EMERGING HIGH-GRADE MANGANESE OPPORTUNITY INVESTOR PRESENTATION - - PowerPoint PPT Presentation

EMERGING HIGH-GRADE MANGANESE OPPORTUNITY

INVESTOR PRESENTATION – DECEMBER 2017

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This presentation contains forward-looking statements and factual information that are current as of the date the presentation was originally delivered. When used in this presentation, words such as “may”, “would”, “could”, “will”, “expect”, “anticipate”, “estimate”, “believe”, “contemplate”, “intend”, “budget” “plan” and other similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of estimated future exploration, success of exploration activities, expenditures, permitting, and requirements for additional capital and access to data. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of Giyani Metals Corp. (the “Company”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; the ability to enter into joint ventures or to acquire or dispose

• f properties; future prices of commodities; fluctuations in currency markets; operating or technical

difficulties in relation to the speculative nature of exploration and development; accidents, employee relations (including labour disputes) and other risks of the gold industry; ability to obtain financing; changes in costs and estimates associated with the Company’s projects; legislative, political or economic developments in the jurisdictions in which the Company carries on business; requirements for additional capital; and regulatory restrictions including delays in obtaining governmental approvals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or expected. The Company disclaims any intention or obligation to update

• r revise any forward-looking statements, whether as a result of new information, future events or
• therwise except as required by applicable law.

F O R WA R D L O O K I N G - S TAT E M E N T S

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CO R P O R AT E A D V I S O R P O L I T I CA L A D V I S O R

• GIYANI’S CORPORATE OBJECTIVE IS TO BECOME THE WORLD’S LEADING SUPPLIER OF LOW-COST HIGH-GRADE

FEEDSTOCK MANGANESE FOR THE BATTERY INDUSTRY

• THE COMPANY HAS ACQUIRED A LARGE LAND PACKAGE COVERING 8,135 SQUARE KILOMETERS IN THE KANYE

BASIN, SOUTHEASTERN BOTSWANA, AFRICA. THE PROPERTY INCLUDES SEVERAL PAST PRODUCING MANGANESE MINES

• HISTORICAL MANGANESE PRODUCTION AND EXTENSIVE GEOLOGICAL STUDIES OF THE AREA PROVIDES GIYANI

WITH IN-DEPTH TECHNICAL INSIGHT AND THE ABILITY TO ACCELERATE THE PROJECT INTO PRODUCTION

• UNIQUE GEOLOGICAL CHARACTERISTICS MAKE THE KANYE PROJECT A RARE OPPORTUNITY TO DELIVER LOW-

COST, HIGH-GRADE MANGANESE IN A QUICK TIME-TO-MARKET

• CONFIRMED MANGANESE OCCURRENCES AT TWO PROSPECTS, K.HILL AND OTSE
• ASSAY RESULTS FROM THE FIRST 168 SURFACE SAMPLES REPORTED HIGH-GRADE MANGANESE OXIDE

(MNO) UP TO 73.4% AT THE K.HILL PROSPECT AND UP TO 67.4% AT THE OTSE PROSPECT

• NEAR SURFACE DEPOSITION MAKES IT EASY AND LOW-COST TO OPEN PIT MINE AT THE K.HILL AND

OTSE PROSPECTS

• LOW LEVELS OF IMPURITIES ALLOW FOR COST EFFECTIVE AND SIMPLE BENEFICIATION PROCESS
• GIYANI IS UNIQUELY POSITIONED TO RETURN HIGH SHAREHOLDER VALUE IN A RELATIVELY SHORT TIME

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A U N I Q U E O P P O R T U N I T Y

