Spain & Portugal AIM : WRES www.wresources.co.uk May 2016 - PowerPoint PPT Presentation

Tungsten in Spain & Portugal AIM : WRES www.wresources.co.uk May 2016

Disclaimer This presentation was prepared by and is the property of W Resources Plc (“W Resources” or “the Company”). No reproduction or distribution this material is permitted to companies or individuals outside of those for whom this is intended. No agents, brokers or investment banks are authorised to present this material to other parties for the purpose of soliciting potential clients or transactions of any kind without prior consent to do so. While the Company is not aware of any inaccuracies, no warranty or representation is made by the Company or their respective employees and representatives as to the completeness or accuracy of the information contained herein. The Company, JLSI and their respective employees and representatives expressly disclaim any liability for damages, direct or consequential, arising out of or related to this presentation or omissions there from, or any other information provided in writing, orally or otherwise regarding this potential transaction. Any party considering a transaction with the Company agrees to look solely to its own due diligence and any representations, warranties and/or covenants set forth in a fully-executed, definitive written agreement with the Company relative to the transaction. Certain matters discussed in this presentation are “forward - looking statements”. These forward -looking statements can often but not always be identified because the context of the statement will include words such as “the Company expects,” “anticipates” or words of s imilar import. Similarly, statements that describe the Company’s capabilities, future plans, objectives or goals are also forward -looking statements. Such forward looking statements are subject to significant risks and uncertainties, including the financial performance of the Company and the viability of its technology. These risks could cause actual results to differ materially from those currently anticipated. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained. Potential investors, customers, suppliers and other readers are urged to consider this factor carefully in evaluating any forward-looking statements. Forward-looking statements made herein are only made as of the date of this presentation and the Company undertakes no obligation to update such forward looking statements to reflect subsequent events or circumstances. Technical information in this presentation has been prepared and approved for inclusion by Mr Fernando de la Fuente, who is a “qualified person” in respect of the AIM Rules for Companies with over 39 years experience in the Exploration and Mining Geology industry. Mr de la Fuente holds a B.Sc. in Geology and a MSc in Geology from the University of Granada in Spain. He is also a member of the Spanish College of Geologists (Number 49), the Spanish Society of Mineralogy, founder member of the Spanish Society of Geology, member of the Spanish Association of Applied Geology to Mineral Deposits, member of the Society for Mining, Metallurgy and Exploration, Inc., member of PDAC. Some of the technical information contained in the W Resources Plc May 2016 Presentation was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Foreign Exchange rate used in this presentation - US$1.00 = € 0.90 May 2016 2

Overview Projects Ticker: AIM: WRES Two large tungsten mines in development Focus: Tungsten, copper & gold - production, development & La Parrilla Mine, Spain: JORC Resource of exploration 51mt @ 0.096% WO 3. Open pit tungsten Shares in issue: 3.88 billion ordinary shares mine development. Fast tracking for 2016 production Market cap: GBP 17.8m (@ 0.46p – 4 May 2016) Experienced Michael Masterman Régua, Portugal: Tungsten development. Directors: Byron Pirola JORC resource of 5.46mt @ 0.28% WO 3 , David Garland at a cut-off of 0.10% WO 3. Focussed on trial mine production in 2017 Significant Shareholders (as at 18 March 2016) Tarouca, Portugal: Former tungsten and M Masterman 19.95% tin mine where advanced exploration is Hansource Investments Ltd 8.58 % progressing B Pirola 6.44 % CAA / Portalegre, Portugal: Advanced H Gibson 4.41 % copper-gold exploration C Scott 4.29 % May 2016 3

Overview Régua, Portugal Tarouca, Portugal Open pit / UG tungsten Former tungsten mine development - / tin mine 1,300 tpa advanced Régua exploration JORC Resource of Porto progressing 5.46mt @ 0.28% WO 3 SPAIN Tarouca Madrid Portalegre CAA / Lisbon Portalegre, Portugal La Parrilla Mine, Spain La Parrilla Advanced Open pit tungsten copper-gold mine development - PORTUGAL exploration 1,300 tpa expanding Seville to 5,000 tpa Non JORC Resource of JORC Resource of 328,621oz @ at 51mt @ 0.096% WO 3 1.37 g/t Au May 2016 4

