South Boulder MinesManaging Director : Lorry Hughes

World’s Shallowest
Potash Deposit

Mines and Money - London
1st December 2010www.southbouldermines.com.au (ASX: STB)
Geo Surveys International conducting a ground gravity survey over known mineralisation at the Colluli Potash Project, Eritrea.

1. Executive Summary
SOUTH BOULDER MINESASX Listed October 2003 (ASX: STB), (SO3-Ber), (SO3-Fra); andThree outstanding projects: potash, nickel and gold.

Colluli Potash Project, Eritrea.

PROJECTS 

World class buried evaporite potash project in Eritrea;

4.5km2 of potash mineralisation identified and growing;Potash assays returned up to 44% KCl (28% K2O) from 28.68m
depth; World’s shallowest deposit;

Exploration target of 300-500Mt @ 21-25% KCl , <100m depth;Currently drilling, JORC/43-101 resource in December, scoping
study due in March quarter;Initial strategy to define a 1.5Mt p.a open pit operation andproduce in 2015 – expect expansion to 3Mt p.a., 7% of world
production;

At USD$400/t potash – potential revenue of ~ $0.6 – 1.2bnp.a.

Shallow carnallite mineralisation from COL-001, Colluli Potash Project,Eritrea.

Duketon Greenstone Belt Projects, Western Australia.

2New Nickel Sulphide Discovery – “Australia’s most exciting
greenfields nickel discovery”

Independence Group earning 70% of nickel upon completion ofBFS; and 5.20m @ 9.13% Ni, 1.09% Cu, 0.21% Co and 7.09g/t
PGEs (2.20g/t Pt, 1.74g/t Pd, 0.82g/t Rh, 1.79g/t Ru);

Mining Lease granted on 19th of November 2010;

Currently drilling and conducting scoping study work;

STB has 100% of Gold Rights on the DNJV and additional tenurein the Duketon Greenstone Belt.

Outstanding Nickel - copper – PGE mineralisation from the Duketon
Nickel Project W.A.

2. Company Snapshot
COMPANYDETAILS

BOARD

Market cap @ $1.31/share)$91.1M

Ordinary Shares

69.6M

Cash/NTA$6.0M

Unlisted Options

32.9M

Top 40 Shareholders

62%

Sprott Asset Management

15.6%

Terry Grammer (Chairman) + 35 years experience,
discovered Cosmos Nickel Deposit and was a founderof Western Areas NL;

Logging potash drill core at Colluli.

Lorry Hughes (Managing Director) + 18 years
experience, U, Au, Pb mining and exploration, Aust.,
SE Asia;
Liam Cornelius (Executive Director) + 18 years
experience, Au, Ni, company founder, Aust., SE Asia,Africa;
ERCOSPLAN (Potash Consultant) +50 years
experience in planning and execution of projects in thepotash and mineral salt industry. World renownedexperts.
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COL-004 drill core showing high grade carnallitite and kainitite
mineralisation.

3. Share Price Performance and Activities
Update resource
Maiden potash Resource
Scoping study
resultMore potash

Scoping study updates

World’s shallowest potash deposit confirmed with assays

More Nickel

Nickel Discovery- 5.2m @ 9.1% Ni-Cu-PGE’s
Nickel Drilling resumes

Nickel and PGE’s

Potash in first hole

Potash license granted“A Significant
re-rating is
expected as wepush closer toproducerstatus”
45. Colluli Potash Project Ticks a lot of Boxes

Low cap-ex and op-ex production
51,000 km

5. Colluli Potash Project (CONT’D) Scoping study into a world first
open cut potash mine isunderway;
 This hasn’t been done before
because there are no deposits
with these grades of potash soshallow;
 Potash mineralisation zonesaverage 24.8m thick; Houston Formation potash richlayers have been intersected up
to 45m thick at Musley, only
15kms from Colluli;

COL-006
Depth to = 48.32m;
Thickness = 24.08m

 Exploration target of 300-500Mt@ 21-25% KCl has an in groundvalue of up to ~ $40bn at current
prices of KCl;
 Sylvite- KCl
Carnallite – KMgCl3.6(H2O)
Kainite – MgSO4KCl.3(H2O)

 All ore types have been mined and processed
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together in the past

6. What is Happening Next
 Continue drilling potash; Compile JORC/43-101compliant resource inDecember; Award DHole geophysics
contract for March quarter; Complete scoping study, bymid 2011;
 Award seismic survey forDec quarter 2011;
 JORC/43-101 resource
update; Decide on path for full
feasibility studies by mid
2011.