• 88-100% INTEREST IN AN EXTENSIVE LAND PACKAGE COVERING 8,135 SQUARE KILOMETERS IN

SOUTHEASTERN BOTSWANA

• SEVERAL HIGH-GRADE MANGANESE OCCURRENCES WHICH PROVIDES GIYANI WITH A PIPELINE OF

MULTIPLE PROJECTS TO COLLECTIVELY FORM A LARGE SCALE RESOURCE

• CLOSE PROXIMITY TO THE TOWNS OF KANYE, OTSE, AND LOBATSE WITH ACCESS TO GOOD

INFRASTRUCTURE, RAIL AND ROAD SYSTEMS, WATER AND ELECTRICITY

• OPTIONS TO SHIP OUT OF 5 SEAPORTS ACCESSIBLE VIA RAIL NETWORKS AND STRATEGICALLY LOCATED

FOR COST EFFECTIVE SHIPPING TO CHINA AND INDIA

• BOTSWANA IS ONE OF THE MOST ATTRACTIVE AFRICAN JURISDICTIONS SUPPORTING MINING

OPERATIONS WITH FAVORABLE TAX REGULATIONS AND EFFICIENT GOVERNMENT PROCESSES

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T H E P R O P E R T Y

KANYE PROJECT MANGANESE PROSPECT

I N G O O D C O M PA N Y

W I T H I N T H E K A L A H A R I B A S I N

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2.3 million tonnes P/A 37% Manganese 2.9 million tonnes P/A 37-55% Manganese 3.8 million tonnes P/A 37-44% Manganese 1.8 million tonnes P/A 33-44% Manganese 2 million tonnes P/A 35-45% Manganese Private company (unknown production

• r grade)

Kalahari Manganese Field

2.5 million tonnes P/A 40% Manganese

ESTIMATED PRODUCTION AND GRADE LEVELS OF SOUTH AFRICAN MANGANESE MINES

Source: Public companies annual reports and third party research.

• MULTIPLE SURFACE OUTCROPS OF UNIQUE HIGH-

GRADE MANGANESE

• THE MANGANESE MINED AT K.HILL 1957-1967

CONSISTED, ALMOST ENTIRELY, OF HIGH-GRADE MANGANESE OXIDE NODULES

• THE GIYANI GEOLOGICAL TEAM LOCATED MULTIPLE

AREAS WHERE THESE NODULES ARE PRESENT

• THE MANGANESE ORE DEPOSITS AT K.HILL WERE

F O R M E D B Y O X I D A T I O N A N D S U P E R G E N E ENRICHMENT RESULTING IN A VERY STABLE FORM OF MANGANESE OXIDE (SOURCE: BOTSWANA NOTES AND RECORDS VOL.30)

• CHEMICAL STABILITY OF K.HILL MANGANESE ORE

M A K E S I T C O S T E F F E C T I V E T O S T O R E , A N D TRANSPORT

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K A N Y E B A S I N M A N G A N E S E

HIGH GRADE MINERALIZED SHALE GRADING UP TO 73% M N O A L O N G 5 0 0 M E T E R S S T R I K E L E N G T H W I T H I N A 1 0 - M E T E R - T H I C K , 1 K M X 1KM ENVELOPE

K . H I L L A S S AY R E S U LT S

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K . H I L L I N T E R L A M I N AT E D M A N G A N I F E R O U S S H A L E U N I T

CO R P O R AT E A D V I S O R T E C H N I CA L A D V I S O R P O L I T I CA L A D V I S O R 8

K . H I L L G E O L O G I C A L M O D E L

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O T S E A S S AY R E S U LT S

HIGH GRADE MANGANESE, UP TO 67.4% MNO AT THE O T S E P R O S P E C T, 4 0 K M E A S T O F T H E K . H I L L PROSPECT

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R O A D M A P

Q2 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

• Regional mapping
• Surface sampling
• Bulk sampling
• Preliminary testing
• Mineralogical studies
• Market analysis
• RC drill program
• Test pit
• Initial resource

estimates

• Metallurgical studies
• Process report
• Environment impact

studies

• Environmental

management plan

• Plant design
• Plant costing
• Mine plan
• Off-take partners
• Economic impact

assessment

• Pilot testing
• Product testing and

proto-typing

• Mine permitting
• Pilot production
• Mine construction
• Vertical integration

Assessment Understanding Testing Design Execution

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S U C C E S S FA C T O R S

STRONG ECONOMIC FUNDAMENTALS

• GROWING DEMAND OUTSTRIPPING LIMITED

GLOBAL SUPPLY OF HIGH-GRADE MANGANESE

• MANGANESE AND COBALT ARE CRITICAL FOR A

GROWING BATTERY INDUSTRY

• R A P I D LY I N C R E A S I N G D E M A N D D R I V E N B Y

E L E C T R I C V E H I C L E S , R E S I D E N T I A L E N E R G Y S T O R A G E S Y S T E M S , A N D G R I D E N E R G Y- STORAGE FARMS

