INVESTOR PRESENTATION 4 OCTOBER | 2016
DISCLAIMER This presentation is not a prospectus nor an offer of securities in any jurisdiction nor a securities recommendation. The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Black Mountain Resources Ltd and consult their own legal, technical, business and/or financial advisers. The information contained in this presentation has been prepared in good faith by Black Mountain Resources Ltd , however no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, options, or other information contained in this presentation. To the maximum extent permitted by law, Black Mountain Resources Ltd, its Directors, officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person through the use of reliance on anything contained in or omitted from this presentation. Certain information in this presentation refers to the intentions of Black Mountain Resources Ltd , but these are not intended to be forecasts, forward looking statements or statements about the future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of the events in the future are subject to risk, uncertainties and other actions that may cause Black Mountain Resources Ltd’s actual results, performance or achievements to be materially different from the results, performance or achievements implied by the forward-looking statements. Such factors include, but are not limited to, general economic, market and business conditions, failure to obtain adequate financing when needed, market prices for phosphate, estimation of demand for the ore product, ability to convert expressions of interest from potential customers into definitive sales agreements, risks and uncertainties related to Black Mountain Resources Ltd’s ability to successfully develop and commission mines at its vermiculite and phosphate projects, to obtain all necessary permits for development and production as and when required, estimation of resources and reserves, development and production costs, transportation delays and costs, delays in construction of the mining operation, accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties with, or interruptions in, development or production, exchange rate fluctuations, and risks and uncertainties associated with doing business in Uganda. In addition, there may be information herein that is information about prospective results of operations, financial position or cash flows and which is provided only to assist in an evaluation of the prospective business outlined herein, but are not to be relied upon as accurate representations of future results and may not be appropriate for any other purpose. The Information in this presentation that relates to geological and technical matters in respect to the Namekara Vermiculite Mine and the Busumbu Phosphate Project is based on information included in an Independent Geological Report that has been prepared by Allen J. Maynard. Allen Maynard is not an employee of the Company or any related party. Mr. Maynard is the Principal of AM&A, a qualified geologist, a Member of the Australasian Institute of Mining & Metallurgy (“ AusIMM ”) (# 104986) and a Member of the Australian Institute of Geoscientists (“AIG” #2062). Mr. Maynard has had over 35 years of continuous experience in mineral exploration and evaluation and more than 30 years’ experience in mineral asset valuation. Mr. Maynard holds the appropriate qualifications, experience and independence to qualify as an independent “Expert” and “Competent Person” . The information in the Independent Geological Report and the Replacement Prospectus lodged with ASIC on 23 September 2016 that relates to the Namekara Vermiculite Mine and the Busumbu Phosphate Project is based on and fairly represents, information and supporting documentation prepared by Mr Maynard. The Company has obtained the prior written consent of Mr Maynard to the form and context in which the information is presented. 2 INVESTOR PRESENTATION | OCTOBER | 2016
Namekara VERMICULITE MINE 3 INVESTOR PRESENTATION | OCTOBER | 2016
OVERVIEW Black Mountain is to acquire a 100% interest in Namekara CAPITAL AND TRANSACTION STRUCTURE Mining Company Ordinary Shares on Issue (1) 108M Includes the operating Namekara Vermiculite Mine and Capital Raising (2) 45M Busumbu Phosphate Project in south-eastern Uganda TOTAL ON ISSUE (3) 153m Acquisition includes the existing valid Mining and Exploration Licenses, all mining equipment, the processing Net Cash Post Capital Raising, to be A$3.2M plant, power generator, mine office and all associated site Applied to Operations and Working infrastructure and equipment Capital Provides shareholders with exposure to Africa’s growing Total Debt Nil agriculture sector which is forecast to increase to US$500 Prospectus, Share Placement Price A$0.10 billion in value over the next 5 years by the African per share Notes to Capital Structure: Development Bank 1. Ordinary Shares as approved at EGM dated 15 Aug 2016. Assumes Namekara Transaction completed and Debt for Equity conversions completed. $A4.5m Capital Raising pursuant to a Replacement 2. Assumes A$4.5 million raised at A$0.10 per share. 3. Excludes Options. Options on issue are 100,000 unlisted options Prospectus 1 to purchase new mining equipment, refurbish exercisable at A$1.00 on or before 30 November 2016 and 300,000 unlisted options exercisable at A$1.20. Options to be issued under the Transaction of 2,500,000 unlisted options exercisable at A$0.125 on or the processing plant, and increase production and sales before 30 June 2018, convert into one ordinary share per option on exercise 1 Replacement Prospectus lodged 23 September 2016 4 INVESTOR PRESENTATION | OCTOBER | 2016
HIGHLIGHTS Operating vermiculite mine and a high grade phosphate project with historical production Immediate small scale production and cash-flow asset Low volume, high priced product with strong growth All mine infrastructure in place with established sales and marketing agreements High grade premium flake products which attract premium prices Further studies to optimise operations Proven logistics with track record of export sales to Europe/Asia Strong market fundamentals and pricing Strengthened Board and management team Significant exploration/development upside with the high-grade Busumbu Phosphate Project located on the existing mining lease 5 INVESTOR PRESENTATION | OCTOBER | 2016
NEW CORPORATE STRUCTURE BLACK MOUNTAIN RESOURCES LTD 70% 100% NORTH AMERICAN 100% GLF HOLDINGS LIMITED GOLD/SILVER PROJECTS (British Virgin Islands) (Idaho, Montana USA) INDUSTRIAL MINERALS INTERNATIONAL CORP 1% ( British Virgin Islands) Namekara MINING 99% COMPANY LIMITED (Uganda) 100% 100% 100% OTHER EXPLORATION BUSUMBU PHOSPHATE Namekara VERMICULITE Vermiculite, Copper, PROJECT MINE Iron, Zircon, Rare Earths 6 INVESTOR PRESENTATION | OCTOBER | 2016
NEW EXPERIENCED BOARD Strengthened Board with extensive proven African production and development credentials 25 years across precious and base metals, and bulk commodities Julian Ford Management (BSc (Eng) Bcom, Grad Dip across mining, mineral beneficiation and hydrometallurgical (Bus Mgt) processing Non-Executive Chairman Founded, developed and led mining companies listed on both ASX and AIM markets 38 years in exploration, mining and mining geology specialising in industrial minerals Simon Grant-Rennick Managed Dillon vermiculite mining and marketing operations in the United States (B. Eng CSM) Executive Director Director of UK based Industrial Minerals industrial minerals consultancy and marketing group 30 years extensive experience in international finance and international capital Luca Bechis (B.Bus Hons MBA) markets Founding Partner at Richmond Partner Masters Limited resource focused hedge fund Non-Executive Director Chairman and director of a number of African focused mine development companies 20 years mining, investment banking and funds management in the mining sector in Jason Brewer (M.Eng ARSM) Africa Executive Director Extensive experience in sourcing, structuring and providing funding for bulk, precious and base metal mining projects throughout Africa 7 INVESTOR PRESENTATION | OCTOBER | 2016
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