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Segue Presentation - February 2012

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					Emang Manganese Project
Building a New Manganese Project in South Africa




                                           February 2012
             DISCLAIMER

Disclaimer

•   This presentation has been prepared by Segue Resources Limited (Segue or the Company). It contains general information about the Company’s activities current as at the date of the presentation. The information is provided in
    summary form and does not purport to be complete. This presentation is not to be distributed (nor taken to have been distributed) to any persons in any jurisdictions to whom an offer or solicitation to buy shares in the Company
    would be unlawful. Any recipient of the presentation should observe any such restrictions on the distribution of this presentation and warrants to the Company that the receipt of the presentation is not unlawful. It should not be
    considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the
    Company will be entered into on the basis of this presentation or any information, opinions or conclusions expressed in the course of this presentation.

•   This presentation is not a prospectus, product disclosure document or other offering document under Australian law or under any other law. It has been prepared for information purposes only. This presentation contains general
    summary information and does not take into account the investment objectives, financial situation and particular needs of any individual investor. It is not financial product advice and investors should obtain their own independent
    advice from qualified financial advisors having regarding to their objectives, financial situation and needs. Segue nor any of their related bodies corporate is licensed to provide financial product advice.

•   This presentation and information, opinions or conclusions expressed in the course of this presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future
    performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied.

•   There are a number of risks, both specific to Segue, and of a general nature which may affect the future operating and financial performance of Segue, and the value of an investment in Segue including and not limited to title risk,
    renewal risk, economic conditions, stock market fluctuations, manganese demand and price movements, timing of access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key
    personnel, reserve estimations, native title risks, foreign currency fluctuations, and mining development, construction and commissioning risk.

•   You should not act or refrain from acting in reliance on this presentation, or any information, opinions or conclusions expressed in the course of this presentation. This presentation does not purport to be all inclusive or to contain all
    information which its recipients may require in order to make an informed assessment of the prospects of Segue. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the
    accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. Recipients of this presentation must undertake their own due diligence and make their
    own assumptions in respect of the information contained in this presentation and should obtain independent professional advice before may any decision based on the information. No representation or warranty, express or implied, is
    made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in the course of this presentation. To the maximum extent permitted by law, no representation, warranty or
    undertaking, express or implied, is made and, to the maximum extent permitted by law, no responsibility or liability is accepted by the Company or any of its officers, employees, agents or consultant or any other person as to the
    adequacy, accuracy, completeness or reasonableness of the information in this presentation. To the maximum extent permitted by law, no responsibility for any errors or omissions from this presentation whether arising out of
    negligence or otherwise is accepted. An investment in the shares of the Company is to be considered highly speculative.

•   The exploration targets or conceptual exploration targets in this presentation or expressed during the course of this presentation are subject to completion of the necessary feasibility studies, permitting and execution of all necessary
    infrastructure agreements. In relation to any statements pertaining to future exploration targets or conceptual exploration targets, the nature of the exploration target means that the potential quantity and grade is conceptual in
    nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

•   This presentation and information, opinions or conclusions expressed in the course of this presentation should be read in conjunction with Segue's other periodic and continuous disclosure announcements lodged with the ASX, which
    are available on the Segue website.

•   Some statements in this presentation regarding future events are forward-looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward-looking statements include,
    but are not limited to, statements concerning the Company’s exploration programme, outlook and target sizes. They include statements preceded by words such as “potential”, “target”, “scheduled”, “planned”, “estimate”, “possible”,
    “future”, “prospective” and similar expressions.

Competent Person Statement

•   The information in this report that relates to Exploration Results and Exploration Targets at the Emang Manganese Project is based on information reviewed by Mrs Adelle Mossop, BSc (Hons) Geology, Pr NatSci. Mrs Mossop is a full
    time employee of Sound Mining Solution and is appointed as consulting geologist to Tenure Minerals Consultants project team. Mrs Mossop has sufficient experience which is relevant to the styles of mineralisation and types of
    deposits under consideration and to the activity she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".
    Mrs Mossop consents to the inclusion in this presentation of the matters based on her information in the form and context in which it appears.

