA VP, Finance and CFO
Raymond James Steve Hansen
BMO Capital Markets Joel Jackson Steve Burleton VP, Corporate Development
GMP Securities Anoop Prihar
National Bank Financial Robert Winslow Antônio Nagle VP, Administration
4
5. Acquisition of
mining rights, Updated
operations Updated
IFC increases NI 43-101 M&I
(including tax reserves & pre-
Construction loan facility to resources on
benefits) of Itafós feasibility study Definitive
License issued US$65M through Araxá
Mineração for the Itafós Feasibility Study
for Itafós SSP syndication
(Phosphate) - Arraias Project – for Itafós Arraias
Arraias Project process 6.3 MT @ 5%
Campos Belos, resource at 24 Project by AMEC TREO
GO, Brazil Mt
Oct 2008 Mar 2010 Sep 2010 Mar 2011 Sep 2011 Jun 2012
Dec 2009 Jun 2010 Feb 2011 Sep 2011 Apr 2012 Sep 2012
Preliminary
Economic
MBAC went Acquisition and Itau BBA approval IFC to Invest Robust pre- Assessment
public on the phosphate financing for R$ C$33.6 million in feasibility study (PEA) completed
Toronto Stock exploration works 205M via BNDES MBAC equity and completed for the for the Araxá
Exchange in two new areas: provide US$40 Santana Project Project
Santana, PA million in debt – resource at
66.1 Mt NPV $967 M
IRR 30%
5
6. Two fundamental trends driving strong fertilizer growth in Brazil
Brazilian farmers are applying more fertilizer per hectare to improve yields
More hectares are being used for cropping
Brazil - Planted Area for Agriculture Brazil - Agribusiness Exports
70,000 100,000
90,000
65,000
80,000
CAGR 3.1% CAGR 14.9%
70,000
1000 Hectares
60,000
US$ Millions
60,000
55,000 50,000
40,000
50,000
30,000
45,000 20,000
10,000
40,000 0
Source: ANDA 00 01 02 03 04 05 06 07 08 09 10 11 Source: MAPA 00 01 02 03 04 05 06 07 08 09 10 11
Driven by subtropical climate and land and water availability Agribusiness is one of the main contributors to GDP surplus
Brazil Fertilizer Consumption
31,000
29,000
27,000
CAGR 5.1%
1000 Tonnes
25,000
23,000
21,000
19,000
17,000
15,000
Source: FAO 00 01 02 03 04 05 06 07 08 09 10 11 12 F
6
7. FAO Monthly Food Price Index (2002-2004=100)
250.0
200.0
Since the early 2000’s, food prices
have risen significantly
150.0
100.0
50.0
Significant correlation between
grain prices and fertilizer prices
0.0
90 92 94 96 98 00 02 04 06 08 10 12
Source: FAO
Historical Soybeans & Maize Prices Soya and corn are the most
700 important crops in MBAC’s target
600 region
US$/ Metric Tonne
500
Soya and corn prices have tripled
400
since 2005
300
200 Increased grain prices combined
100 with the recent weakening of the
0 Brazilian Real has resulted in
90 92 94 96 98 00 02 04 06 08 10 12 significantly increased profitability
Source: FAO, Indexmundi Soybeans Maize (corn)
for the Brazilian farmer
7
8. Brazil consumes approximately 5 – 6 million tonnes of SSP per annum
It is estimated that Itafós region consumes approx. 1.2 million tonnes in 2012
This is expected to grow to 1.8 million tonnes by 2020 representing a CAGR of over 4% per year
SSP Consumption in Brazil
7,000,000
6,000,000
364,541 612,072
Tonnes
312,533
5,000,000 137,069 300,753
137,299 225,391
4,000,000 5,363,485 5,033,885 5,363,485
4,707,320 4,702,201
4,223,098 4,234,959
3,000,000
2005 2006 2007 2008 2009 2010 2011
Production Imports
550 SSP Prices in Itafós target Region(1)
500 Current price is in
450
US$/tonne
400 the range of US$315
350
300 DFS – US$325 per tonne
250
200 Price
150
100 US$250 per tonne
50
0 was used in the
May-12
2004
2005
2006
2007
2008
2009
2010
2011
Aug-12
Mar-12
Jun-12
Jul-12
Sep-12
Jan-12
Feb-12
Apr-12
DFS for Itafós
Source: ANDA; MBAC team analysis 8
(1) Brazil Producer List Prices FOB Araxa (which is about 1000 kms from MBAC’s target area)
9. SSP TARGET Itaquí Port STRATEGIC LOCATION
MARKET Both MBAC phosphate projects, Santana
Fortaleza Port
OVERVIEW and Itafós, have a significant competitive
(BRAZIL) advantage resulting from strategic
location;
AM
MA
PA
Considering a radius of 500 km (target
Santana
PI areas), estimated 2015 SSP demand is
