Company presentation January 2016 Exploration and production of - PowerPoint PPT Presentation

Company presentation January 2016 Exploration and production of high-end minerals and metals Nordic Mining ASA | N-0250 Oslo | Norway | Tel + 47 22 94 77 90 | Fax + 47 22 94 77 01 | Org. no 989 796 739 | post@nordicmining.com

Disclaimer This document has been used by Nordic Mining during an oral presentation. Therefore, this document is incomplete without the oral explanations, comments and supporting instruments that were submitted during the referred presentation. To the extent permitted by law, no representation or warranty is given, express or implied, as to the accuracy of the information contained in this document. Some of the statements made in this document contain forward-looking statements. To the extent permitted by law, no representation or warranty is given, and nothing in this document or any other information made available during the oral presentation should be relied upon as a promise or representation as to the future condition of Nordic Mining’s business. 2

Minerals for a sustainable future Platinum, Palladium Titanium - natural rutile High Purity Quartz Lithium Seabed minerals exploration Developing high-value assets in the Nordic Region 3

Pd Pt 4 Li Clean air Electric cars Si Ti Lighter aircrafts Renew able energy

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Shareholder structure and share price development Largest shareholders* Share overview and share price development* Share overview Na m e of sha r e holde r No. of sha r e s % 1 NORDNET BANK AB (NOMI NEE) 29 795 240 7,7 % Stock symbol NOM Stock exchange Oslo Axess 2 SKAGEN VEKST 18 416 432 4,8 % Number of issued shares 385 504 805 3 NORDEA BANK PLC FI NL. CLI ENTS ACC. (NOMI NEE) 14 510 733 3,8 % Owned by Norwegian shareholders 82% 4 NORDNET LI VSFORSI KRI NG 11 665 687 3,0 % Owned by international shareholders 18% 5 DYBVAD CONSULTI NG AS 10 011 148 2,6 % Owned by management 2.5% 6 DANSKE BANK A/ S (NOMI NEE) 7 070 466 1,8 % Options 10 750 000 7 OVE KLUNGLAND HOLDI N NI L 7 023 696 1,8 % ‐ of which owned by management 9 500 000 8 MAGI L AS 6 500 000 1,7 % Fully diluted number of shares 396 254 805 9 SNATI AS 6 000 000 1,6 % Current share price (NOK) 0,63 10 CI TI BANK N.A. S/ A POHJOLA BANK PLC (NOMI NEE) 5 613 620 1,5 % Market capitalisation (NOKm) 243 Trading range year ‐ to ‐ date 2015 (NOK) 0.40 ‐ 1.28 11 I NFOSAVE AS 5 144 863 1,3 % 12 LI THI ON AS 4 167 898 1,1 % 13 OLE KRI STI AN G. STOKKEN 3 736 721 1,0 % NOK 14 AUDSTEI N DYBVAD 3 356 000 0,9 % 15 FEMCON AS 3 080 316 0,8 % 16 ADURNA I NVEST AS 3 079 993 0,8 % 17 REI DAR JARL HANSEN 3 018 124 0,8 % 18 OLAV BI RGER SLETTEN 2 680 000 0,7 % 19 JON HOVDEN 2 550 000 0,7 % 20 VPF NORDEA AVKASTNI NG C/ O JP MORGAN EUROPE 2 524 134 0,7 % Top 20 shareholders 149 945 071 38,9 % Others 235 559 734 61,1 % Tota l 385 504 805 1 0 0 ,0 % 6 Note (* ): Shareholder overview, share price and market capitalisation as of 31 December 2015

Board of Directors and Management Board of Directors Management Tarm o Tuom inen, Chairm an I var S. Fossum , CEO Chief Supply Chain Officer in Nordkalk, 20 years experience from management positions Finland. Geologist with broad mining in Hydro (oil/ gas and fertilizers) and FMC experience Technologies mmmmm Kjell Roland, Deputy chairm an Lars K. Grøndahl, CFO CEO of Norfund, Norway More than 20 years experience from industrial management positions in i.a. Aker, Scancem Group and HeidelbergCement Mari Thjøm øe, Board m em ber Mona Schanche, Exploration Manager Extensive executive and board experience Resource geologist from the University of Science from oil and gas, finance and investment and Technology in Trondheim. Previous management (e.g. Statoil, Hydro and KLP) experience as project geologist in Titania (Kronos Group) Hilde Myrberg, Board m em ber Extensive executive and board experience Thom as B. Addison, MD Nordic Rutile AS from oil and gas, power and consumer Mining engineer from the University of Science industries (e.g. Hydro and Orkla) and Technology in Trondheim. Broad experience from Franzefoss Minerals, Sibelco, and SNSK. Tore Viana-Rønningen, Board m em ber VP in Dag Dvergsten AS, Norway. Previous experience from Barclays Natural Resource Investments mmm Differentiated mining and industrial experience combined with extensive network 7

