EMERGING HIGH-GRADE MANGANESE OPPORTUNITY INVESTOR PRESENTATION - PowerPoint PPT Presentation

EMERGING HIGH-GRADE MANGANESE OPPORTUNITY INVESTOR PRESENTATION – FEBRUARY 2018

F O R W A R D L O O K I N G - S T A T E M E N T S This presentation contains forward-looking statements and factual information that are current as of the date the presentation was originally delivered. When used in this presentation, words such as “may”, “would”, “could”, “will”, “expect”, “anticipate”, “estimate”, “believe”, “contemplate”, “intend”, “budget” “plan” and other similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of estimated future exploration, success of exploration activities, expenditures, permitting, and requirements for additional capital and access to data. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of Giyani Metals Corp. (the “Company”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; the ability to enter into joint ventures or to acquire or dispose of properties; future prices of commodities; fluctuations in currency markets; operating or technical difficulties in relation to the speculative nature of exploration and development; accidents, employee relations (including labour disputes) and other risks of the gold industry; ability to obtain financing; changes in costs and estimates associated with the Company’s projects; legislative, political or economic developments in the jurisdictions in which the Company carries on business; requirements for additional capital; and regulatory restrictions including delays in obtaining governmental approvals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or expected. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by applicable law. 2 2

A U N I Q U E O P P O R T U N I T Y • GIYANI’S CORPORATE OBJECTIVE IS TO BECOME THE WORLD’S LEADING SUPPLIER OF LOW-COST HIGH-GRADE FEEDSTOCK MANGANESE FOR THE BATTERY INDUSTRY • THE COMPANY HAS ACQUIRED A LARGE LAND PACKAGE COVERING 8,135 SQUARE KILOMETERS IN THE KANYE BASIN, SOUTHEASTERN BOTSWANA, AFRICA. THE PROPERTY INCLUDES SEVERAL PAST PRODUCING MANGANESE MINES • HISTORICAL MANGANESE PRODUCTION AND EXTENSIVE GEOLOGICAL STUDIES OF THE AREA PROVIDES GIYANI WITH IN-DEPTH TECHNICAL INSIGHT AND THE ABILITY TO ACCELERATE THE PROJECT INTO PRODUCTION • UNIQUE GEOLOGICAL CHARACTERISTICS MAKE THE KANYE PROJECT A RARE OPPORTUNITY TO DELIVER LOW-COST, HIGH-GRADE MANGANESE IN A QUICK TIME-TO-MARKET • CONFIRMED MANGANESE OCCURRENCES AT TWO PROSPECTS, K.HILL AND OTSE • ASSAY RESULTS FROM THE FIRST 168 SURFACE SAMPLES REPORTED HIGH-GRADE MANGANESE OXIDE (MNO) UP TO 73.4% AT THE K.HILL PROSPECT AND UP TO 67.4% AT THE OTSE PROSPECT • NEAR SURFACE DEPOSITION MAKES IT EASY AND LOW-COST TO OPEN PIT MINE AT THE K.HILL AND OTSE PROSPECTS • LOW LEVELS OF IMPURITIES ALLOW FOR COST EFFECTIVE AND SIMPLE BENEFICIATION PROCESS • GIYANI IS UNIQUELY POSITIONED TO RETURN HIGH SHAREHOLDER VALUE IN A RELATIVELY SHORT TIME C O R PO R A T E A D V I S O R PO L I T I C A L A D V I S O R 3

