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July 2009 PowerPoint Presentation

July 2009

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July 2009

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  1. July 2009

  2. Disclaimer THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS. This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries nor should it or any part of it, nor the fact of its distribution, form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any such offer will be made by means of a prospectus to be published by the Company in due course in connection with the proposed offering and any decision to purchase or subscribe for securities in connection with the proposed offering described in this presentation should be made solely on the basis of the information contained in such prospectus. This presentation has been prepared by, and is the sole responsibility of, the Company. This document, any presentation made in conjunction herewith and any accompanying materials are preliminary, for information only and are not a prospectus or admission document. The information contained in this presentation has not been independently verified.  No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information or the opinions contained herein.  The Company and its advisors are under no obligation to update or keep current the information contained in this presentation. To the extent allowed by law, none of the Company or its affiliates, advisors or representatives accept any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. Certain statements in this presentation constitute forward-looking statements, including statements regarding the Company’s financial position, business strategy, plans and objectives of management for future operations. These statements, which contain the words "believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “will,” “may,” “should” and similar expressions, reflect the beliefs and expectations of the Company and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the implementation of our business strategy, the achievement of the anticipated levels of profitability, growth, costs and synergies of the Company’s recent acquisitions, the timely development and acceptance of new products, the impact of competitive pricing and behavior, the ability to obtain necessary regulatory approvals, the ability to attract and retain qualified personnel and the impact of metals industry-specific and general business and global economic conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Neither the Company, nor any of its respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. This document has not been approved by any competent regulatory or supervisory authority. All references to “MT” or “tons” mean metric tons, each of which equals 2,204.6 pounds. This document will not be left behind after this presentation and by accepting this document and attending the presentation you agree to be bound by the foregoing limitations. 1

  3. GSM: The Leader in Silicon One of the Western World’s largest and lowest cost silicon metal producers 3 of the 4 lowest cost facilities in the Western World per CRU Estimated ~61% and ~18% share of capacity in North America and Western World, respectively(1) Silicon is a critical input in a number of industrial materials and has no substitute Leading global silicon-based specialty alloy producer Sole source relationships with many customers 50%+ share of capacity in certain key alloys Global reach with 9 facilities in 5 countries – U.S., Brazil, Argentina, Poland and China Significant raw materials ownership / proximity Historically solid revenue and profit visibility Strong profitability through the cycle with substantial leverage to price (1) Pro forma for Niagara Falls, NY facility re-start. 2

  4. Global Production Footprint Product Silicon metal Silicon alloys Cored wire Solar grade silicon Electrodes Beverly, OH (CRU #2) Si metal / 24,800 tons Silicon-based alloys / 46,800 tons Solar-grade silicon / 360 tons Niagara Falls, NY (unranked) Si metal / 30,000 tons Shizuishan, Ningxia Hiu, China (“Yonvey”) Carbon electrodes / 10,000 tons (undergoing expansion) Alloy, WV (CRU #3) Si metal / 67,100 tons Police, Poland Cored wire / 8 million meters New York, NY Headquarters Selma, AL (CRU #4) Si metal / 20,900 tons Breu Branco, Para, Brazil (CRU #8) Si metal / 43,600 tons Mendoza, Argentina Silicon-based alloys / 26,000 tons San Luis, Argentina Villa Mercedes Plant Cored wire / 24 million meters Source: Company information, CRU, 2009. Note: Parenthetical figures reflect CRU, 2008 cost curve rankings. 3

  5. Track Record of Growth Through Strategic, Well-Priced and Accretive Acquisitions December 2002 • Alan Kestenbaum purchases the debt of Globe Metallurgical (“GMI”) June 2004 • Alan Kestenbaum obtains control of GMI and leads a reorganization December 2005 • GMI purchases largest silicon metal plant in the world (Alloy, West Virginia) from Elkem • GMI raises capital from D.E. Shaw and Plainfield January 2007 • Acquires Camargo Correa Metais S.A., a major Brazilian silicon metal producer, renames Globe Metais May 2008 • Acquires 70% of a Chinese carbon electrode manufacturer (“Yonvey”) 1874 • Predecessor company founded in 1874 in Ohio April 2003 • Globe Metallurgical Inc. (“GMI”) files for bankruptcy protection October 2005 • International Metal Enterprises (“IME”), founded by Alan Kestenbaum, raises $200 million as a special purpose acquisition corporation (“SPAC”) January 2008 • Acquires 81% of Solsil, Inc., a producer of upgraded metallurgical grade (“UMG”) silicon, from a related party Today • One of the largest silicon metal producers in the Americas • Lowest cost silicon metal producer in the world November 2006 • GMI merges into IME and is renamed Globe Specialty Metals, Inc. (“GSM”) • Acquires Stein Ferroaleaciones S.A., an Argentine silicon metal and specialty alloys producer, renames Globe Metales 4

