Copper and Zinc Production, Disciplined Growth. C O R P O R A T E P R E S E N T A T I O N | J A N U A R Y 2 0 1 7 A Leading Diversi fi ed Mid-tier NSU TSX & Base Metals Company NYSE MKT
Forward looking statements This Presentation contains forward-looking statements within the meaning of the United States Forward-looking statements are statements about the future and are inherently uncertain, and Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation actual achievements of the Company or other future events or conditions may di ff er materially concerning anticipated developments on the Company's continuing and future operations in from those re fl ected in the forward-looking statements due to a variety of risks, uncertainties Eritrea, the adequacy of the Company’s fi nancial resources and fi nancial projections. Forward- and other factors. Although the Company has attempted to identify important factors that could looking statements include, but are not limited to, statements concerning or the assumptions cause actual results to di ff er materially from those contained in forward-looking statements, related to estimates of capital and operating costs, the timing, nature and extent of future there may be other factors that cause results not to be as anticipated, estimated or intended. copper, zinc and gold production, expanding exploration licenses, the estimation of mineral The Company’s forward-looking statements are based on the beliefs, expectations and reserves and resources, methodologies and models used to prepare resource and reserve opinions of management on the date the statements are made and the Company assumes no estimates, the realization of mineral reserve estimates, the conversion of mineral properties to obligation to update such forward-looking statements in the future, except as required by law. reserves and resources, the potential to expand resources, reserves and mine life, future There can be no assurance that such statements will prove to be accurate, as actual results and exploration budgets, plans, targets and work programs, capital expenditures and objectives, future events could di ff er materially from those anticipated in such statements. For the reasons anticipated timing of grant of permits, mining and development plans and activities, set forth above, investors should not place undue reliance on forward-looking statements. construction and production targets and timetables, grades, processing rates, life of mine, net Please see the Company’s Management Information Circular dated May 18, 2016, the cash fl ows, metal prices, exchange rates, reclamation costs, results of drill programs, dividend Company’s Annual Information Form for the year ended December 31, 2015 dated March 15, plans and policy, litigation matters, integration or expansion of operations, requirements for 2016 and the latest Management Discussion and Analysis of Nevsun for a more complete additional capital, government regulation of mining operations, environmental risks, political discussion of the risk factors associated with our business which have been fi led with Canadian risks and uncertainties, unanticipated reclamation expenses, and other events or conditions that securities regulators and are available at www.sedar.com, which have also been fi led or may occur in the future. Forward-looking statements are frequently, but not always, identi fi ed submitted to the U.S. Securities and Exchange Commission on Form 40-F or Form 6-K and are by words such as "expects," "anticipates," "believes," "intends," "estimated," "potential," "possible", available at www.sec.gov . "budget" and similar expressions, or statements that events, conditions or results "will," "may," "could" or "should" occur or be achieved. Information concerning the interpretation of drill results Except as otherwise noted herein, Peter Manojlovic, Vice President of Exploration and Frazer and mineral resource and mineral reserve estimates also may be deemed to be forward- Bourchier Chief Operating O ffi cer are Quali fi ed Persons as de fi ned by National Instrument looking statements, as such information constitutes a prediction of what mineralization might be 43-101 and have approved the scienti fi c and technical information concerning Nevsun found to be present if and when a project is actually developed, and in the case of mineral Resources Ltd. discussed herein. reserves, such statements re fl ect the conclusion based on certain assumptions that the mineral deposit can be economically exploited. 2
