Investor Presentation Strategy Discussion: Melior Resources Pathway Forward 18 August 2016 TSX-V: MLR
FORWARD LOOKING STATEMENTS DISCLAIMER This presentation contains information about Melior Resources Inc. (“Melior”) and should be read in conjunction with Melior’s public filings available at www.sedar.com and at www.meliorresources.com. The content of this presentation is not to be construed as legal, financial or tax advice. Any reader should contact his, her or its own professional advisors for legal, financial, tax or other advice. Certain information contained in this presentation constitutes forward looking information under the provisions of Canadian securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", “projects”, “potential”, "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", “should”, "might" or "will be taken", "occur" or "be achieved" or the negative connotation. Such statements and information include, without limitation, statements regarding, the estimated mineral resources at the Goondicum property, and other aspects of the Goondicum mine. This forward looking information is subject to numerous risks, uncertainties and assumptions, certain of which are beyond the control of Melior including the impact of general economic conditions; industry conditions; volatility of minerals prices; volatility of commodity prices; currency fluctuations; mining risks; risks associated with foreign operations; governmental and environmental regulation; competition from other industry participants; the lack of availability of qualified personnel or management; stock market volatility. Readers are cautioned that the material assumptions used in the preparation of such information, although considered reasonable by management at the time of preparation, may prove to be imprecise. Actual results, performance or achievement could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward- looking information will transpire or occur, or if any of them do so, what benefits Melior will derive therefrom. Melior disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise except as required by applicable securities laws. For more information on the risks, uncertainties and assumptions that could cause Melior’s results, performance or achievement to differ from current expectations, please refer to the “Risk Factors” section of Melior’s Annual Information Form dated November 19, 2014, Melior’s Management’s Discussion and Analysis of Financial Condition and Results of Operations for the 3 and 9 months ended 31 st March 2016 dated May 25, 2016, as well as Melior’s other public filings, available at www.sedar.com and at www.meliorresources.com. 2
FORWARD LOOKING STATEMENTS DISCLAIMER (CONT’D) The scientific and technical information, as it relates to the Goondicum property, in the 43-101 report effective as of February 2015 has been reviewed and approved by Simon Tear (BSc (Hons), MIAusIMM, PGEO, EurGeol, IMO3) a director H&SC, Graham Lee (BSc, FAusIMM, CP(Geo)), an Associate of H&S Consultants Pty Ltd and Chris Desoe (B.E.(Min)(Hons), FAusIMM, RPEQ, MMICA), who are all Qualified Persons under National Instrument 43-101. A new geological model has been developed with four mineralised units being delineated from drilling information and surface topography/mapping, thought to represent in situ to short-distanced transported material from both alluvial and gravity slide (soil creep) processes. The gabbro in the area under investigation has undergone multiphase oxidation and erosion producing a relatively complex weathering pattern of the host rock. The decomposed gabbro is believed to be in situ. Mineralisation comprises resistive ilmenite liberated by the relatively complex weathering process. Reporting of the resource estimates used a 2.5% available ilmenite cut-off grade and a partial percent volume adjustment factor for the 2013 topographic surface. Reconciliation of the new H&S Consultants Pty Ltd block model with the 2012-2013 production showed a 10% difference which is considered acceptable for an Indicated Resource. For detailed technical information on ML 80141 please see the technical report prepared by H&S Consultants Pty Ltd effective as of 25 February 2014, which is posted on Melior’s SEDAR profile. Further exploration opportunities exist within the remainder of the Goondicum Crater which is covered by MLA 80044. For detailed technical information on MLA 80044 please see the technical report prepared by H&S Consultants Pty Ltd effective as of 13 February 2015, which is posted on Melior’s SEDAR profile. 3
INVESTMENT HIGHLIGHTS Melior’s attractive value proposition 1. The Goondicum mine provides excellent exposure and leverage, at a low point in the ilmenite market cycle, with strong indications of an improving titanium feedstock sector 2. Brownfield mining project already been through commissioning 3. New early stage processing technology (the Browne Process has the potential to upgrade Goondicum products to higher margin products as well as be applied to other industries) 4. Proximity to key markets and in a mining-friendly jurisdiction 5. Current market cap not reflective of potential asset valuations 4
CONTENTS Melior Overview Goondicum Mine Browne Process Technology Market Overview Funding Requirement 5
Melior Resources Key Shareholders � Melior Resources Inc. is currently a Tier I � Melior management owns ~ 10.0% Investment Issuer listed on the TSX Venture Exchange Melior’s assets include: � 100% of the Goondicum Mine Takota Asset Management � 100% of the Browne Process 13% Pala � 6.1% of Asian Mineral Resources Resources Investments Belmont Park (TSX.V: ASN), with market value of C$1.4m. AMR 45% Investments owns and operates the Ban Phuc sulphide nickel 9% mine in Vietnam. Panarama Ridge Share Price 1 C$0.025/share 9% Shares Outstanding 1 Others 211.47m 24% Market Capitalization 1 C$5.3m Cash & Short-Term Investments 2 C$0.5m Drawn Down Debt 2 US$2.2m US$0.475m 1. As of July 2016 Total Available Debt Facility 2. As of June 2016 6
CONTENTS Melior Overview Goondicum Mine Browne Process Technology Market Overview Funding Requirement 7
GOONDICUM MINE Operation primed to restart as soon as the market allows � Established mine site with mining, processing and logistics infrastructure in place − ~ A$130m of historical expenditure on construction and commissioning the existing processing plant and related infrastructure as well as undertaking an extensive drilling program − Commissioned and operated at a plant capacity rate of 375t of ore per hour − More than 65kt of ilmenite historically produced and sold � Continuous high-grade portion of the indicated & inferred resources yielding 9Mt @ 11.9% ilmenite and 11.3Mt @ 10.9% ilmenite respectively 8
GOONDICUM MINE Historical Operating highlights � No pre-strip or overburden � No drill & blast Simple Mining Operation � Conventional truck & shovel or scraper with short haul distances � Simple feed prep plant utilizing conventional Simple scrubbers Processing � Processing plant utilizing spirals, LIMS, WHIMS, Operation and grinding circuit � Plant name plate processing capacity of 2.8Mtpa � Mine plan showing ilmenite production of up to Mine Life Production 200ktpa over the life of mine � Low part of the ilmenite price cycle � Significant resource-expansion potential � Construction of new access road reducing haul Value Adding distance by 100km Potential � Maximizing apatite market potential � Application of Browne Process 9
CONTENTS Melior Overview Goondicum Mine Browne Process Technology Market Overview Funding Requirement 10
BROWNE PROCESS TECHNOLOGY Work commenced in late 2015 and is demonstrating successful early stage results � Benchtop scale testing 1 has demonstrated the Browne Process will: ► upgrade the TiO2 content of different ilmenite types to as high as 85%, at temperatures significantly less than conventional slagging processes ► upgraded ilmenite (UGI) appears appropriate for use in the sulphate pigment manufacturing process ► test work completed on Goondicum’s titano-magnetite (TM) is indicating that this product will yield foundry iron along with a UGI containing up to 48% TiO2 � IP assigned to Goondicum Resources Pty Ltd and patent application pending � Hatch consultants have provided technical input into the design of the testwork programs, analysis of the results, and subsequent review of the Browne Process. 1. The Heater15 test program was conducted on 100gm samples and the Heater35 test program was conducted on 5.5kg samples 11
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