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Balkan Projects Summary Presentation July 2018 Disclaimer This presentation (Presentation), and the information contained herein, is not for viewing, release, distribution or publication into or in the United States or any other


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Summary Presentation July 2018

Balkan Projects

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Disclaimer

This presentation (“Presentation”), and the information contained herein, is not for viewing, release, distribution or publication into or in the United States or any other jurisdiction where applicable laws prohibit its release, distribution or publication. This Presentation is being issued by Vardar Minerals Limited (the "Company") for information purposes only. The content of this Presentation has not been approved by an authorised person for the purposes of Section 21(2)(b) of the Financial Services and Markets Act 2000. Reliance on 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. This Presentation is not an admission document or an advertisement and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscribe for any shares in the Company (“Shares”) in the United States or any other jurisdiction. Neither the Presentation, nor any part of it nor anything contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on in connection with or act as an inducement in relation to a decision to purchase or subscribe for or enter into any contract

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Highlights

2018 fieldwork advanced all projects to next stage

– Evidence of mineralised systems on all licences – Focussed target areas for follow up and drilling

Copper-Gold projects in Kosovo

– Au-Ag, Cu, Pb-Zn mineralisation confirmed on Mitrovica project – Analogous alteration zones to neighbouring Cu-Au porphyry deposits mapped in Drazna project – Porphyry alteration, gossans and Fe-stockworks confirm hydrothermal systems in Viti Project

Lithium-Borate project in Kosovo

– Drill-ready Li-B project with comparable geological setting to Rio Tinto’s world-class Jadar deposit

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Mitrovica Drazna Viti Jadar

6 granted exploration licenses targeting four types of mineralisation:

  • Porphyry Cu-Au
  • Epithermal Au-Ag
  • Pb-Zn-Ag replacement type
  • Jadar-style Li-B mineralisation

All Vardar and JV licenses :

  • Recently awarded
  • Exploration rights for 3 years
  • Extendable for additional 3 x 2

years

  • Total Area = 333.2 km2

Projects

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Copper-Gold Projects

Selected rocks from Kosovo porphyry projects

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Copper-Gold Project Overview

  • Tertiary calc-alkaline magmatic

arc known for major Pb-Zn districts.

  • Recently exploration has identified

significant associated porphyry Cu-Au potential.

  • Current focus of a number of

majors with several recent discoveries.

  • Vardar have secured 3 well

positioned porphyry-epithermal projects.

Recent porphyry related discoveries in the Tertiary Arc:

  • Dundee Precious Metals Kiseljak/Tulare project (459 Mt @ 0.22%

Cu and 0.2 g/t Au)

  • Eldorado Gold Skouries project (226 Mt @0.54% Cu, 0.91 g/t Au)
  • Euromax Resources Ilovica project (256Mt @ 0.21% Cu, 0.32 g/t Au)

Skouries Ilovitsa Trepca Pb-Zn-Ag district Maaden Pb-Zn district Kiseljak

Vardar

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Project highlights:

  • In proximity to the 40mT Stan-Terg

Pb-Zn mine.

  • Classic porphyry alteration

mapped

  • Highly anomalous Au and Ag

epithermal target areas

  • Anomalous Cu associated with

dykes and breccias in the basement

  • Extensive mineralised (Pb-Zn>2%)

gossans identified with strike > 5km

Mitrovica Au, Cu, Pb-Zn Project

2.5% Zn, 1.5% Pb 7 g/t Au

Au/Ag target areas Pb-Zn gossans Cu target areas Stan Terg Mine

1 2 1 2

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Project highlights:

  • In proximity to Kiseljak Cu-Au

porphyry and Draznja Pb-Zn deposits.

  • Alteration typical of porphyry

related systems

  • Classic epithermal alteration

centre with elevated As and Au

  • Fe-Ox gossans with anomalous

Zn

  • Anomalous Au, Pb and Cu

returns from grab samples.

Drazna Pb- Zn deposit Kiseljak Cu-Au porphyry

Au/Ag Zn Au

Prospective Lece Magmatic Complex

Drazna Copper-Gold Project

Zn

Au epithermal target

Advanced argillic altered rocks from Au target

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Project highlights:

  • Licenses target an interpreted

circular intrusive (caldera)

  • Intense alteration typically

associated with porphyry systems identified

  • Several gossans, hydrothermal

breccias and Fe-stockworks identified with anomalous As and elevated Zn and Cu

Porphyry alteration Porphyry alteration

Viti Copper-Gold Project

Circular caldera

Hydrothermal breccias & FeOx stockwork

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Lithium-Borate Projects

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Viti Lithium-Borate Projects

Rio Tinto’s Jadar Deposit:

  • Assessed geological

resource of more than 135Mt @ 1.86% Li2O and 15.4% B2O3.

