High-Grade Nickel-Copper Sulphide Project in Western Australia - PowerPoint PPT Presentation

High-Grade Nickel-Copper Sulphide Project in Western Australia Australian Nickel Conference 15 October 2019 ASX: SGQ

Nickel Market – What Changed in 2019 Predictions of a stronger nickel price proven to be correct UBS, Miner’s Price Review, UBS, Miner’s Price 2019: LME & SHFE nickel stocks have fallen dramatically June 2018 Review, June 2018 600 $60,000 SHFE (kt) LME (kt) US$/t 500 $50,000 Stocks now below “Inventory is falling, premia Inventories (kt ) 125,000t or less 400 $40,000 are rising, indicating a than 3 weeks of 300 $30,000 scramble for nickel metal.” “Inventory is falling, premia consumption 2019 are rising, indicating a 200 $20,000 scramble for nickel metal.” $10,000 100 0 $0 1998 2002 2006 2010 2014 2018 2019 : Nickel is the best performing of the battery metals “Nickel is our preferred 160 play on a >12 month 140 view.” Index (100 on 2 Jan 2018) 120 2019 “Nickel is our preferred play 100 on a >12 month view.” 80 Ni 60 Cu Li 40 Co 20 Jan 18 Apr 18 Jul 18 Oct 18 Jan 19 Apr 19 Jul 19 ASX: SGQ | St George Mining Limited 15 October 2019 2

Nickel Price Outlook The Next Nickel Boom is Forming Nickel market deficit growing since 2015 Nickel price history shows strong upswings YTD -102kt 150 such as in 1988 and 2006 100 50 A compelling scenario for the next strong 0 upswing: -50 -20  Market in deficit since 2015 -44 -100  Lack of new projects -84 -114  -150 -123-141 Traditional demand growing steadily, plus -146  2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Fast growing demand from EV and battery revolution Source: INSG, Wood Mackenzie $50,000 $45,000 2018$/t Nickel Price (2018 US$/t) 100-year Average $40,000 Potential Boom Consensus forecast $35,000 Consensus Forecast appear shy compare to $30,000 historical price spikes $25,000 $20,000 $15,000 $10,000 $5,000 $0 1970 1980 1990 2000 2010 2020 2030 Source: S&P Consensus Forecast Prices, Terra Studio, USGS ASX: SGQ | St George Mining Limited 15 October 2019 3

Nickel Market – Supply Challenge Nickel requires substantial increase in reserve base to satisfy EV revolution Considerable structural demand growth for EVs to  Traditional demand from stainless steel continues reshape industry to grow at circa. 4-5% p.a. Stainless Steel Batteries  Very large structural demand from the battery EV 24% 4% market will reshape the nickel industry - Wood Mackenzie estimate nickel demand in EV Other 2017 2030E 4% 53% batteries of about 1.2 Mt in 2040, up from 2% Foundry 50,000 t in 2017 3% 68% Alloy Steel 5%  Forecast nickel demand will far exceed nickel Plating 9% production from existing operations Source: Wood Mackenzie Non-ferrous Alloys Higher prices needed to deliver increase in global EV emphasis has been on increasing lithium and reserve base graphite reserve base, while nickel reserves overlooked 68% 350 Growth in Global Reserve Base 2017-18 Reserve life of battery minerals 20% 300 14.3% 15% 69% 250 9.7% 8.0% 10% 7.1% Years 200 5% 1.4% 150 69% -- 100 50 (5%) (5.1%) 0 (10%) Graphite Li Al Co Mn Cu Nickel Li Cu Graphite Al Co Ni Source: USGS Source: Bernstein ASX: SGQ | St George Mining Limited 15 October 2019 4

St George – Growth Nickel Stock Exploration success at Mt Alexander creates value  Discovery of high-grade nickel-copper-cobalt-PGEs  Drilling continues to expand the resource potential – shallow (30m from surface) deposits are being drilled out and down-plunge extensions are being proven  New targets offer opportunity for further greenfields discoveries Photo: Drill core from MAD152, the Radar discovery Photo: Diamond drilling at Mt Alexander hole, with massive nickel-copper sulphides. for St George Mining by DDH1 Drilling ASX: SGQ | St George Mining Limited 15 October 2019 5

