South Boulder MinesManaging Director : Lorry HughesCountry Manager : Zeray Leake

Investor Update
ASMARA GEOCONGRESS 2010

Drilling Potashand Nickel
September 2010www.southbouldermines.com.au (ASX: STB)
General Exploration Drilling Pty Ltd at the Colluli Potash Project, Eritrea.

1. Executive Summary
SOUTH
BOULDERMINESPROJECTSASX Listed October 2003 (ASX: STB), (SO3-Ber), (SO3-Fra);and

Three outstanding projects: nickel, gold and potash.

Colluli Potash Project, Eritrea.
Potentially “world class” buried evaporite potash project inEritrea;

Conduct resource confirmation and definition drilling ahead ofJORC/43-101 resources and feasibility studies at Colluli;

Highly significant shallow potash mineralisation has now
been intersected in 3 diamond holes defining anapproximate area of 4.5km2 and growing;Drilling continuing to define up to a target 20km2;

Assay results from first 4 holes are due in late Sept;

Strategy to define a 1.5Mt p.a operation.

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

Duketon Greenstone Belt Projects, Western Australia.

2Nickel Sulphide JV with Independence Group (ASX: IGO);New Nickel Sulphide Discovery – “Australia’s most
exciting greenfields nickel discovery”

IGO earning 70% of nickel upon completion of BFS; and5.20m @ 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);

Scoping Study programs to commence in September;

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

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

2. Company SnapshotCOMPANY
DETAILSBOARD

Market cap @ 0.80c/share)$54.0M

Ordinary Shares

67.6M

Cash/NTA$5.8M

Unlisted Options

34.9M

Top 40 Shareholders

58.52%

Terry Grammer (Chairman) – 35 years experience,
discovered Cosmos Nickel Deposit and was a founderof Western Areas NL;
Lorry Hughes (Managing Director) – 18 years
experience, Au, U, Pb mining and exploration, Aust.,
Malaysia, Indon.; Energy Metals Ltd, Magellan Metals
Inc., Riotinto, North Limited, Plutonic;

South Boulder Drill Crew conducting the second diamond hole at The Colluli
Potash Project, Eritrea.

Liam Cornelius (Executive Director) – 18 years
experience, Au, Ni, company founder, Aust., SE Asia,Africa;
Dennis Wilkins (Company Secretary) – 20 years
experience with resource companies;

3ERCOSPLAN (Potash Consultant) - +50 years
experience in planning and execution of projects in thepotash and mineral salt industry. World renownedexperts.

COL-001 drill core showing base of a strong carnallite mineralisation zone
from 89.74 - 93.20m (note carnallite is heat sealed in plastic immediately
after drilling to prevent dissolution of the samples)3. Eritrea a Mining Friendly CountryFORMATIONCURRENTLY

The country gained its independence in 1991;

UN supervised referendum made it official in 1993;

Population ~ 5.0 million people; ~80% dependent
on subsistence agriculture;

Stable Government:o
MINING REGIME

GOV’T
INTEREST

4

Previous minister for mines was inplace for 12 years.

Supportive government for foreign investment inmining and exploration.
Mining code based on Northern Territory,Australia, with royalties of:
5% on precious metals; and

3.5% on base metals and salts.

Corporate tax rate ~ 38%;

Government 10% free carry; and

After BFS Government has option to purchase anadditional 30% equity participation interest at an
independently determined price.

Above; South Boulder crew checking the important drilling mud.
Below; South Boulder Geologist examining some of the first potash core.

4. Potash – Why Potash?

5Large scale, long term projects, strategic asset;

Rising population and improving diets are driving foodconsumption growth and potash demand;

Potash is required to produce more food from a declining
per-capita land base;Price estimates of USD$350 – 400/t for 2010 and rising,peak price USD$1,000/t in 2008;

Short-term decline in fertilizer use is not sustainable –irreplaceable, reduced use cannot continue without
potential consequences for the global food supply;Upshot is the potash market has strong
fundamentals for demand growth;Recent deals include BHP offer of USD $39bn to acquire
Potash Corp and Mag Industries (TSX: MAA) option toCOMPLANT to purchase 50.1% of the Mengo Potash
Project in the ROC for debt financing of US$1.2b.

BHP is planning to build the largest potash mine in theworld. 8Mt p.a, capital cost USD$10.5bn;

Colluli Project initial potential target to define a
1.5Mt p.a operation, capital cost ~ USD$0.50.75bn and mine life exceeding 20 years.

