Manica Gold Project Mozambique March 2017
Xtract Resources PLC An Important Disclosure The information contained in this document, including any information and opinions contained or discussed in any accompanying oral presentation, question and answer session and any other materials distributed in connection with this document (the ‘Presentation’) has been prepared The Document and the Information have been prepared by or on behalf of, and is the sole responsibility of, the Company. This Presentation and its contents are private and confidential. It is intended solely for the exclusive use of the person or persons to whom it is addressed and must not be copied, reproduced or distributed in whole or in part or disclosed by recipients to any other person, nor may the contents be distributed in written or oral form to any other person, for any purpose without the prior written consent of the Company. This Presentation does not constitute, or form part of, an admission document, listing particulars, a prospectus, a circular or any other documents relating to the Company, nor does it constitute, or form part of any offer or invitation to sell, issue, underwrite or acquire, or any solicitation of any offer to purchase or subscribe for, any shares or other securities in the Company, nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract. No reliance may be placed for any purposes whatsoever on the information contained in the Presentation or any assumptions made to it as to its completeness or fairness. No representation, warranty or undertaking (whether express or implied) is made to the fairness, accuracy or completeness of the information or opinions in the Presentation by or on behalf of the Company and (to the fullest extent permitted by law), no liability or responsibility is accepted by the Company persons for (i) the accuracy, fairness or responsibility of any such information or opinion; and (ii) the use of the Presentation by recipients. The information contained in the Presentation is for background purposes only and is subject to amendment, revision and updating without notice. The Company (including, without limitation, its officers, directors, employees, partners, agents, representatives, members, affiliates and advisors) nor any other party is under any duty to update or inform you of any change to such information. This Presentation contains forward looking statements. These statements relate to the future prospects, developments and business strategies of the Company. Forward- looking statements are identified by the use of such terms as 'believe', 'could' 'envisage', 'estimate', potential', 'intend', 'may', 'plan', 'will' or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in the Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Company's actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place reliance on forward-looking statements. The forward-looking statements speak only as at the date of the Presentation. You should be aware that any investment in the equity of the Company is subject to a number of risks, particularly as the Company is in an early stage of development and operates in an emerging market, and this could therefore effect the value of any investment in the equity of the Company and may lead to a loss of your entire investment. 1
Manica Gold Project - Mozambique Why? Stable African Economy Upgrading of infrastructure underway Mature mining legislation, industry and culture GDP >5% - high growth rate Purchase from Auroch concluded Definitive Feasibility Study Completed Economically viable project Low cost and lead time to production Low operation cost Metallurgical issues resolved Immense future exploration potential Aerial view of Maputo 2
Mozambique Good Place To Work Favourable political and legal environment Multi-Party Democracy since 1994 Stable Southern African jurisdiction Mature mining legislative regime No local ownership requirements Upgrading of National Ports and Power and other infrastructure underway High GDP (>5%) growth rate Location of Manica Project Manica Mineral Concession – 3990C 3
Manica Gold Project Established Area Situated in the Odzi-Mutare-Manica Greenstone Belt. Over 2 million oz of gold previously mined 43,6 km² concession 1,262 m oz SAMREC compliant gold resources Only 10% of concession drill tested Definitive Feasibility Study of open pit mine completed 4
Manica Gold Project DFS – Key Financial Parameters Extraction Method – Conventional Open Pit Life of Mine – 7 years Total Ore Tonnes Processed – 3.3Mt (42 ktmp) Total Ounces Produced – 215 koz (~31 kozpm) Recovered Grade – 2.62 g/t Gold Price – US$1,262 per oz Project Payback – 2 years IRR – 41.1% NPV – US$42 million (@8.4% discount rate) Capex Expenditure – US$43.68 million Direct Cash Cost – US$556/oz All inclusive sustainable cost (breakeven) – US$862/oz 5
Manica Gold Project The Focus 1.262 moz SAMREC compliant Au Resources (782koz measured and indicated) Low cost, near-term ready-to-build production Metallurgical risk solved by fine grinding and pressure oxidation Additional nearby prospects for further exploration success, namely Guy Fawkes, Boa Esperanza, Dot’s Luck, all have declared resources. Publically released information outlines a mine plan based on Fair Bride only, producing approx. 215Koz over 7 years Further optimisation is possible and ongoing 6
Fair Bride Overview Main deposit – Fair Bride Situated in the Odzi-Mutare-Manica Greenstone Belt of Mozambique 1.262moz SAMREC compliant Au Resources (782koz measured and indicated) Well drilled - a total of 229 drill holes (31,662m) has been completed on the Fair Bride deposit accounting for 60% of the total drilling on the Manica project. A total of 137 holes comprise the resource * Xtract Resources PLC. An Independent Technical Report on the Mineral Resources of the Fair Bride Gold Deposit on the 3990C Mining Concession, Manica Province, Mozambique, Minxcon, 04 March 2016 7
Fair Bride Simple Project Lower Risk – Lower Cost – Quick into production Elimination of underground technical mining risk and gold locked up in the crown pillar Instead of 4 years open pit and 8 years underground mining; expectation is 7 years of open pit mining with a 7.2 strip ratio milling 42ktpm Increases the time and opportunity to fully identify upside Open pit grade is expected to be 2.62g/t, recovering app 31koz per annum at an all-in cost of $862/oz Smaller tailings dam Lower risk, higher margins whilst maintaining optionality 8
Fair Bride Solving Metal Recovery Three types of ore: Oxide; Transitional; and Sulphide Several test campaigns completed by SGS, Maelgwyn, Oxide Zone: standard CIL will result in final recoveries achievable of 95% Sulphide Zone: Floatation followed by ultra-fine grinding (-14µm) and oxidation of the float concentrates will results in a final circuit recovery of 77.1% Transitional Zone (mixture of Oxide and Sulphide ore): will require a combination of the above process as it contains both oxide and sulphide ores, with the addition of a suphurdiser resulting in recoveries of 79.2% Processing Strategy:- the oxides are mined at the start moving into the transitional and sulphide ores thereafter, to keep different ores separate as far as possible 9
Fair Bride Process Flow Design Tertiary Cone Crusher middlings Secondary Cone Crushers o/s Vibrating Milling & Screen Classification Mill Feed u/s Transitional Stockpile & Sulphides Oxides Jaw Float TSF Crusher o/s Float Tail Thickener UFG Grizzly u/s Thickener Tails Thickener RoM UFG CIL Pad RoM Regenerated Loaded Carbon Carbon Acid Wash Carbon & Elution Regeneration Loaded Barren Eluant Eluant Electrowinning Gold & Smelting Doré Manica Plant Processing Flow Schematic 10
Fair Bride Base Case Gold price USD 1262/oz 480,000 of ore tonnes per annum mined 7 years of mine life Average grade 2.72 g/t mined Stripping Ratio 7.2:1 All up break even cost(C3) USD862/oz Capital USD43.68 million NPV at 8.5% discount USD42 million 11
Fair Bride Optimised Pit Views Before Geological Overview After Initial Mine Key Parameters DFS Optimised DFS Design 12
Fair Bride Insight The mineralised strike of the ore body is approximately 1,040m Well understood mineralization and geological model shows excellent continuity Bounded by a fault in the west and low grade mineralization in the east, open on dip Mainly pre-drilling exploration has taken place along the southern share zone between Dot’s Luck and Fair Bride and further East (14km of potential gold bearing strike) Targeting indicates that mineralization extends along strike to the east 13
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