PRODUCING EXCEPTIONAL QUALITY DIAMONDS Corporate Presentation Q4 2018
DISCLAIMER The information contained in these slides has been prepared by BlueRock Diamonds plc (the “Company”) . This Presentation is being made for information purposes only and does not constitute an offer or invitation for the sale or purchase of securities or any of the assets described in it nor shall they nor any part of them form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever or otherwise engage in any investment activity (including within the meaning specified in section 21 of the Financial Services and Markets Act 2000). The information in this Presentation does not purport to be comprehensive and has not been independently verified. While this information has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by the Company or any of its officers, employees, agents or advisers as to, or in relation to, the accuracy or completeness of this Presentation, and any such liability is expressly disclaimed. In particular, but without prejudice to the generality of the foregoing, no representation or warranty is given as to the achievement or reasonableness of any future projections, management estimates or prospects contained in this Presentation. Such forward- looking statements, estimates and forecasts reflect various assumptions made by the management of the Company and their current beliefs, which may or may not prove to be correct. A number of factors could cause actual results to differ materially from the potential results discussed in such forward-looking statements, estimates and forecasts including: changes in general economic and market conditions, changes in the regulatory environment, business and operational risks and other risk factors. Past performance is not a guide to future performance. The Presentation is not a prospectus nor has it been approved by the London Stock Exchange plc or by any authority which could be a competent authority for the purposes of the Prospectus Directive (Directive 2003/71/EC). This Presentation has not been approved by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000. The information contained in this Presentation is subject to change, completion or amendment without notice. However, the Company gives no undertaking to provide the recipient with access to any additional information, or to update this Presentation or any additional information, or to correct any inaccuracies in it or any omissions from it which may become apparent. Recipients of this Presentation in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements. This Presentation does not constitute an offer to sell or an invitation to purchase securities in any jurisdiction. 1 Corporate Presentation Q4 2018
INTRODUCTION 2 Corporate Presentation Q4 2018
AT A GLANCE PRODUCING EXCEPTIONAL QUALITY, HIGH VALUE DIAMONDS AIM listed diamond producer Cullinan which operates the Kareevlei Diamond Mine – Exploration one of the top 10 highest value per carat (South Africa) diamond mines in the world Kimberley Finsch KAREEVLEI High calibre local team Koffiefontein with years of experience gained at De Beers and Petra Diamonds recently strengthened by newly appointed Chairman Michael Houston Total material processed Plans to significantly increase 400,000 tonnes, carats recovered 11,000 production in 2019 with further growth expected in 2020 Average stone size of 0.35c per stone and average value of US$355/c; two largest diamonds of 11.7c and 10.58c 3 Corporate Presentation Q4 2018
KAREEVLEI IN NUMBERS 6.3cpht – inferred grade of KV Mining licence covers KV1 4.5cpht – inferred grade of KV KV2 3,000 hectares 3.7cpht – inferred grade of KV KV3 US$10,091/ct Discovered by De Beers in Open pit mining highest valuation to date for 7.76 carat diamond 1991 up to 100m below surface sold for US$78k 50 people 120km NW employed at mine-site of Kimberley Average value per carat of c.US$334 – 75,000 tonnes of ore put x5 known kimberlite ranking top 10 kimberlite diamondiferous pipes through plant in H1 2018 (81% mines in the world increase on H1’17) 8 million tonnes 200,000 tonnes FY 2018 (combined inferred resource production target of pipe KV1, KV2 and KV3 ) 400,000 tonnes run rate by YE 2019 4 Corporate Presentation Q4 2018