5. Colluli Potash Project Ticks a lot of Boxes

Potential Low Cost Production
61,000 km

5. Colluli Potash Project (CONT’D)

Above; Viscosity testing of diamond drilling mud for good recovery of the potash zones.
Below; A typical solution mine well head and distributer.

7

Above; Drill sumps in the salt flat provide a source of drilling water.
Below; Carnallite zone drill hole COL-002B (KMgCl3.6(H2O).

5. Colluli Potash Project (CONT’D) Danakil Depression deposits
formed by the evaporation ofwater once the basin was cut
off from the Red Sea due tovolcanic activity; and Houston Formation potashrich layers have beenintersected up to 45m thickat Musley, only 15kms
from Colluli;
 BHP, Allana Potash Corp.,
Sainik (Pvt) and otherplayers in the region;
 Sylvite- KCL
Carnallite – KMgCl3.6(H2O)
Kainite – MgSO4KCl.3(H2O)
 Mineralogy can support theproduction of both SOPand MOP.

8

5. Colluli Potash Project (CONT’D)

Above; COL-002B drill core showing the base of a strong carnallite zone from 63.25 – 67.00m.
Below; COL-004 drill core showing strong sylvinite zone from 34.60 – 35.51m.

95. Colluli Potash Project (CONT’D)
 1st Layer; (Historic)
1.7m sylvinite @ 12.5% K2O
TOP 23m –180m depth;
 2nd Layer: (Historic)
17m carnallite @ 50-70wt%
390m depth (~17% K2O);

10 kmTOP COL-001 intersected potashfrom 59.20 – 65.20m (6.00m) andfrom 83.20 – 103.40m (20.20m);
 COL-002B intersected potashfrom 56.56 – 80.50m (23.94m);
 COL-004 has intersected potashfrom 28.68 – 36.39m (7.71m);
from 48.55 – 70.39m (21.84m);
 Potash has been intersected
over an area of ~ 4.5km2 andgrowing (program increased to10-12 holes); Potential for very large tonnage; Excellent potential for the discoveryof additional potash beds at depth
as well as near surface potash richbrines.
10Schematic Section by Holwerda & Hutchinson (1968)

5. Colluli Potash Project (CONT’D)
Hole ID/Member

East (m)North (m)Dip

Length(m)From (m)To(m)

Description

COL-001

6447401589024

90

52.00

0.00

52.00

Clastics, overburden

Marker beds

9.20

52.00

59.20

Rock salt with anhydrite (CaSO4)

Sylvinite

6.00

59.20

65.20

Rock salt with sylvite (KCl) locally up to 30% sylvite

Intermediate

2.80

65.20

68.00

Rock salt with carnallite (KMgCl3.6(H2O))Intermediate

15.20

68.00

83.20

Bischofitite (MgCl2 .6(H2O))Intermediate

10.10

83.20

93.30

Carnallitite, (60-70%) carnallite (KMgCl3.6(H2O))

Kainitite

10.10

93.30

103.40Kainitite, kainite (MgSO4KCl.3(H2O))

37.90

103.40141.30Rock salt with layers of anhydrite (CaSO4) and clay

Above; COL-001 Summary Log
Below; COL-002B Summary Log

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Hole ID/
MemberEast (m)North (m)Dip

Length(m)From (m)To(m)

Description

COL-002B

644806

1591484

90

26.00

0.00

26.00

Clastics, overburden

4.00

26.00

30.00

Rock salt

Intermediate

26.56

30.00

56.56

Bischofitite (MgCl2 .6(H2O)) minor carnallite, kieserite (MgSO4) and rock salt

Intermediate

11.34

56.56

67.90

Carnallitite, (60-70%) carnallite (KMgCl3.6(H2O))

Kainitite

12.60

67.90

80.50

Kainitite, kainite (MgSO4KCl.3(H2O))

9.60

80.50

90.10

Rock salt with layers of anhydrite (CaSO4) and clay

5. Colluli Potash Project (CONT’D)
Hole ID/Member

East (m)North (m)Dip

Length(m)From (m)To(m)

COL-004

6429001590970

90

18.00

0.00

18.00

Clastics, overburden

Upper RockSalt/Marker Bed

8.96
1.72

18.00
26.96

26.96
28.68

Rock salt
Rock Salt with Anhydrite (CaSO4)

