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Building a Strategic Position in the Fluorspar Sector Company Presentation 02 September 2015 Disclaimer The content of information contained in these slides and the accompanying verbal presentation (together, the Presentation) has not been


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Building a Strategic Position in the Fluorspar Sector Company Presentation 02 September 2015

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Disclaimer

The content of information contained in these slides and the accompanying verbal presentation (together, the “Presentation”) has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of this Presentation, they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind.

This Presentation is being supplied to you solely for your information. This Presentation has been prepared by, and is the sole responsibility of, Tertiary Minerals plc (the “Company”). The directors of the Company have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief. This Presentation does not constitute, or form part of, an admission document, listing particulars or a prospectus relating to the Company, nor does it constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract therefor. The information in this Presentation is provided as at the date of this presentation and as such is preliminary in nature, has not been fully verified by the Company and is subject to material amendment, updating and

  • change. The Company undertake no obligation to provide the recipient with access to any additional information or to update this Presentation or any additional information or to correct any inaccuracies in any such

information which may become apparent. This document sets out certain features of the Company and does not purport to provide a complete description of the Company or the shares in the Company. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness thereof, nor is any responsibility accepted for any errors, misstatements in, or omission from, this Presentation or any direct or consequential loss however arising from any use of, or reliance on, this Presentation or otherwise in connection with it. By accepting this Presentation you confirm, represent and warrant that you have consented to receive information in respect of securities of the Company and other price-affected securities (as defined in the Criminal Justice Act 1993 (“CJA”)) which makes you an “insider” for the purposes of Part V of the CJA, and you agree not to deal in any securities of the Company until such time as the inside information (as defined in the CJA)

  • f which you have been made aware has been made public for the purposes of the CJA.

This Presentation may not be reproduced or redistributed, in whole or in part, to any other person, or published, in whole or in part, for any purpose without the prior consent of the Company. The contents of this Presentation are confidential and are subject to updating, completion, revision, further verification and amendment without notice. The Presentation is being distributed on request only to, and is directed at, authorised persons or exempt persons within the meaning of FSMA or any order made thereunder or to those persons falling within the following articles of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Financial Promotion Order”): Investment Professionals (as defined in Article 19(5)) and High Net Worth Companies (as defined in Article 49(2)). Persons who do not fall within any of these definitions should not rely on this Presentation nor take any action upon it but should return it immediately to the

  • Company. This Presentation is exempt from the general restriction in section 21 of FSMA relating to the communication of invitations or inducements to engage in investment activity on the grounds that it is made only

to certain categories of persons. Neither this Presentation nor any copy of it should be distributed, directly or indirectly, by any means (including electronic transmission) to any persons with addresses in the United States of America (or any of its territories or possessions) (together, the “US”), Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, or to any corporation, partnership or other entity created or organised under the laws thereof, or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. The recipients should inform themselves about and observe any such requirements or relationship. The Company’s ordinary shares have not been, and are not expected to be, registered under the United States Securities Act 1933, as amended, (the “US Securities Act”) or under the securities laws of any other jurisdiction, and are not being offered or sold, directly or indirectly, within or into the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland or to, or for the account or benefit of, any US persons or any national, citizen or resident of the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, unless such offer or sale would qualify for an exemption from registration under the US Securities Act and/or any other applicable securities laws. Past Performance This Presentation contains statements regarding the past performance of the Company’s ordinary shares. Past performance cannot be relied upon as a guide to future performance. Forward-looking Statements This Presentation or documents referred to in it contain forward-looking statements. These statements relate to the future prospects developments and business strategies of the Company and its subsidiaries (the “Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group’s actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements speak only as at the date of this Presentation. No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company or any of its directors, officers, partners, employees or advisers or any other person as to the accuracy or the completeness of the information or opinions contained herein and to the extent permitted by law no responsibility or liability is accepted by any of them for any such information or opinions. Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently. January 2015

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Board of Directors

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  • 3. Donald McAlister, Non-Executive Director

 Accountant.  Previously Finance Director at Mwana Africa plc, Ridge Mining plc and Reunion Mining.  20+ years’ experience in all financial aspects of the resource industry, including metal hedging, tax planning, economic modelling/evaluation, project finance and IPO’s.  Founding director of the Company.

  • 1. Patrick Cheetham, Executive Chairman

 Geologist.  33 years’ experience in mineral exploration.  28 years’ experience in public company management.  Founder of the Company, Dragon Mining Ltd, Archaean Gold NL and Sunrise Resources plc.

  • 2. Richard Clemmey, Managing Director

 Chartered Engineer.  21+ years’ experience in developing and managing mining/quarrying projects worldwide for Derwent Mining, Lafarge, Hargreaves (GB) Ltd, Marshalls plc and CFE.  Board director since May 2012.

