PRODUCING EXCEPTIONAL QUALITY DIAMONDS Shareholder Call 29 January - PowerPoint PPT Presentation

PRODUCING EXCEPTIONAL QUALITY DIAMONDS Shareholder Call 29 January 2020

IMPROVED PRODUCTION VOLUMES & GRADE • The new management team took over in May 2019 Volume 000 tonnes 250,000 • May and June 2019 saw an immediate increase in 200,000 production compared with the previous year 150,000 • Recent Q4 update showed improved production 100,000 volumes: 50,000 • FY 2019 up 70% to 323,000 tonnes (FY 2018: 190,000) • Q4 2019 up 108% to 110,000 tonnes (Q4 2018: 53,000) 0 2018 H1 2018 H2 2019 H1 2019 H2 • Q4 update showed improved grade: • FY 2019 4.34 cpht (FY 2018: 3.28 cpht) • Q4 2019 4.65 cpht (Q4 2018: 4.01 cpht) • Q4 update also showed increased average price per carat • FY 2019 up 24% to USD415 per carat (FY 2018: USD334) • Q4 2019 up 30% to USD410 per carat (Q4 2018: USD316) • Ongoing improvements almost entirely due to the introduction of a highly competent technical team, which understand the challenges and has the capacity to resolve them 1 Shareholder Call - 29 January 2020

COST PER CARAT • Unaudited cost per carat produced in H2 2019 fell to USD275 per carat and in 2018 this was above USD400 per carat • Cost per carat linked to: • Economies of scale • Improved operational management & employee commitment • Partnership with professional major contractors • Cost control • Management continues to investigate cost reduction opportunities to impact positively on Life of Mine economies: • Linking up to the electricity grid • Materially increasing volumes • Delivering higher recoveries – 70% to +90% 2 Shareholder Call - 29 January 2020

THE RESOURCE Life of Mine currently around 10 years • Management believe that the resource can sustain increased production • KV1 and KV2 to be mined as one pit • • KV5 operational in 2020 KV3 to be selectively mined – starting with a trial trench in 2020 • INFERRED RESOURCE NOVEMBER 2018 Volume Carats Grade Pipe Tonnes (m 3 ) (+1mm) (cpht +1mm) KVW01 605 800 1 561 400 97 000 6.2 KVW02 734 000 1 909 700 86 600 4.5 KVW03 1 461 600 3 629 200 152 000 4.2 KVW05 253 400 644 300 31 400 4.9 TOTAL 3 054 800 7 744 600 367 000 4.7 3 Corporate Presentation Q4 2019

FUTURE PLANS – A THREE STEP APPROACH St Step 1 - me met Step 2 - unde St underway Step 3 Growth Capacity in executive team and Board to: • Evaluate other diamond mining Step 2 opportunities in Africa Achieve & optimise profitability • Evaluate other mining opportunities in through internal growth Africa Evaluation of how best to optimise the value of Kareevlei Step 1 • Assess increased monthly/yearly Achieve operational profitability volumes above guidance level versus through enhanced production capital cost Currently focussing operational • Evaluate how best to mine the stability and discipline with Initial resource to get maximum value indications being positive • Operate profitably 4 Corporate Presentation Q3 2019

SUMMARY • New management team with strong technical capacity • Met & exceeded all production targets for 2019 • Operationally profitable in H2 2019 • Share price: • Doubled since the fundraising in May 2019 • Outperformed benchmark indices • Has not reflected the recent successes • Step 2 of growth strategy under way: • Develop plans to increase production • Focus on reducing costs further • Step 3 of growth strategy to maximise value to shareholders: • Acquire other high growth assets; and/or • Introduce a progressive dividend policy • Potential future Company revaluation • Average price per carat of +USD380 • Lower cost – USD275 • Potential to increase production • Improved recovery of in-situ diamonds from 70% to +90% (higher revenue outweighs lower average price) 5 Shareholder Call - 29 January 2020