• SIGNS OF THE BEGINNING OF A COMMODITIES

SUPER CYCLE

• MANGANESE BASED BATTERY CHEMISTRY IS

USED IN TESLA’S POWER WALL, NISSAN LEAF, C H E V Y V O LT, M O S T P O W E R T O O L S , A N D A L M O S T A L L H E A LT H C A R E A P P L I C AT I O N S AMONGST OTHERS

• COBALT IS AT RISK OF SEVERE SHORTAGE

W I T H I N F E W Y E A R S , G I V I N G M A N G A N E S E BASED CHEMISTRY STRONGER POTENTIAL FOR GROWTH

• MANGANESE BASED BATTERIES HAVE SUPERIOR

T H E R M A L S TA B I L I T Y C O M PA R E D T O O T H E R BATTERY CHEMISTRIES STRONG INVESTMENT FUNDAMENTALS

• 88-100% INTEREST IN 8,135 SQUARE KILOMETERS

CONTIGUOUS LAND PACKAGE

• UNDERLAIN BY TRANSVAAL SUPER-GROUP, HOST

TO 75% OF WORLD’S MANGANESE RESOURCES

• 3 I D E N T I F I E D P R O S P E C T S T H A T C A N B E

DEVELOPED INDEPENDENTLY

• HIGH GRADE, UP TO 73% MNO
• S T A B L E O X I D I S E D S T A T E A N D S H A L L O W

D E P O S I T I O N R E S U LT I N G I N L O W M I N I N G , PROCESSING, AND REFINING COSTS

• STRONG MANAGEMENT AND TECHNICAL TEAMS
• PROXIMITY TO GOOD INFRASTRUCTURE – ROADS

AND RAIL SYSTEMS, WATER, AND POWER

• COST EFFECTIVE ACCESS TO 5 SEA PORTS
• FAVOURABLE MINING JURISDICTION WITH LOW

TAXES AND NO RESTRICTIVE REGULATIONS

• MULTIPLE OFF-TAKE OPTIONS TO SHARE PROJECT

FUNDING

0-900MM 0-900MM +900MM 0-250MM 75-250MM <0.5-75MM 6-75MM 0.5-6MM <0.5MM <0.5MM

Run of mine feed

LUMPY PRODUCT STOCKPILES FINES PRODUCT STOCKPILE FINES DISCARD Mobile Rock Breaker Secondary Crushing

Primary Crushing Screening

FINES DISCARD HANDLING PLANT SERVICES MAKE UP WATER RESERVOIR

S I M P L E , E C O N O M I C A N D FA S T P R O C E S S I N G

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W H Y M A N G A N E S E

CO R P O R AT E A D V I S O R T E C H N I CA L A D V I S O R P O L I T I CA L A D V I S O R 14

FOR THE FIRST TIME SINCE 2012, GLOBAL MN ORE DEMAND WAS LARGER THAN SUPPLY IN 2016, AS STOCKS OF ORE ACCUMULATED ALONG THE SUPPLY CHAIN HAVE BEEN CONSUMED. MN ORE SUPPLY CONTINUED CONTRACTING FOR A SECOND CONSECUTIVE YEAR, BY -7% TO 44.8 MILLION WET MT, AS MANY MINES CLOSED IN 2015 REMAINED IDLED IN 2016. DEMAND INCREASED BY 2% IN 2016 TO 47 MILLION WET MT, ON RISING MN ALLOYS PRODUCTION, ESPECIALLY IN CHINA.

