1.25 1.25 Moz Moz HIGH HIGH - GRADE, SHALLOW GRADE, SHALLOW WA - - PowerPoint PPT Presentation

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1.25 1.25 Moz Moz HIGH HIGH - GRADE, SHALLOW GRADE, SHALLOW WA - - PowerPoint PPT Presentation

1.25 1.25 Moz Moz HIGH HIGH - GRADE, SHALLOW GRADE, SHALLOW WA GOLD PROJECT WA GOLD PROJECT PROGRESSING TO DEVELOPMENT ASX:CAI RIU PRESENTATION FEBRUARY 2019 DISCLAIMER DISCLAIMER DISCLAIMER This presentation does not constitute


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ASX:CAI

1.25 1.25 Moz Moz HIGH HIGH - GRADE, SHALLOW GRADE, SHALLOW WA GOLD PROJECT WA GOLD PROJECT

PROGRESSING TO DEVELOPMENT

RIU PRESENTATION FEBRUARY 2019

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SLIDE 2

DISCLAIMER DISCLAIMER

DISCLAIMER This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the

  • pinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which

include (among others) the risk of adverse or unanticipated market, financial or political developments. To the fullest extent permitted by law, Calidus Resources Limited (the Company or Calidus) does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted. This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of

  • Calidus. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and

legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed

  • r implied in this presentation. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at

the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Calidus does not undertake any obligation to update or revise any information

  • r any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.

COMPLIANCE STATEMENT The information in this presentation that relates to Exploration Results and Mineral Resources released previously on the ASX. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that, in the case of mineral resources estimates, all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. Mr Daniel Saunders is principal and a full time employee of GeoServ Consulting Pty Ltd, and is a Member of the AusIMM. Mr Daniel Saunders has sufficient experience that is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Ms Jane Allen is a full time employee of the Company, and is a member of the AusIMM. Ms Jane Allen has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activates undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code.

PAGE 2

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PROGRESSING TOWARDS PROGRESSING TOWARDS PRODUCTION PRODUCTION

SNAPSHOT

  • 1.25 Moz resource at 1.83 g/t Au

including 1.1Moz at 2.37g/t

  • 795,000oz of Indicated Resources

(64%)

  • 203% increase in resource since

listing June 2017 (412,000oz)

  • Fully funded Pre-feasibility Study (PFS)

commenced, completion due Q3 2019

  • PFS will enable rapid transition to

Definitive Feasibility Study (DFS)

  • Environmental monitoring well advanced,

applications for permits to be submitted Q3 2019

  • Significant exploration upside both

adjacent to existing resources and in greenfields areas on 781 km2 tenement package being targeted in 2019

PAGE 3 CORPORATE PRESENTATION FEBRUARY 2019

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DRIVING DEVELOPMENT PROGRESS DRIVING DEVELOPMENT PROGRESS

A CENTURY OF EXPERIENCE IN PRECIOUS A CENTURY OF EXPERIENCE IN PRECIOUS

  • METAL PROJECT DEVELOPMENT

METAL PROJECT DEVELOPMENT

PAGE 4 CORPORATE PRESENTATION FEBRUARY 2019

MARK CONNELLY

NON-EXECUTIVE CHAIRMAN

Over 30 years’resource industry experience in CEO and Managing Director roles across multiple jurisdictions including Australia, West Africa, North America and Europe. CurrentlyNon-Executive Chairman at West African Resources Ltd

KEITH COUGHLAN

NON-EXECUTIVE DIRECTOR

30 years’ experience in stockbroking and funds management on ASX, AIM and TSX. Currently the MD of European Metals Holdings and recently retired as chairman of Talga Resources

ADAM MIETHKE

NON-EXECUTIVE DIRECTOR

Over 15 years’ experience in exploration and mine geology, funds management and corporate advisory. Previous technical and corporate roles at Rio Tinto, Snowden, Regent Pacific Group and Argonaut

BOARD EXECUTIVE MANAGEMENT

DAVE REEVES

MANAGING DIRECTOR

30 years’ mining experience in Australia, Africa and Europe. Previous roles at GCM, Delta Gold, Zimplats and European Metals Holdings. Instrumental in the progression of four mining projects through feasibility to project development