  • 4. David Whitehead, Non-Executive Director

 Mining Geologist.  41+ years’ experience in all aspects of mineral exploration, mine development and operations management.  20 years’ at senior executive level at BHP Billiton.  Board director since 2002.

  • 5. Colin Fitch LLM, FCIS, Company Secretary

 Barrister-at-Law.  Previously Corporate Finance Director of Kleinwort Benson, Partner and Head of Corporate Finance at Rowe & Pitman (SG Warburg Securities) and Assistant Company Secretary at the London Stock Exchange.  Held a number

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non-executive directorships including Merrydown plc, African Lakes plc and Manders plc.

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Company’s Aims, Strategy and Business Plan

Company’s Opportunity in Fluorspar (CaF2)

  • Fluorspar is an essential raw material in the chemical, steel and aluminium industries and in a

growing number of high-tech green technologies and pharmaceutical applications.

  • Fluorspar has a growing economic and strategic importance; defined as a strategic mineral in

the US with 100% net import reliance; identified by the European Commission as a critical raw material facing a supply shortage.

Company’s Aims

  • Become a reliable long-term and competitive supplier of high quality fluorspar to world markets.
  • Add value to the Group’s mineral projects through the discovery and development of mineral

resources.

Company Strategy

  • To acquire and develop large fluorspar deposits located close to established infrastructure and

key markets in stable, democratic and mining friendly jurisdictions.

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Project Locations and Performance

5 2015 to date : 67% increase in the Company’s contained fluorspar asset base >13 Mt (JORC compliant)

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Fluorspar Market

Global Fluorspar Demand 6.5 Mt/year Acid Grade/Acid-spar 58% - 3.8 Mt/year Hydrogen Fluoride HF 40% - 2.6 Mt/yr Fluorocarbons - 2.16 Mt/year e.g. New generation of environmentally friendly refrigerants - HFO’s Fluoropolymers e.g. Electrolyte (lithium phosphorus hexafluoride LiPF6) & polyvinylidene fluoride PVDF used in lithium batteries. Teflon and Gore-Tex Fluorochemicals e.g. Electronics, Thermoplastics, Medicine, Metallurgy, Water, Detergents and Glass Aluminium Fluoride AlF3 18% - 1.2 Mt/year Metallurgical Grade/Met-spar & Ceramic Grade 42% - 2.7 Mt/year Flux in Steel Production, Cement, Enamels, Cooking Utensils, Glass, Glass Fibre

Fluorspar - What is it used for?

  • Fluorspar is the commercial name for concentrates of the mineral Fluorite, CaF2.
  • Fluorite is the main industrial source of Fluorine, F.
  • Major western acid-spar consumers: DuPont, Honeywell, Solvay, Lanxess, Boliden, Fluorsid,

DDF.

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Source: Industrial Minerals Magazine, Roskill, CRU, UN, USGS, CCM, Company Data

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Fluorspar Market Dynamics

  • China produces >50% of the world’s fluorspar.
  • Chinese exports have declined substantially since 2000 – internal demand.
  • China may become a net importer in the future.
  • Acid-spar prices have declined since late 2012 but the long-term trend has been upwards with

prices increasing >3 fold since 2000.

  • USA, Canada and Europe – largest acid-spar consumers outside China.
  • Fluorspar is classified as a critical raw material by the European Commission.
  • USA considers fluorspar as a strategic mineral – 100% net import reliance.

Source: Industrial Minerals Magazine, Roskill, CRU, UN, USGS, CCM, Company Data

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Storuman Fluorspar Project

Excellent Location & Infrastructure

  • Adjacent to the main E12 highway.
  • Storuman town and new bulk rail terminal – 25 km.
  • Road and rail linked to Umeå Port – 240 km.

Lars Lind Umeå

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Storuman Fluorspar Project

Positive Scoping Study

  • Completed by Scott Wilson.
  • Process flow sheet - Delta Minerals.
  • Robust economics.
  • Bulk rail terminal constructed post

Scoping Study.

Drilling (2010) & JORC Mineral Resource Estimate (SRK 2011)

  • 46 diamond core drill holes.
  • 28% increase in resource compared

with Scoping Study.

  • Waste : ore strip ratio reduced.
  • 2.2t:1t to 0.8t:1t.
  • Potential step-change for scale of

mineralisation, open laterally in all directions.