  6. Well-Diversified Business Mix Production mix End-markets Revenue by region Customers Note: Figures represent percent of total volume produced. Data is for nine months ended 03/31/09. 5

  7. World’s Lowest Cost Producer 2008 Western World Silicon Metal Cost Curve Source: CRU, 2009. Note: Red line denotes median operating cost per ton.Argentina and Niagara Falls, NY facilities are not currently researched by CRU. 6

  8. Strong Barriers to Entry with Consolidated Supply Base 2.8 tons of quartz 1.4 tons of coal 2.4 tons of wood Strong Barriers to Entry Consolidated Supply Base • Power (36%) – requires stable, long-term supply of low cost electricity • Raw materials (40%) • Proximity to high purity, low cost raw materials – GSM owns quartz and wood chips supply • Freight costs are significant – 6.6:1 ratio of inputs to output • Electrodes • Quality is critical – GSM owns supply • Capital cost of greenfield construction • $180 million for a two-furnace operation • GSM has 18 furnaces • Long lead time for greenfield completion • Permitting is a long and complicated process • 3–5 years from concept to commissioning 2008 Western World Silicon Metal Production 1 ton of siliconmetal Top 5 producers = 73% Source: CRU, 2009. 7

  9. Prices Resilient / Substantial Leverage to Price Silicon metal prices have been more resilient than other metals relative to historic levels and are expected to recover as the economy rebounds Relative Price Movements GSM has Substantial Leverage to Price • Costs are stable and facilities are some of the most efficient in the world • Control of inputs through ownership or long-term contracts • Each 1¢/lb ($22/MT) increase leads to ~$4 million more in EBITDA 22.3% (15.6%) (43.7%) Source: American Metal Market. Note: Prices reflect the spot high price for each respective period. Note: EBITDA impact estimated based on assumed $0.01/lb increase on all 186,400 tons of pro forma silicon metal capacity. 8

  10. Growth-Oriented Strategy • IPO is the first step in executing our growth strategy • Acquisitions will be carefully targeted, synergistic and accretive • Current economic environment and poor capital structures = opportunity • Product diversification • Pricing leverage in strong markets • Ensure greater operational utilization in down markets 9

  11. Silicon Metal is Critical to a Variety of Industrial Materials Chemicals(50% of sales) Aluminum(40% of sales) Solar / Electrical(10% of sales) Silicones Coatings Auto / Commercial Other Solar Electronics • Oils • Cosmetics • Hydraulics • Textiles • Polishes • Mechanical fluids Resins • Insulators • Waterproofing • Paints Rubber • Automotive • Insulators • Consumer items • Coatings • Adhesives • Sealants • Rubber • Thermoplastics • Fiberglass • Auto / commercial vehicles • Engine parts • Wheels • Transmission Other • Marine • Railway Machinery & equipment Electrical Photovoltaic cells for solar energy systems providing clean power to homes, buildings and industry • Semiconductors for integrated circuits (chips) for: • Mobile telephones • DVD recorders • Computers • Calculators • Video games • Televisions • Radios • Auto electronics • Medical electronics • Communications • Weapons • 410,000 tons consumed by chemical industry • GDP + 4% growth • 390,000 tons consumed by aluminum industry • Aluminum content in autos has increased over the past 20 years • Driven by increasing demand from the growing middle-class of BRIC countries and from global demand for renewable energy Note: % of sales figures represent industry estimates. 10

