C OUGAR M ETALS NL Toamasina Graphite Project Presentation February - - PowerPoint PPT Presentation

COUGAR METALS NL

Toamasina Graphite Project Presentation February 2017

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DISCLAIMER AND CAUTIONARY NOTE

This presentation has been prepared by Cougar Metals NL (CGM or Cougar) for the sole purpose of providing financial, operational and other information to enable recipients to review the business activities of Cougar. This presentation is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities. Nothing in this presentation should be construed as financial product advice, whether personal or general, for the purposes of section 766B of the Corporations Act 2001. This presentation may contain forward looking information, statements or forecasts that are subject to risks and

• ther factors outside the control of Cougar. Any forward looking, information, statements of forecasts provided

is/are considered reasonable in the circumstances and has/have been prepared in good faith and with all due care, but may differ materially from actual future results and performance. Cougar and its affiliates or any of its directors, agents, officers or employees do not make any representation or warranty, express or implied, as to or endorsement

• f, the accuracy or completeness of any information, statements or forecasts contained in this presentation, and they

do not accept any liability for any statement made in, or omitted from, this presentation. This presentation should not be relied upon as a representation of any matter that an investor should consider in evaluating the business activities of Cougar. Investors must make and rely upon their own enquiries and due diligence in relation to the subject of this presentation and an investment in Cougar. A potential investor must assess the merits or otherwise of an investment in Cougar having regards to their own personal, financial and other circumstances. The information in this report that relates to Exploration Results or Minerals Resources is based on information compiled by Mr Steven Goertz, who is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Goertz is a Director of Hendry Consulting Sarl and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Goertz consents to the inclusion in the release of the statements based on the information in the form and context in which they appear. Information included in the presentation is dated 16 November 2016. 2

COUGAR’S ASSET PORTFOLIO

• Australia:
• Pyke Hill Laterite Nickel and Cobalt Resource
• 14.7 Mt @ 0.9 % Ni and 0.06% Co
• 40km from Murrin Murrin Operations
• Canada
• Option over the Shoal Lake East Gold Project
• Currently awaiting compliance by Vendor with Arbitration award
• Brazil
• 9 Rig drilling business – RC, DD, RAB services across Brazil
• 50,000 Ha of Lithium prospects. Exploration currently being planned
• Madagascar
• Option over Toamasina Lateritic Graphite Project. Work awaiting finance.

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TOAMASINA SAPROLITIC GRAPHITE PROJECT

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• Option to acquire up to 100%
• f Fully Permitted Project
• No Trailing Royalty
• Low Cap Ex and Op Ex (oxide

deposit)

• Targeting +1M t of Cg in

resource

• Trenching and surface sampling confirms extensive

mineralisation

• Highway Passes through Project
• 50km to main port, International Airport and Major city
• Test work returns >60% Large and Jumbo Flake
• Trench grades av. 7.5% Cgr bulk in-situ (up to 25% Cgr)

TOAMASINA

(44 sq Km)

WHERE ARE THE WORLD’S GRAPHITE PROJECTS?

Weathered Deposits

SAPROLITE

(hot, wet climates)

• Madagascar
• Brazil
• Tanzania
• Mozambique

Hard Rock

• Canada
• USA
• Sweden
• Russia
• China
• Germany

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No Primary Grinding

Free Dig Floating Graphite

HIGH COST HARD ROCK PROJECTS

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TOAMASINA LOW COST SAPROLITIC PROJECT

Drilling

EXPENSIVE

Blasting

EXPENSIVE

Grinding

EXPENSIVE

Loading Floating Graphite

No Blasting No Drilling

FLAKE SIZE MATTERS

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Fine and Med Flake $500-$950 /t

Large and Jumbo Flake $1,400-$2,500 /t Note: Purity also effects the price

66% 34%

Results from Initial Metallurgical Test work

A HIGH PURITY, LARGE FLAKE (67.4%) LOW COST, HIGH MARGIN PROJECT

Graphite Prices At Mine Site – Toamasina Carbon Content up to 98%

FlakeSize Microns Mesh Flake Dist.% Assay TGC% Price(US$/t)1 TargetMarket SuperJumbo >500 30Mesh 25.3 97.9 2,500 Expandable Jumbo 300-500 50Mesh 29.5 96.7 2,000 Expandable Large 180-300 80Mesh 12.6 91.3 1,400 Expandable /Refractory Medium 150-180 100Mesh 9.9 93.9 950 Battery-grade spherical Small +105 140Mesh 5.8 94.9 700 Battery-grade spherical Fines

• 105
• 140Mesh

16.9 90.0 500 Refractory Production Cost $300-500 Shipping $200 Total $500-700 Average Basket Price 1,617.80

Note: Projection Pricing is from Industrial Minerals, other company PEA’s . The Flake Dist.% and TGC were results from trenching programs completed on the Toamasina Graphite Project. 8

TOAMASINA, POTENTIAL FOR THE HIGHEST MARGIN GRAPHITE PROJECT?

