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

EMERGING HIGH-GRADE MANGANESE OPPORTUNITY

INVESTOR PRESENTATION – FEBRUARY 2018

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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

• r 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 of 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 or revise any forward-looking statements,

whether as a result of new information, future events or otherwise except as required by applicable law.

F O R W A R D L O O K I N G - S T A T E M E N T S

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C O R PO R A T E A D V I S O R PO L I T I C A 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 P A 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.

• MUL TIPL E

S URF ACE OUTCROPS OF UN IQUE HIGH- GRADE MAN GAN ESE

• THE

MANGAN ES E MINED AT K.HILL 195 7-1967 CON S IS TED, ALMOS T EN TIREL Y, OF HIGH-GRADE MAN GAN ESE OXIDE N ODUL ES

• THE GIYAN I GEOLOGICAL TEAM LOCATED MULTIPLE

AREAS W HERE THES E N ODULES ARE PRES EN T

• THE

MAN GAN ES E ORE DEPOS ITS AT K.HILL W ERE F ORMED BY OXIDATION AN D S UPERGENE EN RICHMENT RES UL TING IN A VERY S TABL E FORM OF MAN GAN ES E OXIDE ( S O U R C E : B O TS W A N A N O T ES A N D R E C O R D S V O L . 3 0 )

• CHEMICAL

S TABIL ITY OF K.HILL MAN GAN ES E ORE MAKES IT COS T EFF ECTIVE TO STORE, AND TRAN S PORT

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

HIG H G RAD E MIN E RAL IZ ED S HAL E G R ADIN G UP TO 7 3 % MN O AL ON G 5 0 0 M ET ERS S TRI KE L EN G TH W IT HIN A 1 0 - MET ER -T HIC K, 1 KM X 1 KM EN VELOPE

K.HILL A S S A Y R ES U LTS

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

C O R PO R A T E A D V I S O R T E C H N I C A L A D V I S O R PO L I T I C A L A D V I S O R 8

K.HILL G EO LO G ICA L MO D EL

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10 10

O TS E A S S A Y R ES U LTS

HIG H G R ADE MAN GAN ES E, UP TO 6 7 .4 % MN O AT TH E OTS E PROS PE CT , 4 0 KM EAS T OF THE K.HIL L PROS PECT

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R O A D MA P

Q1 2018 Q2 2018 Q3 2018 Q4 2018

• 2000 m diamond

drilling program

• 20,000 line km

airborne geophysics

• 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

Testing Design Execution Production

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S U C C E S S F A C T O R S

STRONG ECONOMIC FUNDAMENTALS

• GROWING DEMAN D OUTST RIPPING LIMITE D GLOBAL

SUPPLY OF HIGH-GRADE MANGANESE

• MANGANESE

AN D COBALT ARE CR ITICAL FOR A GROWING BATTERY INDUSTRY

• RAPIDLY INCREA SING DE MAND DRIVEN BY E LECTRIC

VE HIC LES, RESIDENT IAL ENE RGY STORAGE SY STEMS, AND GRID ENERGY-STORAGE FARMS

• SIGNS OF T HE B EGINN ING OF A C OMMODIT IES SU PER

CYCLE

• MANGANESE BASE D BATTERY C HE MISTRY IS U SE D IN

TESLA’ S POWE R WALL, NISSAN LEAF, CHEVY VOLT, MOST POWE R TOOLS, AND ALMOST ALL HEALT HCARE APPLICATIONS AMONGST OTHERS

• COBALT IS AT RISK OF SEVERE SHORTAGE WIT HIN FEW

YEARS, GIVING MANGANE SE BA SE D C HEMISTRY STRONGER POTENTIAL FOR GROWTH

• MANGANESE

BASE D BATTE RIE S HAVE SU PER IOR THER MAL STABILITY COMPAR ED T O OT HER BATTERY CHEMISTRIES STRONG INVESTMENT FUNDAMENTALS

