April 2012. Lustros Ltd. is a US publicly traded company currently trading under the symbol PWSV. Through its subsidiary Bluestone SA (80% ownership)

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Presentation transcript:

April 2012

Lustros Ltd. is a US publicly traded company currently trading under the symbol PWSV. Through its subsidiary Bluestone SA (80% ownership) that controls Sulfatos Chile SA, Lustros Ltd. specializes in the production of high-quality commercial grade copper sulfate via traditional mining methods. Through its subsidiary Mineraltus SA (80% ownership), Lustros Ltd. specializes in the production of copper from the treatment of tailing (waste product of mining process). Lustros Ltd

Copper Sulfate Higher grade copper reserves are decreasing worldwide. This reality prompted Bluestone SA to develop a value-added product directly derived from copper, which is copper sulfate. One kilogram of copper yields approximately four kilograms of Copper Sulfate.

Copper Sulfate: Uses Copper Sulfate (CuSO 4 ) has various rich fundamental properties that make it a useful commercial chemical. It is widely used as a fungicide, herbicide and pesticide as well as an analytical reagent. Increasing demand for use as a healthy additive to animal feed to naturally induce hunger. A comprehensive list of uses for copper sulfate is available here.here

Copper Sulfate Market Strong Demand for Feed Grade Copper Sulfate: Approximately 80% of copper sulfate produced globally is made from copper scrap that contains toxins (such as Dioxin), which are no longer accepted by Canada and other important consumer countries. Our copper sulfate is produced directly from mineral content and is free from scrap pollutants making it an ideal Feed Grade Copper Sulfate used for agricultural purposes. There is strong interest from companies in Brazil, Canada, Colombia, Peru, and Chile to purchase our Feed Grade Copper Sulfate in quantities exceeding our potential production capacity.

Lustros Strategic Opportunities Bluestone SA (Traditional Mining): Mineral rock is processed in our Copper Sulfate processing plant in Puerto Escuro, Chile. The mineral is extracted from our own Anika copper mine or bought from local artisanal miners. Mineraltus Ltd. (Treatment of Copper Tailings): Tailings are waste materials generated by traditional mining. There are over 800 closed mines in Chile, 50% of which are abandoned. Using our state-of-the-art patented technology, we can extract copper from these tailings with significant margins. 1 2

Traditional Mining Subsidiary Lustros Ltd 1 (via our 60% ownership of Sulfatos Chile, SA)

Bluestone SA Traditional Mining Raw Material Sources: Bluestone SA owns the Anica Mine, a 25-hectare (62 acre) copper mine. We secured mineral rights to an additional 800 hectares in the area (comprehensive long-term mining plan). Artisanal miners also sell their mineral rock to the Chilean Government at subsidized prices. Mineral rock with below 1.1% copper content is not accepted. We can buy this lower grade material at significantly discounted prices.

Bluestone SA Treatment Plant Our copper sulfate plant is processing 7,500 tons of material per month and is in the process of expanding to a 15,000 ton capacity. This will generate approximately $25M revenue and more than $16M EBITDA annually. Monthly capacity of the plant will reach 40,000 tons over a period of time. The management team of this plant is exceptional and has been recognized by the region’s authority in mining.recognized by the region’s authority in mining.

Bluestone SA Rich Land Our Anica copper mine includes 800 hectares of land in a copper rich area of Chile. Our geologists estimate that there could be as much as three million tons of raw material with a copper density of 1% to 1.5% in our property.

Bluestone SA Numbers This business model assumes one new plant every six months, with ten active plants by FY2017. Our prototype plants are engineered to process 84,000 tons of mineral rock per year. Each plan yields 4,032 tons of Copper Sulfate with a market value of approximately $12.1MM. These numbers include mining cost. Acquiring mineral rock from artisanal miners should improve the economics significantly.

Bluestone SA Forecast This plan assumes that every new front requires a full new plant at $6MM each. We expect to leverage plants more efficiently.

Bluestone SA P&L

Treatment of Tailings Subsidiary Lustros Ltd 2 (Turning Waste into Opportunity)

Mineraltus SA Treatment of Tailings Sources of Tailings: Every ton of copper produced generates 80 tons of copper tailings. Chile recently enacted a law requiring all mines to present a closure plan that includes treatment of tailings. There are 846 mines with significant tailing deposits in Chile, 50% of which are abandoned. Chile produces 3.5 million tons of copper per year, with 280 million tons of new tailings generated each year. Mineraltus SA can clean up these tailings at a substantial profit, charging the government for the clean-up and taking mineral rights on the abandoned tailings.

Treatment of Tailings Numbers This model assumes the implementation of a new tailings front every three months. For modeling purposes we have assumed a new plant for every project, however, it is safe to assume that we will be able to leverage some of the plants for several projects

Treatment of Tailings Forecast Assumes covering 100% of closure costs. Plan is to charge the mine owner or the Chilean government for these costs. Treatment of Tailings Forecast ($000s)

Treatment of Tailings P&L

Combined Forecast Lustros Ltd 2 (Summary of Strategic Opportunities)

Income Statement Forecast Combined forecast ($000s)

Income Statement P&L Our fairly conservative forecast demonstrates tremendous potential for an extremely attractive valuation in the public market.

Balance Sheet Forecast

Management Team Highlights Juan Carlos Camus Chairman Gonzalo Troncoso President & COO Our management team draws upon decades of experience and proven success in mining, exploration, production, and finance. Full resumes of our experienced Chilean management team are available here.are available here Zirk Engelbrecht Chief Executive Officer Trish Malone CFO & Secretary Angelique de Maison Principle Financier

Thank You Contact Info: Gonzalo Troncoso President & COO Phone: (909)