Significant activity
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8. Duketon Nickel ProjectQUALITY NICKELASSETSROSIEMASSIVE
SULPHIDES

Green fields massive Ni-Cu-PGE mineralisation
discovery;
Hole TBDD098 - 5.20m @ 9.13% Ni,
1.09% Cu, 7.09g/t PGE’s (2.20g/t Pt,
1.74g/t Pd, 0.82g/t Rh, 1.79g/t Ru)(TW~3.3m);



Hole TBDD087 – 4.55m @ 4.05% Ni,0.74% Cu, 2.71g/t Pt+Pd (TW~2.4m);



Hole TBDD093 - 3.20m @ 3.20% Ni,
0.41% Cu, 2.37g/t Pt+Pd (TW~1.8m)
including; 1.68m @ 4.21% Ni, 0.46% Cu;

C2
DISSEMINATED
SULPHIDES

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Preliminary met work has been highly
encouraging;Further positive results at C2;
9.70m @ 1.11% within a broader zone of
25.50m @ 0.70% Ni;

50.00m @ 0.92% Ni, 0.04% Cu, 0.08g/t
Pt+Pd from 275.0m, including 37.00m @
1.05% Ni.

Brand new discovery

8. Duketon Nickel Project (CONT’D)MASSIVE NICKEL
SULPHIDES FROMROSIE
TBDD098 - 5.20m
Massive Sulphide
Intercept.
Nickel = 9.13%
Copper = 1.09%
Cobalt = 0.21%
PGE’s = 7.09g/t
Platinum = 2.22g/t
Palladium = 1.74g/t
Rodium = 0.82g/t
Ruthenium = 1.79g/t
In ground Value >USD$2,400/t
98. Duketon Nickel Project (CONT’D)QUALITY NICKEL
SULPHIDE
MINERALISATIONIS OPEN; MUCH
MORE DRILLINGIS REQUIREDMINERALISATIONCURRENTLY
INTERSECTEDOVER 750m
STRIKE; 400m DIPHIGHEST GRADEMINERALISATIONIS CONTINUOUS
FOR AT LEAST
250M

TBDD0994m @ 1.80% Ni

Massive sulphideintersectedAssays Pending

Zone where best grades havebeen intersected to date.
Current Hole10Interpreted DHTEM survey results suggest the strongest mineralisation is
between holes TBDD093 and TBDD098; drilling in the area currently.

8. Duketon Nickel Project (CONT’D)QUALITY
NICKELASSETSMININGLEASE
GRANTED“The most promising and exciting
Greenfields nickel project inAustralia”. Terry Grammer.

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9. Reasons to Invest
 South Boulder has recently discovered the world’s shallowest potash
deposit at Colluli, drilling and scoping study work underway;

 South Boulder with JV Partner Independence has recently discovered theRosie and C2 Ni-Cu-PGE deposits, drilling and scoping study workunderway;

 The Colluli project is situated in a prime infrastructure location in an
emerging potash province; The potash sector has excellent long term growth drivers and there is alarge amount of sector interest. Large multinational resource companies
participate in the sector, BHP, Vale, Potash Corp, competitor activity;

 Increased level of company promotion in key markets that understand thepotential of potash, USA, Canada, Europe, Asia;

 Tight capital structure with 69.6M shares on issue; highly leveraged tosuccess; Well funded with approximately $6.0M in liquid assets + option
conversions; On-going news flow from drilling and scoping study results in comingmonths.
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CONTACT
Lorry Hughes Bsc. MAusIMM
Managing Director
Mobile 0400 038 439
Int. Mobile +61 400 038 439
Telephone +61 8 6315 1444Facsimile +61 8 9478 7093
lorry@southbouldermines.com.au
www.southbouldermines.com.au
13Disclaimer
Forward-Looking Statements
The following presentation represents South Boulder Mine's best judgement at the time of presentation. This document is in summary form anddoes not purport to be all inclusive or complete. The contents include forward looking statements prepared on the basis of assumptions which may
prove to be incorrect. This presentation should not be replied upon as a recommendation or forecast by South Boulder Mine Limited. No
representation or warranty is made as to the accuracy, completeness or reliability of the information.
Competent Persons
Information that relates to Exploration Results including exploration data and geological interpretations is based on information compiled by Lorry
Hughes who is a full time employee at South Boulder Mines Ltd. Exploration results from the Duketon Nickel JV has been supplied by
Independence Group who are operator of the Duketon Nickel JV. Lorry Hughes is a member of the AusIMM and has experience which is relevantto the style of mineralisation and type of deposits under consideration, and to the activities which is being undertaken to qualify as CompetentPersons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.
Lorry Hughes consent to the inclusion in the report of the matters based on his information in the form and context in which it appears. The data,interpretation and diagrams for the Duketon Nickel JV have been provided courtesy of Independence.
JORC- Exploration Targets
It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in thispresentation relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves.
Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade stated or implied is conceptual innature, since there has been insufficient work completed to define them beyond exploration targets and it is uncertain if further exploration will
result in the determination of a Mineral Resource.

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