Minnesota Commitment | Global Opportunity March 2016
Cautionary Statement This presentation contains certain forward-looking statements concerning anticipated developments in PolyMet Mining Corp. (“PolyMet”)’s operations in the future. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,” “potential,” “possible,” “projects,” “plans,” and similar expressions, or statements that events, conditions or results “will,” “may,” “could,” or “should” occur or be achieved or their negatives or other comparable words. These forward-looking statements may include statements regarding our beliefs related to the expected project timelines, exploration results and budgets, reserve estimates, mineral resource estimates, continued relationships with current strategic partners, work programs, capital costs and expenditures, actions by government authorities, including changes in government regulation, the market price of natural resources, estimated production rates, costs, ability to recei ve environmental and operating permits, construction costs and hours created, job creation and other economic benefits, or other statements that are not a statement of fact. Forward-looking statements address future events and conditions and therefore involve inherent known and unknown risks and uncertainties. These risks, uncertainties and other factors include, but are not limited to, adverse general economic conditions, operating hazards, inherent uncertainties in interpreting engineering and geologic data, fluctuations in commodity prices and prices for operational services, government regulation and foreign political risks, fluctuations in the exchange rate between Canadian and US dollars and other currencies, as well as other risks commonly associated with the industry. Actual results may differ materially from those in the forward-looking statements due to risks facing PolyMet or due to actual facts differing from the assumptions underlying its predictions. In connection with the forward-looking information contained in this presentation, PolyMet has made numerous assumptions, regarding, among other things: the geological, metallurgical, engineering, financial and economic advice that PolyMet has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. While PolyMet considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. PolyMet’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and PolyMet does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations and opinions should change. Specific reference is made to PolyMet’s most recent Annual Report on Form 20-F for the fiscal year ended January 31, 2015 and in our other filings with Canadian securities authorities and the U.S. Securities and Exchange Commission, including our Report on Form 6-K providing information with respect to our operations for the three months ended October 31, 2015 for a discussion of some of the risk factors and other considerations underlying forward-looking statements. PolyMet’s financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"). All amounts are in U.S. funds. 2
A Minnesota Copper Growth Story NorthMet Project: § - Measured & Indicated 694M tons @0.74% CuEq - Mine Plan 224M tons @0.77% CuEq EIS is complete – State of Minnesota has validated § Next steps include federal Records of Decision, permits and construction § Commercial production expected ~24 months after receiving permits § NorthMet cash flows remain attractive at current commodities prices § Continued support from Glencore – financial, commercial and technical § Construction financing is on-going § 3
The NorthMet Project § Established within the Duluth Complex, adjacent to the Mesabi Iron Range. § Final EIS is complete and validated. § PolyMet controls 100% of the NorthMet project. § MN is geopolitically stable and mining friendly. § Skilled mining community in place. § Experienced management team with a track record of permitting, building and operating responsible mining operations. 20 Year Operating Plan | 224M Tons 32,000 Tons/Day Production Plan 4
The NorthMet Project PolyMet – NorthMet Mine Operation § Using existing Erie Plant and North infrastructure located near the ore Existing tailing facility body and connected by existing rail. § Low cost for production of Cu makes Existing Plant Site this an attractive & competitive 6 miles project. Rail Line § PolyMet controls 100% of the mineral WEST PIT resource. § Offtake agreements in place with Glencore for all Cu | Ni concentrate EAST PIT production. Waste Rock Storage § ~1,000 total jobs created in MN. Cliff NR – Northshore Mine 5
Experienced Leadership Jon Cherry, President, CEO, Director Andrew Ware, Chief Geologist Leader in mining environmental policy and new Expert on the Duluth Complex and the mid-Continent mining projects, 20 years with Rio Tinto in the U.S.; Rift, broad experience in SE Asia and Mexico. 25 years experience in the industry 25 years with Rio Tinto Jim Tieberg, Mine Manager Douglas Newby, Chief Financial Officer Over 20 years experience in mine operations, Mine finance expert, former Chairman/CEO of engineering, drilling/blasting & tailings basin Western Goldfields (now New Gold) ~30 years construction. experience Brad Moore, VP Environmental & Gov. Affairs Permitting and regulatory expert, former senior Minnesota government official 6
EPA Rating EPA EIS rating scale Objections typically conservation LO: Lack of & wilderness projects *MN PolyMet’s NorthMet Project *MN Light Rail Project EC-2 *MN St. Croix River Bridge 1 2014 EPA Rating Environmental Concerns EC: * 2 * 3 EPA Comment On Final EIS 1 Environmental Objections EO: “Our extensive discussions with the co-lead and cooperating 2 agencies have helped to resolve virtually all of our previous * 2012 Mount Hope 3 * 2012 Hollister Silver comments, and to review important questions about project modeling.” 1 Environmentally Unsatisfactory EU: 2 — EPA Office of Enforcement and Compliance Assurance, 08/05/2015 * 2012 Rosemont Copper 3 2009 EPA Rating 7
Path To Permits ✓ Adequacy Decision State Permits ✓ ✓ ✓ ✓ 2016 EIS Draft EIS SDEIS Final EIS Construction Scoping 2009 2013 2015 2005 Federal Records of Permits Decision 8
The NorthMet Resource Tonnage Tonnage % Copper Million Pounds Million ST Million MT Cu Equivalent Cu Equivalent * Mineral Resource ** Measured 203 184 0.79% 3,204 Indicated 492 446 0.72% 7,052 M+I 694 630 0.74% Inferred 230 208 0.75% 3,446 Reserves 275 249 0.79% 4,340 * Metals converted to copper based on 2008 DFS update metals prices ** $7.42/Net metal value cut-off – January 2013, 43-101 ($1.25/lb copper) 9 20 Year Mine Plan subject to permit applications ($1.25/lb copper)
World Class Copper District Section 35400ME (Looking North East) NorthMet Ore Body Unit 7 Unit 6 Pit wall Unit 4/5 Unit 2/3 0.25 to 0.5 CuEq 0.5 CuEq and Above Unit 1 § Di Disseminated, Pol olymetallic Dep eposit § Lo Low Str trip (waste te:ore) Rati tio (1.4:1 life-of of-mi mine), § Mi Minimal Over-Bu Burden § Ba Based on $1.25/Pound Copper / cut-of off grade 10
Strategic Alliance With Glencore Investment to date Glencore Support 200 180 160 Equity at $1.38/share § Financial support weighted average 140 $96M $186M to date $ in Millions $96M Glencore loan facility: $42M 120 § Commercial offtake 100 agreement in place Glencore convertible debt: 80 $34M @ 1.29/share $42M $34.9M 60 § Technical support Purchase of all 9.2 million shares previously owned 40 by Cliffs Natural Resources $34M $30M 20 $13M $13M 0 11
Shareholder Data Share & Balance Sheet Information Share price (NYSE MKT: PLM) as of 3/2/16 US $1.13 Share price (TSX: POM) as of 3/2/16 C $1.51 Common shares outstanding 277.3M Fully diluted shares: § Float: 60.3% 332.5M § Glencore: 33.8% § Management: 5.9% Market capitalization US $313M *Cash and cash equivalents $9.3M *Total debt $47.1 *Figures are as of the most recent financial statement 12
Summary 694M tons M+I @0.74% CuEq | Mine Plan 224M tons @0.77% CuEq § EIS Complete – next steps include permits and construction § Experienced management team with proven track record § NorthMet Project economics remain attractive § Construction financing is on-going § 13
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