M A N G A N E S E I N B AT T E R I E S

CO R P O R AT E A D V I S O R T E C H N I CA L A D V I S O R P O L I T I CA L A D V I S O R 15

• MANGANESE IS USED TO MAKE CATHODES FOR LITHIUM ION BATTERIES
• TESLA’S GIGAFACTORY IN NEVADA IS SCHEDULED TO HAVE CAPACITY FOR UP TO 35

GIGAWATT-HOURS BATTERY PRODUCTION ANNUALLY BY 2018

• ELON MUSK SAYS THAT TESLA WILL ANNOUNCE 4 NEW GIGAFACTORIES BEFORE THE END OF

2017

• A RECENT STUDY BY BLOOMBERG INTELLIGENCE REPORTS THAT CHINESE COMPANIES ARE AT

WORK ON PLANS TO PRODUCE MORE THAN 120 GIGAWATT-HOURS OF BATTERIES A YEAR BY 2021

• THE GLOBAL LITHIUM-ION BATTERY MARKET SIZE IS EXPECTED REACH US$46.21 BILLION BY

2022, WITH A CAGR OF 10.8% FROM 2016 TO 2022 ( A L L I E D M A R K E T R E S E A R C H )

• M A N G A N E S E I S R E Q U I R E D I N T W O O F T H E M O S T P R O M I N E N T B AT T E RY C AT H O D E

CHEMISTRIES, NICKEL-MANGANESE-COBALT (NMC) AND LITHIUM-MANGANESE-OXIDE (LMO)

• MANGANESE BASED BATTERY CATHODE CHEMISTRY IS THE STRONGEST VIABLE ALTERNATIVE

TO COBALT BASED CATHODE CHEMISTRY IN CASE OF COBALT SUPPLY DISRUPTION OR SHORTAGE

• GLOBAL SHORTAGE OF HIGH GRADE MANGANESE PROJECTS THAT CAN PROVIDE FEEDSTOCK

TO THE BATTERY INDUSTRY AT COMPETITIVE PRICING

R I S I N G D E M A N D F O R 
 M A N G A N E S E B Y B AT T E R Y M A K E R S

• UMICORE, ONE OF THE LARGEST BATTERY CATHODE SUPPLIERS, ANNOUNCED AN INVESTMENT

PROGRAM OF € 300 MILLION BETWEEN 2017 AND 2019 TO INCREASE ITS PRODUCTION OF NMC (NICKEL- MANGANESE-COBALT) CATHODE MATERIALS FOR LITHIUM-ION RECHARGEABLE BATTERIES.

• NMC IS ONE OF TWO MAIN CATHODE MATERIAL TECHNOLOGIES FOR RECHARGEABLE BATTERIES USED

IN VEHICLE ELECTRIFICATION. THE OTHER ONE IS LMO (LITHIUM MANGANESE OXIDE)

• GLOBAL DEMAND FOR MANGANESE BASED BATTERY CATHODES IS INCREASING FAST AND IS

OUTPACING THE MARKET BY A SIGNIFICANT MARGIN

• BLOOMBERG PREDICTS THAT DEMAND IS GOING TO DRIVE THE PRODUCTION OF MANGANESE TO

INCREASE BY 100-FOLD

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B O T S W A N A M I N I N G A D VA N TA G E

Botswana Namibia Zambia South Africa

Botswana GDP from Mining in Billion BWP

12.5 14.6 11.1 11.7 11.2

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• BOTSWANA IS ONE OF THE MOST ATTRACTIVE MINING

JURISDICTIONS IN SOUTHERN AFRICA WITH POLITICAL STABILITY AND TRANSPARENCY

• 2 6 % I N V E S T M E N T A D V A N TA G E C O M PA R E D T O

NEIGHBOURING COUNTRIES WITH ACTIVE BLACK ECONOMIC EMPOWERMENT (BEE) REGULATIONS

• GIYANI IS DEVELOPING THE ONLY MANGANESE PROJECT IN

BOTSWANA

• GOVERNMENT ROYALTY IS 3% FOR BASE METALS
• THERE IS NO IMPORT TAX ON MINING EQUIPMENT AND

SPARES

• VARIABLE INCOME TAX RATE IS 25% AND A 5 YEAR TAX

EXONERATION

• SATISFACTORY FISCAL REGIME, 100% CAPITAL REDEMPTION

Angola Madagascar Zimbabwe DR Congo Mozambique Tanzania

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2011 2012 2010 2013 2014 2015