What’s New What’s Coming Tungsten and Tin prices up Continued price rises La Parrilla La Parrilla • Great metallurgy results up 72% • Engineering • Mine Plan – Pit 12 • Final Development Plant • Engineering Underway • Financing Régua Régua • Great metallurgy results • Fast-track 100kt high-grade development • Mine planning – low cost adits May 2016 5

Tungsten & Tin Prices: UP  W to be one of the top 5 global tungsten La Parrilla one of only a few Tin projects producers Tin price European Tungsten APT price 250 18.0 US$000’s per tonne US$ per tonne +15.7% +25.6 17.0 225 16.0 200 15.0 175 14.0 150 13.0 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May 2016 6

More Price Rises to Come? Tungsten is a rare metal that is critical to some key applications with no satisfactory substitutes due to its unique properties Worlds hardest element with the highest boiling point China with 80% of global supply increasingly exerts market power Resilient price trend 600.0 APT price (US$/mtu) Strong demand growth 500.0 Constrained supply 400.0 300.0 200.0 100.0 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E Scenario 1 European APT free market Scenario 2 European APT free market Scenario 3 European APT free market Historic APT Chinese No 1 HK Index Source: Northland Capital Partners estimates - 2015-2020 and Bloomberg 2013 – 2002-2014 May 2016 7

La Parrilla Highlights By 2018: 5,000 TPA tungsten US$ 90 m pa Revenue 150% increase large profitable mining company US$ 16 m US$ 121 MTU FTM capital cost low operating costs US$ 124 m NPV 70 % IRR net present value robust high return project May 2016 8

La Parrilla - ‘‘The Grill’’ Current 51mt JORC 1. Large deposit open north, south & west 100 mt target 2. Scalable to market, Faster to build growth at low capital cost Low cost to expand US$16m financing Low cost opex 3. Bankable AAA Customers Approved May 2016 9

La Parrilla - Updated Resource Estimate 70% / 36mt Indicated (Increase from zero to 36mt) Open at higher grades to North, South, West and at Depth 3 high grade zones at surface identified for initial mining Classification Tonnage WO 3 Sn (Mt) (ppm) (ppm) Indicated 36 965 115 Inferred 15 947 92 Total 51 960 108 Golder Associates Pty Ltd – February 2016 May 2016 10

La Parrilla Mine - Large Resource Growth Potential IP04 Significant intersection 32 metres @ 0.55% WO 3 La Parrilla West (LPW) Area IRC1-33 19 metres @ 0.20% WO 3 Fast Track Mine IRC1-40 40 metres @ 0.32% WO 3 (FTM) Area May 2016 11

La Parrilla - 100m + Tonne Target U.V May 2016 12

Optimisation Results: Sectional View May 2016 13

Mining Pit 12 Initial 5 years of operation Low strip ratio in initial years (1.02:1) Feed Grade average of 0.110% WO 3 Lateral N, S, W resource expansion will increase NPV May 2016 14

La Parrilla - Scalable at Low Cost 5,000 tpa * + US$ 30m 2,600 tpa * • Crushing Circuit 1,300 tpa * upgrades • X-Ray Ore Sorting or (starting late 2016) increased jig capacity + US$ 6m FTM US$ 16m • Concentrator capacity upgrades • New crushers • Increase crusher hr • Jig & Mill • Increase Jig run hr • Concentrator • Concentrator * Concentrate @ 66% WO 3 Upgrades capacity upgrades May 2016 15

La Parrilla - Low Financing Requirement $’000 / Long term Capex Required Project tonne Production US$ Millions FTM La Parrilla 10,400 5,000 36 52 16 (W Resources Plc) Barruecopardo 23,076 2,600 60 (Ormonde) Drakelands 58,260 ~3,450 201 (Wolf Minerals) Nui Phao 73,300 6,000 440 (Masan Group) Source: Ormonde, Wolf Minerals & MasanGroup Websites May 2016 16

La Parrilla: Fast Track Mine Layout Existing Open Pit Open pit = low mining costs Existing Tailings Initial Fast Track Dump Mining Area Coarse Jig Rejects & Dry Stacked TSF Mine Waste Dump Extra TSF Storage Capacity May 2016 17

Core Infrastructure in Place 7km from main Seville / Madrid Highway Power grid connection established Access to quality water supply Short trucking distance from both Atlantic and Mediterranean ports Accommodation, office and employee facilities operational On-site laboratory operational May 2016 18