FERNANDO MOUTINHO

PROJECT MANAGER

30 years’ international experience with GRD Minproc, Sheffield Resources, Syrah Resources, New Century Resources

JANE ALLEN

GEOLOGY MANAGER

30 years’ international mining experience with Anglogold Ashanti, Resolute Mining, Avion Gold Corporation and GCM

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CORPORATE OVERVIEW CORPORATE OVERVIEW

CAPITAL STRUCTURE

SHARES ON ISSUE

1,419

Million

MARKET CAP

(undiluted at A$0.027)

$38.3

Million

CASH

(as at 31 Dec 2018)

$3.9

Million

LISTED INVESTMENTS

$2.9

Million

ENTERPRISE VALUE

$31.5

Million

OPTIONS

(will raise $6.9m if exercised)

254

Million3

PERFORMANCE SHARES 275

Million4

CAPITAL STRUCTURE AND SHAREHOLDERS CAPITAL STRUCTURE AND SHAREHOLDERS

1. Using share price of $0.26 as at 4 Feb 2019 2. CAI board and management own 18 % of Keras 3. 118m @ 2.5c, 50m @ 2.0c, 70m @ 3.5c and 16m @ 3.0c 4. Performance Shares vest on completion of a positive PFS 5. ALK cash balance as at 31 December 2018

KEY SHAREHOLDERS

KERAS RESOURCES2 (AIM:KRS) 32.3% ALKANE RESOURCES (ASX:ALK) 10.2% NOVO RESOURCES (TSX: NVO) 4.0%

PAGE 5

WELL FUNDED

  • Cash reserves of $3.9m
  • Investment in Pacton Gold (TSX: PAC) valued at $2.9m1
  • 2.5c exercisable options to raise $2.2m due June 2019

STRONG CORPORATE MINING SUPPORT

  • Keras Resources – London listed exploration company2
  • Alkane Resources – ASX listed Australian domiciled gold

producer with c.$80m in cash reserves and investments5

  • Novo Resources – Canadian listed, well funded Pilbara Gold

explorer with nearby gold properties and JORC resources

TIGHTLY HELD SHARE REGISTER

  • Over 15% Tier 1 institutional ownership
  • Top 20 hold 70%

CORPORATE PRESENTATION FEBRUARY 2019

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LOCATED IN AREA WITH PROVEN RESOURCE POTENTIAL LOCATED IN AREA WITH PROVEN RESOURCE POTENTIAL

WARRAWOONA GOLD PROJECT WARRAWOONA GOLD PROJECT

PAGE 6 CORPORATE PRESENTATION FEBRUARY 2019

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780KM 780KM 2

2 OF CONTIGUOUS TENURE

OF CONTIGUOUS TENURE

CONTROL OF PROVEN GREENSTONE BELT CONTROL OF PROVEN GREENSTONE BELT

PAGE 7 CORPORATE PRESENTATION FEBRUARY 2019

780km2 under control, application or option

  • +200 historic mines located
  • n tenements
  • Very limited previous

exploration focused around the Klondyke workings

  • Majority of package not

covered by any soil sampling

  • r drilling
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KLONDYKE DEPOSIT KLONDYKE DEPOSIT

PAGE 8 CORPORATE PRESENTATION FEBRUARY 2019

76% INCREASE IN GLOBAL RESOURCE BASE TO 1.15 76% INCREASE IN GLOBAL RESOURCE BASE TO 1.15 Moz Moz

Klondyke (0.5g/t cut-off summary) Cut-off Indicated Inferred Total Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs Klondyke Open Pit 0.5 12.3 1.69 670,000 5.5 1.47 260,000 17.8 1.62 930,000 Klondyke Underground 2.0 0.8 3.3 80,000 1.4 3.03 140,000 2.2 3.13 220,000 Total 13.1 1.78 750,000 6.9 1.79 400,000 20.0 1.79 1,150,000 Deposit (0.8g/t cut-off summary) Cut-off Indicated Inferred Total Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs Klondyke Open Pit 0.8 8.4 2.19 590,000 3.1 2.16 210,000 11.4 2.19 800,000 Klondyke Underground 2.0 0.8 3.3 80,000 1.4 3.03 140,000 2.2 3.13 220,000 Total 9.1 2.21 670,000 4.5 2.44 350,000 13.6 2.23 1,020,000