Copper & Zinc Production, Disciplined Growth. A leading diversi fi ed mid-tier base metals company Bisha copper copper -zinc mine cash fl ow Positive cash fl ow from 8+ year open pit mine life High quality production growth in Timok Upper Zone high-grade copper-gold project Historic mining region with excellent infrastructure Exploration growth in two mining camps Strong balance sheet to fund growth Over US$200 million cash & no debt Management track record of success $0.16 annualized dividend paid quarterly Dividend reinvestment option (DRIP) 3 DRIP = dividend reinvestment program (investors can opt for NSU shares instead of cash to increase growth exposure)
Timok Project High grade copper-gold project
Serbia: great place to build a mine Close proximity to existing infrastructure, skilled labour and suppliers European quality infrastructure n Power n Roads n Rail n Water Timok Timok Project Project n Bor and Aurubis smelters n Ports 5km from Bor mining and smelting complex; a 40,000 person mining town 5
Timok project: Upper Zone High grade Upper Zone being rapidly developed Upper Zone U P P E R Z O N E B L O C K M O D E L C O P P E R G R A D E D I S T R I B U T I O N Semi Massive Sulphide (“SMS”) à high-sulphidation n epithermal pyrite and copper sulphide 35 MT @ 2.9% Cu & 1.7 g/t Au INFERRED MINERAL RESOURCE 1.7 MT @ 13.5% Cu & 10.4 g/t Au INDICATED MINERAL RESOURCE Subject of the April 2016 Reservoir Minerals PEA 5 n $US1.5B $US1.5B NPV at $3.00 per lb Cu and $1200 per oz Au n 12 year mine life 12 year mine life with sub-level open stoping and n conventional copper fl otation processing Nevsun owns 100% of Upper Zone project n 1. The cut-off grade used for the estimate is 0.75% Cu. 2. All figures are rounded to reflect the relative accuracy of the estimate. 3. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. 4. Mineral Resource is given on 100% basis. 5. The Mineral Resources and the associated PEA were reviewed and approved by Martin Pittuck of SRK Consulting (UK) Limited, a Qualified Person under National Instrument 43-101, details of which can be found on SEDAR and the Nevsun website. The PEA is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the PEA will be realized. For details see Reservoir Minerals press release April 19, 2016 and associated Technical Report on Nevsun’s website. 6
Timok project: next steps Pre-feasibility study Upper Zone Nevsun is rapidly advancing a Pre- Feasibility study ("PFS") for the Upper Zone . Key next steps for the project are: PFS targeted to be completed in n September 2017 50,000 metres of drilling n Decline targeted to start later in Q4 n 2017 Production mid-2020 to mid-2021 n ~ $35 million spend in 2017 n 7
RECENT UPPER ZONE DRILL RESULTS BIG INTERSECTIONS & GRADE n 182m @ 4.2% Cu + 4.8 g/t Au n 86m @ 9.5% Cu + 8.8 g/t Au n 99m @ 9.8% Cu + 8.9 g/t Au n 171m @4.9% Cu + 5.2 g/t Au 8
Bisha Mine High grade, modern infrastructure, and exploration potential
About Eritrea n Established in 1998 Nevsun has been working in Eritrea for 19 years n Strong government support Committed to mining industry, has contributed capital, and honored all commitments n Stable taxation and mining Copper Concentrate trucked to Massawa (340 km) for bulk export regulation for over 20 years n Productive , bilingual, local Independence 1993 workforce Politics Single party state Capital Asmara Population 6 million (est.) Culture 50% Islamic / 50% Christian Currency (Nakfa) Pegged to USD 10
Diversi fi ed production (Bisha mine only) Life of mine over 1.0 billion pounds of payable copper equivalent* Copper Equivalent Payable Production* LOM Payable Metals * Copper Zinc Gold Silver Copper 365 million lbs mm lbs Zinc 1.7 billion lbs 180 160 Gold 221,000 oz 140 mid-February 2017 Silver 7.6 million oz 120 2017 Outlook 100 80 NSR Revenue 60 40 47% 20 41% 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 *Dec 31, 2013 43-101 Technical Report 2017-2025 payable production - Cu $2.90/lb, Zn $0.92/lb, Au $1175/oz and Ag $20/oz.. Updated annual resource and reserve statement in Q2 2017. Ownership 60% Nevsun and 40% ENAMCO (Eritrean National Mining Company). 11
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