CHAIRMAN'S ADDRESS 2013

Thank you for attending the 2013 annual general meeting of Krucible Metals Limited.
At Krucible's last general meeting on 30 November 2012 I spoke about the path Krucible had embarked on of transforming from a purely exploration company to an exploration and mining company.
That path was predicated initially on a proposed joint venture with Getax International Pte Ltd, a company based in Singapore, to develop Krucible's Korella tenement into an operational phosphate mine. Unfortunately after many extensions were granted to Getax to allow them further time to complete their due diligence, Krucible's board made the decision not to grant any further extensions. On 23 January 2013 Krucible announced to the market that its heads of agreement with Getax had terminated automatically and that the parties had ceased negotiations. In making the announcement Krucible's CEO Allan Branch said of the decision to end negotiations with Getax that "Krucible has its shareholders to consider and must quickly create wealth from its phosphate assets".
Krucible then announced an indicative proposal from what was then Daton Group Australia Limited (now Australia New Agribusiness and Chemical Group Limited), which I will refer to as "ANB" for short. The proposal was one for the sale of all of Krucible's phosphate bearing tenements, including Korella, to ANB. On 27 May 2013 Krucible and ANB jointly announced that they had signed a sale and purchase agreement or SPA for the phosphate tenements, under which the sale price payable to Krucible was
$12,096,000.00.
Completion was agreed to occur on 24 October 2013. On 5 November 2013 Krucible announced that a new completion date of 31 December 2013 had been requested by ANB and agreed to by Krucible. In return for this extension of time Krucible and ANB agreed that:
1. Krucible would receive an increased purchase price of $275,000.00;
2. ANB would immediately release the remaining deposit of $826,000.00 to Krucible;
3. ANB would pay tenement maintenance costs through to the new completion date;
and
4. all key conditions precedent in the SPA had been satisfied.
All of this of course was to be recorded in a deed between the two companies.
Krucible is delighted to say that following close negotiation between the two parties, yesterday the deed was agreed and executed, with the new completion date being 20
December 2013 for Korella and 16 January 2013 for the other tenements. ANB will make a 25% instalment payment of the purchase price associated with the release of Korella and the tenements will be protected by a first ranking mortgage until final completion. Whilst an earlier completion is the most desirable outcome - in all of the circumstances the board of Krucible believed that agreeing to the extension was the most appropriate course and in the best interests of shareholders. The additional terms I have mentioned that were agreed to for the extension are also of obvious benefit.

A transaction of this type is not a simple one. There is much to be done in terms of applying for and progressing mining lease and tenement transfers, satisfaction of numerous conditions precedent, negotiation of terms and alike. All of this went on, at an executive level each day to ensure that this deal progressed and Krucible's CEO and staff, who I will mention shortly, have worked tirelessly to that end.
In my letter to shareholders in this year's annual report I acknowledged and thanked shareholders for their faith and patience in persevering whilst Krucible's directors and staff worked to get this deal finalised. I again express my gratitude to our shareholders and take solace in the fact that settlement is not far off and that the value of your company will increase significantly by our doing exactly what we have said we would do, and that is deliver value to our shareholders by realising the underlying value of previous mineral discoveries.
The injection of funds from the completion of the sale to ANB will deliver the funding that Krucible needs to continue its ambitious exploration program that was announced in January this year. After the formal part of this meeting our CEO, Allan Branch, will be giving a presentation that covers this material and you will also hear from Krucible's senior geologist, Bridgette Humphries, who will address the 2014 exploration program in some detail. Whilst Krucible maintains a desire to diversify its activities to deliver value to shareholders, it remains true to its exploration roots which is evidenced by the planned significant exploration expenditure in the coming year. Approximately $2m has been budgeted on direct exploration costs for 2014, equal or better to any past year in Krucible's history.
Krucible has more recently announced some pleasing results from a number of tenements including Coorabulka, Cowie Mag, Luke's Plot and Tobermorey. And we have also progressed a number of new and existing applications to secure new ground to explore.
As we have previously announced, Krucible remains dedicated to realising value from its rare earth resources and in particular the heavier more valuable rare earths. Krucible continues its involvement in confidential new technology for rare earth extraction that is very exciting indeed. Whilst we are presently limited by confidentiality as to what can be said about this ground breaking technology, it is these types of new opportunities that your board continues to pursue with the aim of bringing value to the company in what is otherwise a tough market for junior explorers and miners. Since one focus in 2014 is the greenfield exploration of our tenements in the Diamantina region: Toomba, Kamaran Downs and Tobermorey; we are equally excited to say that we have agreed to uniquely collaborate on revolutionary biogeochemical research that if successful will facilitate information gathering in this otherwise extremely difficult terrain. Given confidentially, this is similarly news we cannot expand on just yet.
Krucible is also exploring a number of other opportunities that may prove to be a good fit with its stated desire to transition to an exploration and mining company and hopes to make announcements regarding these further opportunities not too far into the future.
2014 is looking like being the most significant year in Krucible's history. And whilst ahead of final payment from ANB nothing can be decided and announced, your board is acutely aware of the loyalty of its shareholders. In addition to steps already taken like the share

purchase plan completed in March this year, we will be looking to reward that loyalty in the appropriate way.
Whilst it is customary to thank staff for their efforts - I want to pause here because the contributions of Krucible's staff, particularly in the last 12 months, has been nothing short of exceptional; far over and above what one could reasonably expect. I mentioned earlier that there are a myriad of moving parts in making a deal like that with ANB come to fruition. Krucible's small but dedicated staff comprising Kate Hopkins our administration officer and responsible for tenement compliance, Bridgette Humphries, senior geologist and Mike Eisenhut, senior field officer are a big part of the reason why the SPA is going ahead. Our staff are given huge responsibilities and the freedom to fulfil them, and they come through every time with flying colours. From all of the board, a sincere thanks for your contributions over the last year and although we can't promise that 2014 will be any less busy for you, it certainly is shaping up to be an exciting year that we know you will be proud to be a part of.
In addition to the past individuals who brought the company to life, I would also like to acknowledge and thank Mike Meintjes, company secretary for his consistent, sound and practical advice, Ray Koenig our metallurgist for the unique skills he brings to the board and Allan Branch, Krucible's CEO for his tireless efforts in making the ANB deal happen, his tenacity and all of the other skills that he has brought to Krucible at both an executive and board level. Remember that all of this was on top of the equally complex and lengthy deal with Getax that ended through no fault of Krucible and then the financial safeguard Allan secured with Bergen. I'd like to remind shareholders also that while our CEO has ensured each staff member has received annual salary improvements, he has refused to accept any change to his own package and still receives the same annual management fee as when he started with Krucible. The executive functioning of Krucible is in very safe and capable hands. The composition of the board remains as it was at the last AGM and it is this solidarity and familiarity that has assisted us in getting the job done.
I would like to now continue with the formal part of the AGM.
Sean Kelly
Chairman
28 November 2013

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