  • Potential to supply

>10% of global Lithium demand.

  • Equivalent borate

product resources @ 21 Mt.

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Comparison with Jadar: ✓ Miocene lacustrine sedimentary rocks with intrabasinal tuffs. ✓ Associated volcanic activity provides metal source and hydrothermal heat engine. ✓ Tectonically active environment with basin scale faults acting as conduits for metal-rich brines. ✓ Fault controlled graben = closed basin environment which allows for metal concentration in playas.

Does Viti fit the Jadar Li-B deposit Model?

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Viti Lithium-Borate Project

  • Mapping and geophysical

modelling completed

  • Advanced drill-ready project

Basin margin

Basin

Caldera structure

Sub-volcanics

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Proposed Work Programme

  • Drazna

– Ground magnetic survey over epithermal target area – Trenching/sampling Fe-Oxide gossans – IP to generate drill targets – Drill testing as required

  • Viti

– Further field mapping – Trenching/sampling Fe-Oxide gossans – IP to generate drill targets – Drill testing as required

  • Mitrovica

– Trenching, channel sampling and mapping Pb-Zn gossans for drill target planning – RC drilling to test extent/grade of Pb- Zn mineralisation – Heliborne magnetic-radiometric to map structures controlling Au-Ag mineralisation + porphyry targets – Trenching/mapping/rock sampling to test targets – IP surveys to provide drill targets – Diamond drilling to test Au and Cu targets

  • Viti Li-B project

– Sampling hot springs, mudstones for elevated Li – Drill testing basin for evidence of salt horizons and Li-B mineralisation

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SLIDE 15

Timelines

2018 2019 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Viti (Li-B) Mitrovica Drazna Viti (Cu)

Field mapping, stream sampling, soil geochemistry Trenching, ground geophysics Drill targeting and ground preparation Drill testing targets Heliborne mag/spec

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News Flow

Q4 2018

  • Trenching results for

Mitrovica Pb-Zn

  • Groundmag results for

Drazna epithermal target

  • Trenching results for Viti

gossans

Q1 2019

  • Drill testing Viti Li-B

project

  • Drill testing Mitrovica

Pb-Zn gossan

Q3 2019

  • Drill testing targets

Q2 2019

  • Helimag results
  • IP surveys for drill

targeting

2019/20

  • Ground geophysics,

sampling, mapping and drilling to prove up targets

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SLIDE 17

Project Conceptual targeting Reconnaissance site visits support target model License application submitted Licenses awarded Traverse mapping confirms mineralisation potential Sampling / mapping identifies target areas Detailed mapping and geochem prioritise targets Ground geophysics / trenching provides drill targets Drill testing of targets

Mitrovica Au

Q2/Q3 Q4 19-Q2

Drazna Cu-Au

Q3/4 Q4/Q1

Viti Li-B

19-Q2

Viti Cu

Q3/4 19-Q1

Chelnik

Exploration pipeline

Yambol Boyadzhik Lozen Srednogora

Stage Gate Stage Gate Stage Gate

Exploration maturity and pipeline

Stage Gate

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Investment opportunity

Well positioned license holding in proximity to significant deposits, major exploration campaigns and mining districts:

  • Mitrovica project with extensive mineralised Pb-Zn gossans, Au

targets and potential for Cu-Au porphyry mineralisation

  • Drazna porphyry Cu-Au project proximal to Dundee’s Kiseljak

porphyry discovery with similar alteration, anomalous geochemistry and epithermal Au target

  • Viti porphyry Cu-Au project with characteristic alteration on margins
  • f circular intrusive structure with associated gossans, breccias and

Fe-stockworks

  • Advanced drill ready Li-B project with analogies to Jadar.

Low, cost-effective expenditure to progress projects to drill testing. Sizeable, recently awarded license holding in proximity to European markets.

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Appendix

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Kosovo background

  • Independent since 2008
  • Member of IMF, World Bank and EBRD
  • Potential candidate to join EU
  • Significant NATO presence via KFOR
  • Home of largest US military base in the Balkans
  • VAT 18%, Corporate Tax 10%
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License details

Project License License holder Issue Renewal Area (Km2) Mitrovica 1724/KPMM/ 2017 Vardar Geoscience Kosovo LLC 2017/08/21 2020/08/02 54.3 Viti 1723/KPMM/ 2017 Vardar Geoscience Kosovo LLC 2017/08/21 2020/08/02 73.5 1758/KPMM/ 2017 Vardar Geoscience Kosovo LLC 2017/11/23 2020/11/12 88.3 1759/KPMM/ 2017 Vardar Geoscience Kosovo LLC 2017/11/23 2020/11/12 52.1 Drazna 1567/KPMM/ 2016 Byl & Byl SH.P.K. 2016/05/31 2019/05/02 11.4 1708/KPMM/ 2017 SunKo Trade SH.P.K. 2017/07/21 2020/07/11 52.4

