CORPORATE PRESENTATION Q4 2017 EXECUTIVE SUMMARY ALUFER IS ONE OF - - PowerPoint PPT Presentation

CORPORATE PRESENTATION Q4 2017

EXECUTIVE SUMMARY

• Fully financed Bel Air project commenced

construction in January 2017

• First production scheduled for H2 2018
• 15km from the coast requiring minimal infrastructure

and reducing operating costs

• Over 15 year LOM with initial production rate of

5.5Mtpa

• High quality product
• Responsible, sustainable bauxite production
• Using global best practise mining methods
• Environmental programme adheres to IFC and

Equator Principles

• Highly experienced management team with

significant African bulk commodity capability

• Additional 2.5 billion tonnes of bauxite resource at

Labé

• Further exploration underway to complete PFS

next year ALUFER IS ONE OF THE MOST ATTRACTIVE BAUXITE MINING COMPANIES GLOBALLY

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KEY MANAGEMENT

• Mining engineer
• Expertise in development of

natural resources projects across Africa including diamonds, precious/base metals and coal

• Founder and Chairman of LSE

listed Petra Diamonds and AIM listed Chariot Oil & Gas and other private companies

Adonis Pouroulis Chairman

• Metallurgical Engineer
• 35 years of operational and

project experience

• Extensive African experience
• Was Head of Business

Development with Anglo American Plc, also serving as CEO of Anglo Ferrous Brazil Inc.

Bernie Pryor Chief Executive Officer

• Chartered Accountant with 15

years experience in the mining sector

• Previously with Anglo

American and CFO of London Mining

• Extensive background in raising

project finance and developing mining operations through construction into production

Rachel Rhodes Chief Financial Officer

• Geologist with 20 year across the

industry – exploration, development and production

• Previously with Shangdong Iron

and Steel, African Minerals and Fortescue Metals

• Expertise in optimising and

delivering efficient mining

• perations
• Broad commercial experience -
• ver 12 years working in the

resources and power sectors

• Previously with Shangdong Iron

and Steel, African Minerals and Anglo American

• Specific experience in

commodities marketing, complex negotiations, supply chain and corporate strategy

Tristan Clarke Commercial Director Kevin Mclean Project Director

• Over 35 years experience in

HR and has worked extensively in francophone Africa

• Previously with B2Gold,

Kinross, Newcrest and RUSAL

• Strong background in Global

business management, Corporate Development, CSR and Human CapitalStrategy

Guy de Granpre HRDirector

• Great deal of experience in

government liaison and representation for a number

• f companies inGuinea
• Has worked across avariety
• f sectors – mining, textiles

and urban project development

• Previously worked with

Mobil, Global Alumina, Koumba IronOre

Lamine Toure Vice ChairmanBAM

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OTHER BOARD MEMBERS

• Director at the AFC
• Responsible for the natural

resources team and has led their rapidly expanding franchise across sub- Saharan Africa

• Over 15 years experience

in international finance and business development.

Osam Iyahen Non-Exec Director

• Commercial lawyer

specialising in corporate and finance law in the resources sector

• Advised RCF since 2001 and

joined in an in-house capacity in2006.

• Also serves on the Board of

First Bauxite Corp, First Drilling Group and Global Advanced Metals

Mason Hills Non-ExecDirector

• CharteredAccountant
• 16 years experience in the

mining industry and currently CFO of Dangote Cement in the DRCMining and SierraRutile

• Previously with

Endeavour , Anglo Gold Ashanti and De Beers.

Mukuna Ilunga Non-ExecDirector

• Commercial lawyer

specialising in corporate and finance law in the resources sector

• Advised RCF since 2001 and

joined in an in-house capacity in2006.

• Also serves on the Board of

First Bauxite Corp, First Drilling Group and Global Advanced Metals

David Brown Non-ExecDirector

• 25 years in the natural

resources sector

• Previously managed Rio

Tinto’s global bauxite and alumina business and was head of Business Resources responsible for the integration ofAlcan

• Prior to that he was BG

Group as GM of strategy and portfoliodevelopment

Keith Johnson Non-Exec Director

• 14 years experience in global

financial markets with a focus

• n naturalresources
• CEO and Head of Investment

at APAC Resources Limited

• Previously co-founded New

City Investment Managers – a natural resources fund management house and worked for EMG Suisse S.A

