PG Mining Management Overview Strategic Development Partner April - PowerPoint PPT Presentation

PG Mining Management Overview – Strategic Development Partner April 2014

PG Mining Management PG Mining Management was established to provide mining project technical expertise, commercial acumen and investment track record PG MINING MANAGEMENT Mining project Extensive project Project investment development group development credentials capital Provide management capabilities, expertise and networks to advance mining projects Service and manage mining investments for PG Mining Management investor consortia Specialist focus on mine building and mine production optimization Provide additional endorsement for mining development projects as a project enabler

Global Mining Project Experience Project Experience & Office Locations  PG Mining Management (PGMM) staff have advised, arranged, financed, developed and operated mining projects across the globe Greece China Thailand Canada U.S.A (Representative Office) Laos Philippines (Representative Office) Malaysia Mexico PNG Indonesia India Australia Chile Tanzania New Zealand South Africa Singapore (Head Office)

Global Mining Project Experience Mine Development Track Record  The PGMM track record of investment and management of mining projects includes the following recent examples: Investor consortium , with PGMM lead management, invested US$80m to redevelop the  Philippine copper/gold mine, and took the lead role in driving the business development and managing operations. Mining operations resumed after an 18 month rehabilitation program and the stake was sold for US$370m PGMM management oversaw the US$250m construction and commissioning of the  200,000oz per annum Masbate gold project. The project was developed on time and budget and has met production forecasts. Masbate was divested by project owner CGA Mining in late 2012 for more than US$1b Additional Projects : PGMM senior management have been involved with a large number of additional projects. Roles  include providing project development management, operational expertise, technical reviews, diligence and advisory services to many projects in most major global mining jurisdictions and covering a range of commodities

Business Focus Overview  PGMM acts as a strategic development partner for mining companies. PGMM seeks to identify projects that are compatible with its track record and which PGMM can add value to as the project is developed  PGMM is a project enabler and the involvement of PGMM is intended to facilitate a project’s access to development capital, both from PGMM’s investor consortia and other sources of capital  PGMM aims to promote value appreciation at every level of the capital structure Technical & Commercial Management Services  PGMM adds value to mining assets through a contribution of mining technical and commercial management input. Areas of particular expertise include: Mining Technical Commercial Management  Project modelling and valuations  Investment structuring – including defining appropriate finance instruments/ methodologies to  Mine and project development suit a project  Feasibility studies for both UG and open pit  Business and project development plans  Resource/reserve modeling and mine design  Partner negotiations  Mineral exploration programs  Finance and other corporate and commercial  Permitting in particular jurisdictions services

Technical Services & Commercial Management Service Delivery  The range of situations where PGMM may provide Mining Technical & Commercial Management Services is listed below: Technical Services & Commercial Management Overview Development Management Team  PGMM performs the role of an ‘outsourced management team’ for mine project development  The exact nature of the management services provided by PGMM is flexible and determined by individual project developments May involve assuming overall responsibility for managing project development including setting  strategic and actionable business plans, in addition to financial objectives Problem Solving PGMM also has the capability to undertake assignments focused on a particular facet of a  project - i.e. ‘trouble shooting’  An assignment of this nature may, for example, involve focusing on improving the operating performance of an existing mining project PGMM has a proven ability to deliver operational and financial discipline to mining projects  Technical & Commercial Reviews  PGMM undertakes technical reviews and limited due diligence studies for boards and project owners seeking an expert opinion on mining project development

Featured Project Developments – Carmen Copper Corporation Project Overview Project Development  Large porphyry copper deposit located on Cebu Island  Purchased a 45.5% stake in a copper/gold mine in the Philippines, Carmen Copper Corporation, co-owned with PSE  Multiple open pit operation and underground development listed, Atlas Consolidated Mining and Development Corporation  Infrastructure includes power, concentrating and port facilities  The investment was made prior to the rehabilitation of the mine, which had operated successfully for 50 years until the mid 1990’s when it closed down due to a confluence of events  Consortia invested circa US$80m and held a co-control position of the company with Atlas. Investor consortium management Cebu - Philippines (now PGMM) managed the business; including day-to-day operations, all key development decisions and board level matters  The mine began operations again in September 2008 after an 18 month rehabilitation program and currently processing an average of approximately 42,000 tonnes of ore per day at 0.31% Cu, and producing about 205,000 lbs of payable copper or approximately US$750,000 revenue per day (plus gold by- product revenue )  In 2011, the consortia sold its stake to Atlas financed by Philippine’s largest bank, Banco de Oro for circa US$370m

Featured Project Developments – Masbate Gold Project Project Overview Project Development  Flagship gold mine in the Philippines with over 750,000oz produced  Site of historic small scale mining prior to more significant mining activity from 1979 until 1994. Mining ceased in 1994  Historic mining site redeveloped into modern mining operation while additional drilling and in-house studies occurred through until 2002  The project was acquired from Thistle Mining at a feasibility stage in 2006 by ASX and TSX-listed CGA Mining  PGMM management were key members of the Masbate development team at the point of CGA Mining’s acquisition and Masbate - Philippines for the entire development and early operational phases  CGA Mining management (now PGMM) oversaw the US$250m construction and commissioning of the project over a two year period  At first gold pour in 2009 the project had Reserves of 3Moz and was forecast to produce at a rate of approximately 200,000oz per annum from a 4Mtpa plant. 2014 budget forecasts 190,000 to 200,000oz total production  In late 2012 CGA Mining divested Masbate in a transaction that valued the project at approximately US$1b

Featured Project Developments – Additional Projects The following table lists projects for which key members of PGMM senior management have been instrumental in developing: Mine/Project Mine/Project Detail Role Banahaw/Medusa Mine UG mine - gold Managed permitting and development of initial small scale operation – Philippines Casa Berardi Mine UG mine - gold Expansion management - Canada Indonesia Nickel OP mine - nickel General development management and operation of DSO nickel – Indonesia operation Kassandra Mines UG mines - lead, zinc and gold Management of mine upgrade and introduction of modern mining – Greece methods Lepanto Mine UG mine - gold General management of mining operations and project expansion – Philippines Macasa/Lakeshore Mine UG mine - gold Management of mine redevelop and expansion – Canada Massara Mine UG mine - gold General management of the project development and operation – Philippines Mineral Hill Mine UG mine - gold General manager and superintendent of mining operations - USA Mussle White Mine UG mine - gold Project development Superintendent - Canada Runruno Project OP mine – gold Conducted exploration and scoping activities leading to project – Philippines (under development) feasibility

Senior Management Overview PGMM senior management have expertise across key project development disciplines and have a history of working together PG Mining Management Mining Technical Mining Operational Business Development PGMM Continuity Geology Focus Engineering Focus Management Project/ Company Years Association With Other PGMM Development Management Tim Armstrong    21 Years Scott Robson    10 Years Gary Leighton    7 Years Dewayne Chambers    21 Years