T H E P R O P E R T Y • 88-100% INTEREST IN AN EXTENSIVE LAND PACKAGE COVERING 8,135 SQUARE KILOMETERS IN SOUTHEASTERN BOTSWANA • SEVERAL HIGH-GRADE MANGANESE OCCURRENCES WHICH PROVIDES GIYANI WITH A PIPELINE OF MULTIPLE PROJECTS TO COLLECTIVELY FORM A LARGE SCALE RESOURCE • CLOSE PROXIMITY TO THE TOWNS OF KANYE, OTSE, AND LOBATSE WITH ACCESS TO GOOD INFRASTRUCTURE, RAIL AND ROAD SYSTEMS, WATER AND ELECTRICITY • OPTIONS TO SHIP OUT OF 5 SEAPORTS ACCESSIBLE VIA RAIL NETWORKS AND STRATEGICALLY LOCATED FOR COST EFFECTIVE SHIPPING TO CHINA AND INDIA • BOTSWANA IS ONE OF THE MOST ATTRACTIVE AFRICAN JURISDICTIONS SUPPORTING MINING OPERATIONS WITH FAVORABLE TAX REGULATIONS AND EFFICIENT GOVERNMENT PROCESSES KANYE PROJECT MANGANESE PROSPECT 4

I N G O O D C O M P A N Y W I T H I N T H E K A L A H A R I B A S I N ESTIMATED PRODUCTION AND GRADE LEVELS OF SOUTH AFRICAN MANGANESE MINES 2.5 million tonnes P/A 40% Manganese 2.3 million tonnes P/A 37% Manganese 2.9 million tonnes P/A 37-55% Manganese 3.8 million tonnes P/A 37-44% Manganese 1.8 million tonnes P/A 33-44% Manganese Kalahari Manganese 2 million tonnes P/A Field 35-45% Manganese Private company (unknown production or grade) Source: Public companies annual reports and third party research. 5

K A N Y E B A S I N M A N G A N E S E • MUL TIPL E S URF ACE OUTCROPS OF UN IQUE HIGH- GRADE MAN GAN ESE • THE MANGAN ES E MINED AT K.HILL 195 7-1967 CON S IS TED, ALMOS T EN TIREL Y, OF HIGH-GRADE MAN GAN ESE OXIDE N ODUL ES • THE GIYAN I GEOLOGICAL TEAM LOCATED MULTIPLE AREAS W HERE THES E N ODULES ARE PRES EN T • THE MAN GAN ES E ORE DEPOS ITS AT K.HILL W ERE F ORMED BY OXIDATION AN D S UPERGENE EN RICHMENT RES UL TING IN A VERY S TABL E FORM OF MAN GAN ES E OXIDE ( S O U R C E : B O TS W A N A N O T ES A N D R E C O R D S V O L . 3 0 ) • CHEMICAL S TABIL ITY OF K.HILL MAN GAN ES E ORE MAKES IT COS T EFF ECTIVE TO STORE, AND TRAN S PORT 6

K.HILL A S S A Y R ES U LTS HIG H G RAD E MIN E RAL IZ ED S HAL E G R ADIN G UP TO 7 3 % MN O AL ON G 5 0 0 M ET ERS S TRI KE L EN G TH W IT HIN A 1 0 - MET ER -T HIC K, 1 KM X 1 KM EN VELOPE 7 7

K . H I L L I N T E R L A M I N A T E D M A N G A N I F E R O U S S H A L E U N I T C O R PO R A T E A D V I S O R T E C H N I C A L A D V I S O R PO L I T I C A L A D V I S O R 8

K.HILL G EO LO G ICA L MO D EL 9 9

O TS E A S S A Y R ES U LTS HIG H G R ADE MAN GAN ES E, UP TO 6 7 .4 % MN O AT TH E OTS E PROS PE CT , 4 0 KM EAS T OF THE K.HIL L PROS PECT 10 10

R O A D MA P • Plant design • • Mine permitting Plant costing • • Pilot production Mine plan • • Mine construction Off-take partners • Metallurgical studies • • Vertical integration Economic impact • Process report assessment • Environment impact • 2000 m diamond • Pilot testing studies drilling program • Product testing and • Environmental • 20,000 line km proto-typing management plan airborne geophysics • Initial resource estimates Q4 2018 Production Q3 2018 Q2 2018 Execution Design Q1 2018 Testing 11