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Earn-in Terms for Drazna Project

  • The Drazna project covers two licences
  • Fifteen thousand euro on contract signing (completed)
  • 1000 per month per licence admin fee (up to date)
  • To be transferred to NewCo owned 85% by Vardar of 2nd

anniversary of issue

  • 200,000 in shares on transfer to NewCo
  • 10,000 in cash on transfer
  • Vardar to fund until first JORC resource completed
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SLIDE 23

Kosovo license regulations

  • License term of 3 years extendable for 3 x 2 years provided

license is reduced by 50% on each renewal

  • Maximum exploration license holding of 300 km2
  • Mining license term of 30 years extendable for an additional 15

years

  • Royalties negotiated on registration of mining licenses
  • Exploration expenditure requirements:

Km^2 Ha Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 €/Ha 10 20 30 50 50 50 50 50

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Region Highlights: Tertiary Tethys Arc

  • Renowned historical Pb-Zn mining districts including Trepca, Maaden, and Madjanpek
  • Limited exploration for porphyry copper/gold despite compelling link to porphyry

sources for Pb-Zn-Ag and Au mineralisation

Trepca Pb-Zn-Ag District Maaden Pb-Zn District Madjaravo Pb-Zn-Au District Skouries Kiseljak Ilovitsa

  • Significant recent porphyry

discoveries – Dundee Precious Metals: Kiseljak/Tulare (300 Mt) – Eldorado Gold: Skouries (568 Mt) – Euromax Resources: Ilovica (256Mt)

  • Tertiary Arc is rapidly

becoming an exploration focus for majors (Dundee, Eldorado, First Quantum)

  • Excellent exploration
  • pportunities for porphyry

related mineralisation

Legend Porphyry Cu-Au and polymetallic

Total metal content (t)

370,000 Pb_perc Zn_perc Cu_perc Au_g_t

Tertiary magmatics

Felsic Intermediate Mafic Volcanosedimentary

Cretaceous magmatics

Felsic Intermediate Mafic Volcanosedimentary

Tertiary Tethys Arc with major ore fields and recent porphyry development projects highlighted

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SLIDE 25

Region Highlights: Cretaceous Tethys Arc

  • World-class porphyry deposits

– Madjanpek (1.2 Gt); Borska Reka (591 Mt), Elatsite (319 Mt), Chelopech (425 Mt), Assarel (354 Mt)

  • Recent discoveries in the

Timok Complex demonstrate potential under cover – Cukuru Peki (350 Mt @ 2.9% Cu, 1.7 g.t Au)

  • Exploration boom in Serbia

by major and junior explorers

  • Significant opportunity in

Bulgarian extension of the Arc which lacks modern systematic exploration

Legend Porphyry Cu-Au and polymetallic

Total metal content (t)

370,000 Pb_perc Zn_perc Cu_perc Au_g_t

Tertiary magmatics

Felsic Intermediate Mafic Volcanosedimentary

Cretaceous magmatics

Felsic Intermediate Mafic Volcanosedimentary

Bor Cukuru Peki Madjanpek Elatsite Chelopech Assarel Cretaceous Tethys Arc with major porphyry deposits highlighted

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SLIDE 26

Mitrovica License Data coverage and work completed

  • Regional magnetic,

radiometric and FEM data purchased

  • Regional stream sediment

sample data purchased

  • 485 mapping site descriptions
  • 183 grab samples analysed
  • 25 petrography samples
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SLIDE 27

Legend

Au_ppm

!

0.005 - 0.050

!

0.051 - 0.150

!

0.151 - 1.010

!

1.011 - 2.710

!

2.711 - 7.210

Ag_ppm

$

0.0 - 0.1

$

0.2 - 0.3

$

0.4 - 1.7

$

1.8 - 5.0

$

5.1 - 10.9

$

10.9 - 39.0

Pb_ppm

#

2 - 184

#

185 - 518

#

519 - 961

#

962 - 1840

#

1841 - 4030

#

4031 - 14050

Zn_ppm #

2 - 651

#

652 - 2080

#

2081 - 7100

#

7101 - 15950

#

15951 - 25300

Cu_ppm

" )

1 - 26

" )

27 - 67

" )

68 - 165

" )

166 - 423

" )

