Corporate Presentation July 2020
Xtract Resources PLC An Important Disclosure The information contained in this document, including any information and opinions contained or discussed in any accompanying oral presentation, question and answer session and any other materials distributed in connection with this document (the ‘Presentation’) has been prepared The Document and the Information have been prepared by or on behalf of, and is the sole responsibility of, the Company. This Presentation and its contents are private and confidential. It is intended solely for the exclusive use of the person or persons to whom it is addressed and must not be copied, reproduced or distributed in whole or in part or disclosed by recipients to any other person, nor may the contents be distributed in written or oral form to any other person, for any purpose without the prior written consent of the Company. This Presentation does not constitute, or form part of, an admission document, listing particulars, a prospectus, a circular or any other documents relating to the Company, nor does it constitute, or form part of any offer or invitation to sell, issue, underwrite or acquire, or any solicitation of any offer to purchase or subscribe for, any shares or other securities in the Company, nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract. No reliance may be placed for any purposes whatsoever on the information contained in the Presentation or any assumptions made to it as to its completeness or fairness. No representation, warranty or undertaking (whether express or implied) is made to the fairness, accuracy or completeness of the information or opinions in the Presentation by or on behalf of the Company and (to the fullest extent permitted by law), no liability or responsibility is accepted by the Company persons for (i) the accuracy, fairness or responsibility of any such information or opinion; and (ii) the use of the Presentation by recipients. The information contained in the Presentation is for background purposes only and is subject to amendment, revision and updating without notice. The Company (including, without limitation, its officers, directors, employees, partners, agents, representatives, members, affiliates and advisors) nor any other party is under any duty to update or inform you of any change to such information. This Presentation contains forward looking statements. These statements relate to the future prospects, developments and business strategies of the Company. Forward-looking statements are identified by the use of such terms as 'believe', 'could' 'envisage', 'estimate', potential', 'intend', 'may', 'plan', 'will' or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in the Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Company's actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place reliance on forward-looking statements. The forward-looking statements speak only as at the date of the Presentation. You should be aware that any investment in the equity of the Company is subject to a number of risks, particularly as the Company is in an early stage of development and operates in an emerging market, and this could therefore effect the value of any investment in the equity of the Company and may lead to a loss of your entire investment. 2
Mission Statement Production, Development and Exploration resource company ➢ Africa and Australia based Copper and Gold focus ➢ To identify low cost entry production situations, which can be expanded into significantly larger operations ➢ To identify Copper and Gold geological environments, which have not been correctly investigated or only superficially explored ➢ To procure positions by credibility and past performance, utilising industry professionals with the relevant experience “If you are looking for elephants, go looking where elephants been found before” 3
Location of African Operations Zambia & Mozambique “Southern Africa maintains a high profile role for new metal discoveries” 4
Manica Alluvial Mining Mining Contractors ➢ Huafei Gold Resources appointed in January 2019 to mine the alluvials of the entire concession ➢ Agreement provides for Explorator to retain net percentage of the gold mined (after settlement by Explorator of the Mining Production Tax) of 22% until the entry fee has been settled in full, and 20% thereafter ➢ The Company expects the viable alluvials in the concession to be extracted by the first half of 2021 ➢ Discussions with a Chinese group who have shown interest in mining on the adjacent licence 7569L, based on similar terms to the agreements currently in place 3 rd Quarter 2 nd Quarter 1st Quarter 4th Quarter ended ended ended ended 31 /03/2020 31 /12/2019 30/09/2019 30/06/2019 Production (Ounces) Total Alluvial Gold Production 467 1,045 994 1,088 Explorator share of gold produced 131 293 278 305 5
Manica Alluvial Mining Sub-contracted 6
Manica Gold Project Mutapa Mining (“MMP”) Collaboration Agreement ➢ Operational and funding agreement for Manica hard rock gold deposits concluded in May 2019 ➢ MMP in partnership with Omnia appointed as independent mineral processing contractor on gold bearing deposits on the concession ➢ MMP to finance and conduct mining operations to include all capital and operating costs ➢ Agreement provides for MMP to build and operate a carbon-in- leach (CIL) plant ➢ Gravity recoverable gold to be exploited during CIL plant build-up phase, assuming suitable plant is available ➢ Xtract will receive between 20%-23% (dependent on the prevailing gold price) of hard rock after tax operating cash flow ➢ Concession exploration programme to be initiated with an objective to enlarge the gold resource within current known areas not yet tested 7
Manica Gold Project Mutapa Mining (“MMP”) forecast ➢ Commercial production (installation of processing plant with throughput of capacity of not less than 29,000 tonnes per month) to be achieved by Q1 2021 ➢ Xtract to receive 23% of Net Profit at a prevailing gold price of greater than US$1,250 per ounce ➢ Projected cash flows: • US$1,300 per ounce gold price • 30,000 ounces produced per annum • Estimated cash inflow of US$23 million over 7 years 8
Zambia - Advanced Exploration Eureka Cu-Au Project ➢ Xtract has option to acquire initial 50% interest in project ➢ Eureka project straddles a major 3.5km NW-trending soil anomaly ➢ Limited historic drilling returned assay intervals up to 25.7m @ 3.30% Cu, 0.25g/t Au ➢ Small open pit developed by local company ➢ Recent artisanal digging at Eureka West, 1km away, located new mineralised zone - composite grab sample assayed 9.81% Cu, 1.94g/t Au, 13.77g/t Ag ➢ Xtract testing potential for major discovery 9
Zambia – Advanced Exploration Eureka Cu-Au Project – Xtract Diamond Drill Programme ➢ Near-surface oxide copper-gold deposit gives way to sulphides at depth, with stratabound and replacement styles Eureka Project, Zambia – Significant Drill Core Analytical Intervals in Xtract Holes Hole No. Depth Depth To Width Cu% Au g/t* From (m) (m) (m) EX-01 50.0 82.0 32.0 1.58 0.07 Including 51.2 70.2 19.0 2.08 0.08 EX-02 106.0 120.0 14.0 0.81 0.20 Including 116.0 120.0 4.0 2.35 0.53 EX-03 51.0 66.4 15.4 0.81 0.07 Including 51.0 54.0 3.0 2.55 0.07 10
Zambia – Advanced Exploration Eureka Cu-Au Project – 3-D Modelling ➢ 3-D Modelling of deposit concludes: • Immediate resource potential within oxide ore adjoining the open pit, with significant size potential along strike. • Deposit drilled over 200m of strike and to 80m depth • Copper mineralisation in the northwest of the pit appears to split and both limbs remain open to the northwest • High-grade stratabound and replacement sulphide zones also open down-plunge ➢ Follow-up pitting and drilling programmes planned “This project shows huge potential” 11
Zambia – Production & Discovery Potential Kalengwa Cu-Ag Project - History ➢ Among highest grade copper mines in Zambia – 20% of orebody >26% Cu sent for direct smelting ➢ Located 400km NW of Lusaka and west of the main Copperbelt - tarred road and grid power to within 40km of site ➢ Total open pit production of 1.9Mt @ 9.44% Cu, 50g/t Ag from 1970-1982 ➢ Massive chalcocite body in Katangan sediments & breccias, enriched by supergene alteration – mined to 130m depth “This acquisition has enormous potential for growth” 12
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