FROM GRASSROOTS TO PRODUCTION: NEAR TERM BAUXITE PROJECT IN GUINEA - - PowerPoint PPT Presentation

CORPORATE PRESENTATION Q2 2018

FROM GRASSROOTS TO PRODUCTION: NEAR TERM BAUXITE PROJECT IN GUINEA

COMPANY OVERVIEW

• Developing significant bauxite assets in the Republic
• f Guinea, West Africa
• Near term production from flagship Bel Air Project
• On target for first ore on ship Q3 2018
• Rare development story:
• Alufer discovered the deposit through maiden

drilling in 2011

• Completed detailed feasibility studies and

extensive social and environmental work

• Secured financing in 2016
• Commenced construction in 2017
• Upside potential from Bel Air North and Labe licences
• Focused on delivering a long term, sustainable mining
• peration and creating value for all stakeholders

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ALUFER IS ONE OF THE MOST ATTRACTIVE BAUXITE MINING COMPANIES GLOBALLY

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BEL AIR PROJECT - HIGHLIGHTS

Fully financed to first commercial production

• USD$205m financing package

secured from consortium of specialist investors

• RCF, AFC, Orion Mine Finance

Near term production

• 18.5 month construction

phase

• Progressing according to

schedule – FOOS expected in Q3 2018 High value product

• Well suited to low temp

refinery

• Low reactive silica - notable

advantage

• Low deleterious elements

Logistical advantage

• 15km from the coast
• Easily accessible from

Conakry by road

• Control of own logistics

Responsible, sustainable bauxite production

• Using global best practice

mining methods

• Adopting IFC and Equator

Principles > 15 year Life of mine

• 146mt JORC resource

identified

• Initial rate of 5.5mtpa
• Direct Shipping Ore – no

processing required

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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

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BAUXITE OVERVIEW

• Bauxite is the main commercial mineral from which aluminium oxide is extracted, which in turn is smelted

to form aluminium metal:

• The aluminium industry is no longer as integrated as it used to be - pricing power is shifting upstream to

alumina and bauxite producers

• However, aluminium demand drives alumina and bauxite growth - medium to long term demand is

still strong

• Iron ore and copper usage matured following rapid industrialisation in China and other emerging

markets - aluminium is still in its early stages

• Demand continues to grow in key sectors including transportation, construction, power, packaging

and consumer products

Bauxite mining Alumina refining Aluminium smelting Consumers and Fabrication 5t Bauxite Ore 2t Alumina 1t Aluminium

BAUXITE IS THE PRINCIPAL ORE OF ALUMINIUM

CONSTRUCTION FINANCING AND COMMENCEMENT

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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
• Resource Capital Funds
• The Africa Finance Corporation
• Orion Mine Finance
• Six Year Offtake Agreement with Orion Mine Finance
• Working with Alufer to market the bauxite product
• Construction commenced in January 2017 and the project was
• fficially opened by President Alpha Conde on the 3rd February 2017.

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PROJECT OVERVIEW - OPERATIONAL SUMMARY

Stage 2: Short Haul

• Material will then be

transported via truck from the pits to the export facility at the coast

• Low opex, minimal re-

handling, high efficiency

• Alufer have control of

dedicated logistics facilities

SIMPLE LOGISTICS SET-UP: MINING - SHORT HAUL - CAUSEWAY CONVEYORS - TRANSHIPMENT

Stage 1: Mining

• DSO material will be

mined from a minimum of 2 pits at a time

• Open cast, strip

mining will use surface miners

• Minimises loss and

dilution

• Enables ongoing

rehabilitation during LOM Stage 4: Shipping

• Transhipment

handled via self- propelled barges and transhipment vessel (TSV)

• Ocean Going Vessels

loaded 32 km

• ffshore
• Optimal method for

bulk export

• Significant storage

capacity on TSV Stage 3: Export Facility

• Automated materials

handling set up

• Ore will be stockpiled

and handled via conveyor over a 1.2km rubble causeway and loaded onto barges

• Provides access from

shore to suitable water depth for 10,000 DWT barges

THE PROCESS HAS BEEN OPTIMISED FOR CAPEX, OPEX AND THE OPERATING ENVIRONMENT

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SOCIAL AND ENVIRONMENTAL

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

IFC Performance Standards and meet Equator Principles

• 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 plan
• A Critical Habitat review, including Biodiversity action and

management plans

• The project was awarded the Environmental Certificate of Conformity

from the Government of Guinea in June 2013 and this has been renewed annually

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

develop local enterprise initiatives and promote local supply ALUFER IS COMMITTED TO PROMOTING & DELIVERING SUSTAINABLE DEVELOPMENT

STAKEHOLDER ENGAGEMENT IS A CORE FOCUS

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SUSTAINABLE INITIATIVES

Education:

• Building of schoolrooms and teacher accommodation

Water:

• Installation and repair of wells to ensure potable supply

Health

• Building of health posts and provision of equipment
• Raising awareness and education on malaria, HIV / AIDS, sanitation

Local Business

• Training, assistance and support of local enterprise (such as local car

wash facility) Livelihood

• Set up of food cropping projects to provide high value produce

(eggplant, cassava, chilli) for the community and site Rehabilitation

• Planting of seedlings and creation of nurseries for re-vegetation of

the mine and camp site Solar

• Generation of power for domestic and public lighting

A NUMBER OF COMMUNITY DEVELOPMENT PROGRAMMES ARE UNDERWAY THAT WILL HAVE LONG TERM BENEFITS

PROJECT PROGRESS: CAUSEWAY, BERTH AND EXPORT FACILITY

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PROJECT PROGRESS: QUARRY, CAMP AND HAUL ROAD

APPENDICES

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
• n 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

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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%

LABE - 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
• Previously 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

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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.