September 15, 2014
Qualified Person: Jake Foronda, Vice-President of Operations of TVI Resource Development (Phils.), Inc. (TVIRD), is acting as the Qualified Person in compliance with NI 43-101 reporting requirements with respect to the Agata project technical information in this presentation. Forward Looking Statements: This presentation contains forward-looking statements including management's assessments of future plans and operations, and expectations of future production, including the statements with respect to when Mindoro expects production and the direct shipping of high-iron laterite resources at the Agata project to commence. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty with respect to results of exploration, the uncertainty of estimates and projections relating to production and the uncertainty of the availability of capital). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not undertake to update forward-looking statements except where required to do so by law. www.mindoro.com 2
Mindoro has teamed with an experienced partner to develop the Agata project into a two-phase nickel operation in the Philippines, building on early revenue from direct shipping ore (DSO) and moving into processing by 2017. Agata project interests, assuming all options exercised: • Mindoro: 40% (15% + 25% option) • TVIRD: 60% (fund DSO into production and complete a processing feasibility study; operator of project) www.mindoro.com 3
1. Direct Shipping Ore (DSO) Operation Robust economics: IRR 187% & 1 yr. payback Offtake agreement signed to ship 1M wmt over 1 st yr. $2M advance on sales received by Agata JV company 1 st shipment expected within 30 days 2. Processing Operations Proven technology for an intermediate nickel product Definitive Feasibility Study near completion First intermediate nickel product targeted 2017 3. Limestone DSO and processing opportunities 4. Gold and Copper-Gold discovery potential www.mindoro.com 4
Shares Reserved for Issue (Millions) Exchange & Symbol TSX-V:MIO FFT: OLM Warrants 61.8 Options 1.9 Shares outstanding 297M Property Acquisitions 5.4 Fully diluted 366M Loan Bonus Shares 0.1 Share price $0.04 Total 69.1 Market capitalisation $11.9M Number (Millions) Price Expiration Current treasury $328,000 Warrants 5.98 $0.31 Jul 9 2015 ( Aug. 31, 2014) 13.17 $0.31 Jul 22 2015 18.78 $0.10 Sep 28 2017 24.00 $0.10 Oct 11 2017 Major Shareholders Options 0.20 $0.125 Jan 12 2015 Prime Holdings 25.4% 1.45 $0.19 Mar 15 2015 TVI Pacific 14.4% 0.25 $0.10 Jul 4 2015 www.mindoro.com 5
Prime 25.4% 68.4% Resources (Philippines) 5% Mindoro TVI Pacific 30.7% 2 14.4% (TSXV: MIO) (TSX:TVI) 100% MRL Nickel Agata Joint TVIRD 40% 1 60% (Philippines) Venture (Philippines) 1 Option signed in August 2014 to acquire 25% 2 TVI Pacific’s 30.7% interest held through interest from Minimax Mineral Exploration. subsidiary TVI International Marketing Limited www.mindoro.com 6
Non-Executive Directors: • Rob Garden , QC, Director & Chairman: 38 yrs. in natural resources law • Larry Nagy , Director : Geologist with 36 yrs. in mineral resource industry • Cliff James , Director : CEO & President of JV partner, TVI Pacific Executive Directors & Management • Penny Gould , Director & CEO: 30 yrs. in business admin, financing and marketing; variety of positions with Mindoro from 1996 – 2011, including Exec. VP, CFO and President; rejoined Mindoro in 2013. • Clayton Northey , CFO & Corp. Sec.: 8 yrs. in finance and admin; 6 yrs. with Mindoro as accountant and financial controller before assuming CFO position in 2012. • Edsel Abrasaldo , COO: VP of Philippine sub, MRL Nickel; major role in operations and sustainability programs, 37 yrs. in Philippine mining industry and 17 yrs. with Mindoro. www.mindoro.com 7
A Sept. 5, 2014, editorial from Stainless Steel News and Nickel Prices : • Pre 2000: Rocks containing small percentage of laterite ore = waste • Post 2000: China demand prices sky rocket $23.50/lb in mid-2007. • China invents 'pig nickel‘ using low grade ore imported from Indonesia and Philippines, easing dependence on nickel mines. • Pig nickel + new mines prices drop & stockpiles grow ($6.80/lb in 2013). • Jan. 2014: Indonesia bans DSO China imports more Philippine ore. • Prices rise on prospects of shortage but stockpiles increase, tempering gains. • Sept. 2014: Philippines proposes DSO export ban. • Potential to strain world supply as China becomes dependent on mines again. • Speculators drive price higher. Stay tuned. 8