  12. Increasing Demand for Silicones Silicon metal is a base material for the production of silicones Silicones are a broad family of synthetic products with tremendously diverse applications Dow Corning has 20,000+ silicone customers New applications continually being developed to improve performance, reduce waste, etc. Stable industry growth Silicones’ unique properties enable the two-in-one function of shampoo-conditioners Silicone sealants provide environmentally-sound structuralglazing that bonds glass Safety and reliability for electrical devices ‘Green Tires’ for fuel efficiency Reliability for wind turbines 11

  13. 326pounds 77 pounds Aluminum Production Trending Higher • Silicon metal is required in aluminum as a strengthener and alloying agent to improve castability and minimize shrinking and cracking • Aluminum provides a lighter weight alternative to steel • Aluminum demand has increased at a 5%+ CAGR for the past 20 years Global primary aluminum demand(000s tons) North American light vehicle aluminum content as a percent of curb weight Source: Bloomberg, Brook Hunt and Street research. Source: Ducker Worldwide. Note: Based on 3,600 lbs of curb weight. 12

  14. Solar Demand is New Large-Scale Opportunity • Rapidly growing demand for polysilicon due to solar industry growth • Increased electricity consumption • Demand for alternative energy sources • Availability of government financing programs • 1.4 tons of metallurgical grade silicon required for every 1 ton of solar grade silicon Source: Photon International, EPIA and management estimates. 13

  15. Silicon Alloys Are Key Ingredients in Steel and Foundry Products Steel Foundry Ferrosilicon (FeSi) Calcium Silicon (CaSi) Magnesium Ferrosilicon (MgFeSi) • Only 6 producers in Western World • ~18% global market share and ~50% U.S. share Commodity Specialty Ductile Iron Pipe • Used in production of carbon steels, stainless steels and other ferrous alloys • High grade specifications • Requires technical know-how • Used in applications where strength and formability are required • Automotive components • Often sole supplier • Short lead times and variety of grades discourage imports • Water transmission • Competitive advantage in providing technical advice and service by tailoring composition to customers’ requirements • ~50% share of the magnesium ferrosilicon market in the Americas and 20% in the Western World 14

  16. Steel Capacity Utilization and Ductile Iron Growth • Re-stocking in the service center channel has started to improve demand • Fiscal stimulus dollars will begin to impact infrastructure spending further, driving steel demand • Automotive production appears to have troughed Steel production capacity utilization Monthly global steel production (000s tons) Source: American Iron and Steel Institute. Source: World Steel Association. 15

  17. Solsil GSM, through 81%-owned Solsil, intends to be at the origin of the solar cell supply chain Leverages Globe’s strong materials position to push further downstream in the solar cell industry Joint-development agreement with BP Solar Technology license agreement Technology development agreement Long-term supply agreement Technology partnership with Technion Solar / Upgraded Metallurgical Grade Silicon (UMG) Opportunity MG silicon SoG silicon Wafer Solar cell Solar module Systems Smelting Chemical processing Casting/cutting Surface treatment Assembly Installation/ operation 16

  18. Electrodes Present a Unique Product Diversification Opportunity Yonvey is a producer of carbon electrodes, a critical input to smelting processes Originally acquired to supply GSM Anticipated to eventually meet 100% of requirements Significant positive cost impact Expansion of third-party sales Attractive margins, reliable product, alternative to incumbents 17

  19. Rigorous Focus on Cost Reduction Goal is to strengthen position as the low cost producer Permanent headcount reductions across all facilities Significant cuts to SG&A – not expected to return with increased revenue Implementation of best practices 18

  20. Poised for Sector Rebound Expect near-term volume improvement Shipments in calendar Q1 2009 reached trough levels Inventory de-stocking is largely complete Calendar Q2 stabilized and began to show signs of improvement driven by end-market demand Capacity rationalization / discipline GSM has over 80,000 incremental tons available to come online quickly at a low cost GSM recently restarted 3 furnaces at Beverly, Brazil and Argentina facilities Re-start of Niagara Falls, NY facility expected in 2010, subject to market demand Annual contract negotiations typically begin in November 19

  21. Financial Highlights • Profitable and cash flow positive on operational basis • Margin improvement through price increases • Highly variable cost structure and low overhead • Significant permanent reductions to SG&A • Minimal ongoing maintenance capital expenditure requirements (~$9 million annually) • Increased control of raw materials has substantially reduced working capital requirements • Conservative capital structure with flexibility to pursue growth opportunities • Metrics-focused financial management 20