• 88-100%

INT EREST IN 8, 135 SQUARE KILOMETER S CONTIGUOUS LAND PACKAGE

• UNDER LAIN BY TRANSVAAL SU PER -GROUP, HOST TO 75%

OF WORLD’S MANGANESE RESOURCES

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IDENT IFIED PROSPECT S THAT CAN BE DEVE LOPE D INDEPENDENTLY

• HIGH GRADE, UP TO 73% MNO
• STABLE

OXIDISE D STATE AND SHALLOW DE POSITION RESU LTING IN LOW MINING, PROCE SSING, AN D REFINING COSTS

• STRONG MANAGEMENT AND TECHNICAL TEAMS
• PROXIMITY TO GOOD IN FRASTR UCTURE – ROADS AND

RAIL SYSTEMS, WATER, AND POWER

• COST EFFECTIVE ACCESS TO 5 SEA PORTS
• FAVOURABLE MINING JURISDICTION WIT H LOW TAXE S

AND NO RESTRICTIVE REGULATIONS

• MULT IPLE

OFF-TA KE OPTION S 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 F A 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

C O R PO R A T E A D V I S O R T E C H N I C A L A D V I S O R PO L I T I C A L A D V I S O R 14

FOR THE FIRS T TIME SIN CE 2012, GLOBAL MN ORE DEMAND W AS L ARGER THAN S UPPL Y IN 2016, AS STOCKS OF ORE ACCUMULATED ALONG THE SUPPLY CHAIN HAVE BEEN CONSUMED. MN ORE S UPPLY CON TIN UED CON TRACTING FOR A S ECOND CONSECUTIVE YEAR, BY -7% TO 44.8 MILLION WET MT, AS MANY MINES CLOSED IN 2015 REMAINED IDLED IN 2016. DEMAND IN CREAS ED BY 2% IN 2016 TO 47 MIL LION W ET MT, ON RISIN G MN ALL OYS PRODUCTION, ESPECIALLY IN CHINA.

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

C O R PO R A T E A D V I S O R T E C H N I C A L A D V I S O R PO L I T I C A L A D V I S O R 15

• MANGANES E IS USED TO MAKE CATHODES FOR LITHIUM ION BATTERIES
• TES LA’S GIGAF ACTORY IN N EVADA IS S CHEDULED TO HAVE CAPACITY FOR UP TO 35 GIGAW ATT-HOURS

BATTERY PRODUCTION ANNUALLY BY 2018

• ELON MUSK SAYS THAT TESLA WILL ANNOUNCE 4 NEW GIGAFACTORIES BEFORE THE END OF 2017
• A RECEN T STUDY BY BLOOMBERG IN TELLIGEN CE REPORTS THAT CHIN ES E COMPAN IES ARE AT W ORK ON

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

• THE GLOBAL LITHIUM -ION BATTERY MARKET S IZE IS EXPECTED REACH US$ 46 .2 1 BIL L ION BY 202 2 , W ITH 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 )

• MAN GAN ES E IS REQUIRED IN TWO OF THE MOS T PROMIN ENT BATTERY CATHODE CHEMIS TRIES , N ICKEL -

MANGANES E-COBAL T (NMC) AND LITHIUM -MAN GAN ES E-OXIDE (LMO)

• MAN GAN ES E BAS ED BATTERY CATHODE CHEMISTRY IS THE S TRON GES T VIABL E AL TERN ATIVE TO COBAL T

BASED CATHODE CHEMIS TRY IN CASE OF COBALT SUPPLY DISRUPTION OR SHORTAGE

• GLOBAL

SHORTAGE OF HIGH GRADE MAN GAN ES E PROJ ECTS THAT CAN PROVIDE F EEDS TOCK 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 A T 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 V A N T A 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

SOUTHERNAFRICA WITH POLITICAL STABILITYAND TRANSPARENCY

• 26%

INVESTMENT ADVANTAGE COMPARED TO NEIGHBOURING COUNTRIES WITH ACTIVE BLACK ECONOMIC EMPOWERMENT (BEE) REGULATIONS

• GIYANI IS DEVELOPING THEONLYMANGANESEPROJECTINBOTSWANA
• GOVERNMENT ROYALTYIS 3% FORBASE METALS
• THERE IS NO IMPORTTAX ON MINING EQUIPMENTAND SPARES
• VARIABLEINCOMETAX 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 A T 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

GIYAN I’S KAN YE MAN GAN ES E PROJ ECT HAS AL L OF THE ATTRIBUTES OF A S UCCES S F UL MIN E

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

C O R PO R A T E A D V I S O R T E C H N I C A L A D V I S O R PO L I T I C A 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.