Sylvinite

7.71

28.68

36.39

Sylvite (KCl) locally 20-60% with rock salt and sulphate

Intermediate

0.19

36.39

36.58

Rock salt with carnallite (KMgCl3.6(H2O))Intermediate

11.97

36.58

48.55

Bischofitite (MgCl2 .6(H2O))Intermediate

5.70

48.55

54.25

Carnallitite, (60-70%) carnallite (KMgCl3.6(H2O))

Kainitite

16.14

54.25

70.39

Kainitite, kainite (MgSO4KCl.3(H2O))

3.21

70.39

73.60

Rock salt with layers of anhydrite (CaSO4) and clay

Above; COL-004 Summary Log

12Description

6. What is Happening Next
 Continue drilling potash(up to 10-12 holes); Receive assays from first 4
holes in September; Compile 43-101 compliant
resource by year end;
 Award DHole geophysics
contract for early nextyear; Complete scoping study,
by mid 2011;
 Award seismic survey for2011; Conduct further resource
definition drilling; Decide on full feasibility
studies by mid 2011.
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7. Summary (Potash)
EXPLORATIONSTRATEGY

POTENTIAL
ADVANTAGES

1410 km

10-12 hole confirmation HQ/NQ diamond drill hole program to be completed aroundNovember 2010;

Compile 43-101 compliant resource and commence early stage economic studies byDecember 2010;

Immediate follow-up exploration undertaken upon analysis of initial drilling results;Scoping study target to define a 1.0 – 1.5mtpa mining operation with estimatedcapital cost of USD$0.5 – 0.75bn;

Key advantages if economic deposit is defined;Close to port;

Solar evaporation;

Geothermal energy;Solution mining potential;

MOP and SOP products; and

Cheap capital and operating costs.
South Boulder drilling crews at the Colluli Potash Project, Eritrea.

8. Duketon Nickel ProjectQUALITY
NICKELASSETS

Successfully targeted extensions to massive NiCu-PGE mineralisation intersected in TBDD080;


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;

15

Preliminary met work has been highly
encouraging;Further positive results at C2;
9.70m @ 1.11% within a broader zoneof 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.

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
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8. Duketon Nickel Project (CONT’D)QUALITY NICKEL
SULPHIDE
MINERALISATIONIS OPEN

MINERALISATIONCURRENTLYINTERSECTEDOVER 750m
STRIKE; 400m DIP

17

Strong potential for additional high grade intercepts is supported by the interpretation of downhole transient-electromagnetic (DHTEM) survey results from holes TBDD093 and TBDD098
which suggests that the strongest mineralisation is situated between these holes andcontinues steeply down plunge to the north west.

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

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9. Reasons to InvestSouth Boulder is a diversified explorer with recent significant new greenfield discoveries ofpotash in Eritrea as well as gold and nickel in Western Australia;

The Colluli project is situated in the prime location in an emerging potash province with thepotential to define world class deposits;

The potash sector has excellent long term growth drivers and very large multinational
resource companies participate in the sector, BHP and Potash Corp, competitor activity;

The Colluli project is proximal to major markets and infrastructure (China, India);

Tight capital structure with 67.6M shares on issue, highly leveraged to success;Well funded with approximately $6.0M in liquid assets;

 The Duketon Ni-Cu-PGE Project is set to take off with the commencement of follow-up
drilling and completion of a scoping study over the next 4-6 months;

 On-going news flow from drilling and scoping study results in coming months.

19CONTACT
Lorry Hughes Bsc. MAusIMM
Managing Director
Mobile 0400 038 439
Int. Mobile +61 400 038 439
Telephone +61 8 6315 1444
Facsimile +61 8 9478 7093
lorry@southbouldermines.com.au
www.southbouldermines.com.au
20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 Competent
Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.
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 that it is uncertain if further exploration will
result in the termination of a Mineral Resource.
JORC- Exploration Targets
This ASX release has been compiled by Lorry Hughes using information on exploration results supplied by South Boulder and in the case of theDuketon Nickel JV, Independence Group who are the operator of the Duketon Nickel JV. Lorry Hughes is a member of the Australian Institute ofMining and Metallurgy. Mr Hughes is a geologist and he has sufficient experience which is relevant to the style of mineralisation and type ofdeposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004Edition of the“Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Lorry Hughes consent to the inclusion in the reportof 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.

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