Renascor Resources Developing a World-Class Australian Graphite Project 5 December 2019 Investor Presentation Equity Raising ASX: RNU
Forward Looking Statements This Presentation may include statements that could be deemed "forward-looking" statements. Although Renascor Resources Limited (the "Company") believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those expected in the forward-looking statements or may not take place at all. No Offer to Sell or Invitation to Buy This Presentation is not, and should not be considered to, constitute any offer to sell, or solicitation of an offer to buy, any securities in the Company, and no part of this Presentation forms the basis of any contract or commitment whatsoever with any person. The Company does not accept any liability to any person in relation to the distribution or possession of this Presentation from or in any jurisdiction. Disclaimer Whilst care has been exercised in preparing and presenting this Presentation, to the maximum extent permitted by law, the Company and its representatives make no representation, warranty or undertaking, express or implied, as to the adequacy, accuracy, completeness or reasonableness of this Presentation; accept no responsibility or liability as to the adequacy, accuracy, completeness or reasonableness of this Presentation; and accept no responsibility for any errors or omissions from this Presentation. Competent Persons Statement The results reported herein, insofar as they relate to exploration activities and exploration results, are based on information provided to and reviewed by Mr G.W. McConachy (Fellow of the Australasian Institute of Mining and Metallurgy) who is a director of the Company. Mr McConachy has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Mr McConachy consents to the inclusion in the report of the matters based on the reviewed information in the form and context in which it appears. Bibliography Renascor confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements noted below and referenced in this presentation and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Renascor confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. 1. Renascor ASX announcement dated 14 March 2018, “Siviour Prefeasibility Study and Maiden Ore Reserve” 2. Renascor ASX announcement dated 21 February 2019, “Spherical PFS Demonstrates Increased Returns for Siviour” 3. Renascor ASX announcement dated 30 April 2019, “High-Grade Measured Resource in Upgraded JORC Resource” 4. Renascor ASX announcement dated 3 May 2019, “Optimised Development Plan for the Siviour Graphite Project” 5. Renascor ASX announcement dated 11 November 2019, “Siviour Definitive Feasibility Study” Renascor Resources Ltd | ASX: RNU renascor.com.au 2
Section 1: Introduction 3
Company Overview Minerals exploration and development company § with a portfolio of assets in key minerals districts in South Australia Focused on development of core asset, the Siviour § Graphite Project in South Australia, into a world- class graphite mining operation Project hosts one of the world’s largest graphite § Resources (1) Located in close proximity to relevant infrastructure § in mining-friendly South Australia Highly positive DFS reinforces the bankability of the § Project (2) Focused and committed board and management § with successful mine development track record (1) Renascor ASX announcement dated 30 April 2019, p 1. and Renascor ASX announcement dated 14 March 2018, p 4. (2) Renascor ASX announcement dated 11 November 2019 Renascor Resources Ltd | ASX: RNU renascor.com.au 4