• Aug 2014: bill introduced in Philippines to ban unprocessed exports of ore (direct shipping ore, “DSO”). • Sept. 9: Proponents of bill suggest 7 yrs. before any ban would take effect. • Mindoro’s Agata DSO project will be substantially mined out well in advance. • Production of intermediate nickel product targeted 2017. www.mindoro.com 9
LUZON AGATA NORTH RESOURCE Combined Limonite & Saprolite • Measured & Indicated: 33.94M DMT @ 1.10% Ni Manila • Inferred: 2.09M DMT @ 1.04% Ni AGATA SOUTH RESOURCE Combined Limonite & Saprolite • Indicated: 5.04M DMT @ 0.86% Ni • Inferred: 0.45M DMT @ 0.83% Ni Taganito Nickel Project PALAWAN (Sumitomo- Located in the Surigao region, which Nickel Asia) Coral Bay Nickel 21,000 Ni tpa has hosted DSO operations since the MINDANAO (Sumitomo/Nickel Asia) 1980s; between 13 & 15 DSO operations since 2011 and exported 27 million wmt in 2013. www.mindoro.com 10
High iron nickel laterite and limestone deposits 2 km from the coast. On west coast, protected from seasonal monsoons LATERITE which limits shipping season on east coast. Little vegetation; few people, no one living on LIMESTONE laterite deposit. MRL NICKEL PHILIPPINES INC. LATERITE RESOURCE www.mindoro.com www.mindoro.com 11 11
Well-Defined Laterite Profile Ferruginous (high iron – low nickel Phase 1 grades) Direct Shipping Ore (DSO) Included in limonite of Agata North Limonite Zone Resource, proven and probable: (high iron – 9.7M wmt @ 0.93% Ni and 48% Fe medium nickel grades) Saprolite Zone (low iron-medium Phase 2 nickel Nickel Processing Plant grades) www.mindoro.com 12
Base Case at $22/wmt (1) (for 100% of Project ) NPV (10%) after tax (USD) $38M • Mindoro: 40% IRR% 187 (upon exercise of 25% option) Mine Life 10 yrs (majority mined <4 years) • TVIRD: 60% Opex 2 $10-$12/wmt (upon earn-in) Full Capex $11.9M Capex Payback 1 yr. Estimated Total Free Yrs. 4 - 17 Cash Flow for Project Yr. 1 Yr. 2 Yr. 3 (per annum) LOM $(6.9) $10.6 $20.6 $15.0 $1.7 – 1.1 $50.7 Million US$ 1 Prices reached high of >$40/wmt in July 2014; 2 Varies year to year Above information from Sept. 2013 Feasibility Study, available at www.sedar.com and www.mindoro.com www.mindoro.com 13
Mindoro will hold 40% of Agata Mining and Processing upon exercise of option to acquire 25% from Minimax Mineral Corp . Key Option Terms: • US$60,000 upon signing (paid) • US$60,000 (60 days from signing: Oct. 13/14) • US$250,000 (6 months after 1 st DSO shipment) • US$4,000,000 (five annual installments of US$800,000 commencing 1 yr. after 1 st DSO shipment) • Forgive CDN$5.5 million debt owed to Mindoro • 0.5% Net Smelter Returns (1) royalty levied on 100% of processing production (does not apply to revenue from limonite DSO) (1) NSR defined as the proceeds from the sale of mineral products after deducting insurance and transportation costs from the processing plant to the purchaser of the processed product www.mindoro.com 14
• Offtake agreement to sell 1M wmt , Sept 2014 – Sept 2015 • $2M advance received by JV to fund initial operating costs • 1 st shipment anticipated within 30 days, subject to receipt of remaining permits Mining high iron-low nickel limonite for DSO Low iron-high nickel saprolite for potential future processing www.mindoro.com 15
Active Mining Benches Causeway Causeway Payong-payong Stockyard 1 Stockyard 2 village, scheduled for relocation www.mindoro.com 16
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Shippable stockpiles ready to be hauled to causeway stockyard Sampling Stands www.mindoro.com 19
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Sample preparation Samples being building returned to under stockpile after construction assaying 21 www.mindoro.com
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The first NHP ‘cake’ at 52% to 54% nickel grade produced during the Agata Pilot Plant test at Intertek Minerals Philippines 28
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