Metallon Corporation An African Gold Mining and Exploration Company – July 2014
Disclaimer Disclaimer This presentation has been created to provide general information, solely for the reader’s general knowledge, about Metallon Corporation (“Metallon”), its subsidiaries, properties and activities, as well as the countries it operates in. Although Metallon believes that the information included in this presentation is accurate and current, such information is not intended to be a comprehensive review of all matters and developments concerning Metallon and Metallon does not warrant or make any representations or claims as to the authenticity, validity, accuracy, completeness or currency of the information provided in this presentation. Moreover, Metallon, its directors and officers assume no responsibility for the information or representations contained in this presentation and shall not be liable or responsible for any claim or damage, direct or indirect, arising out of the interpretation, reliance upon or other use of the information provided herein. No information in this presentation constitutes a solicitation, offer or recommendation to engage in any investment activity, to effect any transactions, or to conclude any legal act of any kind whatsoever. Forward-looking statements Certain statements included in this presentation constitute “forward -looking statements” which, based on numerous assumptions, involve known and unknown risks, uncertainties and other factors which are beyond Metallon’s control that may affect the results, performance or achievements of Metallon. In certain cases, forward-looking information can be identified by the use of words such as "aim", "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "continues", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" and include the negative variation of such phrases. With respect to forward-looking information contained in this presentation, Metallon has made assumptions regarding, among other things, Metallon’s ability to generate sufficient cash flow from operations and access to existing credit facilities and capital markets to meet its future obligations, the regulatory framework in its countries of operation with respect to, among other things, permits, licenses, authorizations, royalties, taxes and environmental matters, and Metallon's ability to obtain qualified staff and equipment in a timely and cost-efficient manner to meet Metallon's demand. Although Metallon believes that its expectations reflected in forward-looking information are reasonable, such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Metallon or Metallon's projects in its countries of operations, or any of them, to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, but are not limited to, risks related to failure to convert estimated mineral resources to reserves, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, unexpected increases in capital or operating costs, possible variations in mineral resources, grade or recovery rates, failure of equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, labour risks, delays in obtaining governmental consents, permits, licences and registrations or financing or in the completion of development or construction activities, risks of title to properties, partner risks, legal and litigation risks, political risks arising from operating in Africa, risks relating to changes in governmental regulations and in operating internationally, risks relating to the infrastructures, uncertainties relating to the availability and costs and availability of financing needed in the future, indebtedness risks, changes in equity markets, inflation, changes in exchange rates, exchange control and export restriction risks, fluctuations in commodity prices and uninsured risks. Although Metallon has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward- looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Past performance of Metallon or its shares cannot be relied on as a guide to future performance. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein, unless stated otherwise, is made as of the date of this presentation and Metallon makes no responsibility to update them or to revise them to reflect new events or circumstances, except as required by law. 2
Corporate overview An African Gold Mining and Exploration Company • 4 operating mines and 1 mine under-development in Zimbabwe, with exploration assets in Zimbabwe, Tanzania & DRC • Globally significant resource base of 8 million ounces of gold (JORC compliant) and targets of between 4-6 million ounces in exploration • Gold production of 82,000oz in 2013 and production guidance of 100,000oz in 2014 • Low cost producer in Africa – all-in-costs of US$900 expected in 2014 • Expansion plans underway to become a mid-tier producer in the next five years • Additional pipeline of exploration and development projects backed by production growth and stable cash flows • Experienced management and technical team with proven ability to operate in Africa 3
Board & Executive management team Board of Directors Sir Nicholas Bonsor – Independent Non-Executive Chairman Mzi Khumalo - Chief Executive & Deputy Chairman – Company Founder Robert Robertson – Senior Independent Non-Executive Director Andile Reve – Non-Executive Director Kwaku Akosah-Bempah – Non-Executive Director Executive Management Team Tulani Sikwila – Finance Director Mark Tsomondo – Chief Operating Officer Dr Isadore Matunhire – Head of Technical Services Ken Mekani – How Mine General Manager Full biographies are in the appendix 4
Operations Operating mines Zimbabwe Exploration assets Zimbabwe Democratic Republic of Congo Tanzania 5
Operations: Zimbabwe Operating mines • How Mine • Shamva Mine • Mazowe Mine • Arcturus Mine Mine under development • Redwing Mine Advanced exploration projects • Motapa • Midwinter Metallon’s assets are considered to be the best gold mines in Zimbabwe – high grade, low cost operations 6
Zimbabwe – a golden opportunity Metallon has world class assets in Zimbabwe with exciting prospects Quality operations – efficient, professionally run mines High grade gold mines – How Mine & Mazowe Mine average mined grade of 5g/t Low cost production – All-in-costs expected at US$900 in 2014 Shallow gold mines – all less than 1,000 metres deep Good infrastructure and skilled labour force Additional upside in prolific, well-mapped but underexplored greenstone gold belts Government understands that mining is essential to economic growth First mover advantage – already one of the top 5 companies in Zimbabwe 7
Indigenisation – working with local communities • Indigenisation − Metallon liaising with the Zimbabwe Government regarding Indigenisation Policy − No longer a “one size fits all” approach − Indigenisation to be completed in 2014 − Credits allocated through CSR projects and employee share schemes • Supportive local communities − Metallon is a good corporate citizen and is committed to maintaining its social licence to operate − Metallon has built local schools, medical clinics and other services for staff and local communities − Numerous local development and sustainability projects planned for 2014 8
History of Metallon in Zimbabwe Assets acquired from Lonmin in 2002 with 5 operating mines • In 2005 production peaked at 156,000oz – making Metallon Zimbabwe’s biggest gold producer • In 2007 due to economic meltdown and hyper-inflation all mining activities in Zimbabwe ceased • Mines were placed on care and maintenance, with some mines flooded due to unavailable electricity • In 2009 mining activities recommenced • Mining is ramping up: • Total gold production (oz) in Zimbabwe – Production of 82,000oz in 2013 (2002 -2013) – Expected production of 100,000oz in 2014 800,000 – Returning to previous production of 156,000oz 700,000 600,000 500,000 400,000 300,000 200,000 100,000 - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 9
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