Cape Town December 2011 February 2017 Page 1 Page 1 Overview - PowerPoint PPT Presentation

Avocet Mining PLC Cape Town December 2011 February 2017 Page 1 Page 1

Overview Page 2 Page 2

Overview of projects Inata Gold Mine Producing mine with exploration o potential Inata Mineral Resources of 3.3 o Moz, excluding Souma Reserve of 340k oz, LoMP runs to o end 2019 Souma, Pali and Ouzeni Deposits Souma deposit 20km from Inata process o plant – currently 0.7Moz US$11-14m funding needed to add Souma o and other satellite deposits to Inata LoMP Target is to add 5-600k oz reserve and 5-7 o years to the mine life Tri-K Development Project o Exploitation permit granted 27 March 2015, Mining Convention signed 19 Dec 2016 o Joint Venture signed with Managem in October 2016 to complete a feasibility study for a CIL project with a 1m oz reserve by Q1 2018 – leaving Avocet with 30% interest o Construction capex expected to be US$200-300m Page 3

Avocet Group Avocet Mining • Corporate head office • London and Oslo listing PLC - UK head office Souma and Tri-K project - Inata Gold Mine Ouzeni/Pali – Guinea – Burkina Faso Burkina Faso • In production since 2009 • Satellite deposits to Inata – • Mining permit for Heap Leach • 3 yrs of reserves remaining, 240k under exploration permits granted March 2015 • Souma most prospective – 675k • JV signed with Managem Oct 2016 oz at cash cost of cUS$900/oz (75- • Managem to obtain 70% interest by 85k oz pa) resource, expected to increase, • Debts of US$60m - bank debt of 20km from site. completing BFS for a CIL plant, • Funding of US$10-12m US$24m (Ecobank and Coris), trade increasing reserve to 1moz and creditors of US$29m, government exploration capex required investing US$10m • Ouzeni/Pali 15km from Inata • Capex for CIL plant est US$200- debts of US$7m • Funding of US$1-2m 300m . Avocet to contribute its post- exploration and capex required debt share to retain 30% interest Page 4

Listed on London and Oslo Share price Au US$/oz AVM share price v Gold Price 2016 (pence) AVM 140 1,500 120 Gold price 1,400 Ticker: AVM.L 100 1,300 80 60 1,200 40 1,100 20 Ticker: AVM.OL 1,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Listing date: London – Dec 2011 (previously AIM) Oslo Børs – June 2010 Shares in issue: 20,949,671 Market capitalisation : US$16m Elliott 1 Major shareholder: 13.5% 5 th Floor, 15 Old Bailey, London EC4M 7EF Registered office: 1 Elliott is also interested in Ordinary Shares held through contracts for difference (CFDs), representing a further 14.2% of the Compa ny’ s issued share capital Page 5

Burkina Faso – Inata, Bélahouro and Souma Page 6 Page 6

Burkina Faso – 8 mines in operation Inata located c 200km North of Ouagadougou in the Soum province. Access is via road, and takes c 6hrs Page 7

Inata • Inata commenced production in Dec 2009 – after initial success, combination of falling gold prices, rising costs, and metallurgical issues impacted profitability and reduced profitability • Focus since 2013 has been reducing costs, however this has also limited expansion work to extend mine life • Latest Inata LoMP shows reserve of 340k oz, and production continuing to 2019 but not beyond – which will make repaying the mine’s US$60m of creditors challenging • Additional deposits identified at Souma and Pali/Ouzeni – which require US$11-14m of funding to be developed • Souma/Ouzeni/Pali targeted to add 500-600k oz production and extend mine life by 5-7 years – significantly improving economics of the mine, and the prospects for shareholders and creditors Page 8

Inata production – past, future and potential Inata historic actuals '000 oz US$/oz Targeted production from Inata LoMP 180 1,600 (reserve) new deposits (unverified) 160 1,400 140 1,200 120 1,000 Pali/ 100 Souma 800 Ouzeni 80 600 60 400 40 200 20 0 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Production Cash cost Av realised gold price Page 9

Overview – plan of mine area • Open pit mining across five main pits (Inata North, Central, South-East, Far South and Minfo) • Owner-operator mining fleets – although equipment is ageing North Pit • Processing via conventional CIL plant – nameplate capacity 1.6mtpa Plant • Original mine licence covered 26km 2 - TMF1 Central Pit increased by 50% in 2014 • Water sourced from purpose-built barrage (Gomdé) TMF2 South Pit • Site includes office block, accommodation camps, canteen etc Minfo Pit Filio Page 10

