FROM GRASSROOTS TO PRODUCTION: NEAR TERM BAUXITE PROJECT IN GUINEA - PowerPoint PPT Presentation

CORPORATE PRESENTATION Q2 2018 FROM GRASSROOTS TO PRODUCTION: NEAR TERM BAUXITE PROJECT IN GUINEA

COMPANY OVERVIEW ALUFER IS ONE OF THE MOST ATTRACTIVE BAUXITE MINING COMPANIES GLOBALLY Developing significant bauxite assets in the Republic • of Guinea, West Africa Near term production from flagship Bel Air Project • On target for first ore on ship Q3 2018 • Rare development story: • Alufer discovered the deposit through maiden • drilling in 2011 Completed detailed feasibility studies and • extensive social and environmental work Secured financing in 2016 • Commenced construction in 2017 • Upside potential from Bel Air North and Labe licences • Focused on delivering a long term, sustainable mining • operation and creating value for all stakeholders 2

BEL AIR PROJECT - HIGHLIGHTS Fully financed to first commercial > 15 year Life of mine Logistical advantage production USD$205m financing package 146mt JORC resource 15km from the coast • • • secured from consortium of identified Easily accessible from • specialist investors Initial rate of 5.5mtpa Conakry by road • RCF, AFC, Orion Mine Finance Direct Shipping Ore – no Control of own logistics • • • processing required Responsible, sustainable bauxite Near term production High value product production 18.5 month construction Well suited to low temp • • • Using global best practice phase refinery mining methods Progressing according to Low reactive silica - notable • • • Adopting IFC and Equator schedule – FOOS expected in advantage Principles Q3 2018 Low deleterious elements • 3

KEY MANAGEMENT Adonis Pouroulis Bernie Pryor Rachel Rhodes Lamine Toure Chairman Chief Executive Officer Chief Financial Officer Vice ChairmanBAM Mining engineer Metallurgical Engineer • Chartered Accountant with 15 • Great deal of experience in • • years experience in the mining government liaison and Expertise in development of 35 years of operational and • • sector representation for a number natural resources projects project experience of companies inGuinea across Africa including • Previously with Anglo Extensive African experience • diamonds, precious/base American and CFO of London • Has worked across avariety metals and coal Was Head of Business Mining of sectors – mining, textiles • Development with Anglo and urban project Founder and Chairman of LSE • Extensive background in raising • American Plc, also serving as development listed Petra Diamonds and project finance and developing CEO of Anglo Ferrous Brazil Inc. AIM listed Chariot Oil & Gas mining operations through • Previously worked with and other private companies construction into production Mobil, Global Alumina, Koumba IronOre Tristan Clarke Guy de Granpre Kevin Mclean Commercial Director Project Director HRDirector • Geologist with 20 year across the • Broad commercial experience - Over 35 years experience in • industry – exploration, over 12 years working in the HR and has worked development and production resources and power sectors extensively in francophone Africa • Previously with Shangdong Iron • Previously with Shangdong Iron and Steel, African Minerals and and Steel, African Minerals and Previously with B2Gold, • Fortescue Metals Anglo American Kinross, Newcrest and RUSAL • Expertise in optimising and • Specific experience in Strong background in Global • delivering efficient mining commodities marketing, business management, operations complex negotiations, supply Corporate Development, CSR chain and corporate strategy and Human CapitalStrategy 4

