Endomines AB (publ) AGM 20th April 2017 Disclaimer Exploring the - - PowerPoint PPT Presentation

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Endomines AB (publ) AGM 20th April 2017 Disclaimer Exploring the - - PowerPoint PPT Presentation

Exploring the true potential of the Karelian Gold Line Endomines AB (publ) AGM 20th April 2017 Disclaimer Exploring the true potential of the Karelian Gold Line Statements in this presentation which are not purely historical facts, including


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Endomines AB (publ)

AGM 20th April 2017

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 -looking . Investors are advised that by their nature as visual aids, presentations provide information in a summary form and are prepared as a 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 of exploration activities, uncertainties inherent in the estimation of 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 2017: 300-350 kg gold/year Long term development plans implemented Strong Social License to operate

3 Pampalo Karelian Gold Line

Helsinki

Ilmenite

Finland

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

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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 45 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

5 25-Apr-17

Mucking Ventilation raise drifting 14 Apr 2010

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Pampalo mining principle

Backfilling Raise Drifting Charging RC loading Long hole drilling

Ore 20 m

Diamond drill holes with assays

Cross section

Blasting rings

Horisontal pillar

Unconsolidated backfill

Cable bolt holes for ground support

CRF

Longitudinal projection

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Pampalo processing

Feeder Crushed ore stockpile Trucking Grinding mills Classification Gravimetric circuit Gravimetric concentrate 20-50 % Au Flotation concentrate ~4-6 000 t/a; 100-200 g/t Au

Coarse fraction Fines

Tailings Storage Facility

Mine Drainage Water

Crusher

No cyanide or excess strong acids used No harmful materials in tailings No Acid Mine Drainage (AMD) expected ~100 % water recirculation 4th Sept 2012

Flotation

7

Screen

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Exploring the true potential of the Karelian Gold Line

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Environmental

5 10 15 20 25 17.10.2012 17.12.2012 17.2.2013 17.4.2013 17.6.2013 17.8.2013 17.10.2013 17.12.2013 17.2.2014 17.4.2014 17.6.2014 17.8.2014 17.10.2014 17.12.2014 17.2.2015 17.4.2015 17.6.2015 17.8.2015 17.10.2015 17.12.2015 17.2.2016 17.4.2016 17.6.2016 17.8.2016

mg/l

Solids in the discharge water

S

  • lids

Limit 200 400 600 800 1000 1200 17.10.2012 17.12.2012 17.2.2013 17.4.2013 17.6.2013 17.8.2013 17.10.2013 17.12.2013 17.2.2014 17.4.2014 17.6.2014 17.8.2014 17.10.2014 17.12.2014 17.2.2015 17.4.2015 17.6.2015 17.8.2015 17.10.2015 17.12.2015 17.2.2016 17.4.2016 17.6.2016 17.8.2016

μg/l

Nickel in the discharge water

Ni-content Limit Potable water 2 4 6 8 10 12 17.10.2012 17.12.2012 17.2.2013 17.4.2013 17.6.2013 17.8.2013 17.10.2013 17.12.2013 17.2.2014 17.4.2014 17.6.2014 17.8.2014 17.10.2014 17.12.2014 17.2.2015 17.4.2015 17.6.2015 17.8.2015 17.10.2015 17.12.2015 17.2.2016 17.4.2016 17.6.2016 17.8.2016

Discharge water pH

pH Lower limit Upper limit Leväkasvun aiheuttama poikkeama 50 100 150 200 250 17.10.2012 17.12.2012 17.2.2013 17.4.2013 17.6.2013 17.8.2013 17.10.2013 17.12.2013 17.2.2014 17.4.2014 17.6.2014 17.8.2014 17.10.2014 17.12.2014 17.2.2015 17.4.2015 17.6.2015 17.8.2015 17.10.2015 17.12.2015 17.2.2016 17.4.2016 17.6.2016 17.8.2016

μg/l

Arsen in the discharge water

As content Limit Potable water

Zero Harm policy:

  • No accidents
  • No adverse

environmental incidents

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LTIFR 1/2017

9 10 20 30 40 50 60

Pampalo safety statistics - LTIFR

Industry avg. Endomines Contractors Total

LTFIR= accident number /1 000 000 working hours Goal: Zero by choice Zero by chance Zero is impossible Zero is a dream

Zero Harm policy:

  • No accidents
  • No adverse

environmental incidents

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PRODUCTION selective mining

10 25-Apr-17 Full Production Selective mining

Key production figures Q1 Q2 Q3 Q4 2015 Q1 Q2 Q3 Q4 2016 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1-Q4 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1-Q4 Q1/2017

Milled ore (tonnes)

76 089 85 738 90 143 83 926 335 986 35 317 37 303 36 104 42 193 150 917 38 810

Head grade (Au gram/tonne)

2,1 1,8 2 1,7 1,9 2,1 2,4 2,7 3,1 2,6 2,7

Gold recovery (%)

83,8 84,1 82,7 81,4 83 80,2 82,8 85,3 83,0 82,9 83,4

Hourly utilization (%)

82,8 91,5 93,3 80,2 87 35,3 37,7 34,0 43,5 37,6 41,3

Gold production (kg)

131,3 126,6 153,3 118,5 529,5 58,5 73,7 83,0 109,8 325,0 97,9

131,3 126,6 153,3 118,5 58,5 73,7 83,0 109,8 97,9 2,1 1,8 2,0 1,7 2,1 2,4 2,7 3,1 2,7 20 40 60 80 100 120 140 160 180 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5

Au kg Au g/t

Gold production (kg) Head grade (Au gram/tonne)