TO 500 kt and 1,070 kt, respectively, for
Itafos BA Santana and Arraias;
1000 MT
Km
Closest competitor ( ) has to transport its
750
Km GO rock from over 1,000 km to its site, which
Aratu is located inside the Itafόs target area;
MG
Port
Araxa
500
Other domestic competitors are located
Km
at minimum of 700 km away from MBAC
sites;
Legend Closest Ports, Itaqui and Aratu, are
Santos Port
Other Domestic Closest located more than 1,000 km away from
Competitor Competitor Paranaguá Port MBAC sites
Domestic
(Main fertilizer Port in BR)
Import Supply
Supply
1000 2000 Inland transportation costs are
New Agriculture approx. 6 -7 cents per tonne per km
Araxá Project
Frontier
Scale: in Kilometeres
9
Source: (*) IBGE / MBAgro
10. Q2 2010 Q3 2010 Q4 2012
PFS DFS Construction Production
11. Resources Exploration Area
Itafós NI 43-101 resource (January
2012)
M&I Resources of: 75.8 Mt at 5%
P2O5
Inferred Resource of: 28 Mt at
5% P2O5
Plant
Site
Based on 75,000 m of drilling
MBAC has only explored
approximately 20% of its land
package
11
12. DOMINGO’s TARGET
LEGEND
Waste Pile
Mine Plan Year 3
Access Road
SSP Plant
Meters
0 250 500
Date: 17/10/2012 Scale: 1:13,794
Map: Charlene Resp: Jesus Vieira
12
13. Mill Plant
P2O5 Reactive Phosphate 5% of
+ Water 94 kt @ 15% P2O5 Market Revenues
P2O5 Recovery: 8.4%
Mining
3 Mt @ Ore Beneficiation
5.4% P2O5
P2O5 Concentrate Ammonia
Waste Tailing 330,000 t @ 28% P2O5 6 kt
P2O5 Recovery: 55-58%
SSP Powder Granulated SSP 92% of
500,000 t 500,000 t Revenues
Sulphuric Acid Plant
Imported Sulphuric Acid
170,000 t
Sulphur
DCDA(1)
74,400 t
Electricity
Sulphuric Acid Surplus 3% of
8 MW Market
50,000 t Revenues
To be used in the process
13
Note: (1) Conventional contact process
14. Fully financed project with major institutional lenders including International Finance Corporation
(IFC), Itaú BBA, the Brazilian Development Bank (BNDES), WestLB and Banco Votorantim
DFS completed by AMEC indicated robust economics based on a 58.8 Mt resource
• Current M&I resource stands at 75.8 Mt
Only 20% of the total land package explored to date – room to significantly grow resource
Physical construction over 70% complete – start up expected later Q4 2012
DFS ASSUMPTIONS (1) UNIT FIGURES
SSP Production (Phase 1) Tonnes 500,000
AM MA
Mine Life Years 20 PA
PI
TO
NPV ( @10%) USD MM 346 BA
MT
Brasilia
GO
MG
Avg. SSP Price USD/t 325
SP Rio de Janeiro
Avg. SSP Cost (LOM) USD/t 120 São Paulo
Total Capex USD MM 258
(1) Updated September 2012 14
20. Q3 2011 Q2 2012 Q1 2013 Q1 2015
PEA PFS FS Construction Production
21. Santana contains a high grade phosphate resource that could produce one or
more phosphate based products for fertilizer industry (SSP/TSP) and animal
feed (Di-calcium Phosphate-DCP) Port of Itaquí
Port of Fortaleza
Operation: Production of 500 kt of SSP
AM
per year, during 30 years of mine life MA
PA
Currently has 30 year LOM
PI
Market: Project target area is one of the TO
largest agricultural markets in the BA
country: MT
Mato Grosso state is the largest GO
Legend
fertilizer consumer in Brazil (est.: MG
Port of
Aratu
1.3Mt of SSP plus 1Mt of Santana Project
MAP/TSP in 2011)
1,000km Radius
São Felix do Xingu (PA) is the
municipality with the largest 750km Radius
number of cattle in Brazil. 500km Radius
500 kt of SSP Port of Santos
Scale Paranaguá Port
500 Km
21
22. New resource estimate completed in February 2012 shows 66.1 Mt of Indicated resources at
10.6% P2O5 and 21.8 Mt Inferred at 7.9% P2O5
Resource North-East view with drill holes
New mineralized holes
Resource Estimate
Details
Based upon 114
diamond holes
(5,894.7m) and
Indicated 274 RC holes
(12,936m);
Vast majority of
the drilling
Inferred completed at a
spacing of
N approximately
100m by 100m;
22
23. MBAC along with PegasusTSI (Florida, USA) issued a preliminary financial model for the
Santana Project based on
RESERVES: 44.9 Mt @ 12.1% on a 3% cut off and 114 diamond holes (5,895m) and 274 reverse circulation