OTHER BOARD MEMBERS Osam Iyahen Mason Hills Keith Johnson David Brown Non-Exec Director Non-ExecDirector Non-Exec Director Non-ExecDirector Director at the AFC Commercial lawyer 25 years in the natural Commercial lawyer • • • • specialising in corporate and resources sector specialising in corporate and Responsible for the natural • finance law in the resources finance law in the resources resources team and has Previously managed Rio • sector sector led their rapidly expanding Tinto’s global bauxite and franchise across sub- Advised RCF since 2001 and alumina business and was Advised RCF since 2001 and • • Saharan Africa joined in an in-house head of Business Resources joined in an in-house capacity in2006. responsible for the capacity in2006. Over 15 years experience • integration ofAlcan in international finance Also serves on the Board of Also serves on the Board of • • and business First Bauxite Corp, First Prior to that he was BG First Bauxite Corp, First • development. Drilling Group and Global Group as GM of strategy and Drilling Group and Global Advanced Metals portfoliodevelopment Advanced Metals Andrew Ferguson Dorian Barak Mukuna Ilunga Non-Exec Director Non-Exec Director Non-ExecDirector Legal and investment • 14 years experience in global CharteredAccountant • • background financial markets with a focus 16 years experience in the • on naturalresources Private equity investor and mining industry and • asset manager focused on • CEO and Head of Investment currently CFO of Dangote Africa, the Middle East and at APAC Resources Limited Cement in the DRCMining Europe and SierraRutile • Previously co-founded New Advises clients, companies City Investment Managers – a Previously with • • and funds on investments in natural resources fund Endeavour , Anglo Gold the natural resources, management house and Ashanti and De Beers. aviation and tech sectors worked for EMG Suisse S.A 5

BAUXITE OVERVIEW BAUXITE IS THE PRINCIPAL ORE OF ALUMINIUM Bauxite is the main commercial mineral from which aluminium oxide is extracted, which in turn is smelted • to form aluminium metal: 5t Bauxite Ore 2t Alumina 1t Aluminium Consumers Bauxite Alumina Aluminium and mining refining smelting Fabrication The aluminium industry is no longer as integrated as it used to be - pricing power is shifting upstream to • alumina and bauxite producers However, aluminium demand drives alumina and bauxite growth - medium to long term demand is • still strong Iron ore and copper usage matured following rapid industrialisation in China and other emerging • markets - aluminium is still in its early stages Demand continues to grow in key sectors including transportation, construction, power, packaging • and consumer products 6

CONSTRUCTION FINANCING AND COMMENCEMENT In December 2016, Alufer successfully secured a $205m financing • package from a consortium of international investors US$80m Senior Debt Facility • Orion Mine Finance • US$125m of Convertible Loan Notes and Equity • Resource Capital Funds • The Africa Finance Corporation • Orion Mine Finance • Six Year Offtake Agreement with Orion Mine Finance • Working with Alufer to market the bauxite product • Construction commenced in January 2017 and the project was • officially opened by President Alpha Conde on the 3 rd February 2017. 7

PROJECT OVERVIEW - OPERATIONAL SUMMARY SIMPLE LOGISTICS SET-UP: MINING - SHORT HAUL - CAUSEWAY CONVEYORS - TRANSHIPMENT Stage 1: Mining Stage 2: Short Haul Stage 3: Export Facility Stage 4: Shipping DSO material will be • Automated materials Transhipment • Material will then be • • mined from a handling set up handled via self- transported via truck minimum of 2 pits at • Ore will be stockpiled propelled barges and from the pits to the a time and handled via transhipment vessel export facility at the Open cast, strip conveyor over a 1.2km (TSV) • coast mining will use rubble causeway and Ocean Going Vessels • Low opex, minimal re- • surface miners loaded onto barges loaded 32 km handling, high Minimises loss and • Provides access from offshore • efficiency dilution shore to suitable water Optimal method for • Alufer have control of • Enables ongoing depth for 10,000 DWT bulk export • dedicated logistics rehabilitation during barges Significant storage facilities • LOM capacity on TSV THE PROCESS HAS BEEN OPTIMISED FOR CAPEX, OPEX AND THE OPERATING ENVIRONMENT 8

SOCIAL AND ENVIRONMENTAL ALUFER IS COMMITTED TO PROMOTING & DELIVERING SUSTAINABLE DEVELOPMENT • Ongoing management plans will be in place to ensure compliance with IFC Performance Standards and meet Equator Principles Ongoing work includes: • Baseline assessments o Integrated terrestrial and marine, social and environmental impact o assessments Social and environmental management plans o A Stakeholder Engagement plan o A detailed Land Access and Resettlement framework and plan o A Critical Habitat review, including Biodiversity action and o management plans • The project was awarded the Environmental Certificate of Conformity from the Government of Guinea in June 2013 and this has been renewed annually STAKEHOLDER ENGAGEMENT IS A CORE FOCUS • Throughout the project the team will work with the community to develop local enterprise initiatives and promote local supply 9