E S S E N T I A L AT T R I B U T E S O F A S U C C E S S F U L M I N E

GRADE

FOR ALL COMMODITIES, GRADE DRIVES THE THE ECONOMICS IN MINING

SCALE

LARGE RESOURCES RESULT IN LARGE PRODUCTION VOLUME AND DRIVES LONG TERM REVENUES AND PROFITS

MANAGEMENT

EXPERIENCED MANAGEMENT TEAM ENSURES FULL POTENTIAL IS REALIZED

JURISDICTION

MATURE MINING CULTURE, STABLE POLITICAL SYSTEM, GOOD INFRASTRUCTURE, AND FAVOURABLE TAX REGULATIONS AND BUSINESS ENVIRONMENT

METALLURGY

HIGH-GRADE AND LOW-IMPURITIES RESULT IN COST- EFFECTIVE PROCESSING AND BENEFICIATION

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SCALE MANAGEMENT JURISDICTION METALLURGY GRADE

GIYANI’S KANYE MANGANESE PROJECT HAS ALL OF THE ATTRIBUTES OF A SUCCESSFUL MINE

I N V E S T M E N T H I G H L I G H T S

CO R P O R AT E A D V I S O R T E C H N I CA L A D V I S O R P O L I T I CA L A D V I S O R

• ACCELERATE THE KANYE MANGANESE PROJECT INTO PRODUCTION
• BECOME THE LEADING SUPPLIER OF SUPERIOR FEEDSTOCK MANGANESE

TAILORED TO THE BATTERY INDUSTRY

• KANYE MANGANESE IS HIGH-GRADE AND EASY TO MINE
• LOW CAPEX REQUIREMENTS TO GET TO PRODUCTION
• LOW OPEX TO SUSTAIN PRODUCTION IN A FAVOURABLE MINING JURISDICTION
• UPSIDE FOR A PROJECT GENERATIVE MODEL WITH MULTIPLE MANGANESE OCCURRENCES

THROUGHOUT GIYANI’S PROPERTY

• MULTIPLE OFF-TAKE OPTIONS WITH BATTERY AND CAR MANUFACTURERS AS

WELL AS STEEL AND ALLOY MAKERS

• HIGHER RETURN FOR SHAREHOLDERS
• ADDITIONAL ASSETS INCLUDE 45% INTEREST IN ROCK ISLAND GOLD PROJECT IN

SOUTH AFRICA (~$2M) AND 35% INTEREST IN CANOE MINING VENTURES CORP (~ $2M)*

19 * As of August.25.2017

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M A N A G E M E N T

R O B I N B I R C H A L L

• Mr. Robin Birchall brings more than

eighteen years of experience in the financing and management of resource companies, most recently as the Executive Chairman of Silver Bear Resources and CEO of a private E&P company as well as V.P . Investment and Corporate Banking with BMO Capital Markets. Mr. Birchall earned an MBA from the University of Cape Town, a Msc in European and International Politics from Edinburgh University, a Première Degré en Langues Literature et Civilisation, from Stendahl Université and a BA from Queens University.

• Mr. Petersen is a lawyer, a

CPA and global thought leader on energy and sustainability issues. He currently serves as Executive VP of ePower Engine Systems.

WA J D B O U B O U

M r. Wa j d B o u b o u i s a n experienced executive with a 26-year history of achievements i n t h e O i l & G a s a n d Telecommunications industries. S k i l l e d i n O p e r a t i o n s Management, People and F i n a n c i a l M a n a g e m e n t , Complex Contract Negotiations, and Business Strategy. Mr. Boubou held various leadership positions in multinational conglomerates, including S c h l u m b e rg e r a n d C i s c o

• Systems. He holds a bachelor’s

degree in Electrical Engineering and MBA from the University of Strathclyde in the UK.

DA N C R A N DA L L

• Mr. Daniel Crandall is a Senior

Manager at Marrelli Support Services Inc. possessing over 10 years of experience working with p u b l i c c o m p a n i e s . H e specializes in providing Chief Financial Officer, accounting, regulatory compliance, and management advisory services to numerous issuers on the TSX, TSX-Venture, CSE and other international exchanges. Dan is a CPA, CA and has an Honours Bachelor of Accounting (Co-op) degree from Brock University. Previously, he was a Manager at Collins Barrow Toronto LLP , a public accounting firm where he worked for over five years.