Andrew Ferguson Non-Exec Director Dorian Barak Non-Exec Director

• Legal and investment

background

• Private equity investor and

asset manager focused on Africa, the Middle East and Europe

• Advises clients, companies

and funds on investments in the natural resources, aviation and tech sectors

BEL AIR CONSTRUCTION FINANCING

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• In December 2016, Alufer successfully secured a $205m financing

package from a consortium of international investors

• US$80m Senior Debt Facility
• Orion Mine Finance
• US$125m of Convertible Loan Notes and Equity
• The Africa Finance Corporation
• Orion Mine Finance
• Resource Capital Funds
• Six Year Offtake Agreement
• Orion Mine Finance
• Working with Alufer to market

the bauxite product and secure revenue during ramp-up FUNDING SECURED TO TAKE PROJECT THROUGH TO FIRST COMMERCIAL PRODUCTION

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BEL AIR PROJECT TIMELINE

December Pre-Feasibility Studycompleted September Exploitation permitgranted

2014 2012 2016 2017 2013 2011 2015

December Declared“project

• f national

interest” November Final Definitive FeasibilityStudies December $205m financing July Presidential decreereceived April Bel Air Feasibility Studycompleted June SEIA completed January Exploration commenced June “Alufer Mining Limited” incorporated June Mining Convention ratified byparliament February Mining Convention signed February Formal opening ceremony / Construction commences

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PROJECT OVERVIEW - OPERATIONAL SUMMARY

• Direct Shipping Ore will be mined from a total of six pits
• Minimum of two areas will be in operation at the

same time

• Increases production flexibility as well as providing

adequate ore blending capability

• Open cast, strip mining will use surface miners
• Material will be transported via truck from the pits to

the ROM tip at the export facility on coast

• Ore will then be stockpiled and handled via conveyor
• ver a rubble causeway and loaded onto barges
• Transhipment handled via self-propelled barges and

transhipment vessel to OGVs

• Minimum 15 years mine life with initial production rate
• f 5.5 Mtpa
• Economically robust under multiple bauxite pricing

scenarios SIMPLE LOGISTICS SET-UP: SHORT HAUL - CAUSEWAY CONVEYORS – BARGING - TRANSHIPMENT

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MINING METHOD

Benefits versus drill and blast

• Minimises loss and dilution - Larger reserve
• Single phase
• No requirement for drilling, explosives or secondary

crushing

• Safer mining operation
• Significantly reduces strip ratio, waste handling and

haulage costs

• Easier to manage hydrogeology and slope stability
• Improves in pit ground conditions
• Enables multi-purpose haul fleet selection
• Reduces tyre wear
• Easier to operate in rainy season
• Increased productivity
• Lower fuel consumption
• Reduces bulking factor for improved haulage

efficiencies

• Less dust and noise
• Enables ongoing rehabilitation during LOM
• Paragomina, Brazil
• Rusal, Kindia (Guinea)
• Iron Ore, Western Australia

Current surface mining operations

SURFACE MINING – LOW OPEX, MINIMAL RE-HANDLING, HIGH EFFICIENCY

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MATERIALS HANDLING SET UP

• Simple, efficient materials handling infrastructure
• Optimal trade off between capex, opex and technical robustness
• De-linking of mining process (continuous) and barge loading (batch

process) Chemical dust suppression agent used to minimise environmental impact

PROJECT ADVANTAGED BY PROXIMITY TO COAST AND CONTROL OF DEDICATED LOGISTICS AND FACILITIES

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MARINE INFRASTRUCTURE AND TRANSHIPMENT

• Simple geotechnical structure placed on bedrock
• Will provide access from the shore to water depth

suitable for a barge load-out berth

• Core and armour material will be supplied from

quarries owned by Alufer

• Optimum balance between low capital cost, simplicity of
• peration and functionality
• Ore will be transferred onto the causeway conveyor via the

stockpile reclaim conveyor for barge loading

• The barges will then transport bauxite to an ocean going

vessel located at the Transhipment Zone (TSZ) approximately 32km offshore

• Transhipment vessels will be used to transfer the bauxite

from the barges to the OGV TRANSHIPMENT IS THE OPTIMAL METHOD FOR BULK EXPORT FROM THE BEL AIR PROJECT

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SOCIAL AND ENVIRONMENTAL

• Ongoing work includes:
• Baseline assessments
• Integrated terrestrial and marine social and environmental impact

assessments

• Social and environmental management plans
• A stakeholder engagement plan
• A detailed Land Access and Resettlement Framework and Land Access

and a Resettlement Plan

• A Critical Habitat review, including a Biodiversity Management Plan, a

Biodiversity Action Plan and a Natural and Critical Habitat Assessment

• Throughout the project the team will work with the community to develop

local enterprise initiatives and promote local supply

• Ongoing management plans will be in place to ensure compliance with IFC

Performance Standard compliance and meet Equator Principles

• First Environmental Certificate of Conformity was received by the

Government of Guinea in June 2013 and has subsequently been renewed annually ALUFER IS COMMITTED TO PROMOTING & DELIVERING SUSTAINABLE DEVELOPMENT

STAKEHOLDER ENGAGEMENT IS A CORE FOCUS

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BEL AIR OPENING CEREMONY

• On 3 February 2017, the opening ceremony for the Bel Air mine was

held in the village of Koundinde close to the proposed site for the mine camp.