Investment Highlights ü Perfectly positioned to help meet the graphite supply gap arising from inability of existing Future supply gap supply to meet demand driven by lithium-ion battery demand ü One of the world’s largest graphite Resources Low cost, world class ü Flat-lying deposit orientation drives low operating LOM cost of A$508/t (or US$355/t), graphite asset (1) placing it within the first quartile of international cost curve ü Proximity to infrastructure further underpins Project economics ü Two stage development including: Staged development ü Stage 1 with average production of 80ktpa during years 1 to 4 reduces initial capex (1) ü Stage 2 expansion during year 5 up to average production of 144ktpa, funded by Stage 1 cashflows ü Post-tax tax NPV 10% of A$388m (or US$271m) and IRR of 33% ü Start-up capex of A$114m (or US$79m) plus a mining pre-strip of $A4m or US$3m Robust economics (1) ü Basket sales price of A$1,149/t (or US$804/t) based on Benchmark Minerals Intelligence ü Average EBITDA of A$83m (or US$58m), EBITDA margin of 57% ü Offtake – advance discussions with potential purchasers and strategic partners, with a focus on the lithium-ion market ü Permitting – ML granted, which remains subject to a PEPR, the second step in a two-stage Next steps assessment and approval process (expect to lodge later this year) ü Financing – Dutch government credit agency prepared to provide debt cover up to ~60% of Stage 1 capex (subject to FEED stage), together with parallel discussions with other financers (1) Renascor ASX announcement dated 11 November 2019. Renascor Resources Ltd | ASX: RNU renascor.com.au 5
Section 2: Equity Raise Summary 6
Equity Raising Structure Placement Shares The issue price is 1.1c per fully paid ordinary share (“ Placement Price ”). & price Placement of new fully paid ordinary shares (“ New Shares ”) to raise $1.4m (“ the Placement ”) Placement Capacity The Company intends to issue up to 125,727,273 fully paid ordinary shares (“ Placement Shares ”), comprising shares issued under ASX Listing Rule 7.1. Price Discount The Placement Price represents: - a discount of 15.4% to the latest closing price of 1.3c per share; and - a discount of 14.7% to the Company’s 5-day VWAP of 1.29c per share. Share Purchase Plan In addition to the Placement, Renascor may elect to undertake a Securities Purchase Plan to raise up to $0.5m (“ SPP ”) and to enable participation by all eligible shareholders for an amount of up to $30,000 per eligible shareholder. Director Participation The Board of Directors of Renascor may participate in the equity raising either through the Placement and/or the SPP. Any allocation to a Company Director in the Placement will be subject to shareholder approval. Use of Proceeds Activity Amount (A$m) Bulk Sampling, process design & FEED 0.4 Product qualification & Marketing 0.2 Regulatory, environmental & tenement 0.2 Securing Debt Finance & due diligence 0.1 Spherical Project Development 0.1 Costs relating to the offer 0.1 General Working Capital Requirements 0.3 TOTAL 1.4 Renascor Resources Ltd | ASX: RNU renascor.com.au 7
Pro Forma Capital Structure Item Current Maximum Share Chart Placement - 1.4m 0.060 60 SPP - 0.5m Total Raising - 1.9m 0.050 50 Total Shares Issued - 171m Volume (Million shares) 0.040 40 Cash 1.8m (30-Sep) 3.7m Price (A$/share) Shares on Issue 1,159m 1,330m 0.030 30 Performance Rights 12m 12m Options 15m 15m 0.020 20 Debt - - 0.010 10 0.000 0 SHAREHOLDERS (Prior to Equity Raising) INTEREST 7 8 8 8 8 8 8 9 9 9 9 9 1 1 1 1 1 1 1 1 1 1 1 1 - - - - - - - - - - - - v n r y l p v n r y l p a u a u a a o a e o a e Clarke Family 11% J J M M N J M S N J M S Chairman: Dick Keevers 4% Volume Closing Price Other Directors 5% Renascor Resources Ltd | ASX: RNU renascor.com.au 8
Indicative Timetable Key Events December 2019 Trading Halt 8:30am Tues, 3 rd Placement Book Opens 10am Tues, 3 rd Placement Book Closes 5pm Wed, 4 th SPP Record Date 7pm Wed, 4 th 8pm Wed, 4 th Allocations advised Announce Placement & SPP, Trading Halt Lifted 10am Thurs, 5 th SPP Offer Opens, SPP Offer Document Sent 10am Mon, 9 th Placement Monies Due 5pm Wed, 11 th 5pm Settlement & Allotment of Placement Shares Before 10am Thurs, 12 th Placement Securities commence trading 10am Thurs, 12 th SPP Closes 5pm Fri, 20 th Before 10am Mon, 30 th Settlement and Allotment of SPP Shares Before 10am Mon, 30 th SPP Securities commence trading Note: All dates are indicative and subject to change. Renascor Resources Ltd | ASX: RNU renascor.com.au 9
Section 3: Project Summary 10
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