•   The information in this report that relates to Australian Mineral Resources and exploration results is based on information compiled by Mr Simon Fleming who is a Member of the Australasian Institute of Mining and Metallurgy and has
    sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2004 edition of the
    “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Fleming consents to the inclusion in this presentation of the information in the form and context in which it appears.
                                                                                                                                                                                                                                              1
 COMPANY HIGHLIGHTS



 •      Segue Resources (ASX: SEG) is a manganese exploration company, focussed on the
        Emang Manganese Project in the Postmasburg Manganese Field in South Africa

 •      Segue Resources is earning a 51% interest by funding the Initial Drilling Programme
        and Bankable Feasibility Study

 •      The Emang Project has the potential to contain over 10-15 million tonnes of medium
        grade manganese ore (28-40% Mn) within 30m of surface1

 •      A maiden JORC-compliant resource is due to be released in 1Q 2012 – less than six
        months from commencing drilling

 •      Segue Resources holds exploration licences in the Pardoo region of Western Australia
        which contain iron ore (magnetite) and base metals


1. The potential quantity and grade of the above Exploration Target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if
   further exploration will result in the determination of a Mineral Resource
                                                                                                                                                                                              2
CORPORATE SUMMARY


 COMPANY OVERVIEW                                                                                                   SHAREHOLDER ANALYSIS


ASX stock code:                                          SEG                                                                                                    Board &
                                                                                                                                                              Management
                                                                                                                                                                  6%
Share price:                                             A$0.03
                                                                                                                                                                   Institutions
                                                                                                                                                                       1%
Shares on issue:                                         462.0m                                                             Australian
                                                                                                                            investors                              Overseas
                                                                                                                              82%                                  investors
Options on issue:                                        11.8m (A$0.051, 8/11/14)                                                                                    11%


Market capitalisation: A$13.9m
 As at 1 February 2012
                                                                                                                        Source: Advanced Share Registry


 SHARE PRICE CHART (A¢/SHARE)                                                                                       SUBSTANTIAL SHAREHOLDERS


 6¢
                                                                                                                   Nigel Tarratt Super Fund                            8.4%
 5¢
 4¢
                                                                                                                   MIMO Strategies Pty Ltd                             6.0%
 3¢
 2¢                                                                                                                Breamline Investments Limited                       5.4%
 1¢
  -¢
                                                    Jul 11
                Mar 11

                         Apr 11

                                  May 11




                                                             Aug 11
       Feb 11




                                                                      Sep 11

                                                                               Oct 11

                                                                                        Nov 11
                                           Jun 11




                                                                                                          Jan 12
                                                                                                 Dec 11




Source: Iress                                                                                                       Source: Substantial shareholder notices                       3
 EMANG PROJECT – EARLY SUCCESS


 •       Covers 1,668 hectares on the western limb of the
         Postmasburg Manganese Field

 •       Mineralisation close to surface over a significant
         portion of the project area

 •       Initial Drilling Programme of 62 reverse
         circulation and 9 diamond drill holes completed

 •       Drilling is focussed on an open pittable
         exploration target of 10-15Mt at 28-40% Mn1

 •       Intersected considerable manganese mineralisation
         within 30m of surface

 •       Maiden JORC-compliant resource due to be
         released in 1Q 2012

1. The potential quantity and grade of the above Exploration Target is conceptual in nature and there has been           CAPE TOWN   PORT ELIZABETH

   insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the
   determination of a Mineral Resource                                                                                                                4
ACHIEVEMENTS TO DATE


•   Fully funded for initial acquisition and first stage of drilling

     –   A$3.53 million raised to fund the upfront acquisition payment and Initial Drilling Programme


•   Exploration contract awarded and drilling commenced in September 2011

     –   ZAR14 million Initial Exploration Programme awarded to Tenure Mineral Consultants


•   Initial drilling programme completed with exceptional results

     –   62 RC and 9 diamond holes drilled with ~80% of holes intersecting manganese


•   Prospecting right renewed for 2 years to November 2013

     –   Prospecting right includes the provision for trial mining


•   A$/ZAR has strengthened 11% from July 2011

     –   Expenditure to acquire a 51% interest in Emang has reduced by ~A$0.75m


                                                                                                        5
OUTSTANDING DRILL RESULTS


•   Initial Drilling Programme to earn a 30% interest in    REVERSE CIRCULATION DRILL RIG ON SITE



    the Project at a cost of ZAR14m (A$1.83m)

•   A total of 62 reverse circulation and 9 diamond drill
    holes completed for 2,750m

•   80% of drill holes intersected manganese with an
    average thickness of 5.9m

•   50% of holes contained multiple intersections with up
    to 14.0m of total manganese intersected                 DIAMOND DRILL RIG ON SITE




•   Assay results have confirmed significant manganese
    mineralisation over a zone of 2,700m x 800m

•   Initial metallurgical testwork results due 1Q 2012




                                                                                                    6
REVERSE CIRCULATION DRILL INTERSECTIONS

                             MPR06 9.0m @ 22.7% Mn from 14.0m
                               incl. 3.0m @ 32.6% Mn from 15.0m


                             MPR08 11.0m @ 22.3% Mn from 25.0m
                               incl. 2.0m @ 30.3% Mn from 25.0m


                             MPR67 7.0m @ 34.1% Mn from 21.0m
                               incl. 5.0m @ 40.5% Mn from 27.0m


                             MPR68 6.0m @ 23.4% Mn from 24.0m
                             incl. 3.0m @ 32.0% Mn from 27.0m


