Going for Gold June 2013 1 Disclaimer This document may contain - PowerPoint PPT Presentation

Going for Gold June 2013 1

Disclaimer This document may contain statements that constitute “forward -looking statements”, including, but not limited to, statements relating to the implementation of strategic initiatives, and other statements relating to our future business development and economic performance. 
 While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other statutory requirements may render actual developments and results to differ materially from our expectations. 
 These factors include, but are not limited to, (1) general market, macro-economic, governmental and regulatory trends, (2) movements in local and international securities markets, currency exchange rates and interest rates, (3) competitive pressures, (4) technology developments, (5) changes in the financial position or creditworthiness of our customers, obligors and counterparts, and changes in the developments in the markets in which they operate, (6) legislative developments, (7) management changes and changes to our business group structure and (8) other key factors that may adversely affect our business and financial model. 
 We are not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. The technical and financial information presented are best estimates of management and are not JORC or NI43-101 compliant unless otherwise stated. Investors are cautioned not to place undue reliance on this information and not rely solely on the information presented for purposes of making investment decisions. This material may not be reproduced, distributed or transmitted to any other person or incorporated in any way into another document or other material without the prior written consent of LionGold. June 2013 2

Asia’s Own - Global Gold Company LionGold Corp Ltd Share price : S$1.14 Warrant price : S$0.152 Mid Cap Market Capitalisation: Warrants in issue : 269.9m 52wk high/low : S$1.30/0.865 S$1.05 billion / US$854 million Bloomberg : R5UW SP Shares in issue : 921.9m Bloomberg : LIGO SP Liquid Average Daily Trading Value: New Inst’l Shareholders S$20-25 million / US$16-20 million Index • MSCI Small Cap, Global + Singapore Index Inclusion Key • FTSE ST Mid Cap Acquisitions Inclusion • Market Vector Global Junior Gold Miners Prioritising Gold Business • Supportive of global listings Investments SGX-listed • New focus on resource stocks, gold • Active, diversifying investor base Board, Shareholder Changes SGX’s only Main Board -listed gold company Source: ShareInvestor 4 June 2013 June 2013 3

LionGold Corp - Going for Gold Differentiated Business Platform Dynamic, Expanding Operations • Gold mining, from 2011 Proactively managed project portfolio • Seven projects - 2-3 acquisitions pa Growth - Two in commercial production - Financial backing - Operational support • Initial growth acquisition-led, value accretive Financial flexibility - 5.5m oz acquired in 2012 at US$26/oz, US$126m (S$154m) • 3 acquisitions - 1 IPOs pa Value • 1 IPO - Funding partners Production • Funding partners - Low debt, dilution Resources Reserves LionGold Annualised (ounces) (ounces) (ounces) Current 5,506,000 897,300 40-50,000 Acquire scalable Augment junior miners at shareholder Target 2014 10,000,000 2,000,000 200,000 attractive discounts returns Figures are extracted from previous JORC- and NI 43-101-compliant announcements and are based on LionGold’s equitable stake in gold projects. June 2013 4

Key Mining Assets…Today - 5.5m oz Gold Resources since March 2012 at US$26/oz Castlemaine Goldfields Central Victoria ( 100%) Global Projects Acadian Mining (9.35%) Nova Scotia, Canada AMERICAS Citigold Corporation (18%) Queensland AUSTRALIA Minera Nueva Vista (100%) Amayapampa, Bolivia AFRICA Signature Metals (76%) Brimstone Resources Unity Mining (13%) Tasmania + NSW Western Australia (100%) Ashanti Gold Belt, Ghana June 2013 5

Opportunity: Junior gold miners - Consolidation of a highly fragmented sector Recent gold price volatility has Cost & time overruns Funding greatly increased opportunities to buy Discovery + production gaps developed mining assets at substantial Shortfall Risk adversity: banks and shareholders discounts to market valuation Gold miner prices have Gold Prices vs Junior Miner Index fallen far further than the May 2003 – May 2013 price of gold 500% 2000 Dow Jones North American Select Junior Miner Gold Total Return Index 1800 Spot Price of Gold Percentage Increase 400% 1600 BOOM 1400 300% Rising gold prices 1200 Easy credit 200% 1000 CONSOLIDATE 800 100% Gold price volatility 600 Credit constraints 400 0% May-03 Nov-03 May-04 Nov-04 May-05 Nov-05 May-06 Nov-06 May-07 Nov-07 May-08 Nov-08 May-09 Nov-09 May-10 Nov-10 May-11 Nov-11 May-12 Nov-12 200 -100% 0 June 2013 6