C E O - D I R E C TO R P R E S I D E N T C F O D UA N E PA R N H A M

• Mr. Duane Parnham has a

successful track-record of developing companies from start-up to fully permitted

• projects. He has founded Temex

Resources Corp., Forsys Metals Corp., and UNX Energy Corp., a junior oil and gas company that was sold in 2011 for CAD$730

• million. Mr. Parnham currently

serves as the President and CEO

• f Broadway Gold Mining Ltd. as

well as a Director with Canoe Mining Ventures Corp. Mr. Parnham delivers maximum shareholder value through e x t e n s i v e e x p e r i e n c e i n c o r p o r a t e g o v e r n a n c e , stakeholder relations and capital markets.

C H A I R M A N

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D I R E C T O R S

E U G E N E L E E

• Mr. Lee is a mining finance

professional with experience in capital markets, financial reporting, risk management, i n t e r n a l c o n t r o l s a n d corporate governance.

• Mr. Petersen is a lawyer, a

CPA and global thought leader on energy and sustainability issues. He currently serves as Executive VP of ePower Engine Systems.

J O H N P E T E R S E N

• Mr. Petersen is a lawyer, a CPA

and global thought leader on energy and sustainability

• issues. He currently serves as

Executive VP of ePower Engine Systems.

S COT T B R E A R D

• Mr. Breard is a marketing

professional with significant experience in start-ups and r e b r a n d i n g . H e h a s consulted for many Fortune 500 companies.

D I R E C TO R D I R E C TO R D I R E C TO R

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M A N A G E M E N T & A D V I S O RY B O A R D

A R N O B R A N D

Arno Brand has been working in resource valuation, commodity b r o k e r i n g a n d r e s o u r c e development in Africa for 10

• years. Arno has experience in

d i a m o n d s , i r o n

• r e ,

manganese, uranium, graphite, vanadium, oil and gas.

D R . B E N N Y OT I M

• Dr. Benny Otim has extensive

e x p e r i e n c e i n e d u c a t i o n , diplomacy, conflict resolutions and humanitarian efforts. He recently retired from the UN after 23 years. Benny is a founder and director of two companies e n g a g e d i n m i n i n g a n d telecommunications in Africa.

P R OJ E C T M A N A G E R P O L I T I CA L A D V I S O R D R . I A N F L I N T C H I E F M E TA L LU R G I S T

• Dr. Ian Flint has been active in

the industry for over 25 years with experience ranging from engineering review, test work, pilot plants, process design, equipment design, metallurgist, and director of more than 30 projects.

R O G E R M O S S

Roger Moss is a qualified person in accordance with Canadian regulatory requirements as set

• ut in NI 43-101, and is

responsible for the technical information provided by Giyani Metals Corp.. Mr. Moss has a P h . D . G e o l o g y f ro m t h e University of Toronto.

Q UA L I F I E D P E R S O N

M E S S A G E F R O M T H E C E O

The battery metals market today shows signs similar to the 2006 uranium boom. During that period, we advanced Forsys Metals from start-up to a fully permitted project which reached a market capitalization exceeding $800 million. When comparing commodity price forecasts based on growing demand fundamentals coupled with few suitable sources of supply, the battery metals market is poised to replicate or even surpass the success we had with uranium. We are now working with countries in the Southern Africa Development Community that welcome new mines and want to participate in future

• markets. Projects in the region I have championed have

returned $1.2 billion to investors. Let’s do it again! Duane Parnham, Chairman

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SHARE STRUCTURE

TSXV: WDG $24.09 million Symbol Share Price* Basic Shares Warrants Options FD Shares Market Capitalization $0.325 74,121,738 1,760,786 4,725,000 80,607,524

*share price as of December 06, 2017

T S X V: W D G

Giyani Metals Corp.