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Classification Million Tonnes (Mt) Fluorspar (CaF2%) Indicated 25 10.28 Inferred 2.7 9.57 Total 27.8 10.21

Base Case Tonnage/grade in pit (non-JORC) 18mt @12.3% Fluorspar Strip ratio 2.2:1 Mining rate

  • c. 1 million tpa

Fluorspar Price (CIF Rotterdam) $US 357/tonne Average Annual Production Acid Grade Fluorspar 103,000 tpa Mine Life 18 years Initial Capital Cost (Capex) US$ 46 million Pre-Tax NPV (8% coc) US$ 33 million IRR (100% equity) 24% Payback period < 3 years

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Storuman Fluorspar Project

Medium Scale Global Producer

200,000 400,000 600,000 800,000 1,000,000 1,200,000 Production (t)

Storuman vs Leading Producers 2012

Production rate of 103,000 tpa:

  • Medium Scale Global Producer
  • A Leading European Producer
  • Resource base will support future expansion

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Source: Roskill, Company Data

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Mining and Processing

  • Low waste : ore ratio and horizontal ore horizons with no fluorspar mineralisation in the

granite basement lends itself to cut and fill mining technique (progressive restoration).

  • Processing method is common in the mining industry – not bespoke.

Open pit mining – cut and fill Crushing Grinding Flotation – fluorspar concentration Silica tailings Fluorspar concentrate for shipping

Storuman Fluorspar Project

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Storuman Fluorspar Project

2014 Highlights

  • Preparation and submission of Exploitation (Mine) Permit

application – Completed Q2.

  • Final stage of Preliminary Feasibility Study (PFS)

metallurgical testwork – optimisation ongoing.

2015 Target Milestones

  • Exploitation (Mine) Permit – decision expected Q4
  • Final stage of Preliminary Feasibility Study (PFS)

metallurgical testwork and end user engagement – expected completion Q4.

  • Scoping study level evaluation for processing and mine

planning to focus on further elements of the PFS – expected completion Q4.

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Lassedalen Fluorspar Project

Excellent Location & Infrastructure

  • 500 m from highway E134 & Railway.
  • 6 km from famous silver mining town of Kongsberg.
  • 50 km from Port of Drammen.
  • 80 km SW of City of Oslo.

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Lassedalen Fluorspar Project

History and Geology

  • Steeply dipping fluorspar vein system in 4 km long vein breccia zone.
  • Drilled by Norsk Hydro in the 1970’s – 28 diamond holes.
  • Proved vein over 2.7 km strike length.
  • Open at depth and along strike.

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Lassedalen Fluorspar Project

Milestones Achieved

  • JORC Mineral Resource Estimate (SRK Consulting) – 2012.
  • Re-logged and sampled 3.5 km of drill core from 23 of the 28 diamond holes drilled in the

1970’s.

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  • Scoping Study (Wardell Armstrong

International) – 2012.

Classification Million Tonnes (Mt) Fluorspar (CaF2%) Inferred 4 24.6

Base Case Extended Mine Case Tonnage Mined (underground) 3.6mt @ 22.4% Fluorspar 4.5mt @22.4% Fluorspar Mining rate 543,000 tpa 543,000 tpa Fluorspar Price (CIF Rotterdam) $US 491/tonne $US 491/tonne Average Annual Production Acid Grade Fluorspar 100,000 tpa 100,000 tpa Mine Life 6.6 years 8.25 years Initial Capital Cost (Capex) US$ 78 million US$ 78 million Pre-Tax NPV (10% coc) US$ 31.6 million US$ 52.2 million IRR (100% equity) 20.20% 24.10%

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MB Fluorspar Project

Nevada - Most Favourable Mining Jurisdiction in the USA

  • Located 14 km SW of Eureka, Eureka County,

Nevada.

  • Trans-national road and rail links, rail 161 km

from the project location.

  • 780 km to port of San Francisco.
  • Road access to and over property.
  • Government land - no special status.
  • 84% of Eureka County population employed in

mining industry.

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MB Fluorspar Project

2013 Highlights

  • Phase 1&2 drilling programmes
  • 26 holes, 3220 metres.

2014 Highlights

  • Large Maiden JORC Compliant Mineral Resource Estimate –

completed April 2014.

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  • Scoping Study level metallurgical testwork – programme

started.

  • Phase 3 drilling programme
  • 9 percussion holes, 2516 metres.
  • Completed November 2014.
  • Key Objectives for Phase 3 drilling:
  • Target potential higher grade mineralisation closer to the interpreted

source of mineralisation.

  • Test lateral extent and depth of fluorspar mineralisation west of the

existing Mineral Resource.

Classification Million Tonnes (Mt) Fluorspar (CaF2%) Indicated (8% CaF2 cut-off) 8.9 10.3 Inferred (8% CaF2 cut-off) 29.5 10.4

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MB Fluorspar Project

2015 – Highlights to Date

  • Large upgraded JORC Compliant Mineral

Resource Estimate – completed June 2015.