Inata – 2017 outlook and challenges • Production expected 75-85,000 oz at cash cost US$900- 1,000/oz • Key challenges are: Creditor pressure - Security threat – incidents have increased in Sahel region - Mechanical availability of mine fleet and plant - Tight margins in the context of volatile gold prices - Legal issues with workforce - Royal gold – disputed US$7m - • Mine has total debts of cUS$60m as at 31 January 2017 Ecobank loan - c US$20m – repayable c US$1m per mth - until Oct 2018 Coris Bank - 2.5bn CFA loan (US$4m) granted Oct 2016 - - repayment due end Mar 2017 Inata LoMP, excluding Souma & Pali/Ouzeni, runs to 2019. At current Trade creditors of US$28m at 31 Jan 2017 - gold prices, cash generated will Further US$1m due to as bank drafts (invoice advances) - contribute to reducing substantially, but not repaying in full, the mine’s US$1m of government royalties/taxes outstanding - debts. US$6m due in respect of restoration bond - Page 11

Inata and satellite deposits 5km Souma Filio Pali Ouzeni Page 12

Souma – overview • 20km from Inata Mine – within hauling distance across flat terrain • 16 km gold in saprolite anomaly 2km Dynamite • Mineral Resource currently 0.7Moz. at 1.81 g/t Gomde • High grade core of +2 g/t material Barrage Miilam • Entirely different geological setting – quartz N’Darga North hosted gold, no preg-robbing characteristics as seen at Inata Miilam Central Miilam South Page 13

Souma - location 20km from Inata plant INATA PIT MINERALIZED SOUMA ZONE 0.7 Moz Au QUARTZ VEINS GOMBE DAM/ IMPOUNDMENT PERMIT BOUNDARY INATA MINE 2.5 Km FILIO, PALI, OUZENI BELAHOUROU 0.48 Moz Au Page 14

Souma – current resource CLASS Tonnes Grade Au (g/t) Metal (ozs) Measured - - - Indicated 2,410,000 2.32 179,500 Meas+Indicated 2,410,000 2.32 179,500 Inferred 9,220,000 1.67 496,100 Meas+Ind+Inf 11,630,000 1.81 675,600 • A total of 676koz have been defined at Souma within five deposits • Upgrade in resource on Dynamite targeted – increase of some 100-200k ounces realistic once work complete Page 15

Satellite deposit for Inata • Processing strategy for Souma is that it will serve as a satellite deposit for Inata • Ore will be trucked c 20km to Inata plant for treatment • Feasibility study will confirm details of metallurgy, costs etc • High level estimates have assumed US$4 per tonne additional haulage for the ore • US$10-12m funding needed: • US$5-7m to complete drilling and documentation for feasibility study and permit application by end 2017 US$5m capex (haul road, enhancements to • crusher, pit works) US$10-12m needed to bring Souma into production by 2020 – potentially adding 3 years of production to Inata mine life Page 16

Ouzeni/Pali • Ouzeni/Pali – located 7-8km SE/7km SW of the plant respectively. • Although both lie outside the Inata mining permit, it is hoped that the government would allow an extension to the permit area to include these deposits, without the need for a full feasibility study. • A drilling campaign estimated to cost US$1-2m would be required to confirm the existing 5m tonnes of inferred resource at 1.61g/t (270k ounces) • However reserves of 100-150k ounces would not be an unreasonable outcome. Deposit Classification Tonnes Au g/t Ounces 590,000 1.81 34,400 Measured 770,000 1.29 31,900 Indicated 1,360,000 1.52 66,300 Filio Meas + Ind 1,860,000 1.39 83,400 Inferred 3,220,000 1.45 149,700 Total 2,260,000 1.83 133,500 Inferred Pali 2,260,000 1.83 133,500 Total 2,930,000 1.45 136,200 Inferred Ouzeni 2,930,000 1.45 136,200 Total Page 17

Guinea – Tri-K Page 18 Page 18

Tri-K location – in Siguiri basin Severstal Anglogold Ashanti (Lefa – 5.9Moz Au) (Siguiri – 5.6Moz Au) Sovereign Mines of Africa (Mandiana – 0.6Moz Au) Cassidy Kolenda Avocet (Kouroussa – 1.0Moz Au) Balandougou (TriK – 3.0Moz Au) Tri-K Permits Kankan Conakry SEMAFO (Kiniero – 0.9Moz Au) Burey Gold (Mansounia – 0.8Moz Au) Birimian geology Wega Mining Guinée permits 50km Deposit size (production + resource) Page 19