Poised to become the global leader in vermiculite production - PowerPoint PPT Presentation

April| 2017 INVESTOR PRESENTATION Poised to become the global leader in vermiculite production

DISCLAIMER This presentation is not a prospectus nor an offer of securities in any jurisdiction nor a securities recommendation. The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Black Mountain Resources Ltd and consult their own legal, technical, business and/or financial advisers. The information contained in this presentation has been prepared in good faith by Black Mountain Resources Ltd , however no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, options, or other information contained in this presentation. To the maximum extent permitted by law, Black Mountain Resources Ltd, its Directors, officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person through the use of reliance on anything contained in or omitted from this presentation. Certain information in this presentation refers to the intentions of Black Mountain Resources Ltd , but these are not intended to be forecasts, forward looking statements or statements about the future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of the events in the future are subject to risk, uncertainties and other actions that may cause Black Mountain Resources Ltd’s actual results, performance or achievements to be materially different from the results, performance or achievements implied by the forward-looking statements. Such factors include, but are not limited to, general economic, market and business conditions, failure to obtain adequate financing when needed, market prices for phosphate, estimation of demand for the ore product, ability to convert expressions of interest from potential customers into definitive sales agreements, risks and uncertainties related to Black Mountain Resources Ltd’s ability to successfully develop and commission mines at its vermiculite and phosphate projects, to obtain all necessary permits for development and production as and when required, estimation of resources and reserves, development and production costs, transportation delays and costs, delays in construction of the mining operation, accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties with, or interruptions in, development or production, exchange rate fluctuations, and risks and uncertainties associated with doing business in Uganda. In addition, there may be information herein that is information about prospective results of operations, financial position or cash flows and which is provided only to assist in an evaluation of the prospective business outlined herein, but are not to be relied upon as accurate representations of future results and may not be appropriate for any other purpose. Competent Person’s Statement The information in this report that relates to exploration planning, methodology, analysis and results has been compiled by Patrick Takaedza. Mr Takaedza is a full-time employee of Namekara Mining Company Ltd. Mr Takaedza is a member of the Australian Institute of Mining and Metallurgy. Mr Takaedza has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the JORC Code (2012). Mr Takaedza consents to the disclosure of the information in this report in the form and context in which it appears. The information in this report that relates to Mineral Resources has been compiled by Matthew Cobb, who is a full-time employee of CSA Global Pty Ltd. Dr Cobb is a Member of both the Australian Institute of Geoscientists and the Australian Institute of Mining and Metallurgy, and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012). Dr Cobb consents to the disclosure of the information in this report in the form and context in which it appears. The information in this report that relates to mineral resource regularisation, pit optimisation process, mine scheduling and pit design for the Ore Reserves has been compiled by Patrick Takaedza. Mr Takaedza is a full-time employee of Namekara Mining Company Ltd. Mr Takaedza is a member of the Australian Institute of Mining and Metallurgy. Mr Takaedza has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the JORC Code (2012). Mr Takaedza consents to the disclosure of the information in this report in the form and context in which it appears. 2 INVESTOR PRESENTATION | April| 2017

BMZ - CORPORATE OVERVIEW P… $0.080 $0.070 CAPITAL AND TRANSACTION STRUCTURE $0.060 Shares on Issue (1) 153M $0.050 Convertible Note (2) 10.7M $0.040 $0.030 TOTAL ON ISSUE 173m $0.020 Market Capitalisation @ 4 cps A$6.9M Debt (3) A$4.2M Vo… 3.0 2.0 EV @ 4 cps A$11.1M 1.0 Options [12.5 cps, June 2018] 2.5 million 0.0 28 Dec 16 06 Jan 17 17 Jan 17 26 Jan 17 06 Feb 17 15 Feb 17 24 Feb 17 07 Mar 17 16 Mar 17 27 Mar 17 Royalty (4) 1% NSR Three month BMZ SP & Volume Top 20 Shareholders 62.33% Notes to Capital Structure: 1. Ordinary Shares as at 31 Dec 2017 2. A$535,000 @ 5 cps Convertible Notes issued in April 2017 3. Debt is made up of US$3.25M (at $USD exchange rate) as Residual Profit Share from Vendor, LB International Ltd 4. Royalty from BMZ of 1% NSR 3 INVESTOR PRESENTATION | April| 2017

NEAR-TERM VALUE CATALYSTS  Further upgrades to current Namekara JORC Resource estimate;  Maiden Indicated Resource estimate of 4.6Mt at 19% vermiculite >710 micron (10% > micron cutoff) announced March 2017  BMZ has infill drilled only 10% of the area covered by the Inferred Resource (55Mt at 18% vermiculite >710 micron / 10% > micron cutoff)  Release of Namekara Production Target scheduled for H2 2017  Continued streamlining of operational efficiencies at Namekara to drive significant improvements in project economics  Aggressive sales and marketing campaign to execute key sales contracts in US and Europe during Q2/Q3 2017  Recently released Maiden Ore Reserve of 1.16 Mt at 24.8% vermiculite >710 micron (20% >710 micron cutoff) at Namekara Vermiculite Deposit, Uganda 4 INVESTOR PRESENTATION | April | 2017

Global Vermiculite Market 5 INVESTOR PRESENTATION | April | 2017

12 MONTH IMPROVEMENT PROGRAM PHASE 1: November 2016 – February 2017 Complete acquisition of Namekara Vermiculite Mine ✔  New marketing and sales agreements into Europe ✔  Further studies to consider expansion ✔  JORC 2012 Resource upgrade completed ✔  Securing of US$750,000 financing facility to rapidly advance Namekara Mine ✔   Identification of key areas to be targeted in operational cost-reduction program (drying costs a key focus) ✔ PHASE 2: March 2017 – July 2017 Implementation of cost-reduction program to drive operating efficiencies ✔   Integration of Trade Finance Deals  Broader marketing of export sales to US, Europe, Middle East and Australasia  Consider expansion opportunities for Namekara Mine to coincide with securing of major US sales contracts PHASE 3: August 2017 – November 2017  Implement drying costs improvements following environmental permitting  Double Namekara production capacity subject to market acceptance (2 X Dry Plant)  Commence work on Phosphate Project 6 INVESTOR PRESENTATION | April | 2017

NAMEKARA FLOWSHEET 7 INVESTOR PRESENTATION | April | 2017

POSITIONED FOR LONG-TERM SUCCESS Upside Mining and Logistics and Outlook and Potential Processing Offtake Demand Established Infrastructure Food Security Large Landholding Coarse-High Grade A key driver for future +50km 2 Regional and export sales High grade resource using sealed road demand and pricing <10% explored Premium Flake V Robust Pricing Converting Free Dig Fertiliser Product Exploration Target No drill and blast Opportunity to increase Pricing remains stable sales to fertiliser sector through offtake agreements in JORC 2012, R&R Low cost mining 45-55Mt at 20-27% Vm (>18mm) Strong Demand Market Fundamentals Historical Activity Processing Phosphate mine with +60% production of premium Only significant producer of Growth in demand and large and medium flake increase in pricing historical production large and medium flake over 20 years 8 INVESTOR PRESENTATION | April | 2017