W A J D B O UB O U

• Mr. Wajd Boubou is an experienced

executive with a 26-year history of achievements in the Oil & Gas and Telecommunications industries. Skilled in Operations Management, People and Financial Management, Complex Contract Negotiations, and Business Strategy. Mr. Boubou held various leadership positions in multinational conglomerates, including Schlumberger and Cisco Systems. He holds a bachelor’s degree in Electrical Engineering and MBA from the University

• f

Strathclyde in the UK.

D A N C R A N D A L L

• Mr. Daniel Crandall is a Senior

Manager at Marrelli Support Services Inc. possessing

• ver 10

years of experience working with public companies. He 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

• f

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 T O R PR 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

• f

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 of Broadway Gold Mining Ltd. as well as a Director with Canoe Mining Ventures Corp. Mr. Parnham delivers maximum shareholder value through extensive experience in corporate governance, 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 UG E N E L E E

• Mr. Lee is a mining finance

professional with experience in capital markets, financial reporting, risk management, internal controls and 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 PE T E R S E N

• Mr. Petersen is a lawyer, a CPA

and global thought leader

• n

energy and sustainability issues. He currently serves as Executive VP of ePower Engine Systems.

S C O T T B R E A R D

Mr. Breard is a marketing professional with significant experience in start-ups and rebranding. He has consulted for many Fortune 500 companies.

D I R E C T O R D I R E C T O R D I R E C T O R

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MA N A G EMEN T & A D VIS O R Y B O A R D

A R N O B R A N D

Arno Brand has been working in resource valuation, commodity brokering and resource development in Africa for 10 years. Arno has experience in diamonds, iron

• re,

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

D R . B E N N Y O T I M

Dr. Benny Otim has extensive experience in education, diplomacy, conflict resolutions and humanitarian

• efforts. He recently retired from the

UN after 23 years. Benny is a founder and director

• f

two companies engaged in mining and telecommunications in Africa.

PR O J E C T M A N A G E R PO L I T I C A 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 T A L L UR 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 out in NI 43-101, and is responsible for the technical information provided by Giyani Metals Corp.. Mr. Moss has a Ph.D. Geology from the University of Toronto.

Q UA L I F I E D PE 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 $26.17 million Symbol Share Price* Basic Shares Warrants Options FD Shares Market Capitalization $0.32 81,779,628 5,531,541 4,900,000 92,211,169

*share price as of February12, 2018

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

G E RMANY :KT 9

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

C O R PO R A T E A D V I S O R T E C H N I C A L A D V I S O R PO L I T I C A 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

C O R PO R A T E A D V I S O R T E C H N I C A L A D V I S O R PO L I T I C A L A D V I S O R 29

HIGH GRADE SOURCES CAN REPLACE LOW GRADE FEED STOCK

29

B A T 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 A T 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

61% 1%

4%

33%

MANGANESE COBALT NICKEL LITHIUM OTHER

LMO METAL COMPOSITION

19% 20% 20% 7% 33%

MANGANESE COBALT NICKEL LITHIUM OTHER

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B A T 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

207% 1060% 174% 383% 139% 210% 169% 135% 215% 214% 1060% 1060% 215% 136% 65% 3% 61% 42% 59% 66% 61% 59% 56% 69% 3% 3% 61% 56%

0% 200% 400% 600% 800% 1000% 1200% Aluminium Cobalt Copper Lead Nickel Silver Steel Zinc Chromium Indium Lithium Manganese Molybdenum Neodymium Base Metals Rare Earth Metals

Total Demand

• f

Metals Through 2050 (as percentage change from 6 Degree Scenario)

2 Degree 4 Degree

Source: WB Analysis Note: Values are derived from mean value

• f

‘metal per MW’ demand

MANGANESE ORE DEMAND NOVEMBER 2017

SUPPLY CONTRACTED IN NOVEMBER TO 1.6 MILLION MT (Mn UNITS), OFF BY 18% MoM AND UP BY 13% YoY. YEAR-TO-DATE OUTPUT WAS 25% HIGHER THAN IN THE FIRST 11 MONTHS OF 2016. OUTPUT DROPPED IN NOVEMBER IN SOUTH AFRICA, GABON, AND IVORY COAST.

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