Full production Selective mining

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Cash Cost Benchmark to Kittilä Gold mine

Pampalo operating cost /tonne is lower when benchmarked against similar (much larger 10x) underground operation in the Nordic Region Pampalo Cash Cost is higher why: Cash Cost = OPEX / sold ounces Head grade is the key factor high grade-more ounces

11 25-Apr-17

71 50 40 56 53 59 51 73 57 69 57 56 41 39 46 50 59 50 50 45 58 71 66 74 50 51 50 75 79 66 80 67 75 66 69 77 71 70 73 81 86 75 77 75 72 80 72 81 73 83 10 20 30 40 50 60 70 80 90 100

OPEX / Eur milled tonn

Benchmark OPEX Eur/milled tonn

PAMPALO OPE X/ (EUR/tonne milled ore) KITTILÄ GOLD MINE (truck hoisting, Nordic region) OPEX/ (EUR/ tonne milled ore) Linear (PAM PALO OPEX/ (E UR/ tonne milled ore)) Linear (KITTILÄ GOLD MINE (truck hoisting, Nordic region) OPE X/ (EUR/tonne milled ore))

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Pampalo Ore Reserves and Mineral Resources development

(longitudinal projection)

Year 2010 Year 2017

+500 +600 +700

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UG Core Drilling (Inflill & Exploration)

13 25-Apr-17

South Exploration drilling 500m S-lens Definition/Infill drilling 2000m North / D-lens Exploration drilling 1000m Area 755-855 Exploration drilling 5100m 2017-2018 /Q2 Production area 655-755 Infill drilling 5700m

Areas to be drilled in 2017

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Surface Exploration

14 25-Apr-17 S1 S0 layering Model Earth/Ian Neilson interpretation AT/Mafic volc S1A: 43.1m @ 0.22 g/t Au F2 fold hinge target Model Earth

East Structure Exploration drilling 1000m (3-4 drill holes)

Section 5450, looking North

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Pampalo Near Mine Exploration Potential

15 25-Apr-17

Pampalo Underground Mine

Interpreted target Model Earth Pty Ltd/Australia Korpivaara Tonalite Pampalo NW Indicated resource 29 kt @ 2.5 g/t Au Pampalonlammit 2016 discovery Inferred resource 103 kt @ 1.8 g/t Au

F2 fold hinges

Pampalo East / Open Pit Ore reserve: 32 kt @ 1.3 g/t au Indicated resource 199 kt @ 1.8 g/t Au Inferred resource 62 kt @ 1.4 g/t Au

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Finansiella nyckeltal

16 25-Apr-17

Sammandrag av årets resultat

MSEK 2016 2015 +/-

EU (flotationskoncentrat)

88,9 122,5

  • 33,6

Norge (gravimetrisk guldkoncentrat)

12,2 28,5

  • 16,4

Intäkter från guldkoncentrat

101,1 151,0

  • 50,0

Effekt av realiserat resultat på guldprissäkring

0,0

  • 38,1

38,1

Summa nettoomsättning

101,1 113,0

  • 11,9

Övriga intäkter

1,0 0,5 0,5

Summa intäkter

102,1 113,5

  • 11,4

Resultat före avskrivningar mm

  • 9,2
  • 62,8

53,6

Avskrivningar och nedskrivningar

  • 95,4
  • 88,9
  • 6,6

Resultat från säkringsinstrument 1,5

  • 5,0

6,4

Rörelseresultat

  • 103,1
  • 156,6

53,5 Resultat efter skatt

  • 125,0
  • 165,0

39,9 January-december

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Why Endomines ?

Great exploration potential along the Karelian Gold Line Solid mining and processing operations Experienced personnel Social License to Operate

Zero Harm policy Safety Environmental

Stable shareholders with a positive long term view A company open for Merger & Acquisitions

17

Exploring the true potential of the

Data from Mineral Titles Division of the Western Australia Department of Mineral and Petroleum Resources.

Karelian Gold Line compared to Southern Cross belt

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Pampalon kultaharkko

Öppet Hus & Aktieägardag Fredagen den 19 maj 2017

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Valberedningen föreslår val av Michael Mattson till ny styrelseledamot

Michael Mattsson (f. 1973) Utbildning: Dipl. MSc inom finans från Handelshögskolan i Stockholm Övriga uppdrag: Styrelseledamot i Copperstone Resources AB. Innehav i Endomines AB: 2 000 aktier Erfarenhet: Professionell investerare och entreprenör (2013- Svenska Pannkakshuset AB, 2006-2010 Åre Skilodge AB), företagsöverlåtelser (M & A) under 1990-2000-talen på Enskilda Securities/Blackstone Group i New York, Enskilda Securities Corporate Finance i Stockholm samt Kaupthing Fonder, Investment Banking & Affärsutveckling i Stockholm Valberedningen ansett Michael Mattsson som oberoende i förhållande till bolaget och bolagsledningen respektive större aktieägare i bolaget enligt 4.4 och 4.5 i Bolagskoden

19 25-Apr-17

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Tillträdande ny verkställande direktör för Endomines AB

Saila Miettinen-Lähde (f. 1962) Utbildning: Civilingenjörsexamen från Tampere tekniska universitet Övriga uppdrag: Styrelseledamot i Outokumpu Oyj sedan 2015 Erfarenheter:

vice VD och ekonomidirektör för Talvivaara Mining under åren 2005-2015 ekonomidirektör för F-Secure, ett It-företag verksamt inom cybersäkerhet och noterat vid Nasdaq Helsinki

Saila tillträder sin nya befattning hos Endomines AB den 1 maj

20 25-Apr-17