(“RC”) holes (12,936m) drilled at a spacing of approximately 100m by 100m
CAPEX: Based on PegasusTSI estimates taking into account current Itafós capex with additional costs for
infrastructure
OPEX: Based on PegasusTSI estimates
MODEL RESULTS UNIT FIGURES Santana Drilling Area
BRL/USD Rate 1.75
Mine Life Years 30
NPV ( @10%) USD MM 407
IRR % 22%
Avg. SSP Price USD/t 349 (1)
Avg. SSP Cost (LOM) USD/t 131 (1)
Total Capex USD MM 393
(1) Constant exchange rate US$ 2012 without inflation
23
24. The Project construction is schedule to start in Q2 2013 - Licensing is
undergoing – and production shall commence by late 2015
2012 2013 2014 2015
Definitive Feasibility Study
Construction License
Financing
Construction
Commissioning & Operation
24
25. Q3 2012 Q2 2013 Q1 2014 Q4 2015
PEA PFS FS Construction Production
26. MBAC holds 214 hectares of mining claims in Project Location
Minas Gerais State (near Fertilizer Cluster) Santana
Area contains phosphate, rare earth elements Itafos
(REE) and Niobium at or near surface Araxá,
MG
The historical data shows excellent potential
– MBAC had performed confirmatory and
detailing drilling
REE Deposit
Araxá Project
Area is close to two large operations: Vale
(phosphate) and CBMM (niobium) production
VALE Mine CBMM Mine
Project located in an area with highly
(Phosphate) (Niobium)
developed infrastructure
MBAC is performing comprehensive
metallurgical tests with excellent results
26
28. M&I resource of 6.34 Mt @ 5.0% TREO and Inferred resource of 21.9 Mt @ 4.0% TREO
One of the highest grade REO deposits in the world
Heavy rare earth oxides (HREO) represent 2.6% of the TREO
M&I includes 8.40% P2O5 and 1.02% Nb2O5
2% cut-off grade
MODEL RESULTS UNIT FIGURES
BRL/USD Rate 2.0
Mine Life Years 40
NPV ( @10%) USD MM 967
IRR % 30%
Avg. Araxa Basket REO Price USD/Kg 29.19
Avg. Araxa Basket REO Cost (1) USD/Kg 10.50
Total Capex (1) USD MM 406
(1) Only Phase I , Phase 2&3 capex is estimated at $ 214.5 Million. Estimated operating cost for phase 2 is $9.60/kg and phase 3 is $12.16/kg
28
29. MBAC has already defined a process route (acid bake) using acid leaching
and solvent extraction for the production of separated RE oxides
Ore preparation Laboratory test work for REO extraction has been
Nb2O5
underway since September 2011
circuit
Acid MBAC has successfully produced a bulk concentrate
with 99% RE oxides – forecasted cost for the bulk
oxides is in the range of $8 to $9 per kg
Acid leaching Insoluble
Test work will also be conducted at labs in Canada,
DCP
China and Japan to demonstrate and improve current
Organic acid circuit
technologies.
MBAC has already started the sample preparation for
REO Precipitation Soluble
the pilot plant campaign in Brazil for the Acid route,
Insoluble that will be conducted to treat individual ore types as
well as different blends.
RE oxides 97 – 99%
Currently evaluating the production of DCP from
phosphate solution and the production of niobium
REO separation (SX) oxide from the insoluble residue.
29
30. Project Timeline – Phase I
Q3/2012 Q2/2013 Q1/2014 Q2 /2014 Q4/2015
Detailed Exploration Prefeasibility Feasibility Study Financing & Construction
and PEA Study (DFS) Approval Phase
Lab scale test Pilot Plant Operation
work
Licensing
Development of the Araxá Project Phase 1, Phase 2 & 3 Production Capacity
Planned
Bench scale trials have resulted in the 20,000 17,500
production of an REO concentrate (+99%)
15,000
A pilot plant will run for 4-6 months in 2013 to 14,000
Tonnes
provide parameters for the Project 10,000 8,500
Phosphate and niobium will be by-products
5,000
Environmental Licensing has commenced –
local consulting company has been retained 0
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
Currently pursuing off-take partners
30
34. SSP is the most applied fertilizer for the Brazilian soil, especially in the Cerrado
region, MBAC’s target area:
Ca(H2PO4)2.H2O FORMULA COMPOSITION
Most of Brazilian soils, especially those located in the Cerrado region, are very poor in P, Ca and S.