                             MPR35 4.0m @ 27.1% Mn from 30.0m
                             incl. 1.0m @ 42.4% Mn from 30.0m


                             MPR34 16.0m @ 25.9% Mn from 32.0m
                             incl. 5.0m @ 34.1% Mn from 43.0m


                             MPR40 12.0m @ 22.8% Mn from 54.0m
                               incl. 3.0m @ 31.1% Mn from 58.0m


                             MPR41 13.0m @ 26.3% Mn from 48.0m
                             incl. 2.0m @ 39.3% Mn from 49.5m
                                                                  7
CLOSE TO INFRASTRUCTURE


•   Located close to essential infrastructure           MAIN MANGANESE RAIL ROUTES AND EXPORT PORTS


    including rail, water, power and roads

•   A rail siding located 2km to the east of the
    project connects to the main rail haulage lines

•   Transnet is considering expanding manganese
    rail and port export infrastructure to 12Mtpa

•   Water available from the Vaal Gamagara pipeline
    which services Sishen and Postmasburg

•   Grid power available adjacent to the property

•   Segue is reviewing infrastructure alternatives to
    establish various transport routes




                                                                                                      8
PARTNERING FOR SUSTAINABLE DEVELOPMENT


•   Emang Mmogo Mining is Segue’s Black Economic Empowerment partner

•   Represents Historically Disadvantaged South Africans

•   Mrs Virginia Mongwaketse (Chairperson of Emang Mmogo Mining) is from the Northern
    Cape Province and brings valuable political experience

•   Board and shareholders of Emang Mmogo Mining have extensive knowledge of the
    Postmasburg and Kalahari Manganese Fields

•   Emang Mmogo Mining will enhance the project and assist in exceeding project milestones
    and timelines

•   Emang Mmogo Mining is responsible for the joint venture company meeting all BEE and
    Broad Based BEE requirements




                                                                                             9
PARDOO IRON-ORE AND BASE METALS

                                                       PARDOO TENEMENT LOCATION

•   100% interest in 4 exploration tenements in the
    Pilbara region of Western Australia

•   Pardoo Magnetite Project located 120km east of
    Port Hedland and 15km from the coast

•   Davis Tube Recovery testwork produced
    average concentrate grade of 66.0% Fe
                                                       PARDOO NICKEL PROJECT RESOURCE ESTIMATE

                                                           JORC         Cut-off   Material       Tonnes    Ni     Cu     Co     S
     –   66.0% Fe, 2.84% SiO2, 0.32% AlO2, 0.0037% P   Classification   (%Ni)      Type           (Mt)    (%)    (%)    (%)    (%)


                                                          Inferred        0.1     Weathered       5.5     0.25   0.18   0.03   0.10
                                                                                   Sulphide
•   Pardoo Nickel Project contains inferred resource
    of 50Mt @ 0.30% Ni and 0.13% Cu                                                Fresh
                                                                                  Sulphide
                                                                                                  44.5    0.31   0.12   0.03   2.96


                                                                                    Total         50.0    0.30   0.13   0.03   2.65

•   Red October Resources Ltd currently farming           Inferred        0.3     Weathered
                                                                                   Sulphide
                                                                                                  1.4     0.38   0.22   0.04   0.11

    into the Pardoo Nickel Project
                                                                                   Fresh          21.7    0.41   0.12   0.03   3.37
                                                                                  Sulphide

                                                                                    Total         23.0    0.41   0.13   0.03   3.18




                                                                                                                                  10
EXPERIENCED LEADERSHIP


•   Dr Eric Lilford – Chairman
    – 12 years investment banking and commodities research experience including corporate finance and project finance
    – Significant operational experience including large underground gold, platinum, copper and coal mines


•   Steven Michael – Managing Director
    – 15 years investment banking and mining research experience with Royal Bank of Canada, Macquarie Bank and Rothschild
    – Significant experience in debt and equity financing of mining projects across the global resources sector


•   Ian Benning – Executive Director
    – 16 years investment banking experience, dealing with project origination, technical evaluation and project financing
    – Head of Investment banking – Mining & Metals for ABSA Capital


•   Nicholas Ong – Non-Executive Director
    – 7 years experience as principal Adviser at the Australian Securities Exchange (ASX)
    – Previously a member of the ASX JORC Group and has overseen the admission of more than 100 companies on the ASX


•   Nikolas Rhodes – Project Manager
    – 20 years experience in mining operations in South Africa, Fiji Islands, Zambia, DRC and India
    – 3 years of project work experience in South Africa on Platinum projects




                                                                                                                             11
INVESTMENT HIGHLIGHTS


                                                              ENTERING EMANG MANGANESE PROJECT



•   Potential to discover a significant quantity of
    export quality manganese

•   Drilling indicates mineralisation is shallow and likely
    to be suited to open pit mining