Nordic Mining Group NORDIC MINING ASA NORDIC OCEAN NORDIC QUARTZ KELIBER OY NORDIC RUTILE AS RESOURCES AS AS 100% 25% 100% 80% 8

9 One of the world’s largest rutile deposits Engebø

Engebø One of the world’s largest rutile deposits  JORC resource of 154M tonnes @ 3.77% TiO 2  Historical estimate of 383M tonnes @ 3.96% TiO 2 10

Approved industrial area plan and discharge 11 perm it by the Norw egian governm ent 1 7 April 2 0 1 5

Well-defined deposit Total of 50 exploration drill holes JORC Resource* Resource class Mill tonnes TiO 2 % @ JORC 3 % cut-off Indicated 31.7 3.77 Inferred 122.6 3.75 Total 1 5 4 .3 3 .7 7  50 drill holes (15,000 meters)  Planned drilling program of approx. 6,500 meters   1,129 surface samples Open pit mining for 10 - 15 years, 35 - 40 years underground mining  > 50 000 TiO2 analysis  Open pit strip ratio of 0.45: 1 (waste/ ore)  Block model - ordinary kriging Considerable JORC compliant resource estimate with upside potential from additional drilling Note (*): Refer to Scoping Study by Wheeler and Dowdell for resource statements 12

Engebø is among the largest rutile deposits in the world Rutile projects’ grade and target production 4,50% Engebø 4,00% 3,50% Murray Basin 3,00% Rutile ( % ) Cerro Blanco 2,50% 2,00% Sierra Rutile 1,50% Coburn Donald 1,00% Planning Ranobe Kwale 0,50% Moma Construction 0,00% Production -0,50% Grande Cote -1,00% 0 50 100 150 200 250 Production ( Ktpa) Size of bubble indicates resource size Source: Company websites 13

The highest rutile grade and lowest impurity content Rutile grade for current feedstock producers and planned projects Engebø 3.77% Murray Basin ‐ Iluka 2.32% Cerro Blanco 2.10% Akonolinga (Years 1 ‐ 6) 1.66% Project Producer Sierra Rutile 1.42% Akonolinga 1.15% Kwale 0.65% Snapper 0.59% Donald 0.37% Gingko 0.35% Cyclone 0.29% Thorium in Ti feedstocks Uranium in Ti feedstocks ppm ppm 1000 100 Perth Basin ‐ Iluka 0.27% 100 Fairbreeze 0.22% 10 Jacinth ‐ Ambrosia 0.20% 10 Max Max Min 1 Min Namakwa 0.20% 1 0.84 Mindarie Zircon 0.16% 0.21 0.1 0.1 Ilmenite Sulphate Chloride Synthetic Rutile Engebø Ilmenite Sulphate Chloride Synthetic Rutile Engebø Stradbroke 0.13% slag slag rutile rutile slag slag rutile rutile High grade ore with low impurities brings processing benefits and premium pricing Source: Company websites, “Production of titanium dioxide” (2007) by Fahli and Martin ‐ Matarranza 14

Why is rutile an attractive mineral? • Has unique opacity and reflection characteristics • Is an environmentally friendly pigment component • Gives no reactions from the human body • Effective reflection of UV radiation • Can be prosessed to a strong, light and non-corrosive metal 15

Garnet, by-product with benefits for the environment • Preferred sand-blasting medium, replacing sand with contents of free silica • Garnet is used as the primary cutting medium in water-jet cutting machines • Annual global production of garnet is approximately 2 million tonnes • Broad prices range depending of qualities • Water-jet quality is typically sold for USD 445 per tonne delivered in Norway • MOU signed with a reputable international industrial minerals producer 16

The TiO 2 value chain from mine to consumer Mining Processing End use   Rutile is mined from ore or Rutile is processed through  Majority of TiO 2 feedstock is mineral sands producing a rutile chlorination in reactors which used in production of pigment concentrate produces TiO 2 pigment for paints, plastics and paper  Optional metallurgical process  Approximately 5% is used for to produce titanium and related titanium alloys Hard rock Mineral sands Natural rutile implies improved production and less waste vs ilmenite and other feedstock: Ilmenite/ slag Rutile Leucoxene  Low est consum ption of ore ~ 80% ~ 15% ~ 5%  Low est consum ption of chloride Processing  Less w aste  Low er production costs Paint, plastics Aircraft & W elding and paper Medical ~ 9 0 % ~ 5 % ~ 6 % TiO 2 ; small part of total cost for end-use manufacturers with few viable substitutes 17

Long sea freights underpin attractiveness of new European supply 2 2 % 8 % 5 % 8 % Norw ay 5 % Canada Ukraine China US 5 % 5 % 3 % I ndia 1 9 % 2 0 % Vietnam Sierra Leone Australia South Africa Rutile producer Ilmenite producer Cylinder indicates % of w orld TiO 2 feedstock production Zimbabwe Ilmenite & rutile producer European feedstock consumption is 30% of world total; production at approx. 13% Source: TZMI 18