+S SSP formula contains Calcium Sulphate (Ca and S) and P
PHOSPHATE SOLUBILITY
The agronomic efficiency of phosphate products is associated with the solubility of P in NAC(1) + H2O P NAC+H2O
P
From the total P contained in SSP formula, approximately, 90% is soluble making it very P
P P
efficient P
IMPROVED ROOT DEPTH
Because of the lack of Ca and the presence of Al3+ in Brazilian soils, the development of roots is
compromised, affecting crops productivity, especially, in a dry season (common in the Cerrado).
The Calcium Sulphate in the SSP solves these soil concerns, improving root depth
REDUCES COSTS
Calcium Sulphate is the component required for the supplement of S deficiency in the soil and it is
presented in the gypsum and SSP formulas (1 tonne of SSP = 500 kg of Calcium Sulphate) $$$
Using a other sources of P, farmers will incur in extra costs due to the purchase and
application of gypsum
Note: (1) Neutral Ammonium Citrate
Al3+ Aluminum Toxicity
34
Source: (*) Sinprifert/ANDA
35. Population Expansion: History And Projection GDP Growth Scenario
Source: Looking ahead in world food and agriculture perspective to 2050
Source: UN Population Division http://esa.un.org/unpp/index.aspl
Source: FAO- Looking ahead in world food and agriculture perspective to 2050
Source: UN Population Division http://esa.un.org/unpp/index.aspl
World Cereal Consumption And Future Projection
Per Capita Food Consumption
2050
2030
2015
2003-2005
0 1,000 2,000 3,000 4,000
Kcal/person/day
Industrial countries Developing countries World
Source: FAO, OECD Source: FAO- Looking ahead in world food and agriculture perspective to 2050
35
37. Arable Land Per Capita
Developing Countries With The Highest Land Balance
Source: FAOSTAT Source: FAO- Looking ahead in world food and agriculture perspective to 2050
Developing Countries Using More Than 10 Million Ha. Of Arable Land Top 10 Countries With Renewable Water Resources
9,000
8,000
7,000
Billion Cu. M/Yr
6,000
5,000
4,000
3,000
2,000
1,000
0
Accounts for 75% of all arable land in developing countries
Source: FAOSTAT
Source: FAO- Looking ahead in world food and agriculture perspective to 2050
37
38. Agribusiness is a significant part (~25%) of the Brazilian economy Brazil Agribusiness is the Fourth Largest in the World
Agribusiness % of GDP Gross Production Value (2010)
5,000,000 30%
Italy
4,000,000 25% Indonesia
20% France
Millions R$
3,000,000 Turkey
15%
2,000,000 Nigeria
10% Japan
1,000,000 5% Brazil
0 0% India
USA
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
China
Agribusiness GDP Brazil % 0 100,000 200,000 300,000 400,000 500,000 600,000
Source: CEPEA
Millions US$ Source: FAOSTAT
Brazil’s is a leading exporter of agriculture goods and commodities
Export Value (2009)
China
Canada Brazil is a leading producer of agricultural commodities:
Spain coffee (#1), oranges (#1), sugarcane (#1), beef (#2) and
Italy soya (#2)
Belgium
Brazil
France
Germany
Netherlands
USA
0 20,000 40,000 60,000 80,000 100,000 120,000
Source: FAOSTAT Millions US$
38
39. Fertilizer Consumption in Brazil Historic Global vs Brazil Phosphate Consumption
29,000,000
300%
27,000,000
250%
25,000,000
200%
Tonnes
23,000,000
150%
21,000,000 100%
19,000,000 50%
17,000,000 0%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
15,000,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: ANDA, IFA Fertilizer Consumption Source: ANDA, IFA Global Brazil
Currently imports 70% of its NPK fertilizers, Phosphate> 50% Historic Brazil Phosphate Data
Nutirents in 000 Tonnes (P2O5)
Phosphate Fertilizer Imports 5,000
125% 4,000
100% 3,000
75% 2,000
50% 1,000
0
25%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Production Imports Consumption
Source: ANDA
Source: ANDA Production % Imports %
39
