September 2018 www. tri-starresources.com
Disclaimer These presentation slides (the “Slides”) have been issued by Tri-Star Resources plc (the “Company”) in relation to an update on activities by the Company. These Slides do not comprise an admission document or a prospectus relating to the Company, do not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities in the Company. The Slides and the accompanying verbal presentation are confidential and the Slides are being supplied to you solely for your information and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbal presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of the Company, directors, officers, employees, agents or advisors or any other person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanying verbal presentation, and no liability is accepted by such persons for any such information or opinions or otherwise arising in connection therewith (including in the case of negligence, but excluding any liability for fraud). The Slides contain certain statements and expressions of belief, expectation or opinion which are forward-looking statements, and which relate, inter alia, to the Company’s proposed strategy, plans and objectives or to the expectations or intentions of the Company’s directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements. Any statement as to the past activities of the Company’s directors should not be relied upon as being an indication of their future performance. The Slides have not been approved by an authorized person for the purposes of section 21 of the Financial Services and Markets Act 2000 (“FSMA”) . They are exempt from the general restriction on the communication of invitations or inducements to engage in investment activity set out in section 21 of FSMA on the grounds that they are directed only at those persons who have professional experience in matters relating to investments and who are: (i) a person of a kind described in Article 19(5) (Investment Professionals), Article 48 (certified high net worth individuals) or Article 49(2) (high net worth companies etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) a “qualified investor” as defined in section 86(7) of FSMA (all such persons together being referred to as “Relevant Persons”) . Any investment, investment activity or controlled activity to which the Slides relate is available only to Relevant Persons and will be engaged in only with Relevant Persons. Persons of any other description, including those that do not have professional experience in matters relating to investments, should not rely or act upon the Slides. Reliance on the communication set out in these Slides for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property invested or of incurring additional liability. Any individual who is in any doubt about the investment to which these Slides relate should consult a person authorized by the Financial Conduct Authority specializing in advising on investments of the kind referred to in these Slides. 2
Overview of Tri-Star Tri-Star Resources plc (“Tri - Star”) is a mineral processing company, quoted on the AIM market of the London Stock Exchange plc (Ticker: TSTR.L), engaged primarily in the downstream value added processing of antimony. Tri-Star is a partner in the SPMP Project (or “Project”), an antimony and gold roaster. The Project is based in Sohar, Oman and is being developed by Strategic & Precious Metals Processing LLC (“SPMP”), an Omani company in which Tri-Star has a 40% interest. Tri-Star has invested a total of $28.8 million in the form of mezzanine loans and in equity. SPMP Management is currently negotiating Working Capital and Letters of Credit facilities from finance institutions. The Project is moving into the commissioning phase and will commence production in Q3 2018. Tri-Star also has antimony exploration and mining licenses in Turkey and in Canada (New Brunswick). Market cap (as of 28 Aug 2018): £51.75m 100% 99% 40% 40% Tri-Star Antimony Uc Yildiz Antimon Strategic & Canada Inc. Madencilik Precious Metals (registered in Turkey) (registered in the province of Processing LLC New Brunswick, Canada) 20% (registered in Oman) 3
Strategy and objective Company objective The company’s objective is simple: To promote and achieve medium and long term value for its shareholders. Source: SPMP Management, June 2018 Strategy Cost reduction - The Board’s focus is to implement a cost cutting strategy at the Tri-Star level, which involves maintaining a low cost base at the UK plc, Turkish subsidiary and Canadian subsidiary levels. Active management - On SPMP, the company’s strategy is centred in the active management and support of its key investment in the SPMP Project. The Company continues to hold a significant stake in SPMP and remains actively involved with the development of the Project through its representation on the Board of SPMP. Partnerships & acquisitions - As the SPMP Project moves into full operation, it is the longer term strategy of the Company to explore financing options and upstream partnerships or acquisitions to complement the SPMP Project and generate enhanced value for its shareholders. 4
Board of Directors Mark Wellesley-Wood Mark has over 40 years’ experience in both the mining industry and investment banking. He Non-Executive Chairman was a former director of Investec Investment Banking and Securities in London and former Chairman and CEO of DRDGold Limited. Karen initially joined Tri-Star as a Non-executive Director, following which she became acting Karen O’Mahony CEO/CFO with a focus of assisting SPMP with funding and ramp up to production. Previously, Acting CEO & CFO Karen was the Deputy Chief Investment Officer at Misland Capital Ltd, a Director at Davy Stockbrokers and an Associate at Goldman Sachs. Karen is also Managing Director of PEAL Investments Ltd as well as a Non-Executive Director for SPMP and Chronos Therapeutics Ltd. Adrian has worked in the fund management business for over 40 years, a large part of which Adrian Collins was at Gartmore Investment Management where latterly he was Managing Director. He is Senior Independent currently Chairman of Liontrust Asset Management and CIP Merchant Capital Ltd, Bahamas Director Petroleum plc. Adrian was previously Chairman of Tri-Star, and is currently Chairman of the Remuneration Committee. David is a Partner and Non-Executive Chairman of Odey Asset Management (“ Odey AM”) . He David Fletcher has been part of the management team at Odey AM for over 20 years since joining as Chief Non-Executive Director Executive in 1995. David is also a Senior Adviser at Social Finance, a not for profit social sector innovator. Previously, CEO at Leopold Joseph. David is currently Chairman of the TSTR Audit Committee. David is also Non-executive Director for SPMP. 5
Antimony: Supply Dynamics Antimony Ingot About Antimony Outputs A vital material in flame retardants and as an alloy in batteries The SPMP Project will produce Antimony Top 3 metal in most commodity supply risk lists Ingots and Antimony Trioxide with Gold Naturally occurring in the earth’s crust but is Value Added doré and Gypsum as significantly scarce compared to its peers byproducts. Recent research indicates that an emerging new use for Antimony Trioxide Antimony antimony is as a nanocomposite (consisting of Sb2O3, and Fe3O4) for use as new anode materials for lithium- Sb 51 ion batteries . 1 121.76 Primary uses of antimony 2 8% 7% Byproducts – Gold doré & Gypsum 50% 35% Flame retardants Lead acid batteries Stabillisers and plastics Other 1 Source: Loi Nguyen, Tuan & Soo Kim, Doo & Hur, Jaehyun & Sang Park, Min & Yoon, Sukeun & Tae Kim, Il. (2018). Iron-antimony-based hybrid oxides as high-performance anodes for lithium-ion storage. Journal of Power Sources. 2 Source: US Geological Survey, 2014 6
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