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Classification Million Tonnes (Mt) Fluorspar (CaF2%) Indicated (9% CaF2 cut-off) 6.1 10.8 Inferred (9% CaF2 cut-off) 80.3 10.7 Total 86.4 10.7

  • More than doubled the 2014 Maiden JORC

Mineral Resource.

  • Newly defined Western Area potentially closer to

the core of the mineralised system – higher grade fluorspar mineralisation may be expected.

  • The Mineral Deposit remains open at depth and

in all lateral directions.

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MB Fluorspar Project

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MB Fluorspar Project

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2015 Target Milestones

  • JORC Mineral Resource Upgrade - Completed
  • Geophysical programme and Phase 4 drilling - targeting higher

grades of fluorspar mineralisation and increasing tonnage

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Fluorspar Project Timetable

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Fluorspar Projects - Indicative Schedule

Storuman 2014 2015 Q1 Q2 Q3 Q4 Pre-Feasibility Study (PFS) Metallurgical Testwork & End User Engagement

Complete

Scoping Study Level Evaluation for Processing and Mine Planning

Complete

Exploitation (Mining) Permit

Submit Decision?

Remaining Elements of the PFS

Start

MB Project 2014 2015 Q1 Q2 Q3 Q4 Phase 3 Drilling Results

Complete

Upgrade JORC Mineral Resource Estimate

Complete

Scoping Study Metallurgical Testwork

Complete

Phase 4 Drilling Programme/Geophysical Survey/Scoping Study Lassedalen 2014 2015 Q1 Q1 Q2 Q3 Q4 PFS Drilling and JORC (indicated) Project currently on hold - prioritise Storuman and MB Project

Note: All schedules are subject to change, funding and successful completion of each phase of work

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Non-Core Projects

  • Kaaresselkä - Kiekerömaa - Gold, Finland
  • Kaaresselkä licence renewal granted in March 2013.
  • Kiekerömaa licence renewal granted in April 2014.
  • Re-evaluating historic exploration results.
  • Looking to valorise the project through joint venture or sale.
  • Rosendal Tantalum Project, Finland
  • Evaluating production opportunities.
  • Looking to valorise the project through joint venture or sale.
  • Ghurayyah Tantalum–Niobium-Rare-Earth Project, Saudi Arabia
  • Re-issue of licence pending with Deputy Ministry for Mineral Resources in Saudi

Arabia.

Other Projects

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Investment Case

Tertiary Minerals plc - The only UK public traded company offering an exciting exposure to looming fluorspar market shortage.

  • Fluorspar market is going through a “paradigm shift” – with China evolving from a large net

exporter to a potential net importer.

  • Broker Research suggests shares are undervalued1.

Europe – Key Market – Net Importer

  • Storuman fluorspar project (Sweden) Scoping Study shows robust economics.
  • Mine Permit application submitted in 2014, decision expected within next few months.
  • JORC Resource Estimate at Lassedalen in Norway adds 1Mt fluorspar to 3Mt Storuman

resource - second European fluorspar project in pipeline.

  • Scoping Study on the Lassedalen fluorspar project (Norway) shows positive economics,

levered to mine life – further drilling required. USA – Key Market, 100% Net Import Reliance

  • MB Fluorspar Project, Nevada, USA – June 2015 large upgraded JORC Mineral Resource

Estimate – 86.4 Mt grading 10.7% fluorspar (CaF2).

  • Planning next stage – Geophysics and Drilling targeting higher grades and tonnage.

Note 1: Previous price target estimates are no indication of future prices 23

Cantor Fitzgerald Europe 18p per share 16 April 2014 Beaufort Securities 24.8p per share 16 April 2014 SPANGEL 10.6p per share 13 March 2015 BROKER RESEARCH - Price Targets

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Building a Strategic Position in the Fluorspar Sector

Tertiary Minerals plc Richard Clemmey/ Patrick Cheetham Tel: +44 (0)845 868 4580

pat.cheetham@tertiaryminerals.com richard.clemmey@tertiaryminerals.com

Nominated Adviser & Joint Broker S P Angel Corporate Finance LLP Ewan Leggat/ Katy Birkin Tel: +44 (0)203 470 0470

Ewan.Leggat@spangel.co.uk Katy.Birkin@spangel.co.uk

Joint Broker Beaufort Securities Ltd Saif Janjua Tel: +44 (0)207 382 8300

Saif.Janjua@beaufortsecurities.com

Public Relations Yellow Jersey PR Dominic Barretto/ Kelsey Traynor Tel: +44 (0)7768 537 739

dominic@yellowjerseypr.com kelsey@yellowjerseypr.com

THANK YOU FOR YOUR TIME AND SUPPORT

The full Company presentation is available on our website: www.tertiaryminerals.com

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