• Over 1500 people attended the ceremony including the President,

Alpha Conde; the Prime Minister, Mamady Youla; the Minister for Mines, Abdoulaye Magassouba; and the British Ambassador.

• The President formally started the construction phase using a

specially painted shovel to load bauxite into an excavator bucket.

Clockwise from top right: Picture 1: Alpha Conde; Picture 2: Lamine Toure (Alufer Government Relations Director), Adonis Pouroulis (Alufer Chairman), Bernie Pryor (Alufer Chief Executive Officer); Picture 3: Alpha Conde; Picture 4: Abdoulaye Magassouba; Picture 5: Mamady Youla

CONSTRUCTION OFFICIALLY STARTED AT BEL AIR:

STRONG STAKEHOLDER SUPPORT

• Alufer’s Mining Convention signed on 1 February 2016:
• The first under the new 2013 Guinean Mining Code
• The first signed by the new Mines Minister
• Fiscal concessions received to encourage investment and

protect sustainability of operation

• Ratification by Parliament of the Mining Convention was

completed on the 1 June 2016

• Through the Mining Convention, a tax regime has been

developed to promote investment in Guinea and to deliver a fair revenue balance for all stakeholders

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• Alufer has a good working relationship with the Guinean

Government

• Bel Air was declared a Project of National Interest” (PIN) in

December 2014 STRONG RELATIONSHIP WITH GOVERNMENT MINING CONVENTION

PROJECT PROGRESS: QUARRY

• The quarry is the source of rock for the causeway
• The first blast was on 23 May
• There have subsequently been 13 successful blasts
• The yield of armour stone from the blasts has been

greater than anticipated reducing the risk of having to manufacture Cubipods

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PROJECT PROGRESS: CAUSEWAY

• Causeway construction began at the start of June - major foundations of the causeway have been

completed and it is now 1.4km in length, including the breakwater

• Water depth is -3.4m Chart Datum

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EXPORT FACILITY AND CAMP

APPENDICES

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CORPORATE STRUCTURE

Alufer Mining Limited (Registered in Guernsey) Alufer (Base Metals) (Limited BVI Company) Alufer Trading Limited (BVI Company) Alufer (Guinea) Limited (BVI Company) Alufer Management Services (Limited UK Company) Alufer Iron SA (Guinea Company) Bel Air Mining SA (Guinea Company) Alufer SA (Guinea Company) Alufer Pita Labe SA (Guinea Company) Government of Guinea (through Soguipami)

100% 20% 100% 100% 100% 100% 100% 100% 65% 15%

SIGNIFICANT GROWTH POTENTIAL

• The Labé Project (100% Alufer) is situated in the Guinea highlands, approximately 350km north-east of Conakry
• Longer term prospect due to infrastructure requirements
• Engineering concept study completed
• Total JORC compliant resource of 2.5Bt at 43% Al2O3
• High grade resource - 583Mt @ 50% Al2O3, 3% SiO2
• Completed 11,130m auger drill programme on 600m and 300m grids, and 252m core drill programme (only 25% of

mineralised plateaus)

• Over 13,000 samples analysed by XRF and c. 20% through bomb digest process
• Alufer will continue to evaluate other opportunities and licences to further expand the resource base over time

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DISCLAIMER

• This document has been issued by Alufer Mining Limited, a company registered in Guernsey (the “Company”) and has been

issued expressly to the recipient.

• This document and any further materials supplied with it, or subsequently in connection with it and the accompanying live

presentation and discussion (the “Information”) are for informational purposes only and do not constitute or form part of any

• ffer or invitation to sell or issue, or any solicitation of any offer to purchase and/or subscribe for any securities and/or any

investment in the Company and should not be relied on in connection with any contract or investment decision relating thereto.

• The recipient of the Information should not place any reliance on the information or opinions contained in this document or
• n their completeness (and in particular any forward looking statements which are inherently risky by their nature). Neither

the Company or any of its directors, employees or agents gives any express or implied warranty or representation as to the accuracy or completeness of the information or opinions contained in the Materials and no liability whatsoever (except in relation to fraud) is accepted by the Company, its directors, employees or agents for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.