  22. Strong Financial Results Through Challenging Times Revenue Adjusted EBITDA(1) • ($ in millions) • ($ in millions) ’06–’08 CAGR = 61.7% ’06–’08 CAGR = 120.5% Capital expenditures Adjusted EPS(2) • ($ in millions) • ($ per share) Note: 2006 data is for the predecessor company, GMI, and is not pro forma for a full-year impact from Globe Metais or Globe Metales. (1) Adjusted EBITDA is defined as EBITDA (see page 11 of the S-1) plus goodwill and asset impairment charges of $69.7 million. (2) Adjusted for goodwill and asset impairment charges of $69.7 million in the nine months ended 03/31/09. 21

  23. Conservative Capital Structure Positions the Company for Growth • ($ in millions) Note: LTM Adjusted EBITDA of $86.7 million. Adjusted EBITDA is defined as EBITDA (see page 11 of the S-1) plus goodwill and asset impairment charges of $69.7 million. (1) Assumes 5.6 million primary shares issued at mid-point of filing range less gross spread of 7.00% and estimated offering expenses of $1.5 million. Share information (as of June 30, 2009) • 66,944,254 basic shares outstanding • 201,453 outstanding warrants (at $5.00) • 1,325,414 outstanding unit purchase options (at $7.50) – each represents 1 share and 2 warrants (at $5.00) 22

  24. Summary Highlights • Leading global market share in silicon metal • World’s lowest cost producer • High barriers to entry in an already consolidated industry • Strong financial performance through downturn • Improving trends in key end-markets and new growth markets • Substantial leverage to price • Experienced and cost conscious management team with unique operational skills and proven history of growth by acquisition Globe Specialty Metals is a business with strong fundamentals that presents a unique opportunity to leverage the economic recovery 23

  25. Appendix

  26. Strong and Experienced Management Team Alan KestenbaumExecutive Chairman Founder / >20 years in industry Jeff BradleyChief Executive Officer 2008 / >25 years in industry Malcolm AppelbaumChief Financial Officer 2008 / >25 years of experience Arden SimsChief Operating Officer 1984 / >35 years in industry Stephen LebowitzChief Legal Officer 2008 / 19 years of experience Bruno ParreirasExecutive Director Globe Metais, S.A. 1993 / 16 years in industry Delfin RabinovichExecutive Director Globe Metales, S.A. 2007 / >20 years in industry Ted HeilmanExecutive Director Yonvey 2004 / >20 years in industry 25

  27. Board of Directors • GSM’s Board of Directors is comprised of seasoned executives with strong management, metals, finance and international experience • Alan Kestenbaum (Executive Chairman) • Stuart Eizenstat • Partner, Covington & Burling LLP; Former Deputy Secretary of the United States Department of the Treasury; International Advisory Board Member of Coca-Cola, Board Member of UPS • Franklin Lavin • Chairman of the Public Affairs practice for Asia-Pacific at Edelman; Former Managing Director and Chief Operating Officer of Cushman & Wakefield Investors Asia; Former Under Secretary for International Trade at the United States Department of Commerce • Thomas Danjczek • President of the Steel Manufacturers Association; former senior executive at Wheeling-Pittsburgh Steel Corporation • Donald Barger, Jr. • Former Chief Financial Officer at YRC Worldwide, Worthington Industries and Hillenbrand Industries; Board Member and Audit Chair of Gardner Denver and Quanex • Daniel Karosen • CPA; Partner, Mandel, Fekete & Bloom 26

  28. EBITDA Reconciliation (1) Net interest expense excludes interest income earned on common shares subject to redemption of $0.8 million for the year ended June 30, 2007. (2) Amortization expense during the year ended June 30, 2006 excludes amortization of deferred financing fees of $0.6 million. (3) EBITDA and Adjusted EBITDA include non-cash share-based compensation expense of $4.7 million and $6.6 million for the nine months ended March 31, 2009 and March 31, 2008, respectively, and expense of $8.2 million and $0.5 million for the year ended June 30, 2008, and the year ended June 30, 2007, respectively. (4) For the nine months ended March 31, 2009, EBITDA and Adjusted EBITDA also include $1.4 million of restructuring charges and an inventory write-down of $5.1 million. 27