424 - 2100

Mapped lithology and alteration Unit, Lith

Pliocene-Quaternery clastic Unit, UCS Vardar Greenschist Unit, PHY Vardar Ophiolite Unit, MTB Vardar Ophiolite Unit, UM Volcanic Unit, DAC Volcanic Unit, TRY Volcano-Sedimentary Unit, BCG Volcano-Sedimentary Unit, VCG Gossan Advanced argillic alteration Intense argillic alteration Argillic alteration Silicification

Advanced argillic zone: Highly anomalous Au (up to 7 g/t) and Ag (up to 70g/t) in grab samples Anomalous Cu in basement dykes and breccias (>2000ppm) Extensive mineralised gossan (up to 2.5% Zn and 1.5% Pb

Mitrovica project highlights

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SLIDE 28

Viti Licenses Data coverage and work completed

  • Regional magnetic,

radiometric and FEM data purchased

  • Regional stream sediment

sample data purchased

  • 390 mapping site descriptions
  • 79 grab samples analysed
  • 28 petrography samples
  • 20 km ground magnetic data

collected

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Intense argillic alteration with wide gossan zones, highly anomalous As and elevated Cu

Legend

Vardar Viti Project

Au_ppm

!

. 1

  • .

2

!

. 3

  • .

4

!

. 5

  • .

6

!

. 7

  • .

1 1

Zn_ppm

#

6

  • 3

9

#

4

  • 7

#

7 1

  • 1

4

#

1 5

  • 1

5 3

#

1 5 4

  • 7

1

Pb_ppm

#

2

  • 1

4

#

1 5

  • 3

4 # 3 5

  • 6

7

#

6 8

  • 1

#

1 1

  • 1

7 2

#

1 7 3

  • 3

1 1

Cu_ppm

" )

1

  • 2

8

" )

2 9

  • 5

4

" )

5 5

  • 1

6

" )

1 7

  • 2

9 4

Mapped lithology and alteration

Pliocene-Quaternery clastic Unit, UCS Upper Miocene Sediments, LMS Upper Miocene Sediments, SCS Lower Cretaceous Sedimentary Unit, SST Basement Unit, MRL Basement Unit, QRZ Basement Unit, SCH Upper Cretaceous Sedimentary Unit, SST Vardar Ophiolite Unit, MRB Vardar Ophiolite Unit, MSS Vardar Ophiolite Unit, MTB Vardar Ophiolite Unit, SST Volcanic Unit, AND Volcanic Unit, LAT Volcanic Unit, LCT Volcanic Unit, TRY Volcano-Sedimentary Unit, BCG Volcano-Sedimentary Unit, LMS Volcano-Sedimentary Unit, VCG GOS_region SIL_region PRP_region AR_3-4_region AR_1-2_region Structure from magnetics Extent of Oligocene volcanics from magnetics

Zone of intense argillic and silicic alteration, gossanous ridge Alteration associated with Fe-stockwork and gossan, elevated Zn Hydrothermal breccia stockwork with elevated Au Zones of intense alteration associated with subvolcanic body, elevated Zn, Pb, Cu

Viti project highlights

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Drazna Licenses Data coverage and work completed

  • 428 mapping site descriptions
  • 372 soil samples collected
  • 67 grab samples analysed
  • 31 petrography samples
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Legend

Ag_ppm

$

0.0 - 0.2 $ 0.3 - 1.3

$

1.4 - 7.0

$

7.1 - 19.9

$

20.0 - 57.2

Au_ppm

!

0.00

!

0.01

!

0.02 - 0.03

!

0.04 - 0.10

!

0.11 - 0.36

Pb_ppm

#

0 - 33 # 34 - 193

#

194 - 479

#

480 - 2400

#

2401 - 6480

Zn_ppm

#

0 - 26 # 27 - 64

#

65 - 122

#

123 - 298

#

299 - 926

Au_ppm

< -0.50 Std. Dev.

  • 0.50 - 0.50 Std. Dev.

1.5 - 2.5 Std. Dev. > 2.5 Std. Dev. Au anomaly (Draznje)

Mapped lithology and alteration

Lower Cretaceous Sedimentary Unit, SST Serbo-Macedonian Massif, SCH Volcanic Unit, AND Volcanic Unit, LAT Volcanic Unit, RIO Volcano-Sedimentary Unit, VCG SIL_region GOS_region AS_region PRP_region AAR_region AR-4_region AR-2_region Kiseljak - Yellow Creek Porphyry Drazna_Pb-Zn_Deposit

Adularia-sericite alteration overprinting intense argillic + anomalous Ba and elevated Au and As in soil results Au & Ag anomalies in grab samples from qrtz- CO3 vein stockwork Gossanous Fe-stockwork, anomalous Zn Gossanous Fe-stockworks noted, anomalous Zn

Drazna project highlights