Annual General Meeting Presentation 23 November 2016 Pilgangoora - PowerPoint PPT Presentation

Charging forward w i t h L i t h i u m Annual General Meeting Presentation 23 November 2016 Pilgangoora Lithium: An Emerging Near Term Production Project

Disclaimer This presentation has been prepared by Altura Mining Limited (“Altura” or the “Company”). It should not be considered as an invitation or offer to subscribe for or purchase any securities in the Company or as an inducement to make an invitation or offer with respect to those securities with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation is provided on the basis that none of Altura nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the presentation and nothing contained in the presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The presentation contains forward looking information and prospective financial material which is predictive in nature and may p g p p p y be affected by inaccurate assumptions or by known or unknown risks and uncertainties, and may differ materially from results ultimately achieved. All references to future production, production targets and resource targets and infrastructure access are subject to the completion of all necessary feasibility studies, permitting, construction, financing arrangements and infrastructure-related agreements. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources, Ore Reserves and Exploration Results, as well as the Competent Persons' Statements. All persons should consider seeking appropriate professional advice in reviewing the presentation and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the presentation nor any information contained in the presentation or subsequently communicated to any person in provision of the presentation nor any information contained in the presentation or subsequently communicated to any person in connection with the presentation is, or should be taken as, constituting the giving of investment advice to any person. C h a r g i n g f o r w a r d w i t h L i t h i u m 1

Altura Mining Altura Mining Limited (ASX:AJM) is an emerging low-cost developer of lithium concentrates with its 100% owned Pilgangoora project. Altura has a market capitalisation of A$179m. Altura's flagship project is the world class Pilgangoora hard-rock lithium project located in the Pilbara region of Western Australia. The Company completed a Definitive Feasibility Study in September 2016, with the construction of the mine planned to start in Q1 2017 with commissioning and production with the construction of the mine planned to start in Q1 2017 with commissioning and production expected to commence in Q4 2017. Additionally, Altura has other non-core coal assets in Indonesia, which as previously announced by the Company, it intends to divest. Company it intends to divest Altura share price performance since 1 Jan 2016 (A$/share) Capital Structure ( as at 21 November AUD 2016) 2016) Shares on issue 1,231.8M Share price $0.15 Market capitalisation Market capitalisation $179M $179M Cash (end September 2016) $13.4M Source: CommSec as at 21 November 2016 C h a r g i n g f o r w a r d w i t h L i t h i u m 2

Pilgangoora – Location Easy access to market via 130km road haul to Port Hedland's Utah Point • Proximity to port and existing infrastructure y p g gives the Pilgangoora project a distinct advantage C h a r g i n g f o r w a r d w i t h L i t h i u m 3

Pilgangoora – the asset • Pilgangoora is a world class low cost lithium project Pilgangoora located in the Pilbara region of Western Australia, g expected to start project commissioning by the end of 2017 • Altura's 100% owned Pilgangoora will be the fourth producing lithium mine in Australia d i lithi i i A t li Pilgangoora • DFS for Pilgangoora was completed in Q3 2016 Pilgangoora identifying 39.2Mt of resource at 1.02% Li 2 O and Lithium District 20.3Mt of reserves at 1.06% Li 2 O 20 3Mt of reserves at 1 06% Li O * Mt Marion • The Pilgangoora deposit will be extracted by open pit methods enhanced by the shallow and thick mineralisation allowing spodumene ore to be extracted g p Mt Cattlin Mt Cattlin from the commencement of mining • Based on the Definitive Feasibility Study, Pilgangoora will have a mine life of 13 years based on current reserves, producing an average of 220ktpa of 6% Li 2 O Greenbushes spodumene concentrate at a low cash cost of ~A$316/t FOB *Refer to ASX announcements 22 and 26 September 2016 C h a r g i n g f o r w a r d w i t h L i t h i u m 4

2016 Milestones delivered The 2016 year has delivered significant milestones in the growth and progression of Altura…  AJM Market Capitalisation increased by over 500% from $35m to $180m  AJM Market Capitalisation increased by over 500% from $35m to $180m  Strong cash position with a successful $20m capital raising to rapidly advance the Pilgangoora Lithium Project  Mineral Resource estimate (JORC 2012) increased by 50% to 39 6mt @ 1 02% Li 2 O (400kt contained Li 2 O) *  Mineral Resource estimate (JORC 2012) increased by 50% to 39.6mt @ 1.02% Li 2 O (400kt contained Li 2 O)  Maiden Ore Reserve estimate (JORC 2012) of 20.3mt @ 1.06% Li 2 O (215kt contained Li 2 O) *  Altura has assembled a vastly experienced in-house project delivery team to bring the project into production y p p j y g p j p  Binding Offtake Agreement for a minimum of 100ktpa of 6% Li 2 O concentrate to China - Lionergy  Memorandum of Understanding for an additional minimum 100ktpa of 6% Li 2 O concentrate - OptimumNano  Expansive tenement package providing resource upside potential - In place landholder access agreements (Pastoral and Native Title) – 2 X Mining Leases granted  Definitive Feasibility Study completed Q3 2016 highly impressive return on investment low cost  Definitive Feasibility Study completed Q3 2016 – highly impressive return on investment – low cost  Significant alliance with large Chinese battery producer in Shaanxi J&R Optimum Energy – set to become Altura’s largest shareholder *Refer to ASX announcements 22 and 26 September 2016 C h a r g i n g f o r w a r d w i t h L i t h i u m 5

Share placement and alliance Altura has recently announced a Subscription and Cooperation Agreement with leading Chinese battery manufacturer Shaanxi J&R Optimum Energy share to raise A$41.6M (before costs)* y p gy ( )  Landmark alliance formed with one of China’s leading battery producers significantly de-risks the Altura’s Pilgangoora Lithium Project - J&R Optimum will hold 19.9% of Altura post completion  Issue price of 13.6 cents which represents a 8.8% premium to the last closing price and a 4.6% premium to the 30 day VWAP  Shares to be issued in two tranches: an initial tranche of 123 million shares and a second tranche of 183 million shares Extraordinary General Meeting (EGM) to be held to approve the issue of the Tranche 2 shares  J&R Optimum is listed on the Shenzhen Stock Exchange with a current market capitalisation of RMB 25 billion (equivalent to approximately A$5 billion). ( q pp y )  Existing offtake partners Lionergy Limited with Binding Offtake Agreement (BOA) and now J&R Optimum form a strategic supply chain model based on Altura Lithium production – further BOA to finalised for 100% production   Altura’s proforma cash position of circa A$50M post completion will allow commencement of mine construction $ upon receipt of final statutory approvals – expected Q4 2016  Process provides a strong lead to potential debt funding providers *Refer to ASX announcement 8 November 2016 C h a r g i n g f o r w a r d w i t h L i t h i u m 6

Share placement and alliance Altura and Shaanxi J&R Optimum Energy have now formed a strong alliance that allows each company to link upstream raw battery material supply and downstream battery production company to link upstream raw battery material supply and downstream battery production  J & R Optimum Energy and Altura Alliance signing ceremony – Beijing 16 November 2016  Likeminded strategy to advance growth in both companies  Key milestone for Altura by providing a platform to Key milestone for Altura by providing a platform to secure partners to allocate 100% of lithium concentrate offtake  Plan to develop Altura’s Pilgangoora Lithium Project Plan to develop Altura s Pilgangoora Lithium Project in conjunction with additional China based lithium carbonate conversion capacity C h a r g i n g f o r w a r d w i t h L i t h i u m 7