121 MINING INVESTMENT Presentation February 2017 Key Points - PowerPoint PPT Presentation

121 MINING INVESTMENT Presentation February 2017

Key Points Merger • Merger with Joint Venture Partner creates Congo Releases Basin phosphate company with near term cashflow and long term project pipeline. Value Low Cost • BFS for Cacata deposit underway. Free digging, low Start-up strip ratio, simple beneficiation, located 0.5km from a bitumen highway, 60km from the new Caio Port. Project • Cabinda Province 391Mt of resources in six deposits Project • Zaire Province two projects with known phosphate Pipeline • Gas for future high analysis fertilizer production

Capital Structure Millions Current Shares on Issue 2,458 Current Performance Rights 60 Cash at 31 December 2016 A$4.3M Current Diluted Market Cap (0.7cps) A$18M Merger Shares 2,073 Merger Options exercisable upon at 1c (A$3.85M) 385 Performance Rights pursuant to merger 416 Incentive Shares 300 FULLY DILUTED SHARES POST MERGER 5,692

Waterfront Project Locations Cabinda Province  BFS for 800,000tpa Cacata Project underway  High grade, low impurities, easy beneficiation  60km sealed road access  Major airport at Cabinda  New port under construction at Porto de Caio  Global Resource 391.3Mt at 9.2% P 2 O 5 Zaire Province ( Petril Merger Assets )  See ASX release 5 December 2016, “ Minbos to Merge with Angolan JV Partner”  Lucunga Project where Petril has reported non- JORC mineral resources of 215Mt at 9.6% P2O5.  Pedra de Feitico Project where Petril identified outcropping rock phosphate.

Current Asset Ownership Petril Projects 50% 50% Cabinda Licences ~70% Lucunga Licences 100% Pedra de Feitico Licences

Merged Assets Petril Projects Shareholders ~50% 100% Cabinda Licences ~70% Lucunga Licences Pedra de Feitico 100% Licences

Cacata Long Section – Shallow Ore, High Grade

Pilot Plant Bulk Samples Target ~26% P205 Target ~32% P205

Bulk Sample Test Work BULK SAMPLES WET ROUTE DRY ROUTE 18 tonnes representing Wet Scrubber Roll crusher ~6Mt of dry DSO and Screen -2.5mm to 150um Drying to <3% moisture ~10Mt of Scrub+Screen ore Drying to <3% moisture Air classification -100um

Results Exceed Expectations 2012 STUDY 1 DRY 2 WET 3 PARAMETERS Feed Grade %P2O5 27% 30.5% 29.5% Mass Recovery 77% 81-88% 80% P2O5 Recovery 85% 86-91% 92% Product Grade % 30% 33-34% 31-32% 1. ASX Release 6 June 2012 “Cacata Project – Scoping Study Produces Positive Results.” The scoping study test work was completed on material from 8 drill holes representative of the deposit. The recovery numbers were derived from a scrubbing and screening at +212um to 2.36mm. 2. The Dry beneficiation test work was completed on 8 tonnes of sample from two distinct zones in the high grade core of mineralisation. The recovery numbers are derived from sizing the material to 6-19mm, drying to 1-3% moisture followed by air classification to remove the -106um 3. The Wet beneficiation test work is being completed on 10 tonnes of sample from two different locations classified as medium grade. The results are derived from scrubbing and screening the material at +106um and -12.5mm.

M&I Grade Tonnage Options Preliminary Optimisation suggests: • Wet beneficiation will be suited to 9-11Mt of the M&I resources at a cut-off of 26% P2O5 • Dry beneficiation will be suited to 6-8Mt of the M&I resources at a cut off around >28% P2O5 WET DRY Mine engineering studies will optimise the value and utilisation of the entire 15Mt M&I resource incorporating the second stage with flotation.

Cacata Capex Savings  Bulk sampling confirmed free digging material will not require ripping.  No filter press for product dewatering  Transport distance to Porto de Caio is 38km less than 2012 option  Dry Beneficiation will not require process water supply and tailings disposal The decision between dry and wet beneficiation will be a tradeoff between additional capex for wet processing and shorter stage 1 mine life for dry processing.

Deepwater Port Porto de Caio Cabinda  Located in Cabinda 60km by road from Cacata  12.5m depth ideally suited to phosphate vessel size. Letter of Intent  800tpa port capacity  Construction commenced  Stage 1 completion scheduled for end 2017

BFS Contractors prime • EISA • BFS Lead resources • Geology & • Equipment Mining • Process Test • Equipment work • Geotech & • Market study Hydrology

News and Activities   Appointment of BFS Contractors   EISA, Hydrology and Port components of BFS commenced   Caio Porto construction commenced   Bulk sample test work completed   Market Study to Completed  Trade-off Study Completed Feb 2017  Notice of meeting for Merger Mar 2017  Budget and Schedule for BFS finalized Mar 2017  Infill drilling for mine planning April 2017  Merger Completion May 2017  Offtake Agreements 2017  Financing 2017

Board and Management Partner at Steinepreis Paganin since July 2005. A Mining Engineer with 30 years experience in Wide ranging experience in all forms of commercial and exploration, development, operations and corporate Peter Wall corporate law, with a particular focus on resources finance. Lindsay has worked in minerals sands, copper Chairman (hard rock and oil/gas), equity capital markets and and tin operations obtaining a Mine Managers Lindsay Reed mergers and acquisition. Certificate. After completing an MBA he worked as a CEO resource analyst in the Australian equity markets. Since then he has started and managed a number of Director Corporate Finance, Asia Principal Capital resource companies with projects in a range of Limited. Damian has been employed in corporate Damian Black commodities in Australia, Africa and Asia. finance and stockbroking since 2006. Mr Black worked Director for the Lead Manager to the Minbos Resources IPO in 2010. Mr Weber is a chartered accountant and company secretary with 20 years experience in senior Stef Weber management roles in the resource industry in Australia Zeca is a mining industry professional and a qualified Domingos and Africa. He had previously held senior finance roles CFO diamond evaluator with over 12 years experience in the with Exxaro Resources and is experienced in financing, Cataluchi exploration and mining industry in Angola. He has project control, tax and operations management. various business interests in Angola including Hotels, Director transportation, general trading and mining. Qualified in geology and mining engineering, Rebecca has 15 years experience in the mining industry Rebecca Geologist of over 15 years experience with both majors including exploration, operations and consulting. She Bill Oliver and juniors. Previously Exploration Director and then Morgan has experience in West Africa and speaks Portuguese. Managing Director of Signature Metals. Led large scale Director Geologist Most recently she worked as a mining consultant with resource definition projects for Rio Tinto. Optiro Resources. A qualified Israeli Corporate Lawyer with 20 years Mike has 30 years experience in marketing and logistics experience in the legal profession. Most recently was with much of that in the fertilizer sector. He has worked Mike Erwin Dganit Baldar General Counsel for the Mitrelli Group, a multinational for fertilizer trading companies, as the agent for global Marketing and organisation which initiates, executes and manages Director companies selling reagents to the fertilizer sector and Sales large turn-key projects in developing countries. Mitrelli as agent for Rock Phosphate importers and exporters was very active in Angola during Ms Baldar’s tenure. including from West Africa.

Angola – A Resource Economy  Angola is the Africa’s third largest producer of both oil and diamonds and became the largest supplier of oil to China in July 2016 overtaking Russia and Saudi Arabia.  The 5.2Mtpa Angola LNG plant recommenced production in June 2016 after commissioning difficulties.  Favorable foreign investment policy.  Oil price collapse driving economic diversification.  Investing in infrastructure, port, roads and power.