Other Asian-listed Goldcos - Single-project / country focus June 2013 Ave Dly Market Resource Company Bourse Trading Operations Cap Volume SGX LionGold Corp US$800m US$15m 5.5m oz 7 Projects: Australia, Africa, Americas Main Board SGX CNMC Goldmine US$145m US$0.2m 0.5m oz Malaysia, Sokor project Catalist HSE US$950m US$2.5m 8.1m oz Indonesia, Martabe project G-Resources HSE Zhaojin Mining US$4.3b US$12m 25m oz Projects in China, in production H-Share ,,, China Gold US$1.14b US$0.8m 14m oz Projects in China, in production HSE HSE Zijin Mining US$12b US$12m 30m oz Projects in China, in production H-Share HSE Lingbao Gold US$334m US$0.5m 1.4m oz Projects in China, in production H-Share China Precious Projects in China, Mongolia, HSE US$800m US$1m 7.2m oz Metals in production Market cap and average daily trading volume has been approximated for the past 6 months based on Bloomberg data June 2013 7

Acquisition Strategy - Adding value today by accelerating Group Production Profile SCREENING LGC ALLURE Gold producers globally • Shares ≈ cash • Gold production 100,000 oz pa - or clear path to ramp-up, 6-12mos • SGX-listed • > 1 million oz gold Reserve • De-risking of assets - 2 million oz gold Resource - Geographic - 7 years LOM - Funding access • Organic cashflow growth - Lower dilution risk - < US$1200 per ounce all in cost • Broader opportunities - Strong working capital position - Bigger, global group • Up to US$100m investment Better opportunities from April 2013 • Low / no debt • Accelerated streamlining by gold majors • Willing seller - Divestment of non-core assets • Realistic valuation expectations by juniors • Competent management • More favourable environment for negotiation, • Assets vs companies cost cutting, capital discipline June 2013 8

Targeting the “Sweet Spot” - Producing / near-producing assets Indicative Capital Allocation 5-10% 10-20% 70-85% End Production Extension Value Production Risk Development Maximise Value, Feasibility Study Mitigate Risk Pre- Feasibility Scoping Study Exploration Greenfields Brownfields Mining Project Life Cycle June 2013 9

Geographically diversified - Risk Management “ De-risking ” Developed  Stable business environment Investment & Resource  Infrastructure, skilled labour, funding  Can be high-cost Australia  Established global mining industry 10% BMT  Excellent skills-base Developed  Many junior miners CTO CGT Friendly Emerging 45%  Bigger opportunities Australia  Lower entry cost 60% Ghana, Ashanti Gold Belt  Stable, foreign-friendly Ghana  Established gold industry 34%  Highly prospective, scalable “Challenging”  Good value Friendly Bolivia 6% Emerging Bolivia “Challenging”  Relationships key June 2013 10

Operating Objectives - Balance & Prioritise Mine Profile Prioritise Community Resource expansion Environment, Health, Safety Reserve replacement Education & Training Production stable, growing Increasing Life of Mine P r o d u c t i o n E f f i c i e n c y June 2013 11

Results delivered - Going forward  2012 2013 2014 10 million oz Resource Fortify Acquire 2 million oz Reserve “Gold in the Ground” the Business 200,000 oz pa Production 5 year Life of Mine Grow Organic Project Acquired Production Castlemaine Goldfields ( 100% ) Integrate resources Signature Metals ( 77% ) Global Grow team, alliances Minera Nueva Vista ( 100% ) Brimstone Resources ( 100%) Gold Co Acquire Producing Assets Strategic Investments New market opportunities Citigold Corporation (18%) Acadian Mining Corporation (9.35%) Ongoing Expanded Unity Mining (9.35%) Initiatives Funding Options Project IPO Divest Green Businesses Shareholder Return Project financing Minimise Volatility 36 % Shareholder Return 4 % Shareholder Return Raise Transparency Junior Miners -16%, Gold +7% Junior Miners -44%, Gold -16% Mitigate Balance Sheet Risk US$ US$ June 2013 12