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Endomines AB (publ) Disclaimer Exploring the true potential of the - - PowerPoint PPT Presentation

Exploring the true potential of the Karelian Gold Line Endomines AB (publ) Disclaimer Exploring the true potential of the Karelian Gold Line Statements in this presentation which are not purely historical facts, including without limitation


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Endomines AB (publ)

Exploring the true potential of the Karelian Gold Line

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Disclaimer

Statements in this presentation which are not purely historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance are “forward-looking statements”. Investors are advised that by their nature as visual aids, presentations provide information in a summary form and are prepared as a presenter’s aid and support - not a standalone document. Please note that such forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in metal prices, unpredictable results

  • f

exploration activities, uncertainties inherent in the estimation

  • f

mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in Finland, and lack of appropriate funding, all of which could among other things, prevent any of the forward looking statements in this presentation from coming to fruition or lead to a delay in the development of mining operations.

Exploring the true potential of the Karelian Gold Line

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Endomines AB in a nutshell

Quoted on NASDAQ OMX Stockholm and OMX Helsinki Focus on gold production and exploration along the Karelian Gold Line - 40 km of gold prospective greenstone belt Production target 800-900 kg gold/year Long term development plans implemented Strong Social License to operate Pampalo Gold Mine project completed in December 2010 in line with the budget of €20 million Commercial production commenced in February 2011

3 Pampalo Karelian Gold Line

Helsinki

Ilmenite

Kivimaa Porkonen

Finland

Gold Industrial mineral Exploring the true potential of the Karelian Gold Line

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Discovered in 1990 and explored by Finnish Geological Survey Developed by Outokumpu 1995-1999 as an open pit and decline operation down to 280m underground Historical production 115,000 tons of ore 15.3 g/ton strong indication of high grade deposits in the area Efficient production plant: The initial design capacity of 230,000 tpa in 2011 was successfully upgraded in 2013 to > max 450,000 tpa High utilization rate 93% Personnel Significant local employer – 70 % locals 60 own staff and 30 contractors Strong social license and local support for operations Company applies Zero Harm-policy in all operations Good safety performance No environmental issues

Pampalo – in the Centre of the Karelian Gold Line

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Exploring the true potential of the Karelian Gold Line

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Pampalo Gold Mine

7 12-Jan-16

Mucking Ventilation raise drifting 14 Apr 2010

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Safety

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Exploring the true potential of the Karelian Gold Line

Number of days without accidents:

  • Endomines 392 days
  • Contractors 302 days
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Exploring the true potential of the Karelian Gold Line

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Environmental

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Pampalo underground: Production and Exploration

12 12-Jan-16 1999-2014 Stopes 2015 Stopes S-3 depth 755m 2,55m@4,3g/t S-1 depth 570m 6,8m @4,64 g/t

N S

Pampalo main lodes

  • pen at depth

S2

+500 +400 +600

Exploration plan 2015: Expand infill drilling between leves +535 and +570 Exploration drilling of depth extensions Exploration of Pampalo South

Historical mining 1995-1999: 115,000t @ 15.3 g/t (~1 600 kg Au) High gold content in small ”pockets” Hidden high- grade”pockets” potentially

Pampalo South – Exploration target area

Status November 2014

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Significantly increased mineral resources and reserves as a result of six years of committed exploration

Silver Lake Gold Mine, Australia

It has been done before !! Committed exploration led to success !!!

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Pampalo Ore Reserves and Mineral Resources development

(longitudinal projection)

D

+500 +600

T-134 T-153

+700

D

Planned decline extension

Year 2010 Year 2015

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Mined out T-916: 7m@12.2g/t Au Pampalo South:

  • New mneralization

zone discovered

S2 S D N-N2- CE-C S2 T-917: 17m@3.2g/t Au T-862: 6m@3.5g/t Au

+500 +600 +700

S3: 2.6m@4.3g/t Au

T-134 T-153

Pampalo Deeps Exploration project- longitudinal projection

(illustrative – not in scale)

Decline

?