Company Location Grade % 30 Mesh $2500 % 50 Mesh $2000 %80 Mesh $1400 %100 Mesh $950 %-100 Mesh $550 % large Flake Basket Sales Price U$/t Cash Cost/Mt Tonnes /year Distance To Port Permitted Capex Capital Cost U$/Mt Margin U$/Mt Mason Quebec, Can 17.2% n/a 22 14 17 47 36 $1056.00 U$376 51,900 200+km No U$123.8 million $2,385.36 $680.00 Focus Quebec, Can 15.1% n/a 12 28 37 23 40 $1,110.00 U$441 44,300 350+km No U$166 million $3,747.17 $669.00

• N. Monde

Quebec, Can 4.62% n/a 16.10 29.80 11.10 43 45.9 $1,081.00 C$660 50,000 130km No U$144 million $2,880.00 $421.00 Northern Ontario, Can 2% 22 38 34 6 n/a 94 $1,843.00 U$640 20,800 462km No U$84 million $4,038.46 $1,2013.00 Energizer Southern Madagascar 6.13% n/a 23.6 22.8 6.9 46.7 46.4 $1,113.60 U$709 53,000 226km No U$163.7 million $3088.67 $404.60 Syrah Mozambique 20% n/a 8.5 12 11.5 68 20.5 $821.25 U$286(1) 350,000 512km Yes U$144 million $411.42 $535.25 Magnis Tanzania 5.4% 9 32 25 10 24 66 $1,442.00 U$559 220,000 200km U$269 million $1,222.72 $883.00 Alabama Graphite 10%

• xidized layer

First 3 years Alabama, USA 2.5% n/a 17.8 36.9 10.4 34.9 54.7 $1,163.35 U$764 5,500 3 years 300+km no U$43.2 million Year 1-3 U$83.2 in Year 3 $7,854.54 $399.35 Graphex Mining Tanzania 10.85% 1.9 24 22.5 6 45.6 48.5 $1,150.30 U$490 69,000 220km No U$73.8 million $1069.56 $660.30 Toamasina Eastern Madagascar 7-10% 25.3 29.5 12.6 9.9 22.7 67.4 $1,617.80 U$300-350 12,000 50km Yes U$12 million $833.33 $1,267.80

Large Flake is 80 mesh and larger

Note (1) excluding royalties and corporate taxes Note: Projections, based on internal expertise, trenching results, and data from adjacent mines – Resource Study Not Complete

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Note Potential For:

• 1. Highest margin
• 2. Lowest Capex

Project is Fully Permitted

TOAMASINA GRAPHITE DEPOSIT POTENTIAL

HIGH AVERAGE SELLING PRICE – LOW OPERATING COST

Syrah, 820 Mason, 1060 Nouveau Monde, 1090 Energizer, 1110 Taomasina 1620 Northern, 1840 BASKET PRICE U$ PER MT Syrah, 286 Mason, 376 Nouveau Monde, 507 Northern, 640 Energizer, 709 CASH COST U$ PER MT Toamasina, 350

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Note: Projections, based on internal expertise, trenching results, and data from adjacent mines – Resource Study Not Complete

TOAMASINA GRAPHITE DEPOSIT POTENTIAL

LOWEST CAPEX – HIGHEST MARGINS

Toamasina, 12 Northern, 84 Mason, 124 Syrah, 144

• N. Monde, 144

Energizer, 164 CAPEX U$ MILLIONS Energizer, 400

• N. Monde, 420

Syrah, 540 Mason, 680 Northern, 1210 Toamasina 1270 MARGINS U$ PER MT

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Note: Projections, based on internal expertise, trenching results, and data from adjacent mines – Resource Study Not Complete

DEAL – FAVOURABLE TERMS HAVE BEEN NEGOTIATED

CGM Obligations to earn 49%: i. AUD 100,000 payment by end of 2016 ii. AUD 200,000 payment by March 31 unless CGM withdraws iii. USD 150,000 payment by 12/06/17 unless CGM withdraws by 12/4/17 iv. Complete Preliminary Economic Assessment by 30/6/17 (est. cost AUD 500k)

• Vendor has the right to form 50/50 JV with CGM should they secure bankable
• ff-take agreement for 10,000tpa enabling debt funding of plant construction
• In the alternative CGM can acquire 100% of the project by paying AUD 2.5M
• Vendor has the right to buy out CGM for 2.5M AUD should CGM buy out not be

exercised

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TOAMASINA GRAPHITE PROJECT HIGHLIGHTS

• Mineralisation confirmed along

3km of strike

• High value product/high purity

and large flake >66%

• Low Capital Requirement
• Low Operating Costs
• Friendly Mining Jurisdiction
• Excellent Infrastructure
• Fully Permitted
• Large Tenement – 43 Sq Km
• Drill ready
• Fast Track to Production (18

months)

• Cheap Entry

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EXPECTED NEWS FLOW

• March 2017
• Arrival of CGM drilling rig at site
• Commencement of aircore drilling on Prospect
• Sampling for further metallurgical test work
• April 2017
• Drilling Results providing

(i) Definition of resource target (ii) Further information on flake size distribution , graphite quality and upgradability

• April 2017
• Commencement of Resource drilling and scoping study
• May 2017
• Resource statement
• June/july 2017 – Finalisation of PEA
• PRODUCTION TARGETED FOR JUNE 2018.

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MANAGEMENT AND CORPORATE STRUCTURE

Directors  Randal Swick – Executive Chairman  Michael Fry – Executive Director  David Symons – Non Executive Director Capital Structure  Shares on Issue: 765,268,524 (Management 62%)  52 week range: $0.001 - $0.020  Last Price (31/01/17): $0.010  Market Capitalisation: $ 7.65 million

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