277 Lakeshore Road East Suite 403 Oakville, Ontario, Canada L6J 6J3 289-837-0066
 info@giyanimetals.com

GERMANY:KT9

Giyani is a publicly trading, vertically integrated, well managed junior resource company focused on building a superior hybrid mining company to supply raw materials needed for the fast growing global battery technology industry.

www.GiyaniMetals.com

MARKET RESEARCH AND BACKUP SLIDES

M A N G A N E S E O V E R V I E W

CO R P O R AT E A D V I S O R T E C H N I CA L A D V I S O R P O L I T I CA L A D V I S O R 27

MANGANESE (MN) ALLOYS SIMN: USED IN REINFORCEMENT BARS AND WIRE MESH DEMAND: ~ 13.2 MILLION MT, SUPPLY: ~ 12.8 MILLION MT HC FEMN: USED IN FLAT AND LONG STEEL PRODUCTS DEMAND: ~ 4.97 MILLION MT, SUPPLY ~ 4.9 MILLION MT RF FEMN: FLAT STAINLESS STEEL, LOW CARBON CRITICAL SURFACE FLAT STEEL DEMAND ~ 1.86 MILLION MT, SUPPLY ~ 1.84 MILLION MT ELECTROLYTIC FLAKE MANGANESE: BATTERIES DEMAND ~ 300 000 MT SUPPLY ~ 275 000 MT

SiMn HCFeMn RFFeMn Flake 27

M A N G A N E S E R E S E R V E S & P R O D U C T I O N S H A R E

SOUTH AFRICA UKRAINE AUSTRALIA INDIA GABON REST OF WORLD GLOBAL MANGANESE RESERVES

Source: US Geological Survey Source: Manganese Investing News

GLOBAL MANGANESE PRODUCTION SHARE

80% 10% 2% 2% 3% 3%

South Africa China Australia Gabon Brazil India Rest Of World

6% 6% 7% 17% 11% 18% 36%

28 28

H I G H G R A D E M A N G A N E S E 


CO R P O R AT E A D V I S O R T E C H N I CA L A D V I S O R P O L I T I CA L A D V I S O R 29

HIGH GRADE SOURCES CAN REPLACE LOW GRADE FEED STOCK

29

B AT T E R Y C H E M I S T R I E S

THERE ARE NUMEROUS LI-ION BATTERY CHEMISTRIES THAT USE VARIOUS BATTERY METALS. GIYANI IS FOCUSED ON DEVELOPING MANGANESE SUPPLY.

LCO LMO LFP NMC NCA LTO

Lithium Cobalt Oxide

LiMn2O4 LiCoO2

Lithium Nickel Cobalt Aluminum Oxide Lithium Nickel Manganese Cobalt Oxide Lithium Iron Phosphate Lithium Manganese Oxide Lithium Titanate

LiNiMnCoO2 LiFePO4 LiNiCoAlO2 Li4Ti5O12

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M A N G A N E S E B AT T E R Y 
 C H E M I S T R I E S 


Lithium Manganese Oxide LiMn2O4 (LMO) Lithium Nickel Manganese Cobalt Oxide (NMC) NMC METAL COMPOSITION

33%

4%

1% 61%

MANGANESE COBALT NICKEL LITHIUM OTHER

LMO METAL COMPOSITION

33% 7% 20% 20% 19%

MANGANESE COBAL NICKEL LITHIUM OTHER

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B AT T E R Y C O S T S T R U C T U R E

GIYANI’S STRATEGY IS TO BE IN THE SWEET SPOT OF BECOMING THE LEADING FEEDSTOCK MANGANESE SUPPLIER TO THE MAKERS OF THE HIGHEST COST ITEM IN A LITHIUM-ION BATTERY, THE CATHODE.

32

GLOBAL LI-ION BATTERY CATHODE MARKET

33

SOURCE: KEMETCO RESEARCH

DEMAND FOR METALS


( W O R L D B A N K E N E R G Y A N D E X T R A C T I V E )

34

MANGANESE ORE DEMAND 
 JULY 2017

SUPPLY CONTRACTED IN JULY FOR THE SECOND CONSECUTIVE MONTH, TO 1.445 million mt (Mn UNITS), OFF BY 2% MoM AND UP BY 32% YoY. YEAR-TO-DATE OUTPUT WAS 11% HIGHER THAN IN THE FIRST 7 MONTHS OF 2016, ON SOARING SUPPLY IN AFRICA (DRIVEN BY EXPORTS TO CHINA) AND THE CIS (DRIVEN BY RISING Mn ALLOYS DEMAND).

35

SOURCE: International Manganese Institute (IMnI)