INTERVIEW WITH MR. MIKE TURBOTT, MANAGING DIRECTOR OF AUSTPAC RESOURCES NL (APG)

“Shareholder Update”

http://www.brr.com.au/event/52278

FRIDAY, OCTOBER 10, 2008, 2:20 PM.

            BRR    Welcome to Boardroom Radio. Today, we’ll speak with Mr. Michael Turbott, Managing Director of Austpac Resources.

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                        Thanks for joining us today, Michael.

            APG     It’s good to be with you again, Eddie.

            BRR    Michael, you’ve announced today that you’ve successfully recycled steel

15                    industry waste into fresh acid. Where does this waste come from? And what do you do with it?

            APG     Well, in order to curdle paint steel sheet and make, you know, products like Telabon, etc. any of iron scale or oxide must first be removed. It’s a surface preparation called pickling that really consists of running a steel sheet through

20                    a bath of hydrochloric acid to remove this scale in the oxide. Ultimately, the acid becomes depleted and leaves an iron chloride solution that’s called spent pickle liquor. Generally, this liquor is neutralized and disposed over the land fields that consider dumping it. We recycle upon breaking it down and making into fresh acid, then iron metal.

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            BRR    Well, it sounds like a pretty eco-friendly technology, do you only use this spent pickle liquor?

            APG     No, in our early test what we found while regenerating asset we could have waste on an oxides to the pickle liquor and in steel making up to 3% of the

30                    iron (inaudible) (0:01:09) lost as dust. In rolling steel up to 5% of the iron is lost as mill scale. That’s a big waste but the oxides themselves presented disposal problem to the steel mills. However, we can use the waste in our process and increase the yield of the iron. If we only used pickle liquor we would make less than half a tonne of iron-free (inaudible) (0:01:32) acid.

35                    Many experiments, we’ve added up to two tonnes of waste iron oxide to every tonne of pickle liquor recovered 1.6 tonnes of iron pellets and well that’s several tonne more iron less of selling for at least $3.50 a tonne. Iron pellets now worth over $4.50 a tonne. We really feel recycling steel waste could be very lucrative business.

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            BRR    Are there many opportunities for you to expand this technology outside of the Newcastle Plant?

            APG     Yes, I think there’s excellent potential for us in the steel waste business. For instance, there are over a hundred pickling lines in the US alone and only 15

45                    regenerate their acid. However, steel still knows business is to sell steel, the waste handling is generally outsourced into essentially to leapfrog ascend to this notoriously conservative industry.

                        We’ve got an agreement with the UK-based group MultiServ to identify and evaluate well right opportunities for our EARS process within the steel industry. MultiServ, the world’s largest provider of outsourced on site mill services to the global steel and metals industry. They’ve got over 170

5                      operating sites in 35 countries around the world. This gives us an immediate introduction to world’s steel industry with a very credible partner.

            BRR    It sounds like another Austpac Technology that could soon be seen around the world. What stage are you at in your demonstration plant program?

10        APG     At the moment, we’re making asset, and we’re making that so we can start leaching ilmenite when our goal is of course to make our ultra high grade synrutile and more iron pellets. We’re almost there it’s literally days away we’ll be doing that.

15        BRR    Michael, it’s certainly sounds like its all action at Auspac at the moment.

            APG     It’s sure is at demonstration plans essentially commissioned and in the process we’ve proven our DRI now has a regeneration processes. Then on top of that last month, we won the Australian award for Applied Technology of the Year. Everyone in the company is really excited and there’s really never

20                    been a better time to be with Auspac.

            BRR    Michael, we do appreciate you taking the time out today to update the market and we look forward to speaking to you soon.

            APG     Thanks very much, Eddie. See you later, bye.

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            BRR    That was Michael Turbott, Managing Director at Austpac Resources.

                        If you have any questions about this broadcast or any other broadcast please feel free to contact us on brr@brr.com.au.

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                        I’m Eddie Saade and thank you for listening to Boardroom Radio.

INTERVIEW CONCLUDED

Contact brr@brr.com.au for more information

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