S U C C E S S F A C T O R S STRONG ECONOMIC FUNDAMENTALS STRONG INVESTMENT FUNDAMENTALS GROWING DEMAN D OUTST RIPPING LIMITE D GLOBAL 88-100% INT EREST IN 8, 135 SQUARE KILOMETER S • • SUPPLY OF HIGH-GRADE MANGANESE CONTIGUOUS LAND PACKAGE MANGANESE AN D COBALT ARE CR ITICAL FOR A UNDER LAIN BY TRANSVAAL SU PER -GROUP, HOST TO 75% • • GROWING BATTERY INDUSTRY OF WORLD’S MANGANESE RESOURCES RAPIDLY INCREA SING DE MAND DRIVEN BY E LECTRIC 3 IDENT IFIED PROSPECT S THAT CAN BE DEVE LOPE D • • VE HIC LES, RESIDENT IAL ENE RGY STORAGE SY STEMS, INDEPENDENTLY AND GRID ENERGY-STORAGE FARMS HIGH GRADE, UP TO 73% MNO • SIGNS OF T HE B EGINN ING OF A C OMMODIT IES SU PER • STABLE OXIDISE D STATE AND SHALLOW DE POSITION • CYCLE RESU LTING IN LOW MINING, PROCE SSING, AN D MANGANESE BASE D BATTERY C HE MISTRY IS U SE D IN REFINING COSTS • TESLA’ S POWE R WALL, NISSAN LEAF, CHEVY VOLT, • STRONG MANAGEMENT AND TECHNICAL TEAMS MOST POWE R TOOLS, AND ALMOST ALL HEALT HCARE APPLICATIONS AMONGST OTHERS PROXIMITY TO GOOD IN FRASTR UCTURE – ROADS AND • RAIL SYSTEMS, WATER, AND POWER • COBALT IS AT RISK OF SEVERE SHORTAGE WIT HIN FEW YEARS, GIVING MANGANE SE BA SE D C HEMISTRY COST EFFECTIVE ACCESS TO 5 SEA PORTS • STRONGER POTENTIAL FOR GROWTH • FAVOURABLE MINING JURISDICTION WIT H LOW TAXE S MANGANESE BASE D BATTE RIE S HAVE SU PER IOR • AND NO RESTRICTIVE REGULATIONS THER MAL STABILITY COMPAR ED T O OT HER BATTERY • MULT IPLE OFF-TA KE OPTION S TO SHARE PROJECT CHEMISTRIES FUNDING 12

S I M P L E , E C O N O M I C A N D F A S T P R O C E S S I N G Secondary Crushing Mobile Rock Breaker +900MM 0-900MM 75-250MM <0.5-75MM 0-250MM LUMPY PRODUCT STOCKPILES 6-75MM Run of mine feed 0- 900MM FINES PRODUCT Screening Primary Crushing STOCKPILE 0.5-6MM <0.5MM FINES DISCARD FINES DISCARD HANDLING <0.5MM MAKE UP PLANT SERVICES WATER RESERVOIR 13

W H Y M A N G A N E S E MN ORE S UPPLY CON TIN UED CON TRACTING FOR A S ECOND CONSECUTIVE YEAR, BY -7% TO 44.8 MILLION WET MT, AS MANY MINES CLOSED IN 2015 REMAINED IDLED IN 2016. DEMAND IN CREAS ED BY 2% IN 2016 TO 47 MIL LION W ET MT, ON RISIN G MN ALL OYS PRODUCTION, ESPECIALLY IN CHINA. FOR THE FIRS T TIME SIN CE 2012, GLOBAL MN ORE DEMAND W AS L ARGER THAN S UPPL Y IN 2016, AS C O R PO R A T E A D V I S O R T E C H N I C A L A D V I S O R PO L I T I C A L A D V I S O R STOCKS OF ORE ACCUMULATED ALONG THE SUPPLY CHAIN HAVE BEEN CONSUMED. 14