THE RESOURCE INFERRED RESOURCE FOR KV1, KV2 AND KV3 OF 7,984,000 TONNES AND 359,000 CARATS ▪ To date, 4.3% of the in situ tonnage resource has been mined ▪ Currently mining KV2 and KV1 ▪ Ongoing evaluation work on KV5 ▪ Developing plans to start mining the higher grade section of KV3 within the mid term INFERRED RESOURCE 2013 mine plan Volume (m 3 ) Pipe Tonnes Carats Grade (cpht) ▪ Potential inground value of circa US$120 K1 K1 632,000 1,594,000 101,000 6.3 million K2 K2 947,000 2,461,000 111,000 4.5 K3 K3 1,581,000 3,929,000 147,000 3.7 Total 3,160,000 7,984,000 359,000 5 Corporate Presentation Q4 2018
THE KAREEVLEI MINE BIRD’S EYE VIEW 1.5 Km KV5 6 Corporate Presentation Q4 2018
KAREEVLEI DIAMOND MINE 7 Corporate Presentation Q4 2018
GRADE KV2 - Section 4 (CPHT OF KIMBERLITE) ▪ Of total material mined to-date 80% of ore has been extracted from between surface and 20m below. Grades from this diluted area run between 0 and 3 cpht ▪ Less than 20% of material processed has been at levels below 20m from surface. Grades from this area run up to 6.3 cpht ▪ When mining undiluted kimberlite (typically below 20m) grades are expected to average at pit grade (4.5 cpht KV2 and 6.3 cpht KV1) KV2 - Section 8 ▪ Assuming 400,000 tonnes of kimberlite processed per year (our YE 2019 run rate target) the variation in grade has the following effect (assuming our historic valuation of US$355/carat) on revenues: Grade (cpht) US$ millions 2 2.8 3 4.3 4 5.7 5 7.1 0 – 3 cpht Costs remain unchanged irrespective of grade 4 – 6 cpht (Grade measured by cpht is the weight of diamonds Already mined (carats) found in 100 tonnes of kimberlite) 8 Corporate Presentation Q4 2018
OPERATIONS TO DATE: MINING KV2 DRIVE TO OPEN UP SECOND PIT TO PROVIDE FLEXIBILITY AND DE-RISK SUPPLY OF ORE ▪ Mined 380,000 tonnes to date ▪ 100,000 very low grade 0- 10 m from surface. <1 cpht ▪ 230,000 calcretised kimberlite. 10 – 20m from surface 2 – 3 cpht ▪ 50,000 undiluted kimberlite. 20 – 30m from surface. 4 – 6 cpht ▪ Average grade assuming zero grade in the 0- 10m level is 3.5 cpht ▪ Expect future mining to be in +4 cpht ▪ Grade so far varies between 1.1 cpht to 6.3 cpht ▪ This variation is expected whilst mining the near surface section ▪ Average grade increases when mining undiluted kimberlite at the sub 20m level 9 Corporate Presentation Q4 2018
OPERATIONS TO DATE: MINING KV1 DRIVE TO OPEN UP SECOND PIT TO PROVIDE FLEXIBILITY AND DE-RISK SUPPLY OF ORE ▪ Commenced stripping in April 2018 ▪ 160,000 tonnes of waste removed ▪ 25,000 tonnes kimberlite processed ▪ Inferred resource of 1.59m tonnes ▪ Resource modelled to 50m below surface ▪ Total mineable resource likely to be much greater ▪ Inferred grade of 6.3 cpht, 40% higher than KV2 ▪ 40m from KV2 at closest point which will enable mining both pipes as one pit, saving costs ▪ Near surface mining showing similar results to KV2 ▪ 10.58c diamond recovered ▪ Estimated to be worth US$50,000 ▪ Second largest stone by size and estimated value ever mined at Kareevlei ▪ Pleasing that it has come from near surface ground 10 Corporate Presentation Q4 2018
OPERATIONS TO DATE: THE PLANT Historic Tonnage Processed 250000 200000 ▪ Plant availability increased to 475 150000 hours per month leading to 100000 significantly increased volume 50000 since 2017 0 2014 2015 2016 2017 2018 e ▪ Plant utilisation of 73% ▪ Poor design and layout ▪ Non-standardisation of components ▪ Regular problems with crushing circuit ▪ Need to augment current skill base ▪ Continual improvement necessary 11 Corporate Presentation Q4 2018
EVALUATION AND EXECUTING OF DEVELOPMENT PLAN PIT EVALUATION Phase 1 Phase 2 Phase 3 ▪ KV3 ▪ 4 to 5 year mine plan to ▪ Flexibility during this period to extract 2m tonnes ore from switch to 70m push back ▪ Total mineable resource of 5m ▪ combined KV1 and KV2 Strip ration increases tonnes ▪ Extends pits by 1 to 2 years (400,000t per year) ▪ Total surface area of 5.5 ha ▪ 50m push back allowing ▪ Depending on grade a further mining to 70m below ▪ 250m from plant push back to 100m is possible surface ▪ Much higher strip ratio ▪ 3.5m tonnes of waste. Strip ▪ North segment of specific ratio of 1.75 interest ▪ Geology similar to KV1 and KV2 ▪ Inferred grade of North segment ▪ 3.7 cpht ▪ Mining to 70m would provide a further 8 years extra Life of Mine 12 Corporate Presentation Q4 2018
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