•   Potential for early cashflow from stockpiles, trial
    mining and mine gate sales
                                                              OUTCROPPING MANGANESE MINERALISATION



•   Close to infrastructure with multiple transport and
    export options

•   Experienced management team in Australia and
    South Africa



                                                                                                     12
NEXT STEPS



•   Maiden JORC-compliant resource estimate               1Q 2012

•   Second tranche payment to BEE partner                 1Q 2012

•   Commence Scoping Study                                2Q 2012

•   Establish potential for mine gate sales               1H 2012

•   Establish export infrastructure options               1H 2012

•   Potential to acquire additional manganese tenements   Ongoing

•   Assess alternatives for Pardoo Magnetite Project      1H 2012



                                                                    13
ADDITIONAL SLIDES




                    14
FAVOURABLE COMMERCIAL TERMS


•   Segue to acquire a 30% interest in the Emang Manganese Project by:

     –   Payment of R7m (~A$0.97m) on completion of due diligence

     –   Completing Initial Drilling Programme of R14m (~A$1.83m)

     –   Payment of R7m (~A$0.86m) on completion of Initial Drilling Programme

     –   Payment of R7m (~A$0.86m) if a JORC measured & indicated resource of 10Mt at 34% Mn


•   Segue to acquire an additional 21% in the Emang Manganese Project by:

     –   Completing a Bankable Feasibility Study with minimum expenditure of R21m (~A$2.58m)


•   Segue to hold three of five seats on the Board of the joint venture company

•   A royalty of A$0.75/t payable on measured & indicated resources up to 25Mt




                                                                                               15
 POSTMASBURG MANGANESE FIELD


 •      Northern Cape Province contains the bulk of South
        Africa’s manganese reserves and produces ~20% of
        global manganese ore1

 •      Postmasburg Manganese Field was discovered in
        1922 and was mined by Assmang and Billiton from
        1960 until the 1980’s

 •      Production ceased due to the discovery of the higher
        grade Kalahari Manganese Field (+44% Mn)
                                                               PROJECTS IN THE POSTMASBURG MANGANESE FIELD

 •      Increased demand for medium grade manganese ore        Mine                    Ownership


        (34 − 44% Mn) has lead to renewed exploration          Macarthy                Blackrock Macarthy Limited

                                                               Bishop                  PMG Mining
        activity in the Postmasburg Manganese Field            Morokwa                 National Mining Limited

                                                               Lomoteng                Private

 •      Several new manganese mines have commenced             Lohatlha                Chabua Minerals Limited


        production from the Postmasburg Manganese Field in     Driehoekspan            Maremane Mining Limited

                                                               Glosam                  Assmang
        the past 5 years                                       Boskop                  DCD Engineering

                                                               Kareepan                Private

                                                               Manganore               Union Mines
1. Source: International Manganese Institute                                                                        16
SOUTH AFRICA DOMINATES HIGH GRADE
MANGANESE MARKET

•   South Africa is the world’s largest producer of   FORECAST GLOBAL STEEL PRODUCTION



    high grade (>44% Mn) manganese ore

•   China is the largest producer of manganese
    ore but at a much lower grade (~22% Mn)

•   Production of manganese ore is highly
    concentrated amongst 6 countries

•   85-90% of manganese ore used as an alloying       Source: Hatch Beddows / Assmang

    element in the production of steel                MANGANESE GRADE AND PRODUCTION BY COUNTRY




•   Average manganese content in steel is approx.
    7.5kg per tonne of steel

•   Manganese demand is highly correlated to
    steel demand but with only a small cost impact

                                                      Source: Hatch Beddows / Assmang

                                                                                                  17
MANGANESE PRICE OUTLOOK


•   Current manganese price is US$4.75/dmtu, as         MANGANESE PRICE FORECAST



    determined by BHP Billiton for China delivery

•   Manganese prices have fallen from 2007/08
    highs but are still well above historic levels

•   Macquarie Bank is forecasting manganese
    prices into China to increase to US$6.00/dmtu
    by 2013
                                                                                     Japanese price 48% Mn, FOB

•   Global production is forecast to increase in line   Source: Macquarie Equities   Chinese price 43-44% Mn, CIF


    with growth in steel production (4-5% p.a.)         BLAST FURNACE INPUT COSTS




•   Manganese represents less than 1% of the                                             Iron ore
    cost of steel production for a blast furnace                                         Coking coal
                                                                                         Scrap
                                                                                         Freight
                                                                                         Manganese


                                                        Source: Segue Resources

                                                                                                                    18
Segue Resources Ltd
ASX Code: SEG

Level 8, 225 St Georges Tce
Perth WA 6000

Phone: +618 9486 4699
Email: admin@segueresources.com
Website: www.segueresources.com

				
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