Corporate Overview St George Mining is listed on the ASX Directors and Management - Track Record of Success St George Mining Ltd SGQ Listed Shares 368,311,265 John PRINEAS, Executive Chairman – founding Broad Shareholder shareholder with over 25 years experience in mining, Base with over 3,500 Listed Options (20¢, 30 Sep 20) 24,576,114 and the banking and legal sectors servicing the shareholders Share Price (12 October 2019) A$0.18 resources industry. including Australian and overseas Market Capitalisation A$60m John DAWSON, Non-Executive Director – over 30 years institutions, high net in the finance and mining sectors where he occupied Cash (30 Sept 2019) A$2.3m worth and retail very senior roles with global investment banks investors Top 20 shareholders 27.0% Goldman Sachs and Dresdner Kleinwort Wasserstein. Directors & Management 9.2% Sarah SHIPWAY, Non-Executive Director/Company Secretary – Chartered Accountant with extensive 24 $0.60 experience in advising listed exploration companies. Dave O’NEILL, Exploration Manager – over 20 years 20 $0.50 experience as a geologist with expertise in nickel SGQ 24 month share price Trading Volume (millions) exploration gained in senior roles with WMC Resources, 16 $0.40 Trading Volume (LHS) BHP, Western Areas; managed exploration programmes Share Price Share Price (RHS) at Mt Alexander for BHP and Western Areas. 12 $0.30 Charles WILKINSON, Technical Consultant – over 32 8 $0.20 years’ as a geologist with 16 years at WMC including as Exploration Manager - Nickel. Joined Western Areas in 4 $0.10 2008 as General Manager Exploration. During his 9 years at WSA, it significantly grew its resource inventory 0 $0.00 and became Australia’s No. 1 independent nickel Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 sulphide producer. ASX: SGQ | St George Mining Limited 15 October 2019 6

High-Grade Discovery at Mt Alexander ASX: SGQ | St George Mining Limited 15 October 2019 7

World Class Address Next to the Majors’ backyard Mt Alexander – St George’s Flagship Nickel-Copper Sulphide Project • Highly prospective and strategic tenement holding next to Tier 1 assets • Located S-SW of world class nickel and gold mines of the Agnew-Wiluna Belt • Close to infrastructure, processing plants, mining workforce & service industry • Stable and reliable jurisdiction with numerous successful mines and projects Left: St George Mining Ltd holds 100% of all the Mt Alexander tenements with the exception of E29/638, which is held in Joint Venture: St George Mining Ltd (75%) and Western Areas Ltd (25%). St George is the manager of the Project with Western Areas retaining a 25% non-contributing interest in the Project until decision to mine. ASX: SGQ | St George Mining Limited 15 October 2019 8

Large Project Area Nickel camp with several deposits 200 km 2 tenement package: • Two fertile belts being explored with large unexplored prospective areas Cathedrals Belt (east-northeast oriented belt): • Discoveries at Investigators, Stricklands, Cathedrals and Radar Prospects – within a 5.5km section of the Belt • Other sections of the 16km Belt remain underexplored but highly prospective • New targets emerging at West End and Fish Hook Mt Alexander Belt (north-northwest belt): • Ultramafic belt with a strike of 7km • Widespread intersections of nickel sulphide mineralisation but remains underexplored Right: Mt Alexander tenements against RTP magnetics with key prospects highlighted. ASX: SGQ | St George Mining Limited 15 October 2019 9

Cathedrals Belt Exceptional Discovery • Mineralisation from shallow depths:  Massive sulphide mineralisation 30m from surface  Intrusive system with potential for significant mineralisation at depth • High-grade and polymetallic:  Nickel sulphide plus copper, cobalt and PGEs (70%Pd, 30%Pt)  Key high demand battery/EV metals • Electromagnetic (EM) targeting:  EM surveys are reliable targeting tool  100% success rate in drill testing EM conductors in the Cathedrals Belt On right: Drill core from MAD56 that returned assays of 7.5m @ 3.90% Ni, 1.74% Cu, 0.12% Co and 3.32g/t total PGEs from 57.8m, including 3.15m @ 6.36% Ni, 2.92% Cu, 0.20% Co and 5.03g/t total PGEs from 61.8m ASX: SGQ | St George Mining Limited 15 October 2019 10

Large Mineral System Extensive strike supports extensions of mineralisation at depth Radar discovery made in this drill programme – 1.2km east of known nickel-copper sulphides “If the system is this long, it must be deeper than currently defined: With Radar, the mineralised strike along the Cathedrals Belt now extends for ~5.5km. However, the maximum depth of discovery is just ~200m below surface (hole MAD108 at the Investigators prospect), limited only by drilling. Probabilistically, a system of this scale is unlikely to stop at such a shallow depth. As surface EM only has an effective penetration depth of ~350m at this project, deeper discoveries will rely on drilling and downhole EM.” Argonaut Securities Research Report, 2 September 2019 Right: map of the Mt Alexander tenements (against RTP 1VD magnetic data) with key prospects on the Cathedrals Belt highlighted. New targets generated at Bullets, West End and Fish Hook have potential to significantly extend the strike of mineralisation along the 16km Cathedrals Belt. ASX: SGQ | St George Mining Limited 15 October 2019 11