T-972: 4m@6.0g/t Au T-960: 12m@3.8g/t Au

  • Incl. 1m@21.8g/t Au

T-934: 1m@63.2g/t Au and 9m@4.4g/t Au

  • Incl. 1m@21.9g/t Au

T-954: 7m@5.1g/t Au T-942: 6m@6.6g/t Au and 10m@6.9g/t Au T-968: 4m@11.2g/t Au

  • Incl. 1m@31.2g/t Au

T-976: 5m@3.0g/t Au T-942: 6m@10.6g/t Au T-977: 4m@6.8g/t Au T-943: 10m@3.5g/t Au T-932: 3m@6.5g/t Au T-985: 6.1m@9.6g/t Au T-921: 4m@4.5g/t Au And 1.1m@9.0g/t Au T-988: 1m@11.5g/t Au T-910: 6m@ 5.3g/t Au T-922: 4m@6.7g/t Au and 9m@5.6g/t Au T-1006: 10m@18.2g/t Au

  • Incl. 5m@33.7g/t Au

T-930: 2m@3.9g/t Au T-989: 3m@6.7g/t Au

  • Incl. 1m@14.8g/t Au

T-993: 2m@11.9g/t Au T-997: 3m@14.5g/t Au T-1004: 7m@3.4g/t Au T-1023: 6m@13.6g/t Au

  • Incl. 1m@50.9g/t Au

T-982: 2m@15.8g/t Au

  • Incl. 1m@29.6g/t Au

T-936: 3m@3.8g/t Au T-965: 2m@54.8g/t Au

  • incl. 1m@108g/t Au

T-1003: 10m@3.6g/t Au

  • Incl. 1m@25.9g/t Au

T-1007: 8m@7.2g/t Au T-994: 3m@8.0g/t Au T-1011: 4m@11.5g/t Au T-986: 1m@18.1g/t Au T-981: 5m@5.0g/t Au

  • Incl. 1m@15.1g/t Au
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Mined out D

+500 +600

T-134 T-153

Pampalo Ore Reserves and Mineral Resources

(longitudinal projection)

Decline Planned reserve (Endomines estimate) SRK resource (2016 mining 100 000t)

Planned stopes

+700 D-zone resource (Endomines estimate)

D

Planned exploration drift and core drilling Planned decline extension Planned core drilling Planned exchaust ventilation raise

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KARELIAN GOLD RUSH 2015

Individuals, Universities, Groups, Geoscientists, Mathematicians, Other professionals, Amateurs, etc.

IS A GLOBAL EXPLORATION CHALLENGE OPEN TO EVERYBODY:

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Reshaping of Endomines AB – selective mining and exploration

Hedge closed and converted to a long term loan Very promising exploration results form Pampalo Deeps Recent high grade discoveries will allow selective mining plan for 2016

Targeting only high grade areas Reduced personnel ~30+ person Reduced tonnage ~ 125 000 tpa Run the processing plant in campaigns 7-10 days /month

Focus on Pampalo Deeps area exploration and development

Target to increase resources and reserves Be prepared for expected gold price increase (2017-2018) Processing capacity 400 - 450 000 tpa

Karelian Gold Rush !

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Unique position for an exploration company to control mineral rights

  • f 40 km of coherent and prospective gold belt

Great potential for high grade deposits in the area Well operating mine and processing plant in the center of the belt Experienced and efficient organization Successful strategy of developing satellite mines Strong Social license to operate

Zero Harm HSE-policy Straightforward environmental permitting Good safety record Long term commitment to local community development

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Endomines Summary

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ONE TEAM – ONE GOAL

DETERMINED TO DELIVER

  • Responsibility
  • Respect and appreciation
  • Safety and Zero Harm principle
  • Cooperation
  • Continuous development
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Proposed rights issue - SEK 0.09/EUR 0.01 per share

  • Rights issue:

Shares

  • Structure:

One (1) existing share entitles to three (3) subscription rights. One (1) subscription right entitles to one (1) new share

  • Subscription price SEK:

SEK 0.09 per share

  • Subscription price EUR:

EUR 0.01 per share

  • Proceeds:

Gross SEK 70.8 m, fully subscribed

  • Secured level:

Rights issue is secured to 11.5 percent through subscription undertakings

  • Dilution

75 percent

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One (1) share on the record date, December 21, 2015 entitles to three (3) subscription rights

  • One (1)

subscription right entitles to subscription of

  • ne (1) new share

at SEK 0.09/ EUR 0.01

SEK 0.09/ EUR 0.01

  • The rights issue structure
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Indicative time schedule

Extraordinary General Meeting December 17, 2015 Record date December 21, 2015 Subscription period January 11-25, 2016 Trading in subscription rights January 11-19 , 2016 Board allocation meeting January 28 , 2016 Proceeds distributed to Endomines Week 5 , 2016

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