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HIGH GRADE MINERALISATION REMAINS HIGH GRADE MINERALISATION REMAINS OPEN AT DEPTH OPEN AT DEPTH

KLONDYKE DEPOSIT KLONDYKE DEPOSIT

PAGE 9 CORPORATE PRESENTATION FEBRUARY 2019

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UPDATED MINERAL RESOURCE UPDATED MINERAL RESOURCE

PAGE 10 CORPORATE PRESENTATION FEBRUARY 2019

CONTINUOUS OUTCROPPING RESOURCE OPEN IN ALL DIRECTIONS CONTINUOUS OUTCROPPING RESOURCE OPEN IN ALL DIRECTIONS

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MULTIPLE HIGH GRADE SATELLITE TARGETS, WITHIN 10KM OF KLONDYKE MULTIPLE HIGH GRADE SATELLITE TARGETS, WITHIN 10KM OF KLONDYKE

REGIONAL UPSIDE REGIONAL UPSIDE – LARGELY UNTESTED LARGELY UNTESTED

PAGE 11 CORPORATE PRESENTATION FEBRUARY 2019

Deposit Cut-off Indicated Inferred Total Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs Copenhagen 0.5 0.2 5.27 36,000 0.1 1.84 3,000 0.3 4.65 39,000 Coronation 0.5

  • 0.5

2.19 34,000 0.5 2.19 34,000 Fieldings Gully 0.5 0.2 1.65 9,000 0.3 1.62 16,000 0.5 1.63 24,000 Total 0.4 3.70 45,000 0.9 1.96 53,000 1.3 2.53 98,000 Deposit Cut-off Indicated Inferred Total Au g/t Mt g/t Au Ozs Mt g/t Au Ozs Mt g/t Au Ozs Copenhagen 0.5 0.2 5.27 36,000 0.1 1.84 3,000 0.3 4.65 39,000 Coronation 0.5

  • 0.5

2.19 34,000 0.5 2.19 34,000 Fieldings Gully 0.5 0.2 1.65 9,000 0.3 1.62 16,000 0.5 1.63 24,000 Total 0.4 3.70 45,000 0.9 1.96 53,000 1.3 2.53 98,000

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RAPID PROGRESSION OF PFS, SCHEDULED FOR Q3 2019 COMPLETION RAPID PROGRESSION OF PFS, SCHEDULED FOR Q3 2019 COMPLETION

METALLURGICAL TESTWORK

  • High gold recoveries (96.7% leach

recoveries), conventional processing methods & variability testing underway

ENVIRONMENTAL

  • Flora and fauna studies

commenced as have discussions with regulator & MAF/PAF testing

HYDROLOGICAL

  • Initial water monitoring bores drilled

& hydrological model completed – production bores to be drilled in 2019

HERITAGE

  • Heritage clearance work completed
  • ver area of disturbance

TAILINGS

  • Thickening testwork and geotechnical

testing complete, further confirmatory work planned, initial designs & locations finalised

PRE PRE

  • FEASIBILITY STUDY INPUTS

FEASIBILITY STUDY INPUTS

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GEOTECHNICAL

  • Majority of geotechnical drilling

complete & analysis underway

CORPORATE PRESENTATION FEBRUARY 2019

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WELL SERVICED BY EXISTING INFRASTRUCTURE WELL SERVICED BY EXISTING INFRASTRUCTURE

PAGE 13 CORPORATE PRESENTATION FEBRUARY 2019

ASSISTS WITH RAPID COST EFFECTIVE DEVELOPMENT ASSISTS WITH RAPID COST EFFECTIVE DEVELOPMENT

MINING REGISTRAR LOCATED IN TOWN SEALED AIRSTRIP IN MARBLE BAR 2 HOURS DRIVE FROM PORT HEDLAND ON SEALED ROAD (AUSTRALIA’S LARGEST PORT) LOCATED 20KM SOUTH EAST OF MARBLE BAR

  • All weather, council maintained road from

Marble Bar to leases

  • Access to trucked LNG from NW Shelf
  • 100 rooms available in town
  • All weather airstrip
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PARALLEL WORKSTREAMS TO PROVIDE CONSISTENT NEWSFLOW PARALLEL WORKSTREAMS TO PROVIDE CONSISTENT NEWSFLOW

DEVELOPMENT TIMELINE DEVELOPMENT TIMELINEEXPLORATION TIMELINE EXPLORATION TIMELINE

PAGE 14 CORPORATE PRESENTATION FEBRUARY 2019

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Yandal, EAR Karlawinda, CMM Bombora, BRB Warrawoona (0.5 g/t Au cut-off grade) Leonora, KIN Warrawoona (0.8g/t Au cut-off grade) Katanning, AUC

1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500

Resource Grade (g/t Au) Mineral Resource Ounces (koz)

ONE OF FEW HIGH GRADE INDEPENDENT DEVELOPMENT PROJECTS ONE OF FEW HIGH GRADE INDEPENDENT DEVELOPMENT PROJECTS

AUSTRALIAN OPEN PIT DEVELOPERS AUSTRALIAN OPEN PIT DEVELOPERS

PAGE 15 CORPORATE PRESENTATION FEBRUARY 2019

UNDEVELOPED OPEN-PIT WA PROJECTS (>1Moz Au)1 Scarcity of independent ASX open pit gold developers with Resource bases over 1Moz Au

1. Data as at 18 February 2019

* Bubble size represents Enterprise Value

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175 123 111 98 73 45 40 28 24 25 50 75 100 125 150 175 200 BGL EXU VAN EAR BRB CMM GMD CAI KIN

EV/Resource (A$/oz)

VALUE GROWTH ASSOCIATED WITH DEVELOPMENT VALUE GROWTH ASSOCIATED WITH DEVELOPMENT

NEAR NEAR-TERM DEVELOPMENT TERM DEVELOPMENT

1. Data as at 18 February 2019 2. Calidus EV doesn’t account for listed investments of c.$2.9m

PAGE 16 CORPORATE PRESENTATION FEBRUARY 2019

UNDERVALUED COMPARED TO DEVELOPMENT PEERS

Completed Feasibility Study Prior to Feasibility Study

Average = $86/oz

BGL EXU VAN EAR BRB CMM GMD CAI KIN Key Project Bellevue Tampia Trident Yandal Bombora Karlawinda Ulysses Warrawoona Leonora Stage Resource Development Feasibility Resource Development Feasibility PFS Commenced Financing Feasibility PFS Commenced Resource Development Mkt Cap (A$m) 239 85 90 143 86 51 36 38 31 EV (A$m) 268 83 91 138 79 50 31 342 25 Resource (koz) 1,530 675 825 1,405 1,084 1,114 760 1,248 1,023 Grade (g/t) 11.8 1.8 3.1 2.1 1.4 1.1 3.3 1.8 1.4 Mine Type Underground Open-pit Underground Open-pit Open-pit Open-pit Underground Open-pit & Underground Potential Open-pit

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WEST WEST AUSTRALIAN AUSTRALIAN 1.25Moz 1.25Moz HIGH HIGH - GRADE, SHALLOW GOLD GRADE, SHALLOW GOLD DEVELOPER DEVELOPER

REASONS TO INVEST

CORPORATE PRESENTATION FEBRUARY 2019

  • Critical mass for a standalone

development achieved

  • High grade open pit outcropping

resource

  • Excellent metallurgy
  • Experienced mine development

team

  • Fully funded through to

Pre-feasibility Study completion

  • Located in close proximity to high

quality infrastructure and operating mines

  • Greenfields exploration has

significant potential for new discoveries given lack of modern or systematic exploration

  • Uniquely positioned as